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.

1. Exporting To Australia
Getting it right!
Scott Strain
Director for Trade at UKTI Australia & New Zealand
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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. 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
Slideshare.net and look for our “Doing Business in Australia & New Zealand”
Webinar slides.

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 Singapore
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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
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6. Australia – A brief geographical overview
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7. Australia- States & Territories
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8. Another perspective

9. Top 7 Cities
Where the market is...
Population in Thousands
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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 Australia
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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
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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 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. 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
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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
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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)
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• Help you successfully visit the
market as part of a Trade Mission
through our Visit Scheme (MVS)
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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.
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