Presented by:

Shikha Prakash
(shikha.merchandising@redifmail.com)
The World’s smallest continent

The World’s largest island

History of Australia
 Aboriginal settlers arrived on the
continent from Southeast Asia about
40,000 years before the first
Europeans began exploration in the
17th century. No formal territorial
claims were made until 1770, when
Capt. James COOK took possession
in the name of Great Britain. Six
colonies were created in the late 18th
and 19th centuries; they federated and
became the Commonwealth of
Australia in 1901.

 Area
Total: 7,686,850 sq km
land: 7,617,930 sq km
water: 68,920 sq km
 Economic indicators for Australia
 Currency: 1Australian Dollar ($A or AUD) = 100 cents

 Capital : Canberra

 Fiscal year: 1 July - 30 June

 Trade organizations: WTO and Bilateral Trade

 GDP by sector: Agriculture (3.4%)

mining (4.9%)
industry (23.2%)
services (68.4%)

 Main partners: Japan 19.6%

China 10.2%
South Korea 7.7%
US 7.4%
New Zealand 7.2%
 Symbolizes: Australia's
history as six
British colonies and the principle on
which Australia federation is based.

Southern
cross

It is a constellation in
southern hemisphere
which in British times
used to represent
Australia
representing the 6 States of
Australia and the Territories
Demographics
Population: 21,007,310 (July 2008 est.)

Age structure: 0-14 years: 18.8%

15-64 years: 67.9%
65 years and over: 13.3%
Median age: total: 37.1 years
male: 36.4 years
female: 37.9 years (2008 est.)

Population growth rate: 1.221% (2008 est.)

Sex ratio: 1 male / female
Birth rate: 12.55 births/1,000 population
Death rate: 6.68 deaths/1,000 population
Psychographics
 It divides the market into groups based on social class, lifestyle and
personality characteristics
Social class
Social grade Description of occupation Example
A higher managerial administrative company Director
or professionals
B Intermediate managerial Middle manager
administrative or professionals
C1 supervisory clerical, junior
administrative or professionals Bank Cleark
C2 Skilled manual workers Plumber
D Semi or unskilled manual
workers. Labours
E state pensioners with no other
widows and casual and low wage unemployed
earners
Sociographics
 Religions: Anglican 26.1%,
Roman Catholic 26%,
other Christian 24.3%,
non-Christian 11%, other 12.6%

Government: Democratic

Languages Spoken: English is the primary language. In

1788 there were 250 different languages
but now only 20 languages survives.
Culture
 The current cultural scenario in Australia is a
perfect blend of the Australian Aboriginal Culture
and the European influence.

 Natives of Australia followed their own indigenous

cultural traditions and evolved their own arts and
crafts. But during the world war 2 the Europeans
who migrated to Australia also influenced its
culture lot.

 Art and Crafts in Australia, marked by the

multicultural impacts.

 Architecture in Australia developed under the

skilled oversight of the European settlers.

 Australian Cuisine originally synonymous with

English cooking has now become a vibrant blend
of Turkish, Italian, Chinese, Indian, Thai, Greek
and Arab culinary styles.
Business etiquettes of Australia
 Emotions and feelings are not important in the Australian business
climate.

 Australians are very direct in the way they communicate.

 There is often an element of humor, often self-deprecating, in their

speech.

 Aussies often use colorful language that would be unthinkable in

other countries.

 Appointments are necessary and relatively easy to schedule.

 They should be made with as much lead time as possible.

 Punctuality is important in business situations. It is better to arrive

a few minutes early than to keep someone waiting.
Business etiquettes
 Australians get down to business quickly with a minimum amount of small talk.

 Australian handshakes are firm and quick. Women typically don't shake hands with
one another in Australia.

 Business dress is conservative in Melbourne and Sydney

 Men should wear a dark colored, conservative business suit.

 Women should wear a smart dress or a business suit.

 Arrive on time in Australia is very important.

 Business cards are exchanged at the initial introduction

India and Australia trade relations

 India Australia trade relations can be traced back to when

the first Australian ship laden with coal came to India in
1801 as a part of the East India Company.

 India Australia trade relations are active today but their full
potential has still not been achieved.

