Are you aiming to succeed in online export orders from the e-commerce boom? Currently Australia is a bit behind but a major global company is seeking to change all that, launching new services mid 2012 to help Australian brands get their share of the booming online retail business.
This survey aims to find out more about your exact issues and needs to finalize product development, please do take 5-10 minutes to complete this survey as it will directly feed into services for Australian small to medium exporters launched later this year.
There are 20 questions, many are multiple choice and your perspective is key to help unlock Australian online export success! CLICK HERE to commence the survey.
Australian Institute of Export - Wednesday, February 01, 2012
The situation of companies in the construction sector closely reflects the world, regional and national economic trends. At a time when the world economy is characterized by divergences between countries, with a recession in the euro zone, there are significant disparities between countries and subsectors. The construction sector was badly hit by the 2009 crisis, and a large number of payment incidents were still occurring in 2011.
Sensitivity to economic conditions specific to each market and subsector
The intensity of activity in the construction sector vary according to the impact of the crisis on the economy of the concerned country and according to sensitivity to economic conditionsthat varies from one subsector to another. Activity is strong in emerging markets that are making up for lagging development, and this is particularly favourable to certain subsectors, such as public works and private and institutional non-residential construction. Conversely, activity in developed markets is either moderate or stagnant, with particularly large disparities in the residential construction sector linked to differences in demographics, economic environments, credit terms, fiscal legislation, stocks of vacant housing, and prices.
This fragile and variable economic climate, combined with changes in orders form the public sector and regulations as well as fluctuations in both costs of materials and demand, explain the increase in payment incidents during the early months of the crisis in 2008 and again from October 2011 onwards.
Construction in Europe will depend on the austerity plans in 2012
After a three-year decline and a 17% drop in activity over the period, the European construction sector at last almost stabilized in 2011, particularly in the residential subsector, despite disparities between European countries that can be divided into three groups:
- The first group is the one where construction has suffered the most, and where the cleaning up will take some time. Ireland, Iceland, Spain, Denmark, the Netherlands, Greece and Central Europe have been affected by significant excesses in pricing and supply, and keep seeing a large number of payment incidents.
- The second group, United Kingdom, France, Belgium and Italy, has suffered less from the crisis and business even bounced back in 2010. Despite this, a new decline has set in due to the persistence of excessively high prices. Payment incidents are still widespread, particularly in the UK where the number of corporate bankruptcies is the most significant.
In France, companies face tough competition and fight to win contracts even if this means sometimes tightening their margins while taking into account price increases for raw materials. There were fewer bankruptcies in the first quarter of 2011 than in the first quarter of 2010, although the number remains much higher than before the crisis.
- The third group is made up of European countries where the crisis has not affected the construction sector: Germany, Austria, Norway, Sweden, Finland and Poland. Bankruptcies are nevertheless higher than in other sectors, mainly affecting companies whose activity is regional and which work in a single sector.
For 2012, Coface forecasts a very modest advance in construction in Europe, if the upturn of the housing segment continues. The construction sector will, however, be affected by austerity plans. Public works and institutional building are expected to stagnate under the influence of budget restrictions. Construction of business and industrial premises is likely to be affected by economic uncertainties.
North America: large disparity between the US and Canada
In the United States, falling prices combined with rising costs have weakened the entire sector. Investment in construction fell by 2% in the first 11 months of 2011. Although the decline affects most subsectors, the new building segment has been especially weakened. Non-residential construction also continues to suffer due to budget difficulties of the States and Cities. In Canada, the recovery that began in early 2010 explains the low level of payment incidents recorded by Coface. A sharp slowdown is nevertheless expected in the housing segment in 2012 following the introduction of more stringent credit access conditions.
Asia-Pacific: upturn in activity
Construction in the Asia-Pacific zone is relatively buoyant. Activity is expected to recover fairly well in 2012 in Japan and New Zealand, both affected by environmental disasters, in response to the need for reconstruction. In Australia, in the short term, economic uncertainties are likely to hinder the dynamism of the sector, but activity is expected to pick up in the medium term thanks to favourable demographics.
The case of China
Sales have fallen in China since 2010 following the steps taken by the authorities to cool down the property market, in particular by restricting bank loans to the sector. The drop in sales, price adjustments and increased stock levels are expected to slightly slow the activity in the private residential segment, but this will be partly offset by the launch of a new public social housing construction programme.
