Page 1

april / may 2017

NINE TRAVEL TIPS TO HELP GROW YOUR EXPORTS Pages 30-33

Robb’s wake-up call to exporters Page 6

Cash flow still a problem for SME exporters Pages 8-9

Another tough year ahead for freight companies //

april / may 2017

Pages 12

Are you ready to take on China’s e-commerce market? // 1

Pages 16-17


a smarter way to trade

From the editor It pays to think globally Our trade surplus widened 138 percent to $3.57 billion in February this year – the second-largest surplus on record. Exports rose 1 percent from the previous month while imports fell by 5 percent. A steady, more manageable Australian dollar combined with low interest rates and proposed company tax cuts has created an ideal climate for exporters. And new free trade agreements with our major trading partners in Asia have delivered new opportunities across a broad range of sectors. But most Australian businesses are not taking full advantage of those opportunities, says former Trade Minister Andrew Robb. In this edition, Mr Robb says many Australian companies are missing out on lucrative trade opportunities in China because of complacency. And one of the biggest losers is Australia’s services sector, he says. The new China-Australia Free Trade Agreement (ChAFTA) which he successfully negotiated, allows for hundreds for concessions in the services sector in China. But only four or five of those have been used. And in this edition Visy executive chairman Anthony Pratt says Australia should also be focussing on food exports to our Asian neighbours. Australia now has 400 more food manufacturing plants than it did five years ago to capitalise on expanding export markets. And because our seasons are counter-cyclical to Asia’s, food growers should be making the most of new opportunities created by free trade agreements. We also have the results of a major new business survey that shows cash flow is still a major problem for SMEs. Only 8.5 percent SMEs who recently took part in the survey reported they were satisfied with their cash flow. The majority of those businesses agreed that better cash flow would have increased their revenue last year. And Christelle Damiens, our expert on European export markets, gives exporters nine tips when travelling for business. Based on her work travel experiences during the past 10 years, these simple tricks have helped Christelle to grow her business without jeopardising her personal life. Enjoy. ■

//

Our team Australia’s export sector is booming.

Director and National Sales Manager

Julie Fletcher

julie@dynamicexport.com.au

Editor

Tim Michael editor@dynamicexport.com.au

Production

Veronica Avant IT Manager

Rob Fearn Contributors

Heath Baker, Christelle Damiens, Caleb Radford Advertising enquiries:

advertising@dynamicexport. com.au

Editorial submissions: editor@dynamicexport.com.au

Tim Michael Editor editor@ dynamicexport. com.au

Published by: Think Positive Pty Ltd PO Box 221 Waverley NSW 2024 Australia www.dynamicexport.com.au

@dynamicexport

Think Positive Pty Ltd cannot be held liable for any person(s), company or business acting upon or using the information provided in this e-magazine in any way. Information and content in Dynamic Export e-Magazine is provided to the best of our knowledge. We advise that you should seek independent professional advice to verify that all information is accurate and correct.

april / may 2017

// 2


news

news

4-5

Aussie trade post Brexit

BUSINESSFINANCE

6

Robb gives exporters a wake-up call

BUSINESSFINANCE

8-9

Cash flow still a concern for SMEs

Foreign exchange

10

Australian SMEs bracing for currency volatility

freight

14

Tough year ahead for freight companies

focus on asia

16

Are you ready to take on China’s e-commerce market?

focus on asia

New agreement to help build Australia-Hong Kong trading relationship

T

he Export Council of

Yee also attended the signing earlier this

Australia (ECA) has signed

month.

an agreement with the Hong Kong Trade Development

goal of promoting and facilitating

Council (HKTDC) aimed

international trade. Our services are

at strengthening trade ties between

complementary,” said Bonnie Shek,

Australia and Hong Kong. The

director of HKTDC.

Memorandum of Understanding (MOU)

Japan opens its doors to more Australian food products

australian 22-23 made

“Through the MOU, we hope to

commits the two parties to co-operate

strengthen our relationship and enhance

and share information on important

further collaboration.” Hong Kong is a crucial trading partner

economic and trade issues.

18-19

“HKTDC and ECA share the common

It also encourages the promotion of

for Australia. It is the sixth-largest market

trade, investment, innovation and SME

in the world for Australian goods exports,

cooperation between the two countries.

and seventh largest for Australian

“We are delighted to foster this relationship with HKTDC, a like-minded entity,” said ECA CEO Lisa McAuley. “Joint promotion efforts through

services exports. “Our trade in services is growing very strongly in both directions – a very good sign for the future,” said Ms McAuley.

New Country of Origin labels give exporters a boost

marketing and awareness-raising efforts,

“Australian service exports to Hong

joint participation in event programs, and

Kong grew 13% last year to $2.3 billion,

feature

creating a referral network are just some

and Hong Kong service exports to

of the benefits of this partnership.

Australia grew 6% to $2.9 billion.

28-29

Taking animal pain relief to the world

travel

30-33

Nine tips to grow your export business with travel

special feature

“The ECA is a strong advocate for Australian trade and helping to build

strong. In 2015-16, Australia invested

the capacity and capabilities of Australia

around $50 billion in Hong Kong and

companies to take their business

Hong Kong invested around $85 billion in

international.”

Australia.”

Representatives from the Hong Kong

34-35

Aussie food exports on track to reach $100bn goal

“Our investment relationship is just as

Ms McAuley said the international

Australia Business Association including

success of SMEs in markets like Hong

NSW Chapter President Kevin Chung,

Kong is crucial to Australia’s future

and National Vice President, Jonathan

economic growth. ■

//

april / may 2017

// 3


news

Brexit discussions should include two part trade agreement Heath Baker

W

hen the British Government invoked article 50 this month, it started the two-

year count-down to the UK leaving the EU. It also started the two-year

over these two years? Looking for the

have had 231 years to get used to

count-down to Australia and the UK

quick wins.

investment from Britain. The British

formally starting negotiations on a

When March 2019 comes around,

have nothing to fear from our money:

the British Government will be

they invest 40% more in us than we

So, in addition to talking about the

under pressure to show immediate

do in them.

weather, just what should Australian

benefits from Brexit. But even with

and British trade officials be doing

the greatest will in the world, a

generous terms to the other country’s

comprehensive free trade agreement

investors. (And given the amount of

between Australia and the UK would

two-way investment already, there’s

take years to negotiate.

clearly no need for controversial

free trade agreement.

Discussions can get bogged down in technicalities very quickly.

Both countries should offer the most

investor state dispute settlement provisions.) Goods chapters in FTAs are

Both countries should bring to the table a desire for open trade and

unnecessarily complex. There are

investment. But instead of looking

hundreds of pages of phase-ins,

for a comprehensive agreement,

emergency breaks and quotas.

negotiations could look at a two-part

Australian and British negotiators can

agreement.

and should be looking to eliminate all

Part one cover the quick wins, then part two would cover things that need

Heath Baker is Head of Trade Policy at the Export Council of Australia

this complexity by agreeing tariff-free, quota-free access for all goods. There are relatively few areas where

to be considered in detail. Investment should be the easiest

the two countries go head-to-head—

thing to agree on. Unlike Chinese

and where they do, neither should be

investment, by 2019 Australia will

afraid of a little healthy competition.