 There is considerable scope for development in India

Australia trade relations.
 Australian merchandise trade with
India
Australian merchandise Total share Rank Growth (YOY)
trade with India, 2007

Exports to India (A$m): 9,288 5.5% 6th 5.4%

Imports from India (A$m): 1,459 0.8% 24th 14.0%

Total trade (export + import) (A$m): 10,746 3.0% 10th 6.5%

 Australia's merchandise exports to
India

Major Australian exports, 2007 (A$m) Major Australian imports, 2007 (A$m)

Non-monetary gold 4,167 Pearls & gems 108

Coal 2,396 Rotating electric plant 88
Copper ores 1,113 Jewellery 63
Wool 151 Medicaments (incl. veterinary) 38
Australia's trade in services with India, 2007: Total share:

Exports of services to India (A$m): 2,062 4.3%

Imports of services from India (A$m): 459 1.0%

Indian merchandise exporters to Australia in the textile sector

are
1. men's clothing
2. women's clothin
3. Make up articles
4. textile yarn
5. floor coverings

The Indian merchandise exporters to Australia are

1. Leather
2. Footwear
3. travel good
4. leather goods
 Australia’s investment in India
 The total value of
Australian investments in
India during the period
August 1991 to December
2003 was Rs 67986.2
million or A$ 2124.6
million.
 India’s investment in Australia
 Major Indian investments in Australia include that by India‟s Oswal
Group to construct an ammonia plant at Karratha.

 The Aditya Birla Group has acquired copper mines at Nifty (Western
Australia) and Mt Gordon (Queensland).

 Asian Paints acquired Pacific Paints in the State of Queensland.

 The Oberoi Hotels International manages the Hotel Windsor in

Melbourne
 Australia India Council (AIC)

 The Australia-India Council (AIC) was established on 21 May 1992

 The Council's purpose is to broaden the relationship between

Australia and India by encouraging and supporting contacts and
increasing levels of knowledge and understanding between the
peoples and institutions of the two countries.

 The Council initiates or supports a range of activities designed to

promote a greater awareness of Australia in India and a greater
awareness of India in Australia

 These include visits and exchanges between the two countries,

development of institutional links, and support of studies in each
country of the other.

 The Council offers support, in the form of funding, for projects likely to
contribute to the development of the relationship, within the context of
AIC objectives and guidelines.
 Utsav Australia (Celebrate Australia) is an Australian Government's initiative to
accelerate Australia‟s commercial engagement with India.

 To help, tap the enormous potential flowing from India‟s growth opportunities the
Australian Government has launched "Utsav Australia"(Celebrate Australia) – a
major promotional programme.

 It is a sustained marketing and promotions program to raise awareness of

Australian business and industry amongst the Indian business community.

 It creates awareness on Australia‟s capabilities and showcase Australian

expertise across a wide range of sectors to further strengthen Australian exports
to India.

 It is managed by Australian Trade Commission.

 Utsav Australia programmed features events, promotional activities, awareness

seminars & outreach programmes across India.
Trade Policy of Australia

 Australia shielded its industry for most of the past decades behind
tariff protection.

 Australia began to reduce its tariff including in its most protected

industries such as automobiles and textiles in the 1980s.

 The Australian economy has since reaped as the result of tariff

reduction productivity increased and international competition also
increases.
Customs Valuation and Tariff Of
Australia
 The Australian Government has planned for the progressive
reduction of tariff protection for local industry.

 Tariff reduction programme has already reduced 48% of Australian

tariff to zero and 35%.

 About 86% of tariff rates now range between zero and 5%.

 The average applied most-favoured-nation (MFN) rate for industrial

products is 4.6%, while the applied MFN tariff for agricultural
products is less than 1%.
Anti-dumping and Countervailing
Duties
 Where a consignment of goods has been imported to Australia, or is
likely to be imported, and an Australian industry producing the like
goods believes there are reasonable grounds, an applicant may
apply for a dumping duty and/or a countervailing duty notice to be
published.

 Australia has initiated a number of anti-dumping proceedings

against certain countries including China.

 Goods subject to Anti dumping measures are: Preserved Pineapple,

mushrooms and certain other chemicals.
Marking and Trade Descriptions
 Importers are required to ensure that goods entering Australia are
correctly labeled.

 It is an offence to import goods that do not bear a required trade

description, or bear a false trade description.

 Imported goods that require a trade description must be marked with

the name of the country in which the goods are made and a true
description of the goods in English language, in legible characters
and in prominent position with weight or quantity
Documentary Requirements
♦ Bill of lading ♦ Certificate of Origin

♦ Export costing Out of Australia ♦ Drafts & Lodgments

♦ Purchase Order ♦Forward Exchange

♦ Pro-forma Invoice ♦ Dangerous Good Declaration Form

♦ Commercial Invoice

♦ Packing list

♦ Packing Declaration

♦ Beneficiary Certificate
Product Standards and Consumer
Protection
 Australia is a signatory to the WTO Standards Code and has agreed
to the WTO Agreement on Technical Barriers to Trade.