The building boom has seen world-class players emerge in China, not only in the construction companies but also as producers of raw materials and machinery manufacturers. These newcomers are more and more active in emerging zones, particularly in Africa and the Middle East.
About Coface The Coface Group, a worldwide leader in credit insurance, offers companies around the globe solutions for trade receivables management. In 2010 the Group posted a consolidated turnover of € 1.6 billion. 6,400 staff in 66 countries provide a local service worldwide. Each quarter, Coface publishes its assessments of country risk for 156 countries, based on its unique knowledge of companies’ payment behaviour and on the expertise of its 250 underwriters.
In France, Coface manages export public guarantees on behalf of the French state. Coface is a subsidiary of Natixis whose share capital (Tier 1) was € 16.8 billion end December 2010. www.coface.com
The City of Melbourne's Small Business Grants program provides financial assistance to small businesses currently located or intending to locate in the municipality. Within the four categories, the export entry grants are focused on helping City of Melbourne-based companies to enter and expand into new overseas markets. They support export-ready small businesses looking to enter the international market for the first time as well as experienced exporters to expand into new markets.
Businesses are eligible to apply for a grant on a dollar-for-dollar basis of up to $10,000 for export initiatives. Businesses can apply under two sub-categories: New exporter where export turnover is less than five per cent of total annual dollar turnover; and there is an export strategy and demonstrated export readiness / capability. Current exporter where there is demonstrated export experience in one or more overseas market and the operator seeks to explore export opportunities in a new market or launch a new product in an existing market.
The next ground of grants commences on Monday 13 February and closes Tuesday 13 March 2012 A general grants information session will be held on Monday 13 February at 5:30pm and will be held in the Supper Room, Level 3, Melbourne Town Hall, 90-120 Swanston Street. Additional lunchtime briefing sessions and business planning workshop will also take place.
Australian Institute of Export - Tuesday, January 31, 2012
International naval and business leaders will converge on Sydney this week for a key Asia Pacific maritime defence expo at which world-first NSW marine technology will be launched onto the global market, Deputy Premier and Minister for Trade and Investment Andrew Stoner said.
The Pacific 2012 International Maritime Exposition at Darling Harbour, from 31 January to 3 February, is an important biennial industry event for the commercial maritime and naval defence industries. The NSW Government is sponsoring the expo through NSW Trade & Investment.
"Pacific 2012 will provide unique opportunities to explore the latest developments in defence and maritime design, architecture, engineering and science," Mr Stoner said.
"It will attract key industry, defence and government decision-makers from Australia, Asia Pacific and the world, including high level naval representatives from over 30 countries.
"We will use the opportunity to promote NSW strengths and industrial capabilities, and promote NSW as a defence and maritime business and investment location.
"Our State offers Australia’s largest and most diverse economy with national leadership in manufacturing, logistics, electronics, ICT, business services and other areas relevant to Australian defence and maritime needs."
Mr Stoner said Pacific 2012 provides companies from the Sydney, Hunter and Shoalhaven regions with an opportunity to promote their innovative capabilities and products.
"One highlight will be the prototype launch of the world-first Unmanned Ocean Vessel (UOV) to be totally powered by renewable wind and solar energy together," Mr Stoner said.
"NSW companies Solar Sailor and Forgacs Engineering are combining their renewable technology and shipbuilding expertise to design, prototype, build and market this new vessel which is expected to be a global game-changer.
"It will provide national governments and other users with an unmanned vessel that can potentially spend an unlimited amount of time at sea using only wind and solar energy.
"This will offer opportunities in a range of potential areas - from coastal surveillance, national security and military applications to scientific, weather and oceanography monitoring."
There has been a lot of press regarding the impact of Australians purchasing on-line, particularly from overseas suppliers, and the erosion of the market for our local retailers.
Many of those retailers are now recognising that the change in buying habits is permanent and are getting on the bandwagon.
This acceptance of on-line sales has positive implications for sectors of the Australian market, especially for 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. Can you include 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, 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!
Peter Mace is General Manager of the Australian Institute of Export
Australian Institute of Export - Wednesday, January 25, 2012
A high proportion of Australian businesses, 82 percent, are not looking to register their assets under the new Personal Property Securities Reform (PPSR) coming into effect on 30 January.
In a recent report conducted by Coface Australia, Survey of Corporate Credit Risk Management in Australia, many Australian SMEs were still unaware of the implications to their business, despite significant changes to the way many companies will conduct their trading relationships.
