Many of those retailers are now recognising the change in buying habits is permanent and are getting on the bandwagon.

This acceptance of online sales has positive implications for sectors of the Australian market with a product that suits an international consumer market.  The costs of transport to main destinations abroad by parcel can be reasonably standardised; and after also ensuring payment is made up-front, and the entry documents (where required) meet the overseas customs requirements, it can be an exciting and lucrative addition to the domestic consumer market.

Of course 1) getting found by an overseas buyer and 2) capturing their interest so that they want to buy, are two key steps that precede the sale.  This involves refining the website so that it receives a high ranking on the main search engines, and for Google, perhaps paying for positioning.  Then, having been found, you have a very short time span to capture the attention, interest and desire of a potential buyer once they land on your site.

Structuring a website for domestic and overseas visitors requires some finessing.  Some companies set up separate sites in major markets so that they are perceived as a ‘local’ supplier.  Another check point is ensuring your IP is protected in your key target markets, and equally that you are not infringing someone else’s IP already registered in that market.

You need to succinctly outline your USP….why would someone in say Tokyo buy from you? Having text in Japanese may be a good start. Then outlining the originality/quality/uniqueness of your product in values a Japanese consumer would appreciate. Finally clear pricing and a simple delivery process will be the things that clinch the deal.  Many suppliers include delivery in their pricing, or if not, set out standard costs per region so the buyer knows exactly what they are up for.  Are there guarantees for delivery, returns, exchange (for clothing sizes) etc that take the risk away for the buyer?

There are some very successful Australian suppliers currently doing very well selling to the global consumer market.  To do it properly though requires focus:  monitoring hits, responding to questions and refreshing information so it is always current.  Your website does become the shop front for your business, open to the world 24/7.

So for all businesses with a consumer focus, you need to actively consider the potential overseas customer. 2012 might be the time to start, or your competitors could be taking your market!

Those nine countries, in alphabetical order are: Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, United States and Vietnam.  There are now other countries who wish to join this partnership, and who will be consulted as part of the on-going process.

While the will by all to complete this agreement remains to be seen, the TPP is a worthy ideal due to the scope it has taken on. Where other FTA’s might focus largely on tariff reduction, the TPP seeks to work at many of the “ behind the border” issues raised at APEC in Sydney in 2007, that impact on the free flow of trade and services between nations.

These include the issues of competition (a level playing field), cooperation and capacity building , cross-border services (including services supplied electronically), customs (faster and more predictable) e-commerce, environment, financial services, government procurement, intellectual property, investment, labour, legal issues, market access to goods, rules of origin, phytosanitory standards, technical barriers to trade, telecommunications, temporary entry, textiles & apparel and trade remedies.

If agreement can be reached and a TPP comes into effect, it will really be a step forward in the area of trade facilitation, and hopefully set the scene for more efficient, less costly, and more streamlined trading between the partners.

It’s a big task, so we wish them well and will watch the outcome with interest.

What does this all mean for Australia’s small-to-medium exporters? It means the government has a goal of trying to remove the distortions in international trade flow that detract from quality and price being the determinants of success in another market. Some of these distortions are created by high tariff barriers at the border, but increasingly they are the ‘behind the border’ issues like quotas, content rules or trade facilitation charges and requirements that effectively bar, or price-out products and services from certain countries.

In addition to tariff reductions, as a large services exporter we need to see our businesses given the same opportunity to compete and win business as both local providers and other international players. Ensuring that IP protection is honoured in these partner countries is another important consideration.

The government has teams led by the Department of Foreign Affairs and Trade (DFAT) working on the content of future FTAs to ensure Australian business is not disadvantaged by exclusions from the partner country, and to highlight any existing issues that restrict access by our exporters.

How do they know? Well to a large extent they rely on information given by Australian businesses currently exporting to or working in, or wishing to work in, the partner country. To this end consultation sessions are run in each state to seek the experiences and views of Australian business and those that support them. There is also the ability to forward submissions, by email, letter or fax, to the negotiating teams or via your DFAT State Manager. Addresses for the FTA teams can be found on the DFAT website pages on each FTA negotiation. These views are listened to and incorporated into discussions, and the size of your company is not the determinant.

So the important action for exporters, and particularly for the small-to-medium exporter without a full time advisor, is to have a look at the agreements under negotiation, and provide your legitimate feedback and views. This is the stage where your concerns will be taken into consideration, and perhaps influence a key part of the outcome for your company and others.

The existing agreements that we have in place are also reviewed at regular intervals to see how effectively they are working, so practical experiences should also be forwarded through to DFAT.

FTAs include a lot of detail, and there may be many exporters who are not aware of the potential benefits of the agreements we have in place for their business. For instance under the tariff reduction schedules for their particular product, there may be relative advantages in exporting under say the Australia-Thailand FTA vs the AANZ FTA (which also includes Thailand). The full details on the agreements and the tariff levels (and the origin certificates where required) can be found on the DFAT website.