//

april / may 2017

// 4


news Services chapters can be highly complex. They involve negotiations around standards, qualifications and licencing. However, given both economies already have very open service sectors, and similar institutional frameworks, there should be many areas where opening up access should be very straight forward. And while much of the motivation for Brexit was to take back the UK’s borders, there is already so much ‘movement of natural persons’ (aka travel) between the countries, there should be the ability to agree favourable terms. But there will inevitably be chapters of an agreement that will be more time-consuming to negotiate. There will be many sectors (e.g. finance)

‘Both countries should bring to the table a desire for open trade and investment’

where the UK’s starting point will only become clear after it finalises its negotiations with the EU. Negotiators should not look to include these more

• Secondly, exporters are also

complex areas in a comprehensive

importers. This means that while

agreement, but should commit to

the UK is Australia’s biggest export

addressing them in a part two.

destination in the EU, many of these

After resolving the quick wins

exports will be intermediate goods. Australia is currently negotiating

ASAP, negotiators should expedite

Just like Aussie backpackers, for

an agreement on the remaining

these exports the UK will just be the

RCEP, a regional agreement that

chapters—with a firm commitment

stopping off point before heading to

will include ASEAN, China, India,

to finalise these discussions within a

the continent.

Japan, Korea and New Zealand.

couple of years.

• And finally, many Australian

Plus, Australia has agreed to start

businesses use the UK as the base for

the process towards an agreement

Aussie officials should also be taking

their European operations. The more

with the rest of the EU (which, it’s

every opportunity to remind their

access the UK can retain to the single

important to remember, dwarfs the

British counterparts of the importance

market, the better.

UK as a trading partner for Australia).

In addition, over the next two years

But, if negotiators can agree to

of the UK securing a high quality free trade agreement with the EU. Why does Australia care about this? Three reasons:

The long march toward Brexit

genuinely free trade and investment,

will take up a lot of headlines. It’s

a UK-Australia free trade agreement

important for Australian politicians,

has the potential to quickly deliver

negotiators and commentators to

significant benefits to both countries. And such a positive approach

keep in perspective a free trade agreement between Australia and the

shouldn’t be too difficult – after all,

British economy from Brexit will mean

UK. It’s obviously not the UK’s most

Australia already imports from the UK

there is more money available to

important negotiation, and it certainly

our most important service of all: our

spend on Australian imports.

won’t be Australia’s.

head of state. ■

• First, minimising the hit to the

//

april / may 2017

// 5


business & finance

Robb urges Aussie companies ‘to have a go’ in China

F

Mr Robb said Australian companies

ormer Trade Minister

among average Australians and

Andrew Robb says

narrow, insular thinking in much of

should be learning to partner with

Australian companies are

business.

local Asian companies for mutual

missing out on lucrative

"The relationships we have got

benefit, particularly in China given

in the region are appalling," he

the complexity of the country's

China because of complacency. One

says. "Trading itself doesn't create

legal and registrations systems – yet

of the biggest losers is Australia’s

understanding and mutual trust and

mostly, they are not.

services sector, Mr Robb says.

relationships. Australia's investment

trade opportunities in

Australian services contribute more than 70 per cent of GDP but only 17 per cent of exports, he says. Mr Robb says, the new ChinaAustralia Free Trade Agreement

"I have just come back from my 10th trip since July last year to China

is minimal. “The hostility towards foreign

and there's my increasing awareness

investment here, especially from

of how little trade is going on

China, is a misguided indulgence.”

between our big businesses," Mr

Mr Robb was speaking at the

Robb says. "Some of our very big

(ChAFTA) which he successfully

launch of an essay by Andrew Bragg

companies with name brands in

negotiated, allows for hundreds for

from the Menzies Research Centre

Australia for 50, 60, 100 years have

concessions in the services sector

recently. The essay is appropriately

not got one item in China.

in China.

called "Fit For Service: Meeting the

But only four or five of those have been used. Mr Robb blames the complacency

demand of the Asian Middle Class." It argues that Australia has to move quickly to take advantage of an

of a quarter of a century of growth

Asian middle class that will number

for the "disinterest" about the region

three billion people by 2030.

//

"It beggars belief that there is hardly any Australian product on the shelves of one million supermarkets in China.” ■

april / may 2017

// 6


business & finance

Record year for Australian citrus

A

ustralian citrus growers

focus on high-value markets with an

a hybrid between an orange and a

are optimistic of another

outstanding crop this season,” he said.

mandarin, have been in demand in

bumper year, driven

Exports to the Chinese mainland

Thailand with just under 8,000 tonnes

largely by free trade

continued to grow, with shipments

of the fruit exported to the country in

coming in at 40,000 tonnes,

2016.

agreements in Asia. This follows a record year for Australian citrus exporters with just

The value of trade to Japan grew by

under 220,000 tonnes exported

around 25 per cent year-on-year to a

between January and November

value of $53 million.

2016, with a total value of $335 million. Total citrus exports in 2016 were up 10 per cent on the previous year. “However, in value terms, this represents an increase of 24 per cent,”

“This highlights the importance of

generating $72 million in sales.

Free Trade Agreements,” said Mr Daniels. “This season was the first season

“Hong Kong has declined a little

with no tariffs or quotas since the FTA

since last season but that is to

entered into force a decade ago. Back

be expected as direct trade into

then, the trade was less than 1000

mainland China has developed over

tonnes,” he said. Mr Daniels said it is difficult to predict

the last few years,” said Mr Daniels. Despite regulation changes, 13,000

what will happen in the remainder

said Citrus Australia market access

tonnes of citrus was exported to

of the 2017 season, but demand for

manager, David Daniels.

Indonesia and The Philippines and

Australian fruit appears strong.

“So, for a moderate increase in

“As long as we have the right size

Canada were surprise successes

volume, we have seen a substantial

with approximately 6,000 tonnes of

and quality, there is no reason to

increase in value. This is due in part

Australian citrus exported to each

expect that this season will be any

to a more favourable exchange rate

country.

different,” he said. ■

but we are also seeing exporters

Queensland Murcotts, which are

//

april / may 2017

// 7


business & finance

Cash flow still a major problem for SMEs

O

Ninety-six percent of $1-5m revenue businesses agreed that better cash flow would have increased their 2016 revenue (with an

“Regardless of whether an SME had

average improvement of 23 percent);

who recently took

a growth or negative growth forecast,

85.5 percent of $15-20m businesses

part in a major survey

this clearly indicates the significant

agreed, with an average revenue

reported they were

impact improved cash flow would

increase of 11 percent.

satisfied with their

have on revenue growth,” said

nly 8.5 percent SMEs

cash flow.

