Last week, our podcast delved into the exciting future of smart health technology and its impact on our daily lives. With an annual growth rate of 6.5%, compared to the healthcare industry’s 1.6% annual growth rate, the possibilities of smart health technology are endless.
Marketing is a very broad business area that covers many activities. In this article however, we decided to focus on three key aspects that allow you to better engage and connect with Australian audiences.
People doing international business have all experienced communication mishaps due to time differences, and the chances grow with the more countries/places you engage with. Dr Edward Anderson, of the School of International Development at the University of East Anglia (UEA), found that each hour of time difference reduced international goods trade by between two and seven percent.
Overseas partnership present growth opportunities for Australian medical health technology sector
Overseas partnerships are valuable growth opportunities for Australian distributors and retailers operating in the health sector. There is no doubt that as technology becomes omnipresent in our daily lives, the role of medical technology in managing and improving health outcomes among the general population will continue to grow. The sector, which is currently worth $6.1 billion, relies heavily on imports across the US, China and Germany. German suppliers in particular have been traditionally a well received supplier in Australia due to its perceived high quality and innovation in the field of medical technology development.
Where is the demand?
Australia’s aging population will significantly influence demand for the types of medical technology products needed. Australians have one of the longest life expectancies in the world (sixth among OECD countries) and demand for medical technology will continue to rise as its aging population increasingly relies on medical devices for care. Distributors operating in the health sector can find promising opportunities in technology that promote health upkeep and improvements in clinical outcomes. This includes products that lead to faster patient recovery, reduce hospital and rehabilitation costs, and alleviate or manage disability and chronic pain. Rising health consciousness means that Australians are taking a more proactive approach to managing their health. Wearable health devices such as smartwatches along with wearable ECG and blood pressure monitors are expected to grow in demand.
Demand for medical technology that serves to diagnose, manage and treat chronic conditions will also continue to remain prevalent. Approximately 50 percent of Australians have one chronic disease and 20 percent have at least two. These include cardiovascular disease, cancer, chronic kidney disease, diabetes, mental health, musculoskeletal conditions, and oral health and respiratory diseases (including asthma and COPD).
Innovation in healthcare
Medical health technology plays a crucial role in addressing challenges facing Australia’s healthcare system. Over the course of the pandemic we have seen local healthcare capabilities being stretched to the limit with strains on existing hospital systems and staffing capacities. As such, medical technology solutions particularly focused on improving patient outcomes in Australia’s broader public and private healthcare systems have been increasingly embraced. Distributors should look towards embracing new solutions like AI and predictive analysis technology in healthcare. Moving forward, healthcare leaders are looking to adopt centralized platforms of data management to improve the quality, cost and speed of care to patients and address health inequity within metropolitan and regional areas.
What next?
The Australian-Germany Medical Technology Trade Mission hosted by Smart Mango is a lucrative opportunity for Australian distributors to connect with leading innovators in the field of medical technology.
Trade mission will run from 12 – 23 September 2022
Book a meeting now https://cutt.ly/german-trademission
EXPORTING GREEN HYDROGEN FROM AUSTRALIA
Where’s the opportunity?
Australia’s tea market is valued at $1.2 billion with an annual compound growth rate of 3.5 percent. There are many opportunities for overseas businesses as the majority of tea in Australia are imported, and domestic tea production remains relatively small. The tea market has evolved away from the conventional tea such as black tea to more unique speciality blends. Traditionally, exporters wishing to enter the market would need to match the large production scales and range of existing players to remain competitive. However changing consumer demand presents opportunities for businesses operating within niche and premium product segments. The growth in this segment has reduced barriers of entry, allowing small manufacturers to break into the market without the need for considerable capital investment. On the other hand, some challenges for exporters in the current industry climate include supply chain disruptions spurred on by the COVID-19 pandemic. With an appropriate cost benefit analysis, we think there are some promising opportunities for some exporters thinking of entering the Australian market.
Product
Our analysis shows favourable growth prospects in niche product segments. Black tea consumption has fallen over the last 12 months while speciality tea sales grew by 4 percent. Among these, green tea, fruit tea and herbal tea are emerging as popular choices. Health and wellness herbal teas are currently experiencing the highest growth rates among various categories of tea. Young tea drinkers are becoming increasingly interested in low caffeine products – often opting for fruit or herbal teas. While niche players are not expected to offer the same extensive product range as large competitors, having at least 4-5 products in its range can help brands a strong presence in the market. Brands should also think about how they can be more environmentally friendly through using biodegradable and recyclable materials in their packaging.
Price
Premium tea price range varies in the Australian market. Planting Organics (Chillax tea) offers loose tea at $2.92 for 10g. The Rabbit Hole (Sweet Dreams) has price point of $8.32 at 10g for its unique blend of local Australian ingredients. Popular Australian brand, T2 offers $3.4 for 10g for its loose leaf (Sleep Tight) product.
Promotion
Tea drinkers are becoming interested in high quality products with a great story. Niche brands can focus on their origin story behind the scenes of harvesting and processing its tea, as well as the people behind the business. This can help drive the premium value of the brand as well as establish a greater proximity of the brand with its customers. Businesses should also focus on market education particularly on its exotic and unique blends of tea products.
Place
Traditional retailers for tea in Australia include the supermarket chains such as Coles, Woolworths, and ALDI. These suppliers can be especially difficult to break into for new brands. Exporters of niche brands should consider speciality tea retailers or cafes and other beverage stores.
Our Strategic Takeaways
We see some promising signs for exporters entering the Australian market. The tea industry in Australia is in a transitionary period as we start seeing an increasing number of niche brands emerging in the market. Sustainability and wellness will be key value propositions for exporters to attract local consumers. Exotic blends of tea with unique stories will also be a key factor for players to differentiate themselves in the market.