The survey revealed 76 percent of respondents do not have a strategy in place to adapt their business to the changes. One of the key reasons for business operators being under prepared is due to a lack of education and awareness of the reforms. Some 74 percent said they were still unaware of the reforms, compared to 91 percent last year.
Chris Doubé, General Manager of Coface Australia said: “It’s alarming so many businesses are not yet prepared for this critical new piece of legislation, as the reforms will impact virtually all business operators in Australia.
“The PPSR will affect business documentation and procedures, providing a new level of security and certainty in business relationships. Australian companies should seek advice on registering their debtors to protect them against default,” he said.
The PPSR will bring together the different Commonwealth, State and Territory laws and registers governing personal property under one national system. The reforms will introduce the Personal Property Securities Act 2009 and the online PPS Register.
This is the third annual survey by Coface Australia on corporate credit risk management in Australia, and supports Coface’s commitment to developing the credit risk management market in Australia. The Survey of Corporate Credit Risk Management in Australia was conducted between 20-24 October 2011, with responses from 533 companies of all sizes, ages and industries. The survey aimed to provide a broad understanding of the status of payment experiences, payment trends and credit risk management practices among companies. The majority of respondents were private (39%) and sole traders (27%) from a wide range of industries including manufacturing, wholesale and retail, and finance services. In 2011, a greater number of larger companies (those with 100+ employees) took part in the survey, accounting for 34% of respondents compared to 4% last year. Public companies made up 16% of respondents compared to 2% in 2010.
The Coface Group, a worldwide leader in credit insurance, offers companies around the globe solutions for trade receivables management. In 2010 the Group posted a consolidated turnover of € 1.6 billion euros. 6,400 staff in 66 countries provide a local service worldwide. Each quarter, Coface publishes its assessments of country risk for 156 countries, based on its unique knowledge of companies’ payment behaviour and on the expertise of its 250 underwriters. In France, Coface manages export public guarantees on behalf of the French state.Coface is a subsidiary of Natixis whose share capital (Tier 1) was 16.8 billion Euros end December 2010.
Please find a link below to the Australian Institute of Export's submission to the Productivity Commission Inquiry into Australia's Export Credit Arrangements. Please click here to download a copy of the paper.
Australian Institute of Export - Monday, January 23, 2012
A few things have happened recently that have reminded me of a line we wrote in March 2011 “So here we sit, comfortable or are we just a tad too comfortable.” My view is more than likely the latter. Things in the ‘land of Oz’ are not quite as sound as we perhaps think they are. From an export perspective, apart from the mining sector, business has slowed and one cannot see that changing for some time. We also made the point that the low Euro, Pound and US Dollar were also impacting on the domestic business of our exporters and that’s when the Euro was at 70 odd cents.
The first thing that took me back to that article was reading the 2010-11 Austrade Annual Report and in particular the section on the performance of the Export Market Development Grants Scheme (EMDG). In the document it reports that the value of export sales generated in 2009/10 by grant recipients declined from $6.6 billion in 2008/9 to $5.5 billion. That’s a 16.7% drop. At the same time it reports that employees of grant recipients dropped from 131,575 to 82,465 or 37.3% which is astounding. The really sad part is that 25% of claims were paid to rural and regional business who have suffered enough from floods and almost anything else nature can throw at them. And that was only financial year 2009/10, it is far worse looking at the raw data for the year ended 2010/11,where claims are predicted to drop by 30% to less than 3,500 and equally new entrants to the scheme are down a similar amount, which simply means the future doesn’t look encouraging at all. One can only imagine what the 2011-12 Austrade Annual Report will say about export generated sales and declines in employment among EMDG recipients for the last financial year, it won’t be pretty. Why the Government is sitting back watching this happen amazes me.
The second thing that brought the article to mind was when the AIEx was preparing a submission to the Productivity Commission on the Export Finance Insurance Corporation (EFIC). We made the point in that submission that EFIC does an excellent job for SME exports but it is unfortunately limited in what it can do by government legislation. The sad thing is that part of the problem could have been resolved if legislation first developed by the current opposition had passed through Parliament. That legislation would have allowed EFIC to provide financial support to a wider range of transactions for Australia’s SME’s sector, including those establishing global supply and distribution chains. Why this Government has never put it through is anyone’s guess.