The Scottish Pacific SME Growth

Scottish Pacific CEO Peter Langham. “The smaller the business, the

Mr Langham said the stark reality for CFOs and corporate treasurers in the SME sector was that nine out of

Index released last week found

greater the impact of improved cash

ten firms say they could have better

70 percent, whether growth,

flow, with strong indications that

cash flow management.

consolidating or declining SMEs,

improving cash flow early in the life

said better cash flow would have

of a business has a major long-term

flow is higher for growth businesses,

improved 2016 revenues by more

impact on revenue growth.”

as opposed to those with steady or declining revenue. It is cited as a

than 5 percent. And seven out of ten “growth” SMEs indicated improved cash flow would have produced at least 10 percent revenue growth, with almost a quarter saying they could have achieved 25-50 percent revenue

“The unhappiness around cash

‘With interest rates at record lows, SME access to credit should not be a problem’

major growth barrier by 56 percent of growth SMEs, but only by 20 percent of SMEs in a consolidation or declining growth cycle,” he said. Mr Langham said that in this round of the Scottish Pacific SME Growth Index, Australia’s SME owners

growth.

//

april / may 2017

// 8


business & finance

‘SME business confidence is on the rise, but fragile’

seem to have bounced back from the pessimism they voiced in the

Round One).

SMEs listed their top three barriers

As well as the growing intention to

to growth as high or multiple taxes

fund business by using non-banks,

(71 percent), credit conditions (65

just under 95 percent of SMEs

percent) and credit availability (61

indicated they planned to use their

percent). Key growth drivers are core

own funds to support their business,

customers (41 percent), strong staff

49 percent of SMEs are expecting

and once again respondents cited

(38 percent) – and more concerning,

revenue increases in the first half of

access to and conditions of credit in

good luck (31 percent) and ‘just

2017, a drop from 63 percent in our

their top three barriers to business

following our nose’ (37 percent).

first round in late 2014. Since 2014,

growth.

previous round, September 2016. “SME business confidence is on the rise, but fragile,” said Mr Langham. “Trend analysis shows just over

“We’ve seen an increase in the

average positive revenue forecasts

“It seems the day is approaching

for growth SMEs have remained at

when non-banks will match or pass

conditions as a growth barrier, from

around 4 percent, yet the average

the banks as the first port of call for

just over 50 percent in 2014 to now

revenue drop predicted by negative

small to medium business funding,”

above 60 percent,” Mr Langham said ■

growth SMEs has blown out from 5

Mr Langham said.

percent to 8 percent.” The survey also revealed a record

number of SMEs citing credit

“With interest rates at record lows, SME access to credit should not be

percentage of businesses plan to

a problem. And yet SME owners and

use non-bank financing (22 percent,

leaders indicate that their full credit

doubling from 11 percent in Round

appetite is not being fulfilled.

One, September 2014). This

Mr Langham said it is important for

contrasts with declining bank

SMEs and their advisers to be across

borrowing intention (29 percent,

the full range of finance options

significantly down from 38 percent in

available to them.

//

About the Scottish Pacific SME Growth Index Since September 2014 Scottish Pacific, Australia’s largest specialist working capital finance provider, has engaged specialist research firm East & Partners to conduct six monthly polls of more than 1200 small to medium enterprise leaders across all states and key industries, to test SME sentiment and concerns

april / may 2017

// 9


foreign exchange

Australian SMEs predict currency volatility but remain unprepared ‘2017 is already shaping up to be another year of uncertainty’

N

early half (49%) of Australian SMEs

AFEX’s third annual Currency Risk Outlook Survey

surveyed recently do not have a strategy in

polled more than 650 financial decision makers at SMEs

place despite widespread concerns about

and corporations from across the globe on their attitudes

currency volatility in the months ahead.

and behaviours around global trade, foreign exchange

New research from AFEX, one of the

world’s largest non-bank providers of global payments

risk and methods for managing it. AFEX Asia Pacific General Manager Richard Poulton

and risk management solutions, found the majority of

said the research highlighted a real disconnect in the

those surveyed (62%) are predicting increased volatility in

expectations and actions of Australian SMEs. “It’s concerning to see so many Australian SMEs

currency markets this year. And many of them will be unnecessarily exposed

predict a volatile year, but fail to implement a currency

as they have failed to implement a currency risk

risk management strategy. Importers and exporters

management strategy, AFEX warns.

really should not risk cross-border trade without profit

//

april / may 2017

// 10


foreign exchange

expect their levels of international trade to increase

protection,” Mr Poulton said. “2016 was full of surprises and too many SMEs were

in the coming year and foresee market volatility (58%)

unnecessarily exposed to the impacts of Brexit and the

and global economy policy uncertainty (48%) as key

US presidential election. 2017 is already shaping up

challenges for expansion.

to be another year of uncertainty, so SMEs should do

Respondents indicated the United States, China and

everything in their control to protect their hard-earned

Western Europe will be key markets for trade growth in

profits.”

2017.

The survey found a number (21%) of Australian SMEs

Mr Poulton said opportunities for Australian SMEs to

even planned to pass on currency risk to their suppliers

engage in global expansion and trade had never been

and customers in the coming year.

greater.

“For small businesses without the scale to absorb the

“Not only is customer demand high, but new

impacts of a volatile dollar, they see no other option

technology is making international shipping and logistics

but to increase prices to protect profit margins. An

easier and more accessible than ever. A currency

effective currency management strategy could eliminate

management solution is one more way that SMEs can

this concern and ensure SMEs aren’t priced out of the

reap the benefits of global trade and allow them to focus

market.”

on running their business.” ■

The survey found over half (52%) of Australian SMEs

//

april / may 2017

// 11


freight

Freight companies face more tough times ahead

M

ajor shipping companies

‘The industry performance continues to get worse’

began the year with great optimism of higher freight rates in

the aftermath of the Hanjin Shipping collapse last year which sent shockwaves through the industry. But that optimism is slowly fading due to a continuing overcapacity which is killing demand for higher contract rates. According to consulting firm AlixParters the overcapacity is being fueled globally by the delivery of scores of large new container ships that were ordered years ago. The carriers are trapped in a vicious circle of declining revenues and rising

The root cause of the industry’s

the reorganization of many of the

debt that management consultancy

plight is the lingering effects of

remaining carriers into three vessel-

AlixPartners termed “grim” in its latest

overcapacity, says AlixPartners in its

sharing alliances, the industry journal

shipping forecast.

report.

predicts.

“The industry performance

The carriers’ poor financial results

But demand has not kept up with

continues to get worse and worse,

the growth of capacity and is unlikely

last year have raised the risk of

and we don’t see a real recovery

to do so this year or next.

more bankruptcies, according to

shaping up just yet,” said Jim Blaeser,

Although contract rates $1,000 and

AlixPartners’ analysis, which showed

a consultancy co-partner in a recent

greater are noticeably higher than

that the industry’s z-score has fallen

webcast.

those in the 2016 to 2017 service

back to the lowest levels since the

According to joc.com. in the 12

contracts, they are still lower than the

consultancy started tracking it.

months to September 2016, those

2015 to 2016 rates of about $1,600 per

carriers that report earnings recorded

40-foot-equivalent unit to the West

was removed, the industry’s average

total revenues of $151.2 billion, a drop

Coast and $2,900 to the East Coast,

z-score was still only 1.0. A z-score

of 7.8 percent from the same period

according to JOC.com interviews with

below 1.81 is considered distressed, a

of 2015.

beneficial cargo owners, carriers, and

level not seen since 2010.

