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China

Understanding the true supply chain and Commercial costs of Business in Australia

 

Today's Blog- by our GM Strategy- Ross Hendy

As a foreign organisation wanting to trade in Australia, it is critically important you understand the true costs of business in this market, be it from a supply chain perspective and in terms of commercial negotiation and investment. The margin chain in Australia at all levels is always looking to extract greater profit from your business offering. It goes without saying that this has the impact of