AIEx is interested to discover how exporters use online to drive international sales.

If you are an exporter and would like to take part, please visit the survey website.

A global consulting firm recently published results of its global economic snapshot. While it was interesting to read, it was also with no surprise that the BRIC nations are predicted to trump over USA, eurozone and Japan as the drivers of world stimulus into 2011. It was no more surprising that the major insights are that inflation will rise and exchange rate volatility will remain. Doesn’t really speak too much of anything new does it? Sounds more like a confirmatory survey.

As I perused the content, I wondered about the credibility and validity of the respondents; turns out the only information related to this is that the survey was online for four days in early December and attracted 2,076 respondents. But, there was nothing explaining who those respondents were and how they can validate the result. There was no outline of the questioning approach, it may have been biased in some way, shape or form to produce the confirmatory result the survey was covertly seeking to achieve so as to concur with popular opinion and, as such, gain enhanced perception with a particular audience. To help valid a survey result, it’s ideal to know who are the respondents, what roles do they serve in industry, and are they qualified to make opinion on the topic?

At a local level, we are exposed to numerous examples of small operators and industry associations that have plucked some consensus from their database or membership. But I question how much thought is given to whether the results are biased. Is the sample representative of a valid population? What average is used, and why are there no reference to the questions and analysis of the respondents to display substance? This helps build credible survey results.

While many surveys make for interesting and thought provoking reading, their benefit lies in their means to complement our individual thinking and not over-influence us one way or other. As decision makers in business, it’s imperative we question the credibility of surveys before hastily directing resources into action or initiating policy. I’m sure most of you do anyhow. Often, survey results may not be what they seem.

Interpreting the relevance is all part ‘n’ parcel for marketing decision makers because inevitably they will either be asked to support or be influential in guiding a strategic initiative. A little devil’s advocacy will assist to ensure the execution of proposed tactics remain intact and with integrity. So, next time you are presented with a survey result consider delving a bit deeper.

The government organisation AUSTRAC canvassed 33 companies engaged in overseas trade in the securities or derivatives sector for their responses to 14 ‘red flags’ or suspicious behaviours in business partners who might be involved in money laundering or terrorism financing.

Sixty percent of respondants said their organisation would identify 13 to 14 of the listed categories as suspicious, especially where there was doubt about a customer’s identity or a country subject to sanctions or a tax haven was involved.

Most said they would be reliant on staff interaction with the customer to provide this information and 61 percent reported encountering at least one potentially suspicious matter in the first six months of 2010.

The ‘red flags’ are, in order of suspicion:

Doubts about customer’s identity

Unusual questions about the companies anti money laundering and counter terrrorism funding policies

Customer from a country of interest

Customer matches a name on Australia’s Consolidated List of subjects of terrorist assset freezing controls

Transactions involving a country of interest

Customer can’t identify source of funds

Customer requests multiple trading accounts

Unexplained third party involvement

Unusual use of trading accounts

One-off patterns of trading

Lack of knowledge of securities and derivatives related to their order

An unusually complex corporate or trust structure

Frequent trading activity with minimal movement of funds

“While only 19 percent of businesses exported to Central and South America in the past 12 months, almost two-thirds of those surveyed expect to increase their orders to the region in the next year,” noted Gary Edstein, senior vice president for Oceania at DHL Express. He said the results show Australian exporters’ resilience and nimbleness in targeting emerging economies early to boost flagging profits.

Tim Harcourt, chief economist for Austrade adds that Brazil has joined Asia as a key engine of growth in the global economy, attracting the focus of Australian exporters and investors.

“Brazil has strong macroeconomic management under the administration of President Lula and approximately 20 million additional middle class Brazilians are expanding their purchasing power at home and abroad, making it an attractive destination for Australian exporters,” he said.

The annual survey found that exporters are optimistic for the future with 53 percent forecasting an increase in orders in thenext three months and 69 percent in the next 12 months, equaling the highest recorded confidence in the survey’s eight-year history. The last 12 months left exporters with lower than expected sales; only 38 percent of the 60 percent surveyed recorded an actual rise.

“In 2009, world trade contracted by the largest amount in 70 years and Australia was the only industrialised country to achieve positive export volumes; a remarkable achievement by Australian exporters,” said Harcourt.

These results show that exporters are looking beyond the recent global economic downturn and are just getting on with business. The exchange rate is now their biggest concern, although “exporters are learning to compete overseas even with a high dollar,” he said.

Exporters are still cautious, acknowledging that selling overseas still has its challenges.

“As more Australian companies look to expand their business into emerging markets, programs that provide financial and on the ground support for exporters are critical,” said Edstein.

The index also showed that for businesses without existing offshore operations, 26 percent planned to take the initial global step, eight percent in the next 12 months.

The GRi further revealed that finance remains one of the key barriers to global growth, with 43 percent of respondents indicating that it hindered expansion, with more than a quarter saying it was their top barrier, though this was comparatively better than 2009, when 58 percent nominated finance as a barrier.

The results indicate that global credit conditions have eased, although many businesses still use retained earnings to fund global growth.

More than 900 businesses responded to the survey, one of Australia’s most comprehensive insights into exporters’ experiences of going global, covering the drivers, destinations and barriers to international business.