In the same period industry earnings before interest, tax, depreciation, and

Even after the Hanjin bankruptcy

“The likelihood of bankruptcy

analysts. This is likely to lead to further

remains strong if carriers are not able

amortization (EBITDA) of $9.9 billion

industry consolidation, which has

to maintain and build on improved

was down by 42.1 percent from $17.1

already swallowed up seven of

rate levels seen in fourth quarter

billion a year earlier.

the top 20 carriers and brought

2016,” AlixPartners said. ■

//

april / may 2017

// 12


//

april / may 2017

// 13


freight

Delivering greener solutions: DHL Express Australia launches first electric vehicle Green machine: The new DHL Express eVehicle driven by Shirley Cheney with (from left) Scott Elliot, VP Australia Operations; Gary Edstein, CEO Oceania and Olivera Goodwin, First Choice Senior Advisor

L

eading international express

the road for an average of four hours,

acknowledge the environmental

provider DHL Express has

an equivalent travelling distance

impact of our day-to-day operations

put its first fully electric

of 100km on a single charge. The

and our responsibility to reduce this

vehicle on Australian roads

vehicle runs on a Lithium-ion battery

wherever possible,” Mr Edstein said.

following a successful trial. The new

and takes six to nine hours to

vehicle, a Renault Kangoo ZE Van,

complete a full charge.

will be used as the company mail

Gary Edstein, CEO/Senior Vice

“Globally, we have seen a 30% improvement in our carbon efficiency since 2008 – and we are aiming to

car in Sydney, driving between DHL

President at DHL Express Oceania

further improve this through new

Express offices.

said the launch of this vehicle is

green initiatives like this electric vehicle.”

The Renault Kangoo ZE Van is part

another significant step towards

of the company’s already operational

instituting more environmentally

fleet of hybrid delivery vans.

friendly solutions across the

successfully introduced electric

company.

vehicles, including electric vans

Dependent upon the driving style and conditions, the vehicle can be on

“As a global company, we

//

Overseas, DHL Express has

and scooters, on routes in Germany,

april / may 2017

// 14


freight

Japan and Taiwan. DHL’s parent company, Deutsche

of electric vehicles within DHL

management solutions. In a voluntary emission off-setting

Express Australia’s courier fleet

Post DHL Group will also proceed

would require more conveniently

scheme, customers can contribute

with increased production of its own

located electric charging stations in

to funding climate protection

StreetScooter electric vehicle in 2017.

cities across the country, and vans

projects around the world. In 2016,

that can travel longer distances

DHL Express Australia customers

without needing to recharge.

alone helped to remove 2,181 tonnes

Last month the company announced an ambitious target of reducing all logistics-related

“Compared to small, densely

of greenhouse gases from the

emissions to zero by 2050. On

populated European and Asian cities

environment through this GOGREEN

the road to achieving this, it has

where electric vehicles are currently

scheme.

also outlined a number of interim

operating, Australian cities have

goals, including increasing its

unique geographical challenges in

initiatives such as printing free

carbon efficiency by 50 percent

terms of distance.”

Fridays have helped to reduce paper

and operating 70% of its own first-

To further extend its green

Within the company, other

usage by 37% and LED lighting has

and last-mile delivery with clean

initiatives, DHL Express Australia

been installed to increase energy

transport solutions by 2025.

has instituted various sustainable

efficiency.

“We looked to our DHL Express

Overall, DHL Express Australia saw

solutions across all 15 of its sites

colleagues around the world to see

in the past nine years since 2008 –

a 3% reduction in carbon emissions

the solutions they had developed

from the reduction of paper usage

in 2016. ■

and were inspired by the success of

in offices to emissions reporting

electric vehicles in these countries,”

and off-setting schemes and green

Mr Edstein said.

alternative products for customers.

“In 2016, we trialled an electric

Since 2008, DHL Express Australia

courier van delivering to Sydney’s

has been ISO 14001 certified with

CBD, and found that a wider rollout

the standard for environment

//

april / may 2017

For more information about DHL’s GOGREEN program visit: www.dhl.com.au/en/about_ us/green_solutions.html

// 15


focus on asia

‘Many Australian SME companies would struggle to compete in the high volume online China market’

Are you ready to take on

China’s fast changing e-commerce market? Tim Michael

C

hina is the world’s largest and fastest growing e-commerce market.

The digital consumer landscape in China is rapidly changing, says Don Zhao, co-founder and executive

And with an estimated 225 million middle class citizens – almost 10 times the size of Australia’s

population – it is a market that is impossible to ignore. Affluent Chinese consumers are hungry for high quality and ethical products from across the globe – including Australia.

director at Azoya, an e-commerce solutions provider that helps overseas retailers break into the China market. “Customer behaviour and traffic has been changing fast,” he said during a recent visit to Sydney. Since 2014 local e-commerce in China has been flat-

The cross-border shopping boom has created unprecedented opportunities for Australian business.

//

lining, while cross-border sales have been rocketing. “Consumers now have a wider more detailed

april / may 2017

// 16


focus on asia

Sigma Pharmaceuticals. “Our main focus in Australia has been on nutrition, mother and baby and beauty products,” Mr Zhao said. “But Azoya is now looking to expand its Australian network into other sectors including kitchen products, cooking ware and fashion accessories. “We have been having discussions with several companies including a major department store.” Before Azoya accepts a new brand, a full assessment must be made. “We probably decline about 95% of enquiries,” Mr Zhao says. “This is because not every business will be successful in China – not all products are going to be suitable to the market. “We must assess their price competitiveness, their margins, company reputation and product categories. “Most importantly we check their self-fulfilment capacity – how many orders they can fill each day. “If it is less than say 200 orders a day that will be weak in terms of e-commerce capacity.” Mr Zhao says many Australian SME companies would knowledge of overseas brands,” Mr Zhao told Dynamic

struggle to compete in the high volume online China

Export.

market.