We would encourage exporters then to take advantage of the FTAs in three ways:

1. Provide information on any issues affecting, or likely to affect your business under an FTA under negotiation.
2. Review existing agreements to ensure you are aware of benefits for your company.
3. Provide feedback on experiences (both good and bad) under existing agreements so that they work as effectively as possible.

With FTAs, the Government is listening, so have your say…

Here are a few thoughts on making your site more appealing to overseas visitors.

*      Does your site welcome buyers from overseas?

*      Do you have foreign language pages for your main non-English speaking markets?

*      Are international packaging, insurance and delivery costs included in your shopping cart?

*      Do you cater for international payment methods?

*      Is there a returns policy for international buyers?

*      Do you have set delivery timeframes for key countries?

*      Will you accept payment in a currency other than AUD? Does the site have a currency converter if not?

*      Do you have packaged specials for overseas visitors, so that the delivery costs can be apportioned over several items, or free shipping for a certain spend amount?

*      Do your product/service benefits align with values in other countries?

*      Can you supply paperwork that might be needed to clear customs at the buyer’s destination?

*      Do you include testimonials of satisfied overseas buyers?

*      Have you won awards, received industry recognition that can be included on your website?

*      Are there adequate pictures of products, so buyers clearly see what they are getting?

*      Is it worth establishing a domain name in key markets to assist local searching activity?

*      Do you provide samples?

A starting point would be to have a few friends assess your site as if they are overseas visitors and give you their feedback.

We also here have the spectre of falling retail sales, and the switch to online purchases due to a high AUD and big price variances when buying online.

The market is changing, and changing quickly. There are the emerging economies producing in low cost environments, environmental concerns, growth opportunities moving to new markets in Latin America and Asia, and perhaps Africa once some stability is established.

Historically if you produced a good quality item, found a market, then you had a business model that had some legs. The changes to domestic and international buying patterns and fast emergence of new competitors means that exporters really need to be on top of everything to stay in business. Being able to adapt and meet existing, and even future consumer needs will be an essential for any business. Just look at the market share of Nokia since the iphone and other smart phones hit the market.

We have been insulated by the minerals and mining sector, and escaped the GFC, but changes in consumer preferences, and new competitors will impact on all businesses. And that’s apart from a high AUD.

So to survive, a business has to be as expert and targeted in its marketing, packaging and customer service as it is in production quality.

Australian business has in the main been very good at adapting to changing circumstances. How is your business adapting to global changes? To share your experiences contact petermace@aiex.com.au.

What started as a handbag endeavour has escalated into an international phenomenon. Today the brand is also known for its statement jewellery, modern headpieces and online range of shoes.

The Sydney-based design studio is one of Australia leading labels and is stocked in over 800 stores globally. Cates says the brand is fast becoming an editor’s favourite, regularly appearing on the pages of fashion magazines, and is snapped up in stores by celebrities such as US singer Kelly Rowland.

Noticing that Urban Originals was featuring on blogs as far afield as Tokyo and Los Angeles prompted her to develop the brand’s own in-house blog, providing behind the scenes insights and reporting on trends and emerging fashion and arts talents, in order to spread the international buzz farther. She also applied for EMDG funding to help her attend trade shows in her target markets.

“The Export Markets Development Grants scheme has been wonderful for Urban Originals, “ she says. “It has assisted the company in showing at some of the world’s best fashion trade shows, including London Fashion Week, Bread and Butter in Berlin and Magic in Vegas.”

Cates used an export grants consultant which she says has made the EDMG application process reasonably smooth and credits this with having been instrumental in achieving the grant for Urban Originals.

“As a result of this financial assistance Urban Originals has been able to grow its International customer base to include big-name stores such as Fred Segal, Kitson, ASOS and Urban Outfitters.”

With the EDMG assistance international growth has been able to be achieved without negatively impacting the brand’s local growth. Now Cates is in discussions with major distributors in the US and is signing licensing deals for the States, Japan and the United Kingdom which she anticipates will double her turnover in the next year.

Without a realistic and detailed marketing plan the opportunity for business success in a new market may be severely hampered.

Costing a marketing plan

The marketing activities that should be included and how much will they cost will be first determined by the product or service itself, the entry strategy selected and the market growth that is planned.

Your marketing plan will also depend on whether the intended customers are retail clients, businesses or government buyers. Certainly the consumer market is the most scattered and the most bombarded by conflicting advertising messages, while business and government buyers tend to be more easily targeted. In new markets it may be about first establishing a brand identity.

With today’s technology there are also inexpensive options such as direct mail to a targeted market segment, focusing on specific activities such as trade fairs, attending large industry conferences or using social media and other on-line media to build your potential client list.

