Considerations and Doing Business in Australia
Australia is a significant producer of a wide variety of agricultural products and buying local is on the rise. There is a real focus on “Made/Grown in Australia” labelling and marketing so there therefore needs to be a strong unique selling points for imported products. Portion sizes are increasingly important too as consumers want quality over quantity and they expect packaging to be informative and environmentally responsible. There is also the need to offer innovative food products to break into what is a highly competitive retail food sector as most categories already have substantial market leaders.
Logistics and distribution are key factors due to the enormity of the country. The climatic and industrial environment varies as do market conditions, particularly between States. A good partner with national coverage is therefore vital in order to maximise sales. Many Australian companies are now attempting to provide a nationwide distribution network, either with interstate warehousing and distribution or by alliance with other distributors. There are also strict quarantine regulations with regard to fresh produce, meat and dairy products so it is key for all parties to understand the relevant procedures and requirements.
The commercial environment in Australia is regarded as exceptionally friendly and an attractive place to do business. Australians are open to giving new products and ideas a try. Apart from a very strict quarantine regime it offers few barriers to entry, a familiar legal and corporate framework as well as a sophisticated yet straightforward business culture. Exporting to Australia can also be a gateway to other markets in the Asia-Pacific region due to close trading links and free trade agreements.
This article was written by Jayne Hunt, our Bolst Global Associate based in Australia.
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