How to deal with Australian businessmen? Tips to Teach You to Do Business in Australia
Foreword: Australia (hereafter referred to as Australia or Australia) is an economically developed country with relatively high requirements for products. However, its overall economic and technological level is slightly lower than that of Europe and America. In addition, the Australian market has many distinctive features.
XNUMX. The market is both unitary and diversified
Australians have a conservative business tradition, which is related to the overall social customs of Australia. Many people in Australia are resistant to foreign culture, foreigners, and foreign products. From time to time in the Australian market, you can see product marks such as "Made in Australia by Australian for Australian" (Made in Australia by Australian forAustralian) and "Australian made, Australian owned" (Australian made, Australian owned). All this reflects that Australian society and the market have a certain degree of resistance to "imported goods".
From another perspective, the local Australian market is a diversified market. Australia implemented a policy of ethnic diversity in the 1970s and accepted a large number of immigrants from all over the world. While encouraging immigrants to integrate into the Australian mainstream society, the Australian government also encourages the development of different ethnic cultures. Therefore, most major cities in Australia have different forms of immigrant communities. These communities naturally form some special markets, suitable for different traditions and special products.
XNUMX. Sensitive to price
The Australian market is concentrated in a few large cities and competition is fierce. Therefore, Australian importers are very price sensitive. Australia's surrounding areas are mostly developing countries with low production costs, and they usually receive low quotations. In addition, due to the seasonal differences between the northern and southern hemispheres, some products that are out of season in the northern hemisphere but are still popular in Australia will also enter the Australian market at relatively low prices. The combination of many factors has made the Australian market quite price sensitive.
Generally speaking, foreign companies have to compete with local companies and offer more than 15% discount to the price of local products before Australian businessmen will consider replacing local products with imported products; foreign companies have to compete with other foreign companies, and the quotations are better than competitors Only if the discount is more than 5%, Australian businessmen may consider changing suppliers.
The mainstream Australian business community is not accustomed to "many asking prices and bargaining on the spot", and it is not advisable to bargain excessively on the offers of Australian businessmen. The external quotations of Australian businessmen are generally the actual price or close to the actual price, with little room for fluctuation. The China Council for the Promotion of International Trade in Australia has assisted domestic companies in finding Australian copper suppliers. The Australian businessmen I found were unwilling to make offers, saying that they had no energy to deal with the bargaining of the Chinese company, and offered to bid by the Chinese company. If the Chinese company offered a reasonable price, they would be willing to sign the contract, but would not spend energy to "grind" the price.
XNUMX. Pay attention to quality
Australian society has a consumption habit. If consumers are not satisfied with the product, they can even request a replacement or refund without reason. This makes Australian businesses attach great importance to product quality.
In the early 20s, a Chinese color TV manufacturer entered the Australian market, but the quality of its products had not yet reached a high level. Australian consumers found problems in the use of products and failed to keep up due to the after-sales service. At the same time, Chinese manufacturers did not pay enough attention to it and wanted to shirk their faults. As a result, Australian retailers united to boycott this color TV. This caused Australian importers to dare not import this TV. Color TVs from home manufacturers. The fire at the gate of the city hit Chiyu, and Chinese color TVs once withdrew from the Australian market. During this period, Korean color TVs successfully landed in Australia, occupying a lot of market share.
XNUMX. Business Features
Australian businessmen basically still follow the British business tradition, abide by the law, respect credit, and seek stability. Australian businessmen will not tolerate dishonesty or even cheating because of "face" and "friendship". In addition, the Australian market is small, and there is not much room for unscrupulous businessmen to "deceive the owner and the west." Breach of contract is easy to detect, and ultimately the supplier may lose all customer relations. The most effective way to enter the Australian market is to participate in local trade fairs. Its greatest advantage is direct contact with Australian businessmen and understanding the Australian market through contacts with Australian businessmen. At the same time, Australian businessmen visit the exhibition with an open mind and may prepare to sign contracts. The second is on-site sales, that is, sales staff visit Australia, contact Australian businessmen, and go to door to sell. In this case, Australian businessmen may be defensive. However, this method is more effective than contact by letter. Once again, direct contact with Australian businessmen should be fully prepared in advance, and samples or samples, quotations, etc. should all be prepared. Before the Australian business finally signs the contract, the Metropolis will request to visit the supplier's product production: visit the factory, watch the processing process, quality management methods and the overall situation of the company. Australian business may not have a lot of time to start placing orders with new suppliers, and usually try two or three orders first to determine the supplier's supply capacity and product status. After the level of the supplier is determined and the supply is smooth, the order quantity will reach a reasonable level, and the ordering procedure may be simplified.