The other issue that reminded me of the March 2011 article related more to the value of foreign currencies and imports. I was talking to a senior manager of one of Australia’s largest ports. We were discussing imports and exports and the ratio of both and he said “you would not believe the growth in the amount of food being imported into Australia, it’s huge”. This was reinforced when I was handed an almost full size frozen pizza at Wynyard station recently, it was made in Germany. Now I’m the last person to talk of any form of protectionism but we need to be aware that while the resources boom is terrific for some, it’s not too terrific for many others.
The types of companies that are impacted by EMDG, EFIC and low foreign currencies issues are essentially SME’s. They represent a major slice of employment in this country and whether in export or not they are hurting. The exporters are catching it both ways particularly those who can gain little benefit from cheaper imported components and that includes education, many services, agriculture and tourism to name just a few. And when it comes to employment the Government may wish to note that EMDG recipient employment numbers alone are equal to the motor vehicle industry, a privileged sector that Governments like to prop up.
What the industry is looking for is leadership and some action. Let’s see some stimulus go the exporter’s way, remove the EMDG cap, lift the maximum grant to $200,000 and relax the rules on the export performance test. Let’s help finance our exports and push the EFIC legislation through, it will after all have bipartisan support and let’s see real action on going to market with an all of Government approach on missions, tenders and big business opportunities. The Brits, French Germans and American’s can do it, why can’t the Aussies? It just takes a bit of initiative, some hard work and a big dose of passion.
Ian Murray, Executive Director- Australian Institute of Export
Australian Institute of Export - Monday, January 23, 2012
Today marks the start of the Chinese Year of the Dragon. Traditionally, the Dragon is one of the luckiest signs in the Chinese Zodiac, so perhaps 2012 is the right time to consider exporting to China.
China is Australia’s largest two-way trading partner and export market. In 2010/11 the value of goods exported to China amounted to a whopping AUD $64.8 billion (DFAT, 2011), which is an increase of 39.4 per cent over the previous year. With such a significant volume of trade, it is important for Australian exporters to know how to protect their intellectual property (IP) in this vast market.
China’s counterfeit and piracy market is reportedly the biggest in the world with many manufacturers so skilled at copying items it can be difficult to distinguish fakes from genuine items. In fact, the so-called ‘fake markets’ have become major tourist attractions in large cities like Shanghai and Beijing.
How can you protect your IP in China?
If you are thinking about exporting to China, or using China as a manufacturing base for your products then you should be protecting your IP rights in China. IP Australia is responsible for administering registered IP rights in Australia only. In China, there are a number of agencies that are responsible for registering IP rights. The Chinese Trade Mark Office registers trade marks and the State Intellectual Property Office registers patents and designs.
You have two options if you wish to file a trade mark or patent application in China. You can file your application in China directly, either through a Chinese attorney or an Australian attorney who has a Chinese counterpart. Alternatively, you can file using an international agreement such as the Madrid Protocol for trade marks or the Patent Cooperation Treaty for patents. An Australian patent or trade mark attorney will be able to advise you on your best option.
Protect your trade marks (and their Chinese translations) immediately.
In Australia, we follow the ‘first-to-use’ rule, which generally gives the first person to use a trade mark the rights to that trade mark. In China, the first person to file a trade mark application will generally have priority over an earlier user of the mark (the ‘first-to-file’ rule). This means that even if you are already operating in China, you may have difficulty preventing someone else from registering your trade mark if you do not apply first.
Pharmaceutical giant Pfizer recently learned this lesson the hard way. When it released Viagra in China, Pfizer chose to market one Chinese translation but did not register a similar Chinese translation that was being widely used in the media. When an unrelated company, Guangzhou Wellman Corp, registered the popular translation, Pfizer became embroiled in an 11-year court battle to claim back the translated trade mark but ultimately lost. (Foley & Lardner 2010)
Be watchful of potential IP violators and respond swiftly.
Once you have secured your IP rights, consider developing an infringement strategy to protect yourself against the unauthorised use of your IP. It is not only important to protect yourself but also to make sure that you do not infringe on the IP rights of others.
Know what your rights are and be prepared to act if they are violated. If you find your IP has been infringed in China you have several options. The Administration Industry of Commerce has the power to investigate trade mark infringement and a decision will usually be reached quickly and relatively cheaply. This usually results in a fine for the infringer or the seizure of the counterfeit products. There are, however, disadvantages with the administrative system especially when dealing with repeat offenders.