“There is a new generation of consumers who are keen

“China is not an easy market, he admits. Businesses

to buy new good quality overseas products that are

often underestimate the complexities … not only the

affordable.

consumer market but also government policies. “Customers are very different in various regions of

“They are now more experienced with more

China and you have to be aware of those differences.”

demanding expectations from retailers. “They want more diversity of products and more

Mr Zhao has ambitious plans for the Australian companies he represents to double sales in China this

knowledge about those products.” The Chinese government crackdown on corruption two years ago has turned consumer focus away from

year with a target of $80 million firmly in sight. Established in 2013, Azoya has signed exclusive agreements with the largest number of overseas

luxury goods to lifestyle “niche” brands. “Cosmetics brands such as Aēsop (an Australian skin care brand owned by Brazilian company Natura) are

retailers in China. The company has assisted more than 35 overseas

very popular with Chinese e-commerce consumers,” Mr

retailers in 11 countries, such as La Redoute, the

Zhao said.

largest online retailer of women's apparel in France

Azoya has already assisted a number of major Australian pharmaceutical companies such as Sigma Pharmaceuticals (Amcal), Pharmacy Online, Roy Young

and Feelunique, the largest online premium beauty retailer in Europe. Azoya’s services include e-commerce cloud hosting,

and Pharmacy 4 Less establish a strong e-commerce

e-commerce platform setup, managed operations,

presence in China.

warehousing and logistics, branding and e-marketing,

Mr Zhao was visiting Sydney to attend the recent Retail

RMB payment settlement and consultancy. ■

Leaders Forum, which featured a presentation from

//

april / may 2017

// 17


focus on asia

Japan opens its doors to more Australian food products

T

he Japan-Australia Economic Partnership Agreement (JAEPA) is paying big dividends for Australian primary producers. Australia has seen strong growth across a range

of commodities since the agreement was ratified in January 2015. Australian agricultural and food exporters were the biggest beneficiaries from the fourth round of tariff cuts from April 1 under the JAEPA agreement. The cuts have created even more opportunities for exporters of a range of agricultural commodities, including honey, beef, dairy, wine, seafood, cereals and horticulture products. Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce said Japan has been a leading market for Australia’s high quality and safe agriculture, food, fishery and forestry product exports for several decades. “It is currently ranked second with $4.7 billion worth of trade in 2016,” he said. The latest round of cuts includes chilled and frozen beef tariffs falling to 29.9 per cent and 27.2 per cent respectively, down from 38.5 per cent. Beef remains Australia’s leading agricultural export to Japan, worth $1.8 billion last year. Other products with falling tariffs include honey reducing by a further 2.3 per cent, Southern Bluefin tuna by a further 0.4 per cent and table grapes by a further 1.6 per cent, oranges 1.4 per cent, mandarins by 1 per cent, and grated cheese by 1.2 per cent (this with a quota volume increase of 80 tonnes to 440 tonnes for the year from

‘Australian citrus to become more competitive with the US than ever before’

April 1 this year). Citrus Australia Market Access Manager, David Daniels, said the third round of tariff cuts under the Agreement last year, combined

//

april / may 2017

// 18


focus on asia

with a favourable exchange rate, has helped Australian

tariff on Southern Bluefin tuna was reduced from 3.5 per

citrus to become more competitive with the US than

cent to 3.1 per cent in April 2016. (Further reduced to 2.7

ever before.

per cent from April 1).

“I actually met with importers in Japan last year who

Honey: Honey exports grew from $890,000 in 2015

told me they were keen to jump over to Australian

to $1.3 million in 2016 (up by 46 per cent). The tariff on

supply of citrus earlier in the season, because our price

honey was reduced from 20.9 per cent to 18.5 per cent in

is so competitive and obviously our fruit tastes better,”

April 2016. The tariff was further reduced to 16.2 per cent

Mr Daniels said.

from April 1.

Australia has seen strong growth across a range of commodities including:

Mr Joyce commended the Department of Agriculture and Water Resources for its ongoing work to negotiate

Beef offal: Australia exported over $237 million in 2016 (up 16 per cent compared with $204 million in 2015). Beef offal has benefited from reduced in-quota tariffs. Table grapes: Table grape exports grew from $6.5 million in 2015 to $30.7 million in 2016 (up by 472 per cent). The seasonal tariffs on fresh table grapes under

improved technical market access into Japan to enable more exporters to realise the opportunities under JAEPA. In 2016 Australia gained new access into Japan for melons and an expansion of access for pumpkins from just Tasmania to all of Australia. “The pumpkin tariff is now zero under JAEPA, and the

JAEPA reduced from 7.8 per cent to 4.9 per cent in April

pre-JAEPA 6 per cent tariff on melons is also now zero,”

2016, and was further reduced from April 1 this year.

Mr Joyce said.

Macadamias: Macadamia exports grew to over $29.7

The Australian Melon Association Industry

million in 2016, compared with $23.7 million in 2015 (up

Development Manager, Dianne Fullelove said the

25 per cent in value). The tariff on macadamias of 5 per

further tariff reductions benefit nearly 380 rockmelon,

cent was eliminated on entry into force.

watermelon and honeydew melon growers.

Southern Bluefin Tuna: In 2016, Australia exported $125 million of Southern Bluefin tuna, up 7 per cent by value

Future phased tariff reductions and quota increases will continue to occur under JAEPA on April 1 each year. ■

compared with 2015 when exports were $116 million. The

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april / may 2017

// 19


professional services

Aussie property inspection software about to hit Asia Caleb Radford

A

n Australian software company that moved to Silicon Valley in 2014 before making it big in the United States is expanding into Asia. HappyCo, which develops software to help clients manage property inspections, has

documents. They are used by a number of different industries including real-estate firms, restaurants, hotels, fitness centres and airports. Co-founder and CEO Jindou Lee said its mobile apps

opened an office in its hometown of Adelaide after finding

collated information up to 70 per cent faster than

success in California.

traditional manual methods.

While the US remains a key market, the company is

He said although the company was already in 140

using its new Australian base to increase its focus on

countries and had primarily targeted Western markets

Asia.

such as the United States, United Kingdom, Canada and

HappyCo’s suite of products uses cloud-based digital inspections and analytical software to deliver data in real-time and remove the need for hard-copy

//

Australia, potential for its products had recently emerged in Japan and other parts of Asia. “It’s really weird but a lot of the world’s biggest

april / may 2017

// 20


professional services

‘The North America market alone is worth US$30bn’

said. HappyCo’s premier program, Happy Inspector, allows managers from big corporations with multiple stores to keep operations running smoothly by documenting field operations. Another program in the suite Happy Manage, then uses simple compliance checklists to monitor health and safety regulations and workplace productivity, which are then sent through to a client’s head office. If a store was unclean, had broken equipment or machines, or was not operating efficiently, inspectors could take photos and fill out digital forms to document any deficiencies. All checklists and templates are customisable and the program lists reports from all inspections the moment they are entered into Happy Inspector. Happy BI (Business Intelligence) is the final app in the suite and delivers real-time analysis of operation performance metrics across an enterprise. It helps users track their KPIs with graphs and dashboards for totals and averages. HappyCo has more than 1000 clients including Equity Residential, Fox and Hound Sports Tavern, Jetts 24hour Fitness and fast-food chains such as Domino’s Pizza. It has delivered more than 1.5 million inspections and captured more than 25 million photos since its launch in the United States in 2012. “The apps aren’t just doing checklists and ongoing management, they are able to lower insurance premiums as well,” Lee said. “Liability is a huge issue and depending on the

companies are still using paper, which takes about four

industry, like the property management space, a

to six weeks to get back to the head office,” Lee said.

customer could save 10 per cent of their damage

“The market we are going after in North America alone is a US$30bn market and once you start looking at Asia and Australia, we have barely scratched the

recovery – 10 per cent over 100,000 units is worth millions of dollars and a potential lawsuit.” HappyCo’s suite of apps are available on iOS and Android and its subscription fees vary based on

surface of it.” Lee said time zones that were compatible with Asia

client size. ■

and a deep talent pool of software engineers from South Australian universities made Adelaide an ideal choice for a southern hemisphere base. “We wanted to be able to cover as much of the world as possible in terms of support and we thought it would make sense to keep our roots in Adelaide,” he

//

Caleb Radford is a senior writer with The Lead, South Australia

april / may 2017

// 21


australian made

CoOL Aussie Made products on show

V

isitors to the Sydney

Mr Hartsuyker called on business

requirements, including fine cut

Royal Easter Show were

to follow the example of other

coleslaw, mixed leaf and rocket salad

given a sneak peek of

businesses like Woolworths and

mix.