 Liability laws provide consumers with a ready cause of action

against the manufactures or importers of defective products.

 The Trade Practices Act prohibits restrictive or unfair trade

practices, misleading or deceptive conduct, false representations,
deceptive offering of gifts and prizes in connection with the sale or
promotion of the goods and services.
Free Trade Areas

 An FTA is a contractual agreement between two or more parties

under which they give each other preferential market access.

 Australia has 5 existing Free Trade Agreements (FTAs) with

important trading partners and is in negotiations and discussions for
further agreements with a number of countries.

 Australia‟s FTAs cover trade in goods and services, as well as other

non-tariff issues such as the recognition of standards, customs co-
operation, the protection of intellectual property rights and the
regulation of foreign investment.
Australia Free Trade Agreements
 The Australia-Chile Free Trade Agreement,(1st Jan, 2009)

 The Australia-United States Free Trade Agreement (AUSFTA),

(January, 2005)

 The Australia-Thailand Free Trade Agreement (TAFTA),

(January, 2005)

 Singapore-Australia Free Trade Agreement (SAFTA), (July, 2003)

 The Australia New Zealand Closer Economic Agreement

(ANZCERTA), (1983)
Future FTA‟s
 The Government is currently negotiating a range of
Free Trade Agreements with:

1. China
2. Malaysia and ASEAN
3. Japan
4. the Gulf Cooperation Council
5. Australia/New Zealand – ASEAN
6. And conducting a joint study on an agreement with South Korea.
Australia’s retail industry
 Australia‟s retail industry country‟s major economic forces and is the
largest employer, providing a platform for entrepreneurship and
innovation.

 Factory outlet centers selling excess product.

 According to a survey 4 out of top 10 unsalaried CEO‟s in Australia

were retailers and if we include retail banking then it is 6 out of 10.

 It is estimated that more than 50% of the adult population is currently

working or has worked at some time in their life in the retail industry.

 Highlight “the magnitude of the retail industry in Australia.”

 More than 77,000 retailers in Australia;
 operating more than 200,000 retail outlets; and
 producing more than $200 billion in annual sale
 growing at more than 6% compound per year
Australia’s retail history

 In 1880s, gold mining, wool and wheat exports created wealth,

the „well to do‟ came to view shopping as a form of
entertainment.

 In the first half of the nineteenth century, large department

stores became a prominent feature of the Australian retailing
landscape.

 The first department store opened in Sydney‟s in 1838 – a

David Jones store.

 Today, only four department store chains remain in Australia –

Myer, David Jones, Harris Scarfe and Dimmeys-Forges.

 The Westfield Group became a driving force in the development

and management of shopping centers in Australia and
subsequently the world over.
 Australia Retail History
 The evolution of supermarkets has also had a large impact on
Australia‟s retail landscape.

 Woolworths is the Australasia‟s top retailer with annual sales of $31.1

billion and Coles is the second with $28.6 billion in sales annually.

 Franchising has become a major retail model for expansion in Australia

over the past three decades.

 In Australia, franchising is regulated by the Franchising Code of

Conduct, one of the most comprehensive codes anywhere in the world.
 Home furnishing market in Australia

 The total Australian market for furnishing fabrics is estimated to be

approximately A$60 million.

 The market is dominated by imports.

 Climatic variations over the Australian continent play a part in choice of

fabrics and colors.

 Although the furnishing fabrics industry is a fashion industry, the home

furnishings market must cater for a variety of tastes. Color trends and
textures vary. Chenille, jacquards and textured fabrics are popular at present.

 In general, Australians do not change their home decoration schemes as

frequently as Europeans or Americans. The average Australian changes their
decor every ten (or even twenty) years.
Apparel Market
 The apparel market in Australia is well developed, with consumers
knowledgeable, discriminating and selective.

 Total market for apparel is estimated at US$1.869 million.

 Australian buyers attend major international collection releases and

purchase directly from the shows.

 Formal and working fashion trends are sourced from Europe, and leisure
and sports fashion from the U.S.

 China is Australia‟s largest supplier of apparel having 73% import share.

 DOMESTIC PRODUCTION
 Along with designer wear, the three main product areas that
Australian companies specialize in are:
1. Industrial work wear
2. Socks and hosiery, especially pantyhose
3. Female outerwear, such as dresses and skirts.

 The apparel industry has become a modern, well-equipped sector

that is highly specialized, with particular firms concentrating on
particular market segments.

