As 2011 draws to close, it is interesting to reflect on how the year shaped up for Australian Exporters.
Even though our balance of trade is looking positive, it has been the resources sector making the running on export growth.
With the high AUD and events such as the devastation in Japan, cyclones in Queensland and floods in Victoria, new problems emerging in Europe, and the US still trying to rebuild from the GFC, it has not been a great year for many exporters.
Thank heavens for Asia! The continuing growth to our north has kept many exporters in business and has had to make up for lower demand in established markets.
And for 2012? Well the signals are that the problems in Europe will persist and the USA is still some time away from recovery.
So again Asia and sectors in South America, plus new markets in Africa will form the vanguard for our 2012 opportunities. Perhaps a FTA with South Korea would be a great way to start the New Year, along with progress on the Trans Pacific Partnership.
It is difficult to predict what might happen with the AUD, but it will require strategies for exporters, so as to avoid rate volatility playing havoc with export pricing.
With the Government focused on returning to surplus, there won’t be much in the way of financial support for exporters outside the EMDG scheme.
Mining and Agriculture should be strong sectors for 2012, and for others it will be finding a niche and working hard at it. Australian Exporters have proven they are strong adapters, and they have a capacity to find opportunities in the most unlikely places. The big risk seems to be contagion from Europe impacting the domestic economy.
So with things potentially a bit slow domestically next year, export can still be the road to growth. It will require though a realistic assessment of the risk/reward of certain markets to ensure a positive return. As the (purported) old Chinese saying goes, “may you live in interesting times” and 2012 is certainly shaping up as interesting.
Peter Mace- General Manager of the Australian Institute of Export
NSW Premier Barry O’Farrell and Victorian Premier Ted Baillieu today agreed to jointly accelerate economy-boosting reforms between Australia’s two largest states, especially in the areas of energy efficiency and skills.
The Premiers today established the Interstate Reform Partnership between NSW and Victoria, to get on and achieve cost-saving and investment-attracting reforms quickly that otherwise could take years to accomplish through some national structures. Click here to download full media release >
Recent times have seen the Australian dollar continue its volatile run. During October, the Aussie dollar traded in a 13 cent range from .9389 to 1.0752. This represents a swing of almost 15% in only a month, a significant loss for an importer or exporter on the wrong side of this equation.
Such currency volatility is likely to continue in the near future. The potential for default in Greece and Italy and the possibility of another recession in the US in 2012 continues to hover ominously over global markets fueling significant currency fluctuations.
If your business is engaged in international trade, you need to closely monitor movements in the Australian dollar and the impact currency variations can have on your bottom line. So what steps can you take to protect your business?
1. Understand your currency exposure and the potential implications for your business:In order to achieve this, you need to determine the exchange rate that you can sell or buy goods and still remain profitable – your ‘budget rate’. The frequency and currency of payments will also affect your exposure.
2. Consider various foreign exchange risk management strategies:These include the various traditional hedging products as well as natural hedging. For example, Travelex Global Business Payments provides customers with unique holding balances to manage natural hedges. With this feature you can ‘net off’ your inbound payments with your outbound payments, reducing the risks associated with unfavourable currency movements and the costs of multiple foreign currency transactions.
3. Create and execute the plan:There is no single ‘best’ product that works for all. A customised plan needs to be developed for your business that takes into account your foreign exchange exposure and risk tolerance. Once the approach has been decided upon, all you have to do is put the plan into action.
4. Continuously monitor the plan:This will ensure the plan keeps pace with the needs of your business as it grows and evolves over time.
An effective currency risk mitigation strategy can help your business’ profitability over the longer term, allowing you to focus your energies on the day-to-day running of the businesses.
As a specialist foreign exchange provider, Travelex Global Business Payments has a long history of offering customised foreign exchange and international payment solutions to businesses. It also has an agreement with the Australian Government’s Export Finance and Insurance Corporation through which it can offer eligible small business exporters access to additional credit facilities to facilitate hedging.For more information, please call 1800 730 400 or e-mail enquiry@travelex.com.au.