Australia’s new Country

commit to the labelling well ahead of

of Origin Labelling

the July 2018 deadline.

(CoOL) to be launched Australia wide next year.

Major supermarket chain Woolworths displayed the new labels at a special

“Consumers deserve a clear view

“Australians want to know where their food was made or packed, and how much was sourced from Australian

of where their food comes from,” Mr

farmers, and it’s great to see this

Hartsuyker said.

information now being rolled-out into

Last October, Woolworths

supermarkets,” said Mr Hartsuyker. “Australian produce has a reputation

cooking demonstration with Assistant

announced 25 of its own brand Fresh

Minister to the Deputy Prime Minister,

Cut products would carry the new

of being high-quality, clean and green,

Luke Hartsuyker as a special guest.

labels in compliance with the new

and consumers have a right to know

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april / may 2017

// 22


australian made

what they are paying for. “The changes make it clear imported goods cannot be claimed to be made

vegetables sourced from Australia,” Mr

and will include the addition of an

Cullen said.

‘Australian Made’ kangaroo logo. “This system will make it easier to

“We firmly stand behind the new

in Australia just because of a change

labelling reforms as we know our

find Australian-made products, and

of their form or appearance here in

shoppers love to buy Australian

understand what percentage of the

Australia.

products.

ingredients are from Australia.”

“I want to see more businesses

There is an online tool available to

“We are working closely with our

involved now, with the rules

suppliers in Australia and overseas to

help businesses identify appropriate

mandatory from 1 July 2018.”

ensure our products will carry the new

labelling for their products. ■

Long-time supporter of Australian Made products Woolworths Head of Sustainability,

Country of Origin Labelling ahead of the deadline. Online tool now available

Adrian Cullen, said the company

“Currently we have over 120 Country

supported the labelling changes.

of Origin labelled products with more

“Woolworths is a long-time supporter of Australian-made and grown

to come shortly. “Country of Origin Labels will make

products with 100 per cent of our

it clearer where an item has been

fresh meat and 96 per cent of fruit and

produced, grown, made or packed,

//

april / may 2017

The tool and a range of other information and support for business can be found at business.gov. au/foodlabels or by calling the contact centre on 13 28 46.

// 23


australian made

Dariusz Ptaszkiewicz and colleague with the new ANCA MX7 Linear CNC grinder

Aussie Exporter of the Year ANCA gives European toolmaker a cutting edge

F

anar is one of the top five

However, in 2016 Fanar realised that if it was

manufacturers of tools in Europe

going to remain ahead in the market they

and is known in the market for its

needed to improve the production time for

uncompromising quality.

manufacturing complex cutting tools.

The Polish based company supplies a

Dariusz Ptaszkiewicz, Technical Director

wide range of cutting tools for threading,

at Fanar said: “In the era of e-bay people are

drilling, milling and turning and specialises

accustomed to the convenience of online

in shank tools for machining holes. Fanar’s

shopping where products are delivered

global network of customers operate in the

within two to three days. This mindset can

automotive, aerospace, medical and home

be challenging when customers expect

appliances industries among others.

this same type of service especially when

From the beginning Fanar has invested in

purchasing specialist cutting tools. We

the newest technology and machine tools to

needed to find a way to meet our customers’

ensure they have the capability to offer the

expectations without compromising on

latest products.

quality.

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april / may 2017

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australian made

“The more complex the tool, the longer it

combined with our years of experience in

takes to produce and may require several

grinding and metalworking, we could quickly

machines and different set ups as part of the

begin production of the most complex

grinding process. Essentially, this process

geometry and high dimensional precision

can be quite lengthy. However, at Fanar we

tools.”

are not afraid of a challenge and we set

Mr Ptaszkiewicz said Fanar is now in a

ourselves the ambitious goal of delivery to

position where it can consider orders that in

our customers within seventy-two hours

the past were avoided.

from receipt of the order.

“The technology means we have the

“We looked for a supplier who could

‘ANCA’s MX7 Linear exceeded our expectations’

capacity to produce complex tools, even for

provide a solution that

individual orders, at the highest quality with

enabled fast changeovers,

minimal risk,” he said.

precision and repeatability.

“With the investment, we have achieved

Another important

our goal of significantly reducing lead times

requirement was that the

and production costs, while opening new

grinding machine had a

potential markets for our business.”

software package that

Special features such as RoboMate have

was intuitive to use and

enabled simple but accurate automation

didn’t require highly skilled

and ANCA’s in process measuring system,

programmers.

Laser Plus, has meant that for the first time

“After reviewing what was available on the

our company has implemented unmanned

market, we were confident that ANCA’s MX7

production without any concern that the

Linear was right for our businesses because

products may be defective.

of its numerous innovative features. The

The MX7 was ordered with the Statistical

polymer concrete base, linear motors, ability

Process Control (SPC) software package for

to prepare tools (wheels) on the machine

quality control purposes. This enables Fanar

and integrated measuring system meant that

(as a trusted supplier of cutting tools) to

we could achieve our goal of seventy-two-

continue to meet ISO 9001, ISO/TS 16949

hour delivery with a grinding machine of the

standards.

highest standard.”

ANCA has been manufacturing and

The ANCA MX7 Linear, manufactured in Australia, is a powerful, versatile CNC tool

exporting computer numeric control (CNC) tool and cutter grinders since 1986.

grinder designed for production grinding. It

The company exports 99 per cent of its

is built to meet the demands of high output,

output from its Bayswater headquarters in

high precision manufacturing.

Victoria and has offices around the world.

“When investing in a new product, there

ANCA was named Australian Exporter of the

is always some concern that the machine

Year in 2015 and last year was inducted into

may not deliver what was promised, said Mr

the Export Awards Hall of Fame

Ptaszkiewicz.

