Succeed in Australia's Giftware and Homewares Market
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The presentation outlines opportunities for UK companies in Australia's giftware and homeware sectors, which are growing due to increasing consumer demand for unique products and a rise in online shopping. It highlights Australia's favorable economic environment, cultural ties with the UK, and the importance of adapting to local market conditions when selling online. Additionally, insights on market entry, legal considerations, and support from UKTI Australia are provided to assist businesses in successfully entering the Australian market.
Succeed in Australia's Giftware and Homewares Market
- 1. Succeed in Australia’s Giftware & Homeware sectors Joanna Olivera Trade Development Manager, UKTI Australia March 19, 2015
- 2. Presentation Overview UKTI Australia: Joanna Olivera, Trade Development Manager • General overview of Australia • Trends and Drivers in the Homewares and Giftware Industries • Opportunities • Selling online to Australia • Routes to market • Barriers to entry • Tips for selling online • How can we help? Julian Gyngell, Solicitor, Kepdowrie Chambers Q&A session 2
- 3. 3 An Overview of Australia • Australia is an island continent and the world’s sixth largest country • Population - 23 million • All states/territories have separate governments, sitting under federal government with regulations varying between them • Largest and most populous cities are Sydney and Melbourne • Capital city - Canberra
- 4. 4 Why Australia? •Very similar business, legal and regulatory culture •1000 UK companies • Best performing OECD country economically, with good growth prospects • Sophisticated, literate and multicultural market • Relatively strong Australian dollar making UK goods and services more affordable comparatively • Closely linked to fast growing Asia-Pacific nations
- 5. Overview of Giftware and Homeware market • Australian Giftware and Homeware sectors encompass a diverse range of products • Combined value of AU$6.6 billion and is anticipated to experience growth over the coming years • Demand for quality, niche and unique products • Mix of chain stores, independent retailers and selling online directly or through an e-marketplace 5
- 6. Trends & Drivers 6 • Heavily influenced by various cultures and trends abroad. • Australians display appetite for international design and products. • Demand for quality and uniqueness. • Significant increase in the number of Australian’s purchasing Giftware and Homeware online.
- 7. Opportunities for UK Companies 7 • UK brands highly recognisable and highly regarded. • Higher discretionary income increasing consumer spending. • Australia imports a greater amount of goods than it exports, encouraged by liberal trade policies and low import quotas • Market is reasonably competitive with consumers constantly seeking new products, new ideas and alternative designs. • Rise of e-commerce
- 8. Homeware 8 • Covers a wide range of products from tableware to cooking utensils and linen. • Australian Homewares industry is valued at AU$1.6 billion. • Industry primarily made up of a large number of small businesses • Spurred on by the rise of reality cooking and DIY home decorating shows, there has been a significant increase in the amount of consumer spending on homeware and kitchenware
- 9. Giftware 9 • Giftware market is diverse and dynamic. • Giftware industry is currently valued at over AU$5 billion. • Giftware market is reasonably competitive as consumers are constantly seeking new products. • Over 75% of Australia’s Giftware market is imported from over 46 different countries. • Thirst for fresh, niche and innovative products with international flair. Increased with online shopping.
- 10. Jewellery, watches and accesssories 10 • Australian Jewellery and Watch Retail Sector is valued at AU$4.6 billion and is expected to continue to grow. • Increase demand for luxury items with high range precious jewellery items representing 30% of the market. • With rise of gold prices there has been an increased demand for silver jewellery items. • Steading increase in sales of costume jewellery.
- 11. Greeting Cards 11 • Australia is the third largest market in the world for greeting cards. • On average, Australian’s purchase 30 greeting cards per person per annum. • Australia’s greeting card industry valued at over AU$500 million. • The UK is the second largest supplier of greeting cards to Australia. • British cards are highly regarded for their quality and value.