For further analysis, see www.efic.gov.au/gri.

Seven from 10 businesses surveyed not only believed in the recovery but even more were planning to expand their businesses, with two-thirds looking to hire more staff.

Many were also preparing for a skills shortage with 40 percent using skilled visa applications, an increase on 30 percent in 2009. Employers also looked to upskilling existing workers rather than hiring new people, noted KPMG’s head of private enterprise Marco Di Sebastiano.

Last year’s results were comparatively dire, with just two percent of non-listed firms in Australia holding a positive economic view.

A survey of AMAG licensees conducted by YSC Online found that, during the period 2007/08 to 2008/09, the use of the famous green and gold logo grew substantially in export markets including Hong Kong/China (90 percent), Canada (84 percent) and the US (67 percent). This growth was strongly linked to promotions of the symbol undertaken by AMAG.

In the two years, the number of survey respondents exporting to Canada jumped by 45 percent. Similarly, the number of exporters to the US rose by 36 percent.

Respondents to the survey indicated they had experienced growth in sales as a result of using the logo. For instance, eight logo users selling to Hong Kong/China reported a turnover in those markets of more than $500,000 in 2008/09 compared to just one logo user reporting that level of turnover in 2006/07.

“The findings of the survey are exciting because they clearly show businesses are gaining a competitive advantage over their competitors when they market products as Australian,” says AMAG chief executive Ian Harrison. “Despite the challenging financial climate that we have been experiencing, the number of exporters using the logo has grown in the majority of surveyed markets and that growth has been strongest in markets where the campaign has undertaken promotions of the logo.”

As part of a three-year export project partly funded by the Federal Government, AMAG – a not-for-profit organisation – has been promoting the logo in a number of international markets and across several industries.

The campaign is currently coordinating the participation of Australian businesses in the upcoming Summer Fancy Food Show in New York, which is known as North America’s largest speciality food and beverage event. Licensees are eligible to apply to the campaign for financial assistance.

The logo and its licensees were recently supported at trade events Food and Hotel Asia 2010 in Singapore, Gulfood Show 2010 and Arab Health 2010, both in Dubai.

“The stylised kangaroo in the triangle symbol is a respected trademark, both here and abroad. It has attracted great exposure over its 24 years of helping promote Australian products and businesses that have invested in it as a marketing tool are clearly benefiting,” says Harrison.

“There has never been a better time than now to join the campaign and I strongly urge all businesses that currently tackle the overseas markets, or have plans to, to register to use the logo so that they can effectively brand their products as Australian, benefit from Australia’s good standing in most markets and create a point of difference over their competitors,” he adds.

The YSC Online survey found almost 700 AMAG licensees currently export to markets around the world, including Canada, Dubai/UAE, Hong Kong/China, India, Singapore, the UK and the US.

The top six categories of exported goods according to the survey are: healthcare and cosmetics; consumer products; building and construction; textiles, clothing and footwear; advanced manufacturing, machinery, oil and gas; and food and beverage.

Sales to Hong Kong/China, the US, Dubai/UAE and the UK have all improved while the only market where the number of exporters registered to use the logo declined was Thailand, by six percent.

To find out more information about how to use the logo and participate in AMAG’s export promotions, please visit www.australianmade.com.au or freecall 1800 350 520.

“As the world’s economic centre of gravity shifts from West to East, the economic strength of emerging markets will play an increasingly central role in the development of financial markets and international relations,” confirmed Stephen Green, group chairman of HSBC.

And although the USA is still an important market for a lot of emerging economies, “its relative importance is declining,” said Stephen King, HSBC’s chief economist. “We now expect emerging nations to see economic growth of six percent next year while the developed world will expand by only 1.8 percent.”

EMI data comes from more than 5,000 purchasing managers from companies in 13 countries. For more information in the quarterly release, see: www.hsbc.com/emergingmarketsindex.

Almost four in five privately-held businesses surveyed in Australia indicated they are significantly more optimistic about the domestic economy compared to 2009, when optimism levels sat at just 11 percent.  The average global optimism level has improved by 40 percent compared to 12 months ago.

Australian respondents also indicated the following:

• 95 percent expect their revenue in 2010 to increase or remain the same.
• 90 percent believe their profitability will hold steady or rise.
• 95 percent will not make any additional staff cuts, and plan to build their workforce in 2010.

“The past year has been a testament to the Australian entrepreneurial spirit,” said Tony Markwell, national head of Privately Held Business at Grant Thornton Australia. “Businesses have responded quickly and effectively to changing economic conditions by exploiting their size and flexibility as private entities.”

The barometer forms part of the 2010 Grant Thornton International Business Report, which gauges market sentiment from 7,400 business owners in 36 different economies.

For more information on the report, see www.internationalbusinessreport.com.

Transparency International released the index showing New Zealand and Denmark at the top, with Australia having the sixth highest score along with Canada and Iceland. The most corrupt on the list was war-torn, poverty-stricken African nation Somalia.

“The international community must find efficient ways to help war-torn countries to develop and sustain their own institutions,” said head of Transparency International Huguette Labelle, in response.

Index ranking come from surveys that measure the perceived levels of corruption in the public sectors of various countries.

View the full list at www.transparency.org