EXPORTING SHAPEWEAR TO AUSTRALIA

DECEMBER 2021

Where’s the Opportunity?

The shapewear market is a relatively new market in Australia valued at approximately $40.02 million AUD. The industry has undergone a transformation over recent years with increasing awareness for body positivity leading to a wider range of products available for different body shapes and skin colours. Celebrities like Kim Kardashian have launched their own line of shapewear which spur on further growth and consumer awareness of shapewear. Surge in retail and e-commerce spending has created favourable conditions for shapewear businesses to expand. The growth in the female population in Australia has also been beneficial for the industry. Females aged 15 – 45 are the industry’s primary market for shapewear. This is a wide market and brands can specialise in certain age groups. Furthermore, Australia’s shapewear industry is relatively new and relies highly on imports. There are also no major players in the industry. These combined factors make it a favourable industry to target for overseas businesses. 

OUR EXPERT TIPS

PRODUCT

Consumer sentiment in Australia’s shapewear market is driven by a need for comfort and support. Local brands such as Cotton On Body focus on soft, comfortable, and breathable material. Bodysuits have been rising in popularity alongside cropped V-neck tops. Many major brands such as Skims offer multiple choice for different skin colours. Any product line in Australia should prioritise diversity and inclusion.

PRICE

Price points depend on the targeted age groups. Consumers aged 15 – 34 tend to favour lower priced items and are more inclined to purchase shapewear that are inexpensive. For example, brand like cotton on offer shape wear ranging from $25 – $40.  Online retailer SHEIN offers shapewear starting from $12.95. On the other hand, consumers aged 35 up tend to have more stead incomes and are more willing to spend on higher priced shapewear that are durable and of good quality. Premium brands are likely to do well in this age group. They range from prices $50 and up. 

PROMOTION

Promotion also depends on target age group. Consumers aged 15 – 34 tend to be highly brand conscious and follow fashion trends closely. On the other hand, those aged 35 up will likely prioritise premium quality. In general shapewear continues to be marketed with an emphasis on technological advancement (ie lighter and firmer materials) and comfort. A brands overall marketing strategy in Australia should be multicultural orientated. It should also focus on body positivity and diversity.  

PLACE

An e-commerce presence is key to capturing market share. This is important because shapewear is gaining more traction and popularity on social media, and this trend has been led by social influencers. The use of influencer marketing through affiliate links and sponsored social media posts can be a powerful way to generate new leads

Our strategic takeaways

The shapewear market continues to remain an untapped and relatively new market in Australia making it an exciting place for exporters wanting to enter the market. Some of the challenges will be market education, however social media and the rise of e-commerce retailing present new opportunities for product awareness. The industry may just be one of the driving forces of transformation and body positive messaging in the years to come.  

The building and construction industry in Australia is indeed a competitive one. High labour costs and a saturated market are some of the key factors that can make it a challenging market to compete in for local businesses. Additionally, the COVID-19 pandemic has contributed to declines in recent building activity. But there is good news. Global construction trends are ever-growing and there are increasing opportunities for local businesses to go global. 

Why should you go global?

Australia has got a good reputation overseas for high building standards, highly educated population and innovative product development giving it a comparative advantage in the field. Surprisingly not many construction businesses here in Australia export overseas. With the construction industry undergoing unprecedented change, there is no better time to take your business global than now.  

Below our experts have provided some key indicators to become a successful exporter in the construction industry. 

Stay on top of global market trends: Right not it’s all about green construction. This sector is expected to grow by over 14 percent over the next 5 years. Green construction is all about developing eco-friendly infrastructure that reduce pollution, combat climate change and build sustainable communities. One building material that ticks all the green credentials boxes is timber. In Australia, there has been a dramatic expansion of supply options for timber products. Not only are we good at good at producing timber, but Australia also has some sleek timber design buildings. We will likely see timber being an increasingly popular choice in interior design. Australian design expertise can offer real value to drive the green construction trend around the world.  

