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UKTI Australia Webinar Presentation - Exporting to Australia

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UK Trade & Investment Australia
UK Trade & Investment Australia

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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Exporting To Australia Getting it right! Scott Strain Director for Trade at UKTI Australia & New Zealand UNCLASSIFIED
What we will be covering in todays 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
What we will not be covering today The various stages of exporting. If you are new to exporting go to www.opentoexport.com A sector by sector breakdown of the Australian economy. Go to 際際滷share.net and look for our Doing Business in Australia & New Zealand Webinar slides.
Why Australia? Youll 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 Singapore Type your title and date here 00/00/0000 4 UNCLASSIFIED
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 7 692 000 242 000 000 Type your title and date here 00/00/0000 5 UNCLASSIFIED
Australia A brief geographical overview Type your title and date here 00/00/0000 6 UNCLASSIFIED
Australia- States & Territories UNCLASSIFIED
Another perspective
Top 7 Cities Where the market is... Population in Thousands UNCLASSIFIED
UK/Australia trade links UK exports to Australia grew by over 60% from 2007 - 2011 (to more than 贈10 billion) UKs 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 Australia Type your title and date here 00/00/0000 10 UNCLASSIFIED
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
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!
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
Ways into the Market Combined 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
Ways into the Market Industrial Products The 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
Ways into the Market The 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
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%
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 dont 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, dont haggle too much. Letter of Credit common place Remember to factor in delivery times to tour terms of payment
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 time UNCLASSIFIED
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
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) FreeDigitalPhotos.net 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 21 UNCLASSIFIED
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 www.ukti.gov.uk or contact myself at Scott.Strain@fco.gov.uk and I will do what I can to help. FreeDigitalPhotos.net Type your title and date here 00/00/0000 22 UNCLASSIFIED

More Related Content

UKTI Australia Webinar Presentation - Exporting to Australia

  • 1. Exporting To Australia Getting it right! Scott Strain Director for Trade at UKTI Australia & New Zealand UNCLASSIFIED
  • 2. What we will be covering in todays 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. What we will not be covering today The various stages of exporting. If you are new to exporting go to www.opentoexport.com A sector by sector breakdown of the Australian economy. Go to 際際滷share.net and look for our Doing Business in Australia & New Zealand Webinar slides.
  • 4. Why Australia? Youll 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 Singapore Type your title and date here 00/00/0000 4 UNCLASSIFIED
  • 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 7 692 000 242 000 000 Type your title and date here 00/00/0000 5 UNCLASSIFIED
  • 6. Australia A brief geographical overview Type your title and date here 00/00/0000 6 UNCLASSIFIED
  • 7. Australia- States & Territories UNCLASSIFIED
  • 9. Top 7 Cities Where the market is... Population in Thousands UNCLASSIFIED
  • 10. UK/Australia trade links UK exports to Australia grew by over 60% from 2007 - 2011 (to more than 贈10 billion) UKs 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 Australia Type your title and date here 00/00/0000 10 UNCLASSIFIED
  • 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. 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. 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. Ways into the Market Combined 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. Ways into the Market Industrial Products The 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. Ways into the Market The 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. 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. 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 dont 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, dont haggle too much. Letter of Credit common place Remember to factor in delivery times to tour terms of payment
  • 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 time UNCLASSIFIED
  • 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. 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) FreeDigitalPhotos.net 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 21 UNCLASSIFIED
  • 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 www.ukti.gov.uk or contact myself at Scott.Strain@fco.gov.uk and I will do what I can to help. FreeDigitalPhotos.net Type your title and date here 00/00/0000 22 UNCLASSIFIED

Editor's Notes

  • #5: 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 贈sterling and which makes UK goods & services very affordable.
  • #6: 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.
  • #7: - 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!
  • #11: 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