 The textile, clothing and footwear industries are heavily

concentrated in the states of Victoria and New South Wales.
Fashion
 Modern Australia has a unique fashion style with a casual
approach.

 Fashion is distinguished from dress by its nature in that is been

fashioned or created, often by hand, and it reflects the prevailing
styles in 'polite society' rather than being based on function.
Fashion can be defined by colour, cut, cloth, garment type,
garment styles and interpretation of looks.

 Many of Australia's top designers have been inspired by an

extraordinary range of Australian fashion textiles and cultural
influences
 Chinese and Japanese silks and Egyptian
cottons

Chinese silk embroidered shawls and Chinese surcoats

brought into Australia by Chinese Australians in the late
1800s through to the 1930s have influenced the choice
of cloth, cut and colour of Australian fashion Women in
the 1920s and 1930s wore silk and embroidered evening
coats and overblouses made of chiffon, georgette or
velvet.

Coats and stoles 1920s - 1930s

The cut and style of overdresses and coats in Australian
fashion have been influenced by Chinese and Egyptian
surcoats and Japanese kimonos.
 Trousers and jackets 1930s - present
 Frocks - the mini skirt 1965 - present - The cut of frock
which has had most influence on Australian fashion was the mini
skirt.

• Sarongs, saris and skirts 1970s

• Headwear and millinery- Due to the lack of imported hats and the
need to wear a hat in hot climate areas, cabbage palm hats were
also a popular item of early Australian dress. These hats are
significant as the only distinctive item of Australian dress made
entirely from Australian materials, with the plaiting often done by
local Aboriginal groups.
 Fashion events in Australia

 L'Oréal Melbourne Fashion Festival

 It showcases the autumn/winter collections of Australia's leading
designers in a stunning range of venues throughout Melbourne.
 The Festival is a consumer event with tickets to events available to
purchase by the general public.

 Fashion Exposed & Preview

 It is Australia‟s largest Fashion Buying Trade Fair.
 Held over three days, twice a year.
 It is timed to provide an unequalled opportunity for the fashion
industry to source the very best of fashion and accessories as part of
their seasonal buying.
 Spring/Summer held in March in Sydney and Autumn/Winter held in
September in Melbourne.
 Perth Fashion Festival
 It is 9-day festival.
 It has thirty fashion events, with sixteen spectacular free-to-the-public
fashion parades, nine fabulous designer runway shows and a Fashion
Bar.

 Melbourne Spring Fashion Week

 This is the fashion event in spring, featuring all the hottest designers,
labels, styles and retailers in and around Melbourne.
 A true showcase of all the beauty, fashion and style.
 There is a fashion event to suit everyone - day or night - from glamorous
Official Evening Parades at the Melbourne
 Australian Fashion Weeks - Sydney and Melbourne

- More than 150 Australian designers participate in the Australian Fashion

Weeks each year - held twice each year with Spring/Summer collections
in Sydney in May and Autumn/Winter collections in Melbourne in October
and November. These events are attended by international fashion
buyers and fashion media
Australian designers

 Lisa ho
 Lisa Ho has been at the forefront of the
 Australian Fashion Industry for the past
 22 years.

Bare by Rebecca Davies

A focused fashion
outlook has propelled Davies
to the top of the
Australian and international
fashion world.
 Nicola Finetti
 In 1995, the Nicola Finneti label was born.
 His design philosophy:
 "To create for women who can show
 sensuality in a modern silhouette."

Alex Perry
Nicknamed as 'Australia’s Most
Glamorous Designer', Alex Perry has
dressed some of the world's
most beautiful women since he
launched his label ten years ago.
Other Designers
 Akira Isogawa
 Arabella Ramsay
 Carla Zampatti
 Claude Maus
 Collette Dinnigan
 Easton Pearson
 Jason Grech
 Lisa Ho
 Martin Grant
 Mary Shackman
 Peter Alexander
 Prue Acton
 Ray Brown
 Rivers
 Saba
 Tina Kalivas
 Wayne Cooper
 Zimmerman
Trade fairs held in Australia

 China Clothing & Textiles Expo

 Craft & Quilt Fair-Newcastle
 Australasian Quilt Convention
 Stitch & Craft-Melbourne
 Stitch & Creative Crafts Show - Belfast
 Craft & Quilt Fair-Perth
 Craft & Quilt Fair-Sydney
 Craft & Quilt Fair-Hobart
 Craft & Quilt Fair - Melbourne
 Craft & Quilt Fair-Canberra
 Decoration + Design
 Australian Shoe Fair
 Gift and Homewares Australia Trade Fair
 Reed Gift Fair - Sydney