- 12. 12 UKTI Australia Selling to Australia
- 13. Selling Online 13 • Australia’s online retail spending totaled AU$14.0 billion in 2014/15. • Over 17 million Australian’s connected to the internet. • International online retailing grew by 27% and is expected to continue rising in the Australian market. • Homewares accounted for 18% of all online sales in 2014. • Rise of m-commerce. • Imports of total value less than AU$1000 free of duty and tax.
- 14. Routes to Market 14 • A number of ways to approach the Australian market: 1. Distributor 2. Agent 3. Selling online directly to consumer or through e-marketplace
- 15. Barriers to Entry 15 • Barriers to entry are relatively low but competition is high • Most of the retailers in these industries are small to medium sized • Some customs restrictions E.g. the importation of wooden or animal products to Australia
- 16. Tips for selling online to Australia • Adapt dimensions and measurements • Credit card and payment mechanisms • Currencies – display prices in Australian dollars • Remember not to charge VAT • Be mindful of seasonality differences • Be explicit about returns policies • Provide enough content for a consumer to make an informed decision • Creation of company social media sites and mobile-friendly e-commerce sites are also vital 16
- 17. Doing Business in Australia 17 • Relatively easy to to business in Australia due to similar business and regulatory environment • A company must register its business to operate in Australia and then will have an Australian Company Number to have a com.au address • Goods and Services Tax (GST), at a rate of 10%, applies to most imported goods over a A$1,000 threshold
- 18. 18 UKTI Australia How we can help?
- 19. How can UKTI help your business? • Carry out in-depth research on the market and research local contacts to your specifications through the Overseas Market Introduction Service(OMIS) • Put you in touch with our industry partners • Help you attend trade fairs and missions • Product launches and PR and marketing support • Whatever you need to succeed in the market! 19
- 20. Giftware and Homeware Sector Reports • A sector report which expands on the topics featured in this presentation is available free of charge from UKTI Australia • Features opportunities, trends and tips on selling to Australia • Will provide a background that will allow you to make a reasoned and logical analysis of opportunities and the realistic potential for your product in Australia
- 21. Australian Gift and Homewares Association (AGHA) • Main industry Association for the Homeware and Giftware markets in Australia • Over 3000 members • Offers a range of support and assistance for members from advocacy to trade show guidance • UKTI can assist with advertising in AGHA’s bi-monthly Giftrap magazine
- 22. 22 Contact Details: Joanna Olivera Trade Development Manager, (Creative Industries, Fashion, Giftware, Homeware and E-Commerce) UKTI Australia British Consulate-General, Sydney [email protected] Next Presenter: Julian Gyngell, Solicitor, Kepdowrie Chambers
- 23. Exporting to AustraliaExporting to Australia Julian GyngellJulian Gyngell Principal, Kepdowrie ChambersPrincipal, Kepdowrie Chambers
- 24. IntroductionIntroduction Setting the SceneSetting the Scene Corporate structuresCorporate structures Distribution and Reseller AgreementsDistribution and Reseller Agreements Intellectual PropertyIntellectual Property Regulatory ComplianceRegulatory Compliance Tax and AccountingTax and Accounting
- 25. The Legal LandscapeThe Legal Landscape Company lawCompany law Contract lawContract law Employment lawEmployment law IP lawIP law Trade practices, competition law, anti-trustTrade practices, competition law, anti-trust Tort (i.e. negligence and misrepresentation)Tort (i.e. negligence and misrepresentation) Privacy, data protectionPrivacy, data protection Product liability and consumer protectionProduct liability and consumer protection Fiscal, income tax, GST, CGT, FBT, withholding tax, stamp duty,Fiscal, income tax, GST, CGT, FBT, withholding tax, stamp duty, excises and more! Proper advice required!excises and more! Proper advice required!