Alternatively, you can use the judicial system and take your infringer to court. For a foreign company the court process can be lengthy, due to procedural requirements such as translation of documents. Damages awarded by Chinese courts in IP matters have been quite low in the past, although the situation is changing.
Chint Group, a Chinese manufacturer of low-voltage electronics, took action against the French company Schneider Electric for infringing its utility model patent in China. The court initially awarded Chint a record RMB 334 million in damages but the case ultimately settled for RMB 157 million (approximately AUD 24 million) (Foley & Lardner 2010). The case is an example of the greater value being placed on IP by both Chinese companies and the courts and how having a strong IP infringement strategy could minimise the risk of your IP being used without your permission.
Enforcement actions in China can be complex, as they can involve a number of different state and provincial administrative and regulatory agencies. It can be difficult to ascertain which court or other body has jurisdiction over an IP matter, so specialist legal advice before taking any steps is crucial. The Chinese government has also established numerous IP rights service centres around the country in an effort to make it easier to address enforcement issues.
Whatever action you do take, make sure any infringer knows you are serious about protecting your IP.
IP Australia has country specific information outlining issues exporters may face in different countries including China. For more information visit www.ipaustralia.gov.au.
Austrade has a network of offices in China and are able to assist Australian exporters and investors. Phone: 13 28 78, email: info@austrade.gov.au or visit www.austrade.gov.au
Australian Institute of Export - Wednesday, January 18, 2012
An upcoming International Public Policy Congress in South Africa will seek to engage academic delegates from South Africa and Australia alongside government and industry representatives in developing research proposals on issues related to national productivity.
The Congress is the second of its type held by public-policy think tank the Eidos Institute in Cape Town, South Africa, reflecting growing links between the Australian and South African Higher Education systems.
The South African National Development Plan (Vision 2030) places the creation of an expanding higher education sector that is able to “contribute to rising incomes, higher productivity and a shift to a more knowledge intensive economy” as central to the nations developmental aims.
Eidos Institute CEO Bruce Muirhead stated that the International Congress reflects the aim of the Eidos Institute and its university members to act as a bridge for policymakers, academics and industry representatives to access and better interpret knowledge existing in public policy research across the globe.
“In both South Africa and Australia, the complexity of public policy issues has significantly grown,” he said.
“Approaching these issues from a cross-national perspective, where open dialogue is facilitated between leading academics, policy-makers and government officials from both countries is an important step in finding answers to some of our shared problems”.
Workforce participation and productivity, on both sides of the Indian Ocean represents a key umbrella area for government and industry alike.
In South Africa, a mismatch in the supply and demand of skills in the labor market is causing a barrier to the nations social and economic development. In Australia, workforce participation is improving but productivity has been described as ‘stagnant’.
The South African University sector has most recently been in the news following a stampede which broke out at amongst gathered students waiting to enroll at The University of Johannesburg, which killed the mother of a prospective female student and left dozens more injured.
The South African government has pledged to expand access to universities and colleges as part of a drive to counter youth unemployment and address skills shortages in Africa’s largest economy as its system struggles to extend education opportunities once reserved solely for whites.
Working Group areas for discussion at the 2012 Eidos Institute Public Policy Congress include ICT and digital inclusion, learning futures, systems to address community violence and national heath.
The Congress will run over the course of two days, beginning the evening of the 8th of February and finishing February 10th.
As an Eidos Institute member university South African University the University of Pretoria leads a consortium of South African Universities involved in the Congress, including the University of the Western Cape and Durban University of Technology.
Leading academics will join a number of Australian university delegates at the Congress, which will also feature keynote addresses from University of Pretoria Vice Chancellor Professor Cheryl de la Rey, Eidos Institute CEO Bruce Muirhead and Australian High Commissioner to South Africa Ms Ann Harrap.
The increasing relevance and role of think tanks as umbrella institutions under which experts and leaders from different backgrounds and disciplines can develop and discuss policy related ideas, values and strategies is emerging as an innovative new feature on the global higher education landscape.
As a think tank free of ideology and government influence the Eidos Institute is one of a number of progressive Australian think tanks increasingly translating academic scholarship and applying it to push boundaries and test new solutions to public policy issues.
For more information on the International Public Policy Congress or the work of the Eidos Institute, please visit www.eidos.org.au
Eidos is seeking sponsorship to host this event - anyone requiring further details please contact Lynn Hammer at lynn@eidos.org.au or 07 3009 7900.
Construction in Europe will depend on the austerity plans in 2012