For Australian businesses, tapping into the export market has the potential to unlock significant opportunities for growth.
On a global scale, the Australian market is relatively small and there are only so many regions and customers to sell to. For businesses looking to scale, the prospect of exporting overseas can be very appealing.
Exporting can give your business access to a larger pool of potential customers for your products or services, and potentially lead to increased sales and profits.
For many, exporting is also a great learning experience. New markets allow business owners to explore innovative ways of working, as well as discover technologies and marketing practices that are being used in other parts of the world.
What are the potential benefits of exporting from Australia? This article highlights the opportunities of exporting and includes useful resources for Australian businesses looking to start their export journey or expand into new markets.
The importance of Australia’s export market
While the benefits to individual businesses may be clear, exports are also critical to Australia’s economy. They facilitate international trade and drive economic wealth by creating employment, production and revenue opportunities.
Australia has a network of 15 free trade agreements with countries across the globe and this gives Australian businesses preferential access to markets across Asia, as well as North and South America. The country is also in negotiations for free trade agreements with the United Kingdom, European Union and India.
Austrade’s 2021 ‘Why Australia Benchmark Report’ has highlighted that in 2019-20, the value of Australia’s exports totalled $475 billion, with three-quarters of the goods and services exported going to Asian markets.
How businesses choose where to export
There are many factors to consider when deciding where to export your goods or services. A country’s economic situation, population, customer profile and access to industries can all play a role.
Research is crucial in any sound export strategy. When researching to identify markets for export opportunities, some key considerations should include determining who your target audience is and what the competition is like. How will your product be positioned in this market and how would you distribute your products? There may also be different regulatory requirements to consider.
To support you in determining which markets may hold opportunities for exporting, Austrade has a useful market search tool. Simply enter your industry and product, then the tool will highlight strong performing markets for the products you are looking to export.
If you need guidance on developing your export strategy to support your journey, our ‘Developing your export strategy’ eBook can provide practical information to help you on your way.
Getting the right financial support
One of the challenges when exporting is the financial risk that can come with navigating sales in an overseas market. This can make it difficult to get the right financial support from your bank. In these situations, businesses might choose to turn to a government export credit agency like Export Finance Australia.
At Export Finance Australia, we help Australian businesses grow global by providing them with the financial support they need to take on the world. This financial support might come in the form of direct loans, guarantees, bonds or project and buyer finance.
Learn more about how we might be able to help your business on its exporting journey here.