- 26. Corporate Structures - OptionsCorporate Structures - Options RegistrationRegistration ofof “foreign” corporations“foreign” corporations Incorporation of a local companyIncorporation of a local company independent legal entity, limited liabilityindependent legal entity, limited liability protects (shields) UK assetsprotects (shields) UK assets Businesses “trading as”Businesses “trading as” unlimited personal liabilityunlimited personal liability PartnershipsPartnerships joint and several (and unlimited) personal liabilityjoint and several (and unlimited) personal liability Distributors / Resellers / Agents / RepsDistributors / Resellers / Agents / Reps
- 27. Distribution and ResellerDistribution and Reseller Agreements - Checklist IAgreements - Checklist I ScopeScope Exclusive or non-exclusiveExclusive or non-exclusive Territory (States and regions)Territory (States and regions) TermTerm Trade Channels / Routes to marketTrade Channels / Routes to market Minimum sales targets or other KPIsMinimum sales targets or other KPIs Marketing Plan and Collateral MaterialsMarketing Plan and Collateral Materials Processes / POs / Invoicing / RefundsProcesses / POs / Invoicing / Refunds Support / Maintenance / TrainingSupport / Maintenance / Training
- 28. Distribution and ResellerDistribution and Reseller Agreements – Checklist I IAgreements – Checklist I I Product liabilityProduct liability InsuranceInsurance Trade mark ownership / Branding / GoodwillTrade mark ownership / Branding / Goodwill Compliance with local lawsCompliance with local laws INCOTERMS / FOB etcINCOTERMS / FOB etc Dispute resolution optionsDispute resolution options Term / Termination / Expiry / ConsequencesTerm / Termination / Expiry / Consequences Jurisdiction / Choice of lawJurisdiction / Choice of law
- 29. Intellectual PropertyIntellectual Property Copyright, trade marks, brands, domain names,Copyright, trade marks, brands, domain names, patents, designs, database rightspatents, designs, database rights Distinguish the characteristics of, and rightsDistinguish the characteristics of, and rights applicable to, each category of IPapplicable to, each category of IP Due diligence - ownership - non-infringementDue diligence - ownership - non-infringement Proper warranties and indemnitiesProper warranties and indemnities
- 30. Compliance ICompliance I Regulatory authorities where applicable (e.g.Regulatory authorities where applicable (e.g. banking and finance sectors, food and drugs)banking and finance sectors, food and drugs) Data protection and privacy, securityData protection and privacy, security Labeling and packaging requirementsLabeling and packaging requirements Advertising restrictionsAdvertising restrictions
- 31. Compliance IICompliance II Customs and Excise, export controlsCustoms and Excise, export controls Trade practices / competition law / anti-trustTrade practices / competition law / anti-trust compliancecompliance Environmental protection lawsEnvironmental protection laws
- 32. Tax and AccountingTax and Accounting BAS statements (quarterly)BAS statements (quarterly) Fiscal/tax planning opportunitiesFiscal/tax planning opportunities Corporate taxCorporate tax Individual income tax (PAYG)Individual income tax (PAYG) Sales tax, GST 10% (VAT in UK)Sales tax, GST 10% (VAT in UK) Government grants and schemesGovernment grants and schemes
- 33. Kepdowrie ChambersKepdowrie Chambers Julian GyngellJulian Gyngell MBL, LLB, Dip IPLMBL, LLB, Dip IPL TT +61 (0)2 9988 0067+61 (0)2 9988 0067 MM +61 (0)403 009 060+61 (0)403 009 060 EE [email protected]@kepdowrie.com WW www.kepdowrie.comwww.kepdowrie.com SS kepdowriekepdowrie Kepdowrie ChambersKepdowrie Chambers PO Box 881, WahroongaPO Box 881, Wahroonga N.S.W. 2076N.S.W. 2076 AustraliaAustralia
- 34. 34 Q&A Session Joanna Olivera Trade Development Manager, UKTI Australia British Consulate-General, Sydney Phone: +61 (0)2 8247 2212 Email: [email protected] Julian Gyngell MBL, LLB, Dip IPL Kepdowrie Chambers Phone: +61 (0)2 9988 0067 Mobile: +61 (0)403 009 060 Email: [email protected] Skype: kepdowrie
Editor's Notes
- #4: - The country is approx. 4000 km from east to west and 3200km from north to south