On 27 April, applications will open for the 2010 Governor of Victoria Export Awards (GOVEA).
To assist companies wishing to apply, DIIRD will be running two free EXPORT WORKSHOPS that will:
assist companies to prepare an award winning submission
enable exporters to use the awards application to review and update their export plan
provide consultations with experts on international marketing and government programs
provide networking opportunities with fellow exporters
The workshops will be held on 18 May (Dandenong) and 15 June (Bundoora). For more information, please contact Nicole Andrews on 9651 9845 or Collins Rex of the Australian Institute of Export on 9328 4814 (collinsrex@aiex.com.au)
The GOVEA program, has been running for over 30 years with the aim of:
Showcasing Victoria’s top exporters
Promoting Victorian companies as role models
Encouraging other Victorian businesses to strive for success in world markets
Developing community awareness of the economic importance to the State of exporting
Raising awareness in the public and private sectors of the Victorian Government’s interest and commitment to facilitating export activity within Victoria
The benefits for entering the awards include:
raising their profile in Australia and overseas
increasing business credibility
gaining access to resources that will help them to export even more successfully
increasing access to new and emerging markets
automatic elevation to finalist in the Australian Export Awards
improving workplace pride
The export awards have a number of categories to cater for different exporters including categories for
both small and large exporters
exporters in services or manufacturing
exporters located in regional areas
new exporters
We understand this year has been another tough one for exporters with high exchange rates and some markets only starting to emerge from the recession. Export dollars are therefore not the only measure in determining winners; we are looking for applicants who can demonstrate that they are continuing to actively pursue exports and are delivering innovative strategies to position themselves to capitalise on opportunities as the global situation improves.
For more information and application forms please see www.exportawards.gov.au or contact DIIRD on 9651 9845. Information brochures are available from the export team and will also be sent to each of the VBCs and VGBOs.
Applications close on 9 July. Please note that best endeavours will be made to check applications that are delivered earlier than 9 July to prevent disqualification due to incorrect category selection, information omissions etc.
Nicole Andrews Nicole Andrews
Project Officer, Export Programs
Industry - Export
Department of Innovation, Industry and Regional Development
p +61 3 9651 9845
f +61 3 9651 8044 nicole.andrews@iird.vic.gov.au
With the proliferation of global electronic communication, it is interesting to observe the level of take-up by small business of e-commerce… the buying and selling over the internet and through B2B connections.
Some recent data, and general observations, indicate the perhaps Australian businesses could and should be doing better in this space. For instance IbisWorld research indicates that less than 3% of total retail sales in Australia are made online, compared to 7% to 8% in the US and UK.
And according to Forrester Research, Australians spent some $23 billion on on-line goods in 2008, however a large chunk of this was spent offshore.
For some of our Asian neighbours , and certainly in the US and Europe, the internet represents a growing source of consumer purchases, so businesses need to think about an awareness, branding and sales strategy. Your overseas buyers want to find you 24/7 and properly constructed, the website is your after- hours receptionist/ salesperson.
So are we missing out? And certainly are our exporters really maximizing the sales potential of their websites to attract, hold and sell to overseas “visitors”?
Developing an appealing website for an overseas visitor/potential buyer is a good starting point. (There is also the opportunity to claim some of the expense of making your website export ready back under the Export Market Development Grants program)
As Michele Azzopardi, Director of Design Victoria points out “Websites are often the first port of call for overseas interest in Australian products and services. Your website could be the first chance to impress overseas buyers, and your last if it doesn’t stand out from the crowd. Good website design is integral to piquing interest in your company. Businesses that don’t have an in-house web designer should invest in engaging an external designer to maximise their online presence and export potential “
In reviewing a few reference sites that get your attention, Denton Corker Marshall (architecture) at www.dentoncorkermarshall.com , is a site that is very easy to navigate, highlights their offshore projects, and for enquiries the contacts at the company are clearly listed.
Also 21-19 Graphic at www.21-19.com ...you might not get past the game on the home page, but there is lots of interesting good stuff inside that this company has produced.
One of our favourites for international sales on-line is aussieBum at www.aussiebum.com. The use of video clips to sell an Australian image, and the text conversion to key international languages, make the site both interesting and accessible. The guys also actively market their customer base with new releases, and sell around 80% of their product via the net.