Once you have decided on the best market entry strategy, the marketing cost can be more readily estimated. Take trade shows as an example. As Gemma Hansen of Export Solutions says, “Trade shows are one of the most effective tools for marketing your products internationally, however, they can be costly. Taking account of booth hire, stand costs and travel to the show it could cost you in excess of $20,000 to exhibit. The Export Market Development Grant (EMDG) may assist with some of these costs, providing a rebate of up to 50 percent on your international marketing expenses.”

Many exporters use commercial agents in their target markets, who will charge an agreed commission on sales and may request a contribution towards marketing expenses to build product recognition. Again the costs can be calculated.

What other marketing costs may need to be considered?

• Perhaps you will require intellectual property protection in the target country. For example, registration of a brand name may be necessary.
• In some markets, such as the USA, you will require product liability insurance.
• Perhaps some tweaking of packaging, labelling, use- by dates, colours, designs and inclusion of local language instructions will be needed.

So, having established what needs to be done, and completed a cost estimate, the next step is finding a way to finance your marketing.

It might be time to think about entering the 49th Australian Export Awards.

This very successful program, now in its 49th year, has recognised and rewarded many Australian businesses over that time. Some large companies, some small family run businesses, all with a common desire to find sustainable overseas markets for their products and services.

Why enter you might say?

Well the entry process is FREE, and it represents a good opportunity for a business to take a brief “time out” to review its export strategy, its achievements and its future goals internationally. This is something every business should do at least annually and when combined with an Export Awards entry, kills the proverbial two birds.

It also represents a great opportunity to showcase the business, the industry sector and region where it is located. This is especially important in regional Australia to highlight to others what can be achieved.

Feedback over the years confirms that staff feel motivated to work for awarded enterprises. Having them attend one of the Award celebrations is a great way to say “thanks” for their contribution.

And finally, should the business be successful at State and Territory level, and possibly then at National level, it is a great way to tell the world you are a winner!  Previous winners have spoken of the added value to their business, and the additional leads that come their way. Overseas buyers want to deal with the best in the Industry!

Convinced yet?  So how do you enter?

It’s very straightforward.  Go to the website, choose your State or Territory, and start filling in the form.

Apart from all the benefits above, this is one marketing exercise that is FREE and can really add dollars to your overseas sales results. And with a high AUD, every exporting company needs more overseas sales!

However for many of our export and import competing industries, it is having a very different effect.

The appeal of Australia as a location for tertiary study remains, but many overseas families are voting with their wallets when it comes to evaluating the costs of both the course, and the local living costs in Australia these days. Education Institutions in the US are now openly canvassing students from our source markets, and the financial benefit is falling firmly towards the USA.

Likewise Australia has gone from being a relatively cost-effective travel destination to one of the most expensive. This is having an impact on incoming tourist numbers, and that flows through to the local businesses that service this segment; hotels, restaurants, local air, rail and bus companies, tourist sights and tourist towns. These service businesses are also large employers.

Manufacturers have also been impacted as they see their products priced way above the competition, or through trying to keep prices competitive seen their profit margin completely eliminated.

The mining industry is the big winner with both high demand and increasing prices working in their favour. Some agribusiness sectors have also benefited from higher commodity prices as the global demand for food, and food security issues, tip in Australia’s favour.

The strength of the mining industry is also sucking in people resources, leading to artificially high wages in that sector, and a hollowing out of labour availability in non-mining sectors.

At some point the pendulum will swing back, but when that occurs, and how big the swing may be is anyone’s guess.  Has your business been impacted by the rising dollar?

If so we would like to hear from you at petermace@aiex.com.au.

Historically it was the commodity providers in wheat, wool, gold, coal and iron ore who were the vanguard of our export performance, and it was more in the area of imported products where everyday Australian’s saw a direct impact: imported cars, electronics, fashion and TV programs.

Now our export products and services are very widely based, and are just as likely to be sourced from small family outfits as from large multinationals. Inbound tourism, education, and our services sectors have broadened the mix of where our export earnings derive.

Universities now place increasing emphasis on International Business and International Marketing courses, so that our graduates have a strong appreciation of world trends before heading into employment. We hope that overseas students studying here will also take back a strong affiliation with Australia, which in turn can only assist with future opportunities for trade.

To cement this trade and export culture, it is important for our media to continually update us on activities, events and particularly the success stories of our businesses trading overseas, and not just the big guys.

We all need to be aware of the growing importance of trade to our lives; it will define many of the future career paths and roles of today’s students.

Through that understanding, we are better placed to recognise and acknowledge the successes of our small and medium-sized exporters. This will in turn encourage other businesses to emulate their success to establish an export culture.

—Peter Mace is the general manager of the Australian Institute of Export