The advanced manufacturer services

“ANCA’s MX7 Linear exceeded our

a wide range of industries, including the

expectations and I am yet to find a product

aerospace, automotive, electronics, medical

that offers so many innovations and features

and woodworking sectors. ■

that are unique to the market. “Once we had the latest technology,

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april / may 2017

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feature

Aussie agtech startup sows seeds for success across Latin America

Shannon Powell, Austrade’s Senior Trade Commissioner for Andean Latin America said the AgtechPassport is the first program of its kind in Australia and is focused on helping Australian and Latin American agtech startups gain international exposure, crosspollinate and commercialise their ideas. “Part of our day-to-day work is to identify and assist Australian companies with new innovative products, services and technologies to expand into global markets, especially with new routes to market shaping international trade,” said Ms Powell. “The digital economy is moving at hyper speed. The linking of these agtech ecosystems provides access for Australian agtech companies to the enormous markets of Argentina and Latin America and creates a pathway for increased exports of both technological know-how and goods and services.” The AgtechPassport program will send an Australian team to

A

Argentina, and a corresponding ustralian agribusiness

the Argentine Government and

Latin American agtech team to

startup and innovation hub,

Qantas.

Australia, for a one-week immersion

SproutX has joined forces with Latin American-based

“Argentina is one of the few countries in the world that has

in the host country’s startup ecosystem.

early stage venture fund, NXTP

considerable capacity to increase

Labs to launch AgtechPassport,

domestic agricultural production,

ideas out of the office and into the

an exchange program for agtech

but to be successful we need to

farms and areas where they can

startups.

rely on technology to transform our

be commercialised,” said SproutX

industry in a sustainable way,” said

General Manager, Sam Trethewey.

Launched in Sydney by visiting

“We want to get Australia’s agtech

Argentine Vice Minister for

Vice Minister Ricky Negri during

Agriculture, Ricardo (Ricky) Negri

the launch. “This program provides

through Austrade, we can give

late last month, the AgtechPassport

access to new technologies and new

our startups global exposure and

program is supported by Austrade,

global value chains.”

insights. Australia and Latin America

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april / may 2017

“By partnering with NXTP Labs

// 26


feature

billion in 2016-17.

have strong agricultural industries

facilitate meetings between the

and wide production bases, so close

startup teams and potential partners

collaboration between countries will

in the host country, to expand their

startup teams are currently being

accelerate that goal,” he said.

networks and gain invaluable insights

selected, with the AgtechPassport

into their commercial viability in

program slated for the second half of

international markets.

2017.

Ms Powell said Argentina’s agricultural sector is quite sophisticated and is embracing

The Australian and Latin American

The startups will also gain access

advanced production technologies

to co-working spaces aligned with

which are collecting invaluable data

SproutX and NXTP Labs around

accelerator program in Australia

on a massive scale.

Australia, Latin America, New

should visit www.sproutx.com.au/

Zealand, Israel and the United States.

accelerator or the Latin America

“Many Argentinian farmers are “really early adopters” of technology.

Agriculture is a vital part of

Applicants interested in the

program at www.agtech.nxtplabs.

This demonstrates why Latin America

Argentina’s economy, accounting

is a great starting point for Australian

for 11.4 per cent of GDP. Likewise in

agtech ventures planning to go

Australia, agriculture is booming, with

global,” she noted.

farm production forecast to increase

learn more about doing business

by 8.3 per cent to a record $63.8

opportunities in Argentina. ■

SproutX and NXTP Labs will

//

com. Visit Austrade’s website to

april / may 2017

// 27


feature

Taking animal pain relief to the world

A

cutting-edge pain relief product for animals developed by Australian company Animal Ethics will soon be available globally. This follows a recent agreement between Medical

Ethics (parent of Animal Ethics) and British

company Dechra, which has taken a 33 per cent share of the Australian company. The agreement gives Dechra the rights to sell and market Animal Ethics’ product Tri-Solfen for all animal species in all international markets – except Australia and New Zealand. Dechra Pharmaceuticals' one third stake in Medical Ethics totals $18 million to be split between funding for Animal Ethics ($9 million), with the remainder to acquire shares from the shareholders. Tri-Solfen is a topical product that is sprayed on to a wound, which simultaneously anesthetises, relieves pain, controls bleeding and protects against infection. In a statement following the deal, Animal Ethics said it would "accelerate the objective to register Tri-Solfen in major international markets, such as the EU and USA." The product now has 35 patents granted across the majority of the world’s major animal health markets. Its primary use and area for initial development and regulatory focus is in sheep, pigs and cattle; however, other opportunities have been identified in horses and companion animals. Dechra and Animal Ethics put the global market potential at a conservative A$350 million. "However, with the increasing focus on the ethical treatment of farm animals, this target could be exceeded," said Dechra in a statement. Animal Ethics was founded by three Australian partners including Dr Meredith Sheil, a paediatric cardiologist and a director of the research and marketing corporation, Australian Wool Innovation. Dr Sheil originally developed Tri-Solfen in 2004 for treating lambs after mulesing, the controversial operation to reduce fly strike in sheep, by cutting away folds of skin from the breach area.

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april / may 2017

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feature

It was extended in December last year, with Tri-Solfen approved to be used on calves after marking. It is now used on 8 million farm animals a year, according to the company. The pain relief is credited with taking the heat out of the international wool boycotts over mulesing. "The EU and US pig and cattle industries are now facing similar conflicts from welfare advocacy groups, consumer groups and retailers with the consequential legislative pressure to ban procedures without the use of anaesthetic," Dechra said. The European Commission is currently undertaking a review with a view to creating an industry welfare quality standard for utilisation on product labelling. Medical Ethics managing director Allan Giffard said the agreement was a huge win for animal welfare globally. “The investment by Dechra will accelerate Animal Ethics’ program to develop urgently needed pain relief products for livestock animals globally,” Mr Giffard said. “The partnership creates a wonderful opportunity for our company to pursue its mission to develop and deliver

'TriSolfen is now used on 8 million farm animals a year'

products that alleviate pain and minimise suffering associated with wounds and surgical procedures in livestock, companion animals and to progress Medical Ethics’ opportunity in humans.” ■

//

april / may 2017

// 29


travel

Nine travel tips to grow your exports, run your business ‌ and keep your family happy Christelle Damiens

A

s a CEO or as a small business owner when you start to venture into Export Markets,

for some time you will travel frequently, before you reach the stage where you set-up your local team. I am a small business owner myself and I have been travelling regularly to Europe on behalf of our portfolio of Australian clients. Recently my work travel has escalated and I have been travelling to Europe once a month

//

april / may 2017

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travel

Christelle Damiens is the managing director of Exportia Australia and the president of Exportia France. She has been Foreign Trade Adviser appointed by the French Prime Minister, between 2009 and 2012.

