Australia continues to offer tremendous opportunities for New Zealand businesses that are focused on exporting or building a presence in that market, says New Zealand Trade and Enterprise regional director, Australia/Pacific, John Crawford.
He says opportunities are being particularly boosted as the new Australian Labour Government makes substantial investments in areas such as health and infrastructure.
"Some Australian states are also enjoying strong growth, with substantial spending on infrastructure, offering potential for New Zealand companies to provide products and services in areas where Australian companies can't meet demand. The drought in Australia has also had a significant impact on agricultural production, opening up opportunities for food and beverage firms to meet the shortfall in supply.
"As so many New Zealand exporters are already in Australia, we are encouraging them to think about whether they can move further up the value chain" he says.
"We'd challenge them to think whether there is a business model or a way of operating in Australia that allows them to capture more of the opportunities that exist, particularly in the current buoyant environment where they could think of Australia as an extension of the New Zealand market rather than as an export market. That might mean have a marketing or sales person on the ground, joint venturing or partnering with someone in Australia, instead of relying on agents and distributors."
Crawford says the biggest trend in Australia is the changing demographics.
"It's the same baby boom phenomena as in New Zealand but more pronounced. Australians tend to retire earlier because of their superannuation scheme and when they retire they often change locations, get out of Melbourne and Sydney and go to a coastal lifestyle where they spend money on travel and leisure products. In doing so, they are often willing to rethink their traditional brands and are open to trying new products."
According to the Australian Bureau of Statistics, Australians are overweight, marrying less and buying more. Crawford says they've also got the same US-based lifestyle diseases, which presents opportunities for health-related products.
Like any new market, he stresses that new exporters considering Australia must do their research and talk to people experienced in the market.
"Australia looks the same as New Zealand but it's not the same and too many people come undone by making assumptions about Australia that are not necessarily true. But for those who do their homework, this remains a fantastic market for New Zealand companies."
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