Food is another strong sector for export, and use of the internet. Luv a Duck have a good export market, and details of their quality controls for export, and their overseas distributors are included on their site www.luvaduck.com.au . Hot Rocks Dining offer a dining experience with a difference, starting with the home page where you can hear the steak sizzling! Their website includes details and video clips of how the experience works, recipes to try and also customer testimonials. They have established overseas markets which are listed on their site, www.hotrocks.com.au . (It also doesn’t hurt to display your export award achievements to build credibility with potential buyers!)
There are many more examples from around the country that have included a real international focus to their websites.
Another point to consider is ensuring your site comes up with a high, or front page ranking, in any search. Many of us just don’t go past the front page when looking at results from a Google or Bing search. So structuring the site for high search engine rankings, or buying add-words is another strategy.
Industry group websites are another source of referrals, providing links to their members sites and contact details. Austrade of course has the Australian Suppliers Directory listing over 1,000 Australian businesses ready to transact with an overseas party, easily accessible from the home page at www.austrade.gov.au. There is also a separate link for our food exporters at www.australianfood.net , encouraging a key and growing export industry sector.
Technology has certainly made the world a smaller place. And increasingly in our time-poor environment, technology will drive how businesses develop their contact and brand loyalty with buyers, how they sell, and how purchases are delivered. So perhaps now is the time to look at your website as the window to your business and ask the question...is it export ready?
-Peter Mace, General Manager, Australian Institute of Export
e-mail:petermace@aiex.com.au
web: www.aiex.com.au; www.export.org.au
Exports account for around 22% of our GDP; and our balance of trade, and our trade activities generally, are having an increasing influence on the lives of all Australians.
Historically it was the commodity providers in wheat, wool, gold and coal/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.
Things have certainly moved on and 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. The tyranny of distance has reduced, and around the world high tariff barriers have been falling. It is estimated that 1 in 5 jobs is now directly related to export.
With some 45% of Australians either born overseas, or having at least one parent who was, our interest and our knowledge of the globe has also expanded. Asia is now the destination of 68% of our merchandise trade. Inward tourism, education, and our services sectors have broadened the mix of where our export earnings derive. And without strong export earnings our currency falls, imports cost more, and either our foreign debt, or our quality of life will suffer…or both!
So it is important that all Australians become aware of the importance of Trade to our economy. Universities now are placing 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 the overseas students studying here will also take back a strong affiliation with Australia, which in turn can only assist with future opportunities for two-way 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 flows to our lives; it will define many of the future career paths and roles of today’s students.
So the message is for the community at large to understand the importance of trade flows on their lives, and through that understanding we are better placed to recognize and acknowledge the successes of our small and medium sized exporters. This will in turn encourage other businesses to emulate their success and an export culture is established.
- Peter Mace, General Manager, Australian Institute of Export
With the advent of on-line selling across borders, websites that can provide product information and pricing 24/7, and the busy pace of business, it can be tempting to try and open new markets through the available marketing medium.
This saves the cost and time of the long flight to a new country, the long waits at airports, the hassle of finding reasonable hotels and the time away from the domestic business.
But for serious exporters, it’s certainly worth the effort to make that trip and experience the market first hand. Apart from statistics that indicate that the likelihood of sales increases dramatically when you go there personally, you get to meet your buyer, or agent, or distributor. These are the people who will drive your sales success in that market, and you need to eyeball them. In many countries and certainly in Asia and the middle east, the relationship comes before the business.
Appreciating the depth of potential in a new market, the way product is promoted and labeled there, the taste of consumers for similar products, the key attributes that interest buyers (and these may not be the same ones as back home), and any issues in storing, distributing and supporting the product (or service) in the market, can only really be gleaned by seeing it first hand.
If you don’t have the time, but are serious about export, perhaps you need an experienced international sales rep to do the hard yards for you. And remember, through the Government’s EMDG scheme, 50c in the dollar of marketing expenses over $10,000 (and up to a $200,000 max) can be claimed.
So for a serious tilt at a new market, go for that visit and establish how big an opportunity it could be for your business expansion!
Peter Mace, General Manager, Australian institute of Export
In 2007 the New Zealand Government requested a review by the World Trade Organisation (“WTO”) concerning measures imposed by Australia on the importation of apples from New Zealand. The New Zealand Government contended that Australia breached the WTO Agreement on the Application of Sanitary and Phytosanitray Measures insofar as the trade measures imposed constituted discrimination between Members and were not scientifically justifiable.
