The benefits of exporting to China

Australian businesses looking to expand their net should consider China. As a large market, not too far away and with low production costs, it can be the perfect next step for many organisations.

Let’s look at the details.

1) It’s cheaper than a merger or acquisition

Globally speaking, Australia is a small market with a population of around 25 million. Improving your market share is hard, doubling it can be almost impossible. Your best option is a merger or acquisition – taking over or sharing someone else’s portion.

Expanding your horizons to China is an alternative. Not only is it cheaper than a merger or acquisition, there’s huge demand. Of course, there are some costs, but China provides better potential for real growth.

2) You diversify your business risk

Heading to China means you’re dealing with opposite seasons which allows you to compensate for seasonal demand.

Let’s take the example of a swimwear company. In winter, it’s pretty chilly in the South East of Australia. Swimwear isn’t in demand. At the same time in China, temperatures are increasing and consumers need swimwear. By expanding to China you maintain high sales through seasonal lows.

Additionally, by adding a secondary market to your portfolio, you protect your business against a poor economy in your domestic sector. If Australia is struggling, the Chinese market will likely still have spending power and demand for your business.

Join us on a trade mission to China.

3) It’s close geographically

Whether it’s you or your products travelling, markets like the US or UK are much further away and incur added shipping and logistics expenses you just don’t need. Travelling to China is faster.

China is the biggest market in Asia and Australia’s largest trading partner. The cities there are changing and expanding all the time and it’s also in the same time zone, which makes doing business easier.

4) You increase your business’s profile

When your business exports, suddenly a lot more people know about you and how you do things. However, increasing your profile also exposes you to foreign competitors – and in a good way. You get to find out what they’re doing in the overseas market, what technology they’re using and more.


General Advice Warning: This article has been prepared for the purpose of providing general information, without taking into account any particular individual objectives, financial situation or needs. You should therefore, before making any personal decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to your own objectives, financial situation and needs. We would be only too pleased to help if we can.

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