Business expertise and ability to adapt operations to market demand: Here we are talking about the ability to quickly alter labour force to match cyclical market demand. In order to do this firms, require experienced and productive workers.  As for expertise, residential construction will continue to be the most popular but there are also increasing demand for engineers, consultants and project managers. Australia has a comparative advantage for its services in project design as well as environmental studies in construction. 

Adapting new technology: With COVID-19, virtual collaboration tools have been increasingly adopted by the industry throughout the pandemic – from video-call site meetings to filing in digital orders. CRM applications have allowed builders to seamlessly communicate with customers and manage project deadlines. No doubt adopting these news tools will help build a competitive exporting business. We believe that virtual collaboration tools are here to stay.  

Targeting the right markets: Regions such as the Middle East, Southeast Asia and Africa that are experiencing rapid urbanisation are likely going to see the largest demand in construction work. United Arab Emirates is a good country to target for this. Singapore is a good country to target for green construction. It’s also a country with low barriers of entry for foreign companies. Meanwhile Australian architects are highly demanded in China as it undergoes rapid urban transformation and carries out major infrastructure projects. Other countries like the USA are also looking to build their military aerospace technology as well as marine defense. So there are opportunities there as well. 

Having contacts within key markets: All operators must establish contacts in key markets. Construction services firms must form strategic alliances and relationships with building and construction companies in specific geographic and niche markets. Here we aren’t just speaking of overseas contact but local exporters too. If you’re a construction materials provider, having connections with local architectural firms that operate certainly has advantages. Australian firms working together can sometimes be easier. This method called ‘piggybacking’ is essentially using local connections to partake in their international projects. This will help new exporters increase their international exposure. 

If you’re looking for ways to break into the international market Smart Mango can help. 

Smart Mango is a Sydney based agency specialising in export marketing development for the construction industry. 

Our team of specialists can offer you with market research, distributor search and local representation to help your exporting business succeed in the Australian market. 

Contact us to get a FREE consultation TODAY  

+61 2 7903 0543

contact@smartmango.com.au

Following Australia’s decision to pull away from its contract with the French submarine builder Naval Group, a few of our European clients have raised questions over the nature of doing business here in Australia.

These questions are understandable. The French submarine deal which was signed in Australia in 2016 had been terminated after Australia decided to favour the AUKUS nuclear submarine deal in September this year. According to Australian government the first French-designed submarine was not due to enter service until the early 2030s, and prices had inflated over 50 percent in five years.  It was also explained that nuclear submarines align more with Australia long term defence strategy. These political moves have propelled criticism from France, and Europe in general. France considers having been “stabbed in the back” by Australia. On a broader resonance, the ongoing free-trade agreement between the EU and Australia has been on hold by the EU considering that one of the EU members was “treated unfairly”.

Should exporters to Australia worry about the impact of this political crisis?

Whilst businesses generally don’t wait for political relationship to be on honeymoon to trade, in light of recent events, we have noticed more questions and concerns from clients or partners, mainly Europeans, Canadians and some Asians. “Are Australians trustworthy to do business with?” “Is it worth the efforts if they only see through the US and the UK?” To a lesser degree, some of our Australian exporters have questioned whether the decision can affect their export development to non-US/UK markets.

This is not surprising, the contract termination was abrupt and controversial, and raised a lot of criticism not just overseas, but also here in Australia.

Politics aside, we are here to reassure our clients and dispel some of the misunderstandings of doing business in Australia.

 

1.    French/Australian business relationship is more than a submarine deal

Australia’s business relations with France have been positive and friendly. Over the last 25 years bilateral trade has been strengthened, with exports from France to Australia increasing from $1.3B to $3.63B.  Business links continue to remain strong. Recently, French company Artelia had been engaged with the extension of Canberra’s Light Rail network. The Victorian government also signed a 300 million Euro contract with French infrastructure solutions provider Alsotm to design and engineer new trains to be rolled out throughout the city. Earlier this year, French utility company SUEZ had signed a deal with Australian company, NEC to collaborate on working towards smart cities that uses technology and data as enablers to improve the quality of life for its citizens. These are just a few examples that underpin the strong partnership between France and Australia businesses.

