UKTI Australia Webinar Presentation - Exporting to Australia


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Scott Strain, UKTI's Trade Director for Australasia was joined by Dianne Tipping, Chairman of Export Council of Australia to give hints and tips to British companies looking to export to Australia.

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  • Australia & New Zealand are different but familiar. We are culturally close, use the same language and have similar legal systems. Both NZ & Australians are well disposed to UK goods & services. Their economies are broadly doing well and post GFC their currencies are strong vs £sterling and which makes UK goods & services very affordable.
  • NZ is slightly larger than the UK but with a population smaller the Scotland. The main business centres are Auckland & Wellington in the north Island and Christchurch in the South. The primary sector makes up much of the NZ exports and broader economy. Australia is larger than Europe in terms of its land mass but with only a third of the population of the UK which is mostly located along the east and southern coasts. We think of Australia as homogenous but it is really a Federation of states that each have their own governments and regulations. It is important to bear this in mind when approaching the market. - both economies are open, growing, and are comparatively easy to enter.
  • - I love this slide. Many people underestimate the size of Australia. This slide sets it in context. Please remember that when planning your visit here. It takes 5 hours to fly from Perth to Sydney – the same from London to Moscow!
  • Trade & Investment between UK and Australia is going well. We are the second biggest investor in Australia and the second favourite destination (after the USA) for Australian overseas investments. 66% up on goods and 85% up on services
  • UKTI Australia Webinar Presentation - Exporting to Australia

    1. 1. Exporting To Australia Getting it right! Scott Strain Director for Trade at UKTI Australia & New ZealandUNCLASSIFIED
    2. 2. What we will be covering in today’s Webinar• A very brief overview of Australia & UK-Australia trade• What to expect• Ways to market• Typical distribution costs & quoting & getting paid• Preparing for success & visiting the market• Next steps and how UKTI can help• Overview of customs & importation – Diane Tipping• Q&A
    3. 3. What we will not be covering today• The various stages of exporting. If you are new to exporting go to• A sector by sector breakdown of the Australian economy. Go to and look for our “Doing Business in Australia & New Zealand” Webinar slides.
    4. 4. Why Australia? • You’ll feel at home immediately: – Over 1,000 UK companies and more Brits than in any other country – Very similar business, legal and regulatory culture • Best performing OECD country economically, with good growth prospects • Strong Australian & NZ dollar making UK goods and services more affordable • Closely linked to fast growing Asia-Pacific nations • Massive opportunities for UK companies in oil and gas, health, ports, infrastructure, ICT, education, low carbon, financial and business services • Free trade agreements with China, the ASEAN nations and SingaporeType your title and date here 00/00/0000 4UNCLASSIFIED
    5. 5. Australia & NZ - an economic snapshot NZ Australia UK Population 4.4 million 22.5 million 62 million Global GDP ranking 55th 13th 7th GDP growth est. 2012 2.3% 3% 0.6% GDP per capita ($US 2011) $36,648 $40,800 $36,600 Ease of doing business (World 3rd 15th 7th Bank 2011) Unemployment (Sept 2012) 6.5% 5.1% 8.1% Land mass – sq kms 263,310 7 692 000 242 000 000Type your title and date here 00/00/0000 5UNCLASSIFIED
    6. 6. Australia – A brief geographical overviewType your title and date here 00/00/0000 6UNCLASSIFIED
    7. 7. Australia- States & TerritoriesUNCLASSIFIED
    8. 8. Another perspective
    9. 9. Top 7 Cities Where the market is... Population in ThousandsUNCLASSIFIED
    10. 10. UK/Australia trade links• UK exports to Australia grew by over 60% from 2007 - 2011 (to more than £10 billion)• UK’s overall exports contracted first half of 2012, to Australia rose• 7th biggest market for services exports and 18th largest for goods• UK is 2nd biggest foreign direct investor in AustraliaType your title and date here 00/00/0000 10UNCLASSIFIED
    11. 11. Australia: what to expect• A sophisticated multicultural market• Pacific area - fast growing - self-sufficient• Regional vs. National factors• Traditional sources of supply have changed• New ways of doing business• E Commerce• GST UNCLASSIFIED
    12. 12. What to expect from Australian importers• Value for money over price• Cautious about changing suppliers• Australian products preferred but they are open to international goods & services• Go with your best price – avoid haggling too much• Expect familiarity and a direct approach• Rigid enforcement of standards and practices – get it right first time!
    13. 13. Import Channels & Distribution• Importers & Wholesalers: usually small & specialist. Few general importers,• Commission Agents/Fulfilment Houses: few and far between• Manufacturers & End users• Retailers: usually source locally & use importers for smaller orders• Internet retail: the fastest growing market
    14. 14. Ways into the MarketCombined Agent & Distributor Network U K F IR M State State D IS T R IB U T O R AGENT D IS T R IB U T O R END USER END USERS END USER
    15. 15. Ways into the MarketIndustrial ProductsThe Licensing Agreement U K F IR M A U S T R A L IA N F IR M - L IC E N C IN G A G R E E M E N T E X P O R T P O T E N T IA L ? END USER END USER END USER
    16. 16. Ways into the MarketThe Subsidiary U K F IR M A U S T R A L IA N S U B S ID IA R Y E X P O R T P O T E N T IA L END USER END USER END USER Approximately 2000 UK Subsidiaries in Australia
    17. 17. Typical Distribution Channel costs in Retail• Overseas buying agents/commission agents 3-6% FOB• Importers & Wholesalers selling volume consumer goods 40-80% on landed duty paid goods• Discount Department Stores 35-40% of the selling price• Department Stores 40-75% of the selling price• Small Retail 50-100% of the selling price• Supermarket Chains 15-35%
    18. 18. Quoting & Getting Paid• US dollar the most common currency• Most exporters expect Free On Board or Free Carrier quotations but;• Those importing commodities often prefer Cost & Freight terms• Most Australian importers take out their own insurance so don’t expect Cost Insurance and Freight or Cost Insurance Paid terms• Remember that any customs duties will be based upon the FOB price• Offer your best price, don’t haggle too much.• Letter of Credit common place• Remember to factor in delivery times to tour terms of payment
    19. 19. Key Elements for Success  Set medium / long term strategies  Set reasonable marketing plans and sales targets and review them regularly  Committed distributor - right for your product  Committed supplier  Complete openness - pricing / margins  Service is paramount  Get involved  Allow sufficient timeUNCLASSIFIED
    20. 20. Key Lessons from the Market Visit• Think Australian - NOT POM, sell to Australians for volume• Add value vs. local offering• Support distributor• Price-points (understand margins and currency)• Need to innovate• Create volume / increase rate of sale to win both trade and distributor support UNCLASSIFIED
    21. 21. How can UKTI help you? • Provide grants to help you research the market through our Export Market Research Scheme (EMRS) • Conduct market research & contact finding for you through our Overseas Market Information Service (OMIS) • Help you attend Exhibitions through our Tradeshow Access Programme (TAP) • Help you successfully visit the market as part of a Trade Mission through our Visit Scheme (MVS)Type your title and date here 00/00/0000 21UNCLASSIFIED
    22. 22. Next Steps • If you are interested in learning more about opportunities here then get in touch with your local UKTI International Trade Adviser. You can find your local ITA through our website • or contact myself at and I will do what I can to help. FreeDigitalPhotos.netType your title and date here 00/00/0000 22UNCLASSIFIED