Doing Business in Australia Getting it right!Richard HarperBritish Consulate General Sydney

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Australia - Economic Indicators

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1.00 GBP =2.11374 AUD

£ STG vs $AUS Exchange Rate

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Demographic Statistics

Population: 23,798,865 (Projected population on April 24, 2015)

Largest city: Sydney, approx. 4.84 Mio in 2014

State Populations (Sep 2014): New South Wales 7,544,500Victoria 5,866,300Queensland 4,740,900Western Australia 2,589,100 South Australia 1,688,700 Tasmania 515,000Australian Cap. Ter. 387,100Northern Territory 246,300

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Population Groups

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Australia- States & Territories

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How big is Australia?

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Australia - by State

POPULATION IN MILLIONS

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Top 7 Cities

Population in Millions

Where the market is...

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GST & Tariff

GST• Similar in concept to UK VAT• Held at a rate of 10%• Narrow range of Zero Rated goods/services• Internet sales to individuals <$A 1000 are GST free (for now)• Most food does not have GST • Businesses with $A60k+ T/O must register• Protective Australian Customs tariff rates are generally low (with

some exceptions)

Ways into the MarketCombined Agent & Distributor Network

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DISTRIBUTO R

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DISTRIBUTO R

UK FIRMState State

Ways into the MarketIndustrial ProductsThe Licensing Agreement

EXPO RT PO TENTIAL ?

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AUSTRALIAN FIRM -LICENCING AG REEM ENT

UK FIRM

Ways into the MarketThe Subsidiary

EXPORT POTENTIAL

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AUSTRALIAN SUBSIDIAR Y

UK FIRM

Approximately 2000 UK Subsidiaries in Australia

Campaign Plan

• Do I understand the cost structure of my product from factory gate to the retail shelf?

• What sort of level of sales do I intend to achieve?

• Can my current manufacturing support this?• Is my Australian partner comfortable with this?

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Campaign Plan

You need to ask yourself a number of key questions:-

• Can I import my product into Australia?

• What are the prohibitions and restrictions? These might include understanding FSANZ, SAA, TGA, Tender lists and Australian Content regulations.

Campaign Plan

• Does my product resonate with Australians, or am I attempting to sell to a fragmented and relatively small expatriate market?

• What do I KNOW about the market and what do I just assume I know?

• What do I KNOW about the competition?

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Marketing Plan - Resources

Food & Drink

Am I aiming at the major supermarket groups or speciality retailers?

Do I know who they are and how to contact them? Do I understand how to engage with them? Do I understand what their terms and conditions are? Can I comply with them?

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Marketing Plan - Resources

Use UKTIspecial research on market

Fellow exportersnon competitors

Distributormarket statisticstrade interviewswrite plan

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Key Elements for Success

Set medium / long term strategiesSet reasonable marketing plans and sales targets and

review them regularlyCommitted distributor - right for your productCommitted supplierComplete openness - pricing / marginsService is paramountGet involvedAllow sufficient time

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Australians can be disconcertingly blunt!

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Do your homework!

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Key Lessons from the Market Visit

• Think Australian - NOT POM, understand the Australian perspective ‘Australian Conditions’ Add value vs. local offering

• Support local partner • Price-points (understand margins and currency)• Need to innovate

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Assessment / Reappraisal

• SWOT analysis• What were we selling (USPs)• What was the realistic potential for the brand ?• Could we export ‘relevant’ elements of the UK success?• Revise

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General points

• Expect cordial familiarity• Don’t “talk down” to Aussies• Don’t try to tell an Aussie he’s wrong!• Expect some “Pommie-baiting”• Don’t drink and drive• Don’t cross the road against the walk sign (unless you

want to discover first-hand the flaws in the public hospital system)

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How can UKTI help?

OMIS service:• Industry specific

sector report.• In-depth report with a

bespoke section tailored to a specific sector with contacts in core areas.

• Product Launch.• Commercial publicity.

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Security Sector in Australia 26

QUESTIONS?

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