 

2.    Strong Regulatory Systems

Currently Australia is ranked 15th out of 190 economies for ease of doing business. It’s transparent regulatory system, sound institutional governance frameworks against corruption as well as strong banking regulations make it a secure and reliable place to do business in.

 

3.    Direct and Transparent Communication

There is a common matter-of-fact communication approach in business meaning that Australians will be factual and honest throughout the business negotiation process.

Whilst France and many European countries will be considered more direct than Australians (according to the Hofstede’s Matrix of Country Comparison Australia will score 51 in terms of uncertainty avoidance where France scores 86), Australians will likely be open if they disagree with you or if they find there are issues along the way. They do this in a way that is both diplomatic and respectful to maintain stable working relationships. At the same time, their openness means they are also receptive to new ideas.

 

4.    Easy going business Culture and Relationships

Modesty and humility are strong values in Australian business culture. They appreciate people who are friendly and to the point. Australians are open to building rapport as they value long-term business relationships. In business, being down to earth, easy going and authentic often gives off good impressions.

 

5.    Many free-trade agreements & Investment Incentives

Australia is considered to be an economy very open to global trade. There’s currently 15 free-trade agreements with 26 countries.

Foreign investment is strongly welcomed in Australia. The government provides a range of incentives for businesses wanting do business in the Australian market, including million-dollar grants. Key sectors are in infrastructure & energy, materials science medical science & technology, defence, food/beverage & agribusiness and space. There are also many state-based programs that support investment. 

 

6.    Strategic Location and multicultural

Investors and overseas exporters regard Australia a good place to do business in because of its population growth, highly skilled workforce, and strong corporate regulation. Australia’s economic strength is based on its solid services, resources, medical technology, and agriculture-based sectors. Australia is also regarded a strategic place to do business in because of its multicultural population and workforce, with one in three Australians being born overseas and about 5 million Australians speaking a language other than English. This provides huge market opportunities for businesses wishing to enter the Australian market.

For international companies with a strong growth trajectory, Australia’s market provides many diverse and undiscovered opportunities. If you are looking to expand your business overseas, you can be reassured that Australia is a good business partner. 

Get practical advice on how you can expand your business in Australia

Smart Mango is a Sydney based export marketing development agency giving you access to local markets and distributors.

Our experts can provide you with market research and distributor search as well as local representation to help your brand expand Down Under. Our team of specialists will be your partner to success, overcoming the barriers of distance, travel and living cost, time zone, language and adaptation.

Contact one of our specialists today for your Australian expansion.

Phone +61 2 7903 0543

Email contact@smartmango.com.au

smartmango.com.au

Australia’s construction sector is one that relies heavily on outside imports with at least 60 percent of construction materials being imported from overseas. 

Over the coming years, there will be in particular demand in the infrastructure sector with major government investments being allocated for NSW and Victoria, including in green construction. 

Let’s take a closer look at some recent trends in the industry

• Eco friendly solutions such as recycled and low toxicity building materials are expected to see a spur in demand. Some of the largest construction companies in Australia – including those handling the majority of the country’s big infrastructure projects – are making ‘green’ practices a top priority in construction approaches. We have seen more construction companies taking more initiatives to acquire ‘green’ certifications such as LEED and BREEAM. 

• Modular Market is set for considerable growth over the coming years for its time and cost savings as well as limiting impact on the environment. Currently the value of modular construction is worth 5 percent of the total Australian construction industry value and this figure is expected to grow to 15 percent by 2025. 