*Conditions apply. Travelex GBP Australia Pty Ltd ABN 24 150 129 749 AFSL 404092 (Travelex) is the issuer of the financial products referred to in this communication. A Product Disclosure Statement is available for each of the financial products that Travelex issues and can be obtained by visiting http://www.travelex.com.au/product-disclosure-statement. Before you decide to acquire a financial product from Travelex you should read and consider the relevant Product Disclosure Statement.
Travelex GBP Australia Pty Ltd ABN 24 150 129 749 AFSL 404092 (Travelex) is the issuer of the financial products referred to in this communication. A Product Disclosure Statement is available for each of the financial products that Travelex issues and can be obtained by visiting http://www.travelex.com.au/product-disclosure-statement.
Any advice provided above is general and does not take account of your financial situation, objectives or needs. Because of this before you act on it you should consider its appropriateness having regard to your own objectives, financial situations or needs.Before you decide to acquire a financial product from Travelex you should read and consider the relevant product disclosure statement which can be obtained at www.travelexbusiness.com/au.
Travelex is a registered trademark and is used by Travelex Global Business Payments Limited under license.
Australian Institute of Export - Tuesday, December 06, 2011
Despite the global downturn, Australian businesses continue to develop exciting opportunities to expand and trade overseas. However, it is at times like these that viable international opportunities are in jeopardy because of current risks overseas, and challenges in providing sufficient security to underpin the finance required.
Responding to these opportunities and challenges, and in recognition of the important role business in Victoria and Tasmania play in Australia’s growth internationally, the Export Finance and Insurance Corporation (EFIC) is opening an office in Melbourne to better serve its Victorian and Tasmanian clients. A highly experienced banker, Mr Geoff Toone, has been appointed Director, SME and Mid Market for Victoria and Tasmania.
To be based in Melbourne and drawing on more than 20 years experience in the banking industry, Geoff is well placed to working with Australian businesses in Victoria and Tasmania, who may be in need of loans, guarantees, and bonds in support of their pursuit of viable international business opportunities.
According to Robert Dravers, Director, SME and Mid-Market, “the demand for EFIC’s services in Victoria and Tasmania has driven EFIC to recognise the importance for dedicated support in those states. Geoff’s presence in Melbourne enables us to be there when an exporter needs EFIC to work with them, alongside their bank, to tailor a financial solution to their specific international business opportunity. Geoff’s presence will also enable EFIC to increase its visibility and profile in these states, which will enable more SME businesses to access EFIC financial support.”
Geoff said “The finance markets have entered unchartered waters over the past few years. I see ongoing challenges surrounding finance structures for Australian business continuing into the immediate future. With this backdrop, it is my view that opportunity remains strong for Victorian & Tasmanian exporters.”
He went on to say “I am pleased to be part of an organisation like EFIC that can make an impact for exporters by actively partnering, supporting and expanding opportunities across Victoria & Tasmania.”
For more information, contact Geoff Toone on 0417 359763 or gtoone@efic.gov.au
Australian Institute of Export - Tuesday, December 06, 2011
As someone once observed, “we live in interesting times”. This is especially so at the moment in the context of measures being taken to assist industries here and overseas seeking Trade Remedies whether that be by way of the imposition of anti-dumping or countervailing duties.
Readers would recall from our earlier update that in July 2011, the Australian Minister for Home Affairs and Justice (“Minister”) announced that the Government would be adopting 29 “improvements” to the Australian Trade Remedies regime including the adoption of many of the recommendations of the Productivity Commission. At that time, the Minister referred to the adoption of a “First Tranche” of legislative amendments which have now been introduced into Federal Parliament and received approval.
Of recent days, the Minister has now announced a further series of improvements including the “Second Tranche” of legislation.
The “improvements” were also reported to take into account the Report by the Senate Economics Committee into a Bill initiated by Senator Xenophon which sought more far-reaching amendments to Australia’s Trade Remedies regime. I appeared before that Committee and made submissions to the effect that the majority of the amendments were not contrary to WTO practice.
Click here to download the full report from Hunt & Hunt
For further information, please contact: Andrew Hudson, Partner at Hunt & Hunt
Australian Institute of Export - Tuesday, December 06, 2011
Nine companies from NSW's automotive aftermarket sector are seeking new export opportunities at the Performance Racing Industry trade show in Orlando, Florida next month.