Both the New Zealand and Australian Governments have confirmed the release of a confidential interim report into the findings of the WTO Panel. Whilst the Australian government has not confirmed the content of the report, it has been leaked in a New Zealand political newsletter, the Trans-Tasman, that it rejected the Australian defence to the ban. If the suggested outcome is accurate it would mean Australia is currently in breach of its free trade obligations. As a result it is likely Australia would be forced to significantly reduce the trade restrictions currently placed on New Zealand apples, or alternatively face WTO imposed sanctions.
Import Restrictions on New Zealand Apples
The import of apples from New Zealand into Australia was banned in 1921 amongst concern that the fruit would introduce the disease fire blight into Australia, however in more recent years imports have been allowed under strict quarantine conditions.
In March 2007 Biosecurity Australia, in response to applications from the New Zealand Government, determined that apples from New Zealand should be permitted entry into Australia subject to the Quarantine Act 1908 and the application of phytosanitary measures.
Interim Report – What Next?
The WTO dispute resolution process provides, after the release of the confidential interim report, both parties have the ability to request a review of the report. After the review is completed the final report is released first to the parties involved, and then three weeks later to all WTO members. If the report finds the disputed trade measure does breach a WTO agreement or obligation, it will make recommendations as to measures that can be undertaken to allow conformity with the rules.
Both sides can appeal the final report ruling, but only on matters of law. The WTO panel has indicated the final report is expected to be released sometime in May 2010.
Consequences of Finding
Aside from the potential consequences to the Australian domestic apple industry, should a ruling against the trade measures be made it could set a precedent that may be used to challenge the legality of bans and restrictions, on quarantine grounds, that Australia places on a wide range of goods.
The first formal round of TPP negotiations was held in Melbourne on 15-19 March 2010, with the participation of over 200 officials from Australia, the US, New Zealand, Chile, Singapore, Brunei, Peru and Vietnam. It was a productive first round that got the negotiations off to a strong start.
TPP officials exchanged views on a wide range of issues to be covered by the negotiation and explored new approaches to the obstacles facing businesses in the region, including in emerging sectors and growing areas of international trade such as services, e-commerce and green technology. They focussed on how to make doing business in the region faster, cheaper and easier, and considered in particular how to use the agreement to encourage the participation of small- and medium-sized business in trade.
Australian negotiators and their TPP counterparts also discussed how best to develop a framework for this high-quality, broad-based 21st century agreement so that it promotes cross-cutting objectives such as regional integration, regulatory coherence among the TPP partners, competitiveness of the TPP economies, transparency, and development.
TPP Parties agreed on a substantial forward work program including discussion papers on various issues that emerged during the week; new areas that TPP Parties may be able to incorporate in the agreement; and exchange of information on their respective laws, regulations and practices; as well as other matters.
Australian negotiators also discussed with other TPP Parties the goal of expanding the agreement to countries throughout the Asia-Pacific, including a process for consideration of additional countries. Australia continues to see the TPP as a possible pathway towards achieving the APEC goal of a Free Trade Area of the Asia-Pacific (FTAAP).
We would like to thank the Victorian Government and the APEC Study Centre for hosting a very successful welcome reception during the negotiations for the TPP delegations with Australian Government officials and representatives from Australian business, industry and the community.
The United States offered to host the next round of negotiations, scheduled for the week beginning 14 June 2010 (venue TBC). TPP Parties have tentatively scheduled further rounds in October and December 2010, with a view to making substantial progress by the end of 2011.
The Department of Foreign Affairs and Trade commenced comprehensive public consultations on the TPP in October 2008, prior to the Government’s decision to join the negotiations. Minister Crean tabled a document in Parliament on 26 November 2008 outlining views that emerged in the consultations on the costs and benefits of participation by Australia in the TPP, and views on priorities and objectives for the negotiations (this document can be found at: http://www.trademinister.gov.au/speeches/2008/tpp_priorities.html).
In the lead-up to the second round of TPP negotiations, officials will be continuing the consultation process to inform and refine Australia’s negotiating mandate going forward. We would welcome views on any issues which may be relevant to the negotiations.
We are particularly interested in views from stakeholders on the following issues:
- Financial Services
- Investor-State Dispute Settlement
- Ways to approach regulatory coherence in the TPP
- How to ensure SMEs are able to benefit from the TPP
For more information, or to provide submissions on the TPP, please email us at tpp@dfat.gov.au
Wholesale lender RESIMAC, has reached a distribution agreement for the Receivables Finance services of Coface Finance Australia, a subsidiary of the Coface group, a world leading provider of trade credit management services.
Receivables Finance improves cash flow for Australian businesses by providing instant funds against the value of outstanding invoices, incorporating the protection afforded by the Trade Credit Insurance services of Coface.