Here’s our review of Australia’s most sought out building materials 

• Steel – is a high demand import of Australia – valued at $7 billion and is Australia’s 9^th largest import.  It is collected in aggregate quantities from construction and demolition sites and recycled into new steel products. Often times the money brought back into a project from selling the recyclable scrap steel can offset project expenses. Recent environmental considerations will likely fuel the use of recycled steel particularly in infrastructure development and mid-rise commercial structures. 

• Timber – is known for its plethora of environmental benefits including reduced carbon consumption, being renewable as well as having natural insulating properties. Timber is a dominant material used in Australia’s residential low-rise building market. In 2019 the national construction code (NCC) streamlined approvals for mass timber structures up to eight-storeys – an action likely to assist timber penetration into the mid-rise building market. As building organisations become more environmentally conscious, we will likely see timber being an increasingly popular choice in interior design. 

• Concrete – demand is projected to rise with major infrastructure projects particularly with road constructions expected to grow by 10 percent from 2018 to 2023. Currently 0.9 million tonnes of concrete are imported to Australia every year. 

Ongoing projects like Western Sydney Badgerys’s Creek Airport and Melbourne metro railway projects will lift demand for concrete by 1 to 2 percent. Researchers have identified new eco-friendly methods of concrete production including blending glass waste instead of sand to create concrete for commercial and residential construction. 

With ongoing population growth and strong focus on nationwide engineering infrastructure projects, Australia’s construction industry offers a promising market for international exporters.  

Smart Mango is a Sydney based agency specialising in export marketing development for the construction industry. 

Our team of specialists can offer you with market research, distributor search and local representation to help your exporting business succeed in the Australian market. 

Contact us to get a FREE consultation TODAY  

+61 2 7903 0543

contact@smartmango.com.au

APRIL 2021,

EXPORTING SKINCARE FROM AUSTRALIA

WHERE’S THE OPPORTUNITY ?

OUR EXPORT TIPS

PRODUCT

PRICE

Skincare is one of the few products where regular consumers would be willing to pay a price premium in Australia.  The premium skincare market is a lucrative one, representing approximately 30 percent of the market. On the other hand, there is increasing sentiment amongst younger consumers that “you don’t have to pay a high price for quality skincare”. Making skin care accessible and affordable in itself is a branding strategy that millennials and young consumers appreciate.

PROMOTION

Utilise Social Media. Photo: Unsplash

PLACE

Export Market
Development Grant

Grant Amount: Up to $150,000

Click here for eligibility

Wine Exports Grant

Grant Amount: Up to $25,000

Click here for eligibility

NSW Government Export Assistance Grant

Grant Amount: Up to $10,000


Click here for eligibility

Australia China Council Grant

Grant Amount: Up to $40,000

Click here for eligibility

Australia – Japan Foundation Grant

Grant Amount: Varies on application

Click here for eligibility 

Australia – Korea Foundation Grant

Grant Amount: Up to $40,000

Click here for eligibility

 Australia-India Council Grants Program

Grant Amount: Up to $150,000

Click here for eligibility

Council on Latin America Relations

Grant Amount: Up to $150,000

Click here for eligibility

Building Export Capability in Defence

Grant Amount: Up to $240,000

Click here for eligibility

 Go Global Export Program

Grant Amount: Up to $25,000

Click here for eligibility 

Export Market Engagement Program

Grant Amount: Up to $7000

Click here for eligibility

Wine Exports Grant

Grant Amount: Up to $25,000

Click here for eligibility

 

SA Export Accelerator: Emerging Exporter

Grant Amount: Up to $5000

Click here for eligibility

 

A Export Accelerator: New Market Entry

Grant Amount: Up to $15,000

Click here for eligibility

 

SA Export Accelerator: Export Accelerator

Grant Amount: Up to $30,000

Click here for eligibility

 

NT Trade Support Scheme

Grant Amount: Up to $5000

Click here for eligibility

 

Need help with exporting your products or services?

Smart Mango is an export marketing and development agency based in Sydney. 

Our local and international network of specialists can offer you with market research, distributor search and in-country representation to help your exporting business succeed.

