With almost 19% of the world’s population and the second largest economy, China provides enormous opportunities for Australian products and services.
The numbers stack up — China is ready for your business
With a population of 1.4 billion, China was the top destination for Australian exports in FY 2016-17, according to an Austrade Report on Australia’s export performance. The report cites that exports to China exceeded AU$110 billion in FY2017, representing almost 30 per cent of all Australian exports. With the current trade tariff discussions between China and the United States causing tension between the two trading nations, the opportunities for the Australian export market to China may be even greater today.
Why Australian products are so popular in China
With the growing personal wealth in China, comes buying power from its expanding middle-class. Australia can offer the Chinese market high-quality products that they demand. Product attributes valued by Chinese consumers include:
- High quality products
- High food safety standards
- Better nutritional value
- High quality packaging
- Superior freshness
In addition to food products, Chinese consumers demand for imported services will likely increase over the coming years. Key areas may include:
- Health and aged care
- Financial services and investment
- Environmental technology and urban development management
- Legal services
- IT and communication technology.
Ensuring your business is export-ready
While the opportunities are enormous, the challenges, costs and risks in exporting need to be considered. Being prepared and asking the right questions will help ensure a successful transition.
- What is your export strategy?
- Have you conducted due diligence and market research for your product/service sector?
- Have you fully costed the product/service for export?
- Do you have the right people on the ground (accountants, lawyers, agents/distributors)?
- Do you have a risk management plan in place?
In China, it’s all about the scale of the market. Australian exporters who get it right, stand to gain exponential growth in their business. Is your business ready to export to China?