//


travel

approve a contract, or you forgot to talk to that client

to either Sydney-Frankfurt or Sydney-Paris. Of course, that has an additional impact on your

before leaving.

business, don’t expect clients and partners to put things on hold while you are gone! And it also has some implications in terms of maintaining a balance in your personal life, especially if you have kids to consider. During the last 10 years, since I set up Exportia, I

2. Keep your trips short and more frequent I have tried a few variations over the years, longer trips (2-3 weeks) and less frequent trips and shorter more frequent trips. I have to say, what works best for

have come up with a few tricks that has prevented me

business and on the personal side, was to have shorter

from putting my business at risk, from jeopardising my

and more frequent trips. First of all, I found that it gave

personal life and that has helped me to continue having

my European distributors and clients the feeling I was

successful business trips. At the end of the day, if you are

often there and they felt very well supported by me. In

travelling a lot it has to bring success to your business.

fact, it made it easier for me to follow up on sales leads and close deals. It is harder to do that when you have not

Here are nine survival tips for frequent flyers:

been there for a while. On the personal life side of things, it makes it easier to recover from jetlag. And it goes

1. Get your to-do list sorted out way before you board

faster for your little people and your partner. It works better for your work/life balance.

the plane You want to keep your focus on getting the business done while you are overseas. Usually two weeks before I fly, I start to build up a list of things that absolutely need to be completed before I go. And I make sure I get them

3. Plan for some down time during the trip, even if it’s just a day for you Over the years, I found that I could cope better with

done, before my departure date. There is nothing worse

frequent travel when I had a free week-end during

than jumping on the plane realising you’ve forgotten to

business trips, when I just rest for at least a day. It’s not

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april / may 2017

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travel

always possible especially during trade show season, but

It is paramount to continue running your business while

whenever you can, do it. I found that when I did spend a

you are away. And your team plays a key role to doing

day switching off completely from business, to just sleep,

that successfully, For me when I am in Europe, it means,

read, go for a walk or a swim, I found I recovered from jet

I’ll call my team early morning before I start my day. We

lag faster on returning to Australia.

follow-up every other day on how things are progressing. Equally, the team can stay abreast of my activities and

4. Gear yourself to your destination’s time zone

can start the follow-up activities from the meetings I

As soon as I board a plane to any capital city in Europe,

just had with clients. Fast follow-ups are key to success

I immediately check the time at my destination and

in export markets. Fast follow-ups really leverages your

put myself into that time mode. If it’s night there, I will

sales meetings overseas.

have no coffee, no alcohol and do my normal evening routine, like reading, instead of watching a film. As I look

8. Keep your little people at home informed

around me, I can also see other people use earplugs and

I have an 8 year-old daughter and have been a single

eye-shades, to isolate themselves and prepare to sleep.

mum for a long time, My daughter did travel with me,

In my case, I don’t hesitate to ask for extra-blankets, I

when she was a baby. Later with school commitments,

even tell the flight attendant I won’t have meal if I feel I

she would stay with her dad in Australia when I travel to

am going to fall asleep. When this is a daytime flight, I

Europe. That’s when I realised the importance of telling

will then have plenty of coffee, and try to work, do a few

her where I was when I was overseas. My daughter

stretches, again have no alcohol, I find, helps me to stay

would always ask her grandma where is mum. I had her

awake.

regularly on the phone, almost every day, but I’d focus on her daily life and forgot to share where I was and what

5. Go to work straight away

I did. So we came up with a ritual, we have a notebook

I always observe the same strict rule, as soon as I land

which is called “Ou est maman?/ Where is mum?”. I write

in Paris or Frankfurt, I systematically head straight into a

down for her my precise itinerary day by day. Not only

business meeting. I find it puts me straight into the time

does she feel better about knowing where maman is, she

zone and it keeps me focused and alert. I usually only

has also become an expert in Google Maps and Google

have one or two meetings on that day. I usually don’t

Earth.

plan for very long drives on the first day. I book a hotel close by to where I have my meetings and just head to

9. Leverage technology When you are a small business owner travelling,

my hotel shortly after my meetings. When I return home to Australia, again, I head straight

leveraging technology really helps. My whole business is

to work. However, I make my days a bit shorter. I am

cloud-based, from our document sharing system, to our

more productive this way. And I can then give more

CRM to other productivity tools we use. I specially like to

attention to my family as well.

use mobile applications to be able to share my meeting notes with the team, and our clients, regardless of time

6. Stay “OUT OF OFFICE” on your first day back at

zones. My team keeps assigning tasks to me and I assign tasks to them also while I travel. It just keeps business

work This a tip from my coach Cath Duncan, and it works

running smoothly. Of course on the travelling logistics

well for me. When I come back to work, and catch up

side, I am a big fan of booking platforms with mobile

on things with my team, but officially I am only back at

applications. ■

the office the next day, and I reflect that in my OUT OF OFFICE notification. I found it really helps to re-focus on priorities and regroup with the team. 7. Keep information flowing between you and your team

//

Exportia assists Australian SMEs to successfully export their technology to Europe. www.exportia.com.au

april / may 2017

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feature

Aussie food exports

on track to reach $100bn goal

‘Australia is now the largest exporter of goat meat in the world’

T

he value of Australian food exports has grown by 60 percent in the past five years – and is predicted to soar further in coming years.

capitalise on expanding export markets. When the Global Food Forum was launched in 2013, food seemed to be a poor cousin to iron ore, he said. “Then, food’s $27 billion of exports were less than half

Opening the Global Food Forum in Melbourne last month, Visy executive

the value of iron ore’s $60 billion, but today it’s a different

chairman Anthony Pratt said food exports has been one of

story. Iron ore is still at $60 billion five years later but food

the success stories of the Australian economy.

has grown from $27 billion to $44 billion, and so rapidly

“Our agriculture sector just made its highest contribution

closing the gap with iron ore. “So this year’s $44 billion milestone of food exports

to GDP growth since 2008,” he said. “We need a constant focus on food exports to our Asian neighbours especially because our seasons are counter-

is a massive 60 per cent increase in just five years … an amazing achievement by Australia.” Mr Pratt said food exports were well on the way to

cyclical to Asia’s, which is a great opportunity.”

reaching the Forum’s goal of $100 billion a year – however

Mr Pratt said Australia now has 400 more food manufacturing plants than it did five years ago to

//

he did not specify a time frame.

april / may 2017

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feature

Free trade agreements with China, Japan, Korea have given Australia great momentum toward the $100 billion export goal, he said. “Of all the FTAs, the food industry has been the greatest winner.” Mr Pratt said in the past five years horticulture exports to China have grown 20 times to $300 million and China is now the second largest export market for wine at half a billion dollars. “Our cherry exports to Korea grew 50 times since 2014. Our fresh meat exports are up by 90 per cent and we’re now exporting $2 billion of beef to Japan. Our fruit and vegetable exports are up by 200 per cent to $3 billion.

Anthony Pratt … ‘amazing achievement’

“For example, fresh mango exports are said to exceed $30 million, a 50 per cent increase since the first Global Food Forum, with new freight routes opening from Queensland to Hong Kong. “And Australia is now the largest exporter of goat meat in

Australia’s safety credentials.” Australia should encourage Chinese investment because

the world at $250 million.” Mr Pratt said food safety is Australia’s biggest selling

it promotes exports, investment and geopolitical relations, he said.

point. “There are multinationals with empty factories in China because the Chinese consumers would rather buy from

“Exporting to China is a lot lower risk than setting up business there.” ■

the same company’s factory in Australia because of

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april / may 2017

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april / may 2017

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Dynamic Export e-magazine Apr/May 2017  

Latest news for Australian exporters

Dynamic Export e-magazine Apr/May 2017  

Latest news for Australian exporters