Contact us for your free consultation today 

Recent trade sanctions placed on Australian goods by our largest trading partner China is likely lead to billion-dollar losses in our export industries. 

There have been calls for industries to diversify export markets in order to support the nation’s long-term economic growth and stability.

The reliance on China becomes clear as we see revenue export revenue from China overshadows our other major export partners including Japan and South Korea. 

While China will likely remain a key trading partner, we should not overlook the potential for our exports to succeed in other markets. 

Wine – Who Says the World only drinks French wine?

Rapidly developing countries like South East Asia have experienced an increasing trend in alcohol consumption.  

New world wines are becoming more understood and accepted by locals and the region is seeing a growing number of expatriates and affluent middle-class citizens.

Southeast Asia’s emerging wine market present opportunities for Australia 

Australia and South East Asia’s geographic proximity and the ASEAN Free Trade Agreement offers cost benefits over international competitors. In Thailand for instance, Australian wine is regarded as a high value for money product while similarly in Malaysia, the consumption of wine is seen as a more affordable and healthier alternative compared to spirits. 

The region’s booming tourism industry also allows exporters to explore unique distribution channels such as airlines, hoteliers and restaurateurs. 

Australian wine could do really well in Europe 

Amongst Australia’s top ten importers of wine in 2020, demand by European countries has risen by an exceedingly large margin compared to the US and China. 

We can see here that a mature market does not necessarily mean it is impenetrable. 

Australian wine has the potential to bring a unique and fresh offering to the European market which has an existing high level of demand and market knowledge. 

Education – Are we being too complacent?

For many years Australia has relied largely on the Chinese market as a source of its international student revenue. 

In recent years China has been working on strengthening the quality and capacity of its education systems, hence improving its attractiveness for local and international students. 

This means Australia will likely face increased competitive pressures in retaining its key onshore Chinese market. 

An example of one country that has taken action to diversify its education market includes one of our biggest competitors – Canada. It announced a plan to commit CDN $148 million to improving global student mobility – with a focus on encouraging students from non-traditional countries such as Mexico and Brazil to enrol. 

If one of our biggest competitors is setting its sights on new markets, the question remains – why aren’t we?

Forecasts reveal that the 15-29 population of Nigeria, Pakistan and the Philippines are set to collectively increase by 29 million, which is marginally larger than traditional markets of Education such as China and India. This age group is considered a key determinant of future industry demand. 

Barley- A diverse product perfect for a diverse market 

A report on Australian Export Grains Innovation Centre (AEGIC) detailing global trends in barley consumption, highlighted the need for Australian exporters to grow its presence outside of China and anticipate the diverse needs of various markets. 

For instance, the Japanese market is also seeing a trend of increasing health-consciousness – allowing Australia to take advantage of the growing interest in barley beta-glucan – a product known for its health benefits.

Saudi Arabia which is currently the largest importer of barley could also be a target for Australian barley producers.  

Earlier this year Saudi Arabia announced a tender to purchase 730,000 tonnes of Australian barley – an interest sparked by the dramatic drop of Australian barley prices since the imposition of Chinese tariffs. 

This presents opportunities for Australia to establish a strong trade relationship with the world’s largest importer of barley. 

Elsewhere, promising markets like India, Vietnam and Indonesia are seeing a rising demand for premium beer. 

Lessons for 2021 onwards 

With a looming pandemic, tariffs and half the globe in an economic recession, this year Australia’s export market will be tested like no other. Perhaps one lesson we can all learn from this all is that we need to be proactive in diversifying our export market with less traditional partners 

Smart Mango is an Australian export marketing & development agency giving you access to over 35 countries globally. We provide you with market research and distributor search as well as local representation to help your brand gain recognition in international markets.  

Sources:

• Wine Business International 2019
• ABC 2020
• AUSTRADE 2015
• AEGIC 2020
• AUSTRADE 2020
• ICEF Monitor 2019