With support from the NSW Trade & Investment, the companies are taking part in the trade show − the world's largest racing trade show – which runs from December 1 to 3. The show is expected to attract about 40,000 motor sports businesspeople at the highly targeted event.
More than 65 countries will be represented at the trade show which features the latest advances in racing products, machining equipment, motorsport engineering, safety gear, race electronics and more from about 1,100 companies.
NSW Trade & Investment has worked with the industry body the Australian Automotive Aftermarket Association to identify opportunities at the Performance Racing Industry trade show for the NSW companies.
The Australian automotive aftermarket includes about 1600 companies, has a turnover of about $11 billion a year, employs more than 30,000 people and exports more than $850 million worth of products each year.
NSW companies participating in the PRI trade show:
Adaptronic Engine Management, Castle Hill
Aftermarket electronic control units for modified cars and engines
Every twelve months, the Australian Institute of Export recognises six individuals who over a long period of time have made an outstanding contribution to export. The Australian Export Heroes Awards were started over 10 years ago to acknowledge the efforts of people behind the companies that achieve outstanding export results, and since its creation, 88 leading exporters have been invited to join the Australian Export Heroes register.
Programs recognising the achievement of people are always special. There are numerous factors that make the Australian Export Heroes Awards even more special. People who receive an the Australian Export Hero award have fought and won on the international stage. They have made more sacrifices, traveled more and spent more time away from home than they would probably like to remember. They have that magic mix of good business skills blended with loads of passion.
Whether from big established business or from the family farm or factory, they all deserve special recognition for their vision, passion and sheer hard work and the Australian Export Heroes Award is an opportunity to thank them for their unique contribution as well as thank their families for their support along the way.
AIEx is now calling for nominations for the 2012 Australian Export Heroes Awards.
The nomination process is strictly confidential as the person being nominated is not made aware of this information unless they are subsequently invited to join the register. Details regarding the nomination process can be found by downloading the selection criteria and nomination form below:
2012 Australian Export Heroes Selection Criteria. Download here >
Australian Institute of Export - Tuesday, November 29, 2011
In the early days of Lonely Planet, founder Tony Wheeler quickly learnt the importance of building a brand and protecting his valuable intellectual property (IP) overseas.
The Lonely Planet brand was originally created by Tony and Maureen on a side table in a hotel room. Tony came up with the name while singing the song ‘Space Captain’ written by Matthew Moore. He sung the words ‘Once while travelling across the sky this lonely planet caught my eye’. The actual words are ‘lovely planet’ but Tony preferred his version of the lyrics and from this humble beginning Lonely Planet is now one of the world’s most respected and valuable travel trade marks.
To maintain the integrity and value of the Lonely Planet brand Tony and his team played an active role in the management their IP by monitoring the market for imitators and taking swift action against infringers. This was part of the reason the brand was so attractive to BBC Worldwide who purchased the remaining 25 per cent stake in February 2011 for $67 million.
It was during the carefree days of their youth in the 1970s that Maureen and Tony Wheeler learned that IP ownership arrangements with third parties need to be clearly defined - after the first profits of their tiny company were eaten away by authors who had retained copyright ownership over their books.
‘We realised almost immediately that this was not sustainable business model. It became very clear to us how important it was to control and manage our IP. Clearly defining the IP ownership arrangements with any third parties or suppliers involved in the business – before they started work was something we started doing very seriously from that point.
We started paying writers to go and research and write for us, but ensured that the IP belonged to Lonely Planet’.
‘This was the thing that made Lonely Planet a success story – the integrating an IP management strategy into our overall business and exporting plan. Controlling your IP rights is very important’, Tony said.
Tony still continues to travel and write for the Lonely Planet and recently gave a presentation at IP Australia on the company’s history—how he and Maureen grew a small Melbourne business in the 1970s into what is now internationally recognised as the global ‘Bible’ for tourists – Watch it now at IP Australia's You Tube Channel
Australian Institute of Export - Monday, November 21, 2011
Like me, I bet many of you grew up being bombarded by offers from an eclectic mix of characters selling ‘high quality’ items on TV. To seal the deal most offered some sort of sweetener - My favourite would have to be the old chestnut, a set of steak knives.
I will be the first to admit that I brought this perception with me when I moved to the States about 6 years ago ..... How wrong I was! Television retailing is big business in the US with current estimates putting annual turnover at somewhere in the vicinity of US$9 billion.
The largest player, QVC, reaches over 90 million cable households and broadcasts ‘live’ 24 hours a day, 364 days a year! It has built its business on promoting big brands (e.g Dell, Birkenstock, Bose, Toshiba, Nintendo) plus establishing new (high value) ones. QVC has over 7 million active customers and takes anywhere from 5000 to 15000 orders per hour. Whats more it also ranks #7 in the US for online sales which now accounts for over 30% of its business.
Now to the crux of the matter - How can I successfully sell my products to a US television retailer?Well, apart from being a very lucrative channel it is also one of the most competitive (for obvious reasons) and in my experience you should look to one of the many manufacturers’ representatives that work with the likes of QVC and HSN. But to get you started, here are some basic questions you need to answer:
Product, product, product:Television retailers buy products they feel are unique and will sell well. Due to limited air time they must be convinced that your product will perform better than current offerings (or the competition). QA/QC checks are also rigorous to avoid costly returns.
What are your best selling SKUs? Are these currently available in the US? Its possible that the retailer may want a unique offering that can only be purchased on their channel and many carry Private Label brands.
Can you demonstrate your product’s unique product attributes on air? Seeing is believing and definitely leads to higher sales.
Beware of dodgy brothers: There are lots of companies and individuals out there in the ‘infomercial’ business who promise the world but are only after a quick buck.
Products of Interest
QVC carries a broad assortment of merchandise. In general, items with broader appeal will sell better that niche items. However, there are many, many exceptions. Some of the top categories on QVC include:
Jewelry: Either with noteworthy designers or unique construction or story
Australian Institute of Export - Friday, November 18, 2011
The Global Leadership Forum is only 3 weeks away! Don’t miss this great opportunity to learn from leaders who have revolutionised the way we communicate, Invest, shop, use technology, act and live in global business. The full line-up of speakers (LIVE on stage and in person) includes:
Martha Stewart, CEO, Martha Stewart Living Omnimedia - THE BUSINESS OF BUILDING A BRAND
George Clooney, Actor, Producer, Activitist, Co-Founder of Not On Our Watch and Satellite Sentinel Project - THE POWER OF COLLABORATION
Russell Simmons, CEO, Rush Communications - AUTHENTIC LEADERSHIP
Muhammad Yunus, CEO, Grameen Bank - SOCIAL BUSINESS: A NEW KIND OF CAPITALISM
Jeff Taylor, Founder, Monster.com and Eons.com - FIND AND KEEP: THE FUTURE OF HUMAN CAPITAL
Michael Fertik, Founder of Reputation.com - ONLINE & ON-GUARD: HOW TO BUILD BRANDS & PROTECT PRIVACY
This powerful one-day seminar will cover:
Ideas and trends that will shape the future
Importance of managing your brand online
Using collaboration for exponential growth and results
Strategies to create positive change
Increase profitability and longevity
Leveraging technology for growth
Strategies that help you dominate and lead
Inspiring your people through authentic leadership
What it takes to get from initial concept to global success
VIP and cocktail party seats are now sold out! Due to overwhelming demand, The Growth Faculty has released more seats so everyone has a chance to experience this amazing line-up of speakers at the Global Leadership Forum.
Win an Unforgettable Night with the speakers!*Book Now
The Global Leadership Forum’s amazing guest speakers have all kindly offered to host a table at a private dinner function after the event, and The Growth Faculty is giving you the opportunity to win a seat at this intimate evening. Simply book four or more seats at the event and you and your colleagues will go in the draw to win one of 20 seats at the private dinner with the speakers.
This is a program that makes both managers and employees tick! Limited seats available and this event will sell out so don't delay any further, book online now or call 1300 721 778 to avoid disappointment!