Allan Savins, COO of RESIMAC commented "We are delighted to be working with Coface on this new initiative. Not only will it give us the opportunity to expand our services offering in partnership with a market leading organisation, it also offers our third party intermediaries the opportunity to diversify and grow their revenue through auxiliary product offerings".
Norman Beetge, General Manager of Coface Finance Australia commented "The forging of this relationship between RESIMAC and Coface Finance Australia brings together the strengths of two great companies, namely the dynamic and comprehensive domestic distribution capability of RESIMAC and the product expertise and global reach of Coface with its strong financial backing". Coface is the only Factor able to finance businesses in 28 countries with its own and the largest international network, with one single point of negotiation, and with one single contract wording.
Christian Vollbehr, General and Country Manager of Coface in Australia said "we see a national opportunity to promote Coface’s receivables finance services at a crucial time as companies seek flexible and alternative solutions to traditional lending following the impact of the GFC".
RESIMAC will distribute this product through its services business Capel Court Financial Services which provides a number of key benefits to its brokers, including loan packaging, contact centre services, and access to a range of loan products from a variety of lenders. The addition of Coface’s Receivables Finance will widen Capel Court’s offering to its brokers, while providing valuable distribution for Coface.
Capel Court will begin distributing Coface products from 12 April 2010.
Trade agencies place little attention on transport, logistics or the supply chain when it comes to export efficiency. While there is a focus on what happens at the customer end, with assistance provided in the sourcing and appointment of distributors, the front or local end is largely left to exporters to sort out for themselves. Writes Ian Murray.
In my book, efficiency in managing logistics or the supply chain is a critical issue in determining export competitiveness, and I’m not just talking about perishables. It can well be argued that logistics is in fact a marketing strategy and can be used to deliver a competitive advantage, and not as some people will describe it: ‘another bloody cost’.
Those people who understand the importance of effective supply chains, use them intelligently to not only deliver a better bottom line, but to out-do the competition by building continuity of supply into the brand dynamics. And in the case of agribusiness products, delivering quality more often than not at a higher price.
I was talking to a supplier of asparagus to Japan. He was from south west New South Wales, in an area that presented some challenges from a rapid transportation viewpoint. When I asked him what his competitive advantage was he said, “first the product which meets all the specifications demanded by the Japanese consumer and second we deliver top quality”. And the quality, he said, is governed by the fact that “I can cut it on Tuesday and have it freshly on the plate in Tokyo on Friday night”. In other words, he focused on the two fundamentals: meeting product specification and managing the land and air freight task to build quality into the brand, resulting in satisfied customers and better margins.
Even further, a well managed supply chain can become a key driver for a whole industry. South Africa’s Capespan, for example, prides itself in being a specialised, world class leader in the marketing of fresh fruit internationally. What makes them really successful is their participation in managing the logistics task from farm gate to end user, in South Africa and between and within the markets they supply. Importantly their brands are critically linked to quality, and quality is driven by the supply chain. As a result they are also able to demand premium pricing and through strong branding get repeat purchase. Capespan is without doubt an excellent example of turning the freight task into an effective marketing strategy.
During the 70s and 80s, many major large international companies had production facilities in every far flung corner of the globe. They were without doubt inefficient, especially considering the capital cost of equipment required to undertake what was only moderate levels of production. Through effective management of the supply chain, these companies can now meet consumer demand worldwide, reduce costs and free up capital. They can do this because the freight component is seen as in integral part of the business, not just another cost.
Thanks to geography, it’s safe to say Australian exporters have more reason than most to focus on how effectively we move product from here to overseas markets. The way I see it, the first step is to start thinking about the freight task differently; more on the basis of how can to use it as an business advantage rather than simply giving into it as just another bloody cost. Moreover, overseas customers expect efficient continuous supply and the highest quality, so there really isn’t a choice.
* Ian Murray is Executive Director of the Australian Institute of Export.
Los Angeles Area Chamber of Commerce has launched eCertify, an automated, web-based Certificate of Origin processing service, to make life easier for hundreds of exporters and freight forwarders.
The innovative new service, provided by global trade software company eCertify, has already attracted more than 60 registrations, including exporters from Hawaii and San Diego as well as the Los Angeles area.
“Manual processing of Certificates of Origin limited the service to exporters in close proximity,” said eCertify President and Founder Carman Rossi. “Now the L.A. Chamber can provide services to exporters farther afield. eCertify saves courier costs, reduces turnaround time and is more efficient irrespective of the distance from the chamber.”
Certificates of Origin are mandatory to validate goods for export to most countries – they have been used in one form or another for more than a century, since the days when sailing ships moved goods around the globe.
eCertify is the first solution to remove the cumbersome manual processes of stamping and signing, and was endorsed by the American Chamber of Commerce Executives at the 2009 ACCE Convention in Raleigh, NC.
The L.A. Area Chamber of Commerce is the largest chamber of commerce in Southern California. It represents more than 750,000 employees in the region and strongly supports Global Trade initiatives.
“Our exporters are looking for ways to reduce time and speed up delivery,” said L.A. Area Chamber President and CEO Gary Toebben. “eCertify means fewer manual processes, fewer errors and speedier delivery through technology that takes minutes instead of hours and days. It gives exporters a competitive advantage.”
eCertify has been deployed globally using a web-based Software-as-a-Service (SaaS) model together with PayPal for immediate payment to streamline implementation and reduce administration time and cost.
Mr Rossi said that eCertify automates the final step for export documentation in the global supply chain.
“More than 20 U.S. Chambers have now registered to use eCertify,” he said. “It’s a lean, green solution that reduces paper usage, costs and time to market.”
Studies conducted by eCertify show that the solution could save US exporters direct costs of $500 million a year.
MEDIA CONTACTS:
Carman Rossi,
President and Founder,
eCertify
Cell: +1 917 803 7666 http://www.ecertify.com/
The Australian Institute of Export's FLEX Club hosted the third FLEX consultation in Sydney today- the roundtable consultation on: "The new marketing – making the most of modern communication tools" explored how Social Media can be used in an International Business Context.
What was apparent from this session, run by Social Media expert Nancy Georges from Magnolia Solutions was that with over 1.7 billion users of the internet worldwide, if you are exporting overseas you simply cannot afford to not be using Social Media- especially as it is FREE to use. How can exporters best use Social Media (facebook, twitter, linked in, you tube)?
BEST USE OF SOCIAL MEDIA FOR AUSTRALIAN BUSINESSES > INTERNATIONAL
as quoted by Nancy Georges, Magnolia Solutions at today's FLEx session
• Use Social Media to Connect with:
• Potential market
• Potential consumers
• Potential sales people / agents / distributors / supply chain
• Observe the Social Media activity in the market you are going to and identify the influencers – then ENGAGE them
• Content needs to be in-line with cultural tastes
• MUST update content regularly
• Link the sites to each other (Autoposting) as well as ensure the communication is integrated across all Social Media and your website
• Build database by acquiring names and email addresses
• Communicate with database regularly in unique and interesting ways – remember: NO CONSTANT SELLING!
• Customise newsletters with cultural elements while at the same time promoting your Australian-ness
• Highlight Made in Australia – this is a major strength – there is a lot of info / resources already in Social Media you can use and refer to.
• Run market research in the new market to make decisions moving forward
• Watch your competitors in the market and learn from their activity
• Capitalise on existing networks / sites eg Etsy
• Run a PR campaign online first and work out what gets the highest response
• Create your won Buzz using as much technology as you can – this will reassure your community you are up to date and encourage conversation
• Recruit staff in the new market from your community / fan base. The hard part is done, you have sold yourself to them they just have to sell themselves to you!!
• Remember: be genuine and authentic – users quickly spot and ‘out’ a fake
• Find the site that reflects your business culture and fits with your existing strategies and campaigns
• INTEGRATE the while campaign – this is vital with new markets – reinforce the brand and the message every chance you get
The next FLEx session will be on: "Insurance – why you can’t export without it" It is a fact of international business that things don’t always go according to plan. In this session we’ll explore the ins and outs of credit insurance and how you can protect your business. Find out why being covered makes good sense!
Attendees will all receive a copy of the 2009 Country Risk Handbook- Usual RRP: $75.00 Please note that FLEx sessions are for representatives of IMPORTING/ EXPORTING companies only. Places are limited to 15- so REGISTER EARLY!
In 2007 the New Zealand Government requested a review by the World Trade Organisation (“WTO”) concerning measures imposed by Australia on the importation of apples from New Zealand. The New Zealand Government contended that Australia breached the WTO Agreement on the Application of Sanitary and Phytosanitray Measures insofar as the trade measures imposed constituted discrimination between Members and were not scientifically justifiable. 
Los Angeles Area Chamber of Commerce has launched eCertify, an automated, web-based Certificate of Origin processing service, to make life easier for hundreds of exporters and freight forwarders.
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