Export to Australia
Australia is the world's 12th largest economy, with a GDP of US$1.5 trillion. It is the fourth largest economy in the Asia-Pacific region and grew at around 3% in both 2011-12 and 2012-13. Australia’s per-capita GDP of over US$68,000 is among the highest in the world. The economy has recorded 21 years of uninterrupted annual growth to 2013 and now enjoys the highest terms of trade in 140 years. Growth in commodity exports to Asia buoyed Australia through the GFC but adversely affected the manufacturing and services sectors because of the strong Australian dollar. The economic outlook for Australia is favorable, led by private investment in mining and commodity exports to emerging Asia, including China. Australia’s economic stability has been supported by prudent fiscal policy and structural reforms, with unemployment currently at 5.6% and government net debt only around 10% of GDP. Recent policy initiatives include a carbon tax and a mineral resources rent tax.
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The Australia-U.S. Free Trade Agreement (AUSFTA) came into effect in 2005 and lowered barriers for bilateral goods and services trade between the two countries, which has increased by 81% to US$64 billion in 2012.
The Australian financial system remained resilient throughout the GFC and Australian banks have rebounded. The four largest are now among the world’s eleven AA rated banks. The Australian stock market is currently the largest liquid stock market in the Asia-Pacific region (ex-Japan) and ranks sixth in the world, with a total market capitalization of US$1.4 trillion in March 2013. |
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Australia has a large services sector (over 70% of GDP), but is also a significant resources, energy and food exporter. Australia’s abundant and diverse resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium and renewable energy sources. A series of major investments, such as the US$52 billion Gorgon LNG project led by Chevron, will significantly expand the resources sector. Currently there is a vast investment pipeline of over A$400 billion. However, with the high dollar, trade exposed industries outside the resources and energy sector have come under great pressure.
We advise businesses examining the Australian market to pay attention to macro measures of opportunity, which give it more purchasing power relative to that in less- developed economies. The case for entering or expanding in the Australian market is stronger than the population of 23 million might suggest, particularly with the strong Australian dollar and high per capita incomes stimulating greater demand for international products and services. Australia’s relative market appeal remains convincing, with few barriers to entry, a familiar legal and corporate framework, sophisticated consumer and industrial sectors, and a straightforward, English-speaking business culture.
We believe 2014-15 will continue to show demand for international companies with innovative products and technologies in the Australian market. We invite you to contact us to help you analyse and execute your objectives for the Australian market.
Market Opportunities
The top performing export sectors to Australia during 2012 were: Machinery, Vehicles, Optical and Medical Instruments, Electrical Machinery, Pharmaceutical Products, Precious Stones, Plastics, and Chemical Products.
Successful market entry strategies for Australia have three common elements: understanding the market, selecting the optimal partner, and providing ongoing support to that partner in the market. A common language and familiar business framework may lead many companies proficient in business English to overlook Australia’s cultural and market differences. It is vital to first gain an understanding of the Australian context for a product or service, its competitors, standards, regulations, sales channels, and applications. Success in the Australian market often requires establishing a local sales presence. For many exporters this means appointing an agent or distributor. The bounds of that appointment are negotiated, and may include only certain states of Australia, the entire country, or New Zealand as well. An increasing number of businesses and investors see Australia as a secure platform from which to serve third markets in Asia. The distance from many of their trading partners and the sheer size of the Australian continent causes Australian firms to stress the importance of local support and service. WE recommend wherever possible companies should visit Australia both to meet prospective partners that Exportto Group introduce and demonstrate ongoing support, as this is the common practice of their competitors. Most of the criteria international businesses use to select agents or distributors are applicable to Australia, with expectations adjusted to the scale of the market given the population of 23 million. Performing due diligence is just as important as elsewhere in the world, and we offer numerous resources to assist in that work.
We advise businesses examining the Australian market to pay attention to macro measures of opportunity, which give it more purchasing power relative to that in less- developed economies. The case for entering or expanding in the Australian market is stronger than the population of 23 million might suggest, particularly with the strong Australian dollar and high per capita incomes stimulating greater demand for international products and services. Australia’s relative market appeal remains convincing, with few barriers to entry, a familiar legal and corporate framework, sophisticated consumer and industrial sectors, and a straightforward, English-speaking business culture.
We believe 2014-15 will continue to show demand for international companies with innovative products and technologies in the Australian market. We invite you to contact us to help you analyse and execute your objectives for the Australian market.
Market Opportunities
The top performing export sectors to Australia during 2012 were: Machinery, Vehicles, Optical and Medical Instruments, Electrical Machinery, Pharmaceutical Products, Precious Stones, Plastics, and Chemical Products.
Successful market entry strategies for Australia have three common elements: understanding the market, selecting the optimal partner, and providing ongoing support to that partner in the market. A common language and familiar business framework may lead many companies proficient in business English to overlook Australia’s cultural and market differences. It is vital to first gain an understanding of the Australian context for a product or service, its competitors, standards, regulations, sales channels, and applications. Success in the Australian market often requires establishing a local sales presence. For many exporters this means appointing an agent or distributor. The bounds of that appointment are negotiated, and may include only certain states of Australia, the entire country, or New Zealand as well. An increasing number of businesses and investors see Australia as a secure platform from which to serve third markets in Asia. The distance from many of their trading partners and the sheer size of the Australian continent causes Australian firms to stress the importance of local support and service. WE recommend wherever possible companies should visit Australia both to meet prospective partners that Exportto Group introduce and demonstrate ongoing support, as this is the common practice of their competitors. Most of the criteria international businesses use to select agents or distributors are applicable to Australia, with expectations adjusted to the scale of the market given the population of 23 million. Performing due diligence is just as important as elsewhere in the world, and we offer numerous resources to assist in that work.
