How to enter the Australian market
Posted by: Jenny | 2016-09-11 09:36:20
The average land area of Australians is one of the most extensive countries in the world. It has a variety of natural landscapes, including tropical rain forests, the desert known as the "red center" and so on. Both Australia and the United States own the most world natural heritage and the economic success is also the world's highly developed. Australia is the world's 12th largest economy with per capita GDP ranking fifth in the world and it is listed as the world's highest credit country by the Credit Suisse Group. Australia's military expenditure ranks the 13th in the world and its import and export trade is quite developed which involves many foreign trade field. I often contact the Australian customers, so I have a deep understanding for this.
Australia is a typical sparsely populated country and it is far away from other continents. It is never invaded by other countries, so it has less worry and added with the rich resources, the Australian people live leisurely. Australia work 5 days per week and 8 hours per day. All the time beside these 8 hours totally belong to people themselves. So if you do business with the Australian, you’d better not to disturb them outside these 8 hours unless it is very urgent. Australia is a mature market, though not as rich as Northern Europe and North America, its spending power is very strong. Australia and New Zealand are the typical rich with sparsely populated countries, but their industrial base is relatively poor.
Strategy 1: enter the Australian market cleverly.
The most effective way to enter the Australian market is to participate in local trade fairs. Due to the limited geography, market and population, the Australian exhibition is large in exhibition scale, the number of exhibitors and visitors. But the exhibition organizers are experienced with professional quality and can accurate position the exhibition, so the exhibition can provide the platform to show the products, release the information and understand the industry. Participate in these activities will help enterprises find the partners and expand more sales channels. In addition, before the Australian suppliers final signing, most of them will require to visit the factory, seeing the production process, quality management methods and the overall situation of the company. At the same time, the Australian buyers may not place a big order to the suppliers at the beginning, usually have 2-3 trial orders to confirm the supplier's supply capacity and product conditions. After confirm the supplier's level and the order goes well, the order quantity will reach the reasonable level and the order process will be simplified.
Strategy 2: Win with the price.
Australia's market mainly concentrates in a few large cities and the competition is fierce, therefore, the Australian importers are very sensitive to the price. Generally, to compete with other foreign companies, the foreign companies have to offer a better price than the competitors at least 5%, then the Australian buyers may consider change the supplier. In addition,the Australian buyers don't used to bargain. So if you quote to them, you should quote the actual price or near the actual price. So for the Australian suppliers' offer, you should not bargain too much. China CCPIT Representative Office in Australia had helped the domestic companies looking for copper suppliers but the Australian suppliers don't want to quote, saying that they don't have energy to bargain with the Chinese companies and then asked the China companies to tell the target price. If the price is reasonable, they will sign, or they won't spend time to bargain.
Strategy 3: honesty and trustworthiness, pay attention to quality.
The Australian businessmen follow the British traditional way,honesty and trustworthiness and stability. They can not bear the bad faith or fraud because of the face problem or friendship. And as Australian market is small, so the illegal things can be detected easily and eventually it will lead to the lose of all customers. So earlier these years, Chinese color TV manufacturer had entered the Australian market, but the product was not yet reached a high level quality. Australian consumers found problems in using the product, and the Chinese manufacture paid insufficient attention to it, so the Australian retailers united to resist the color television, causing the Australian importers no longer import the TV from this supplier. Chinese color TV was to exit the Australian market. Therefore, in the process of cooperation with the Australian supplier, we should remember to be honest and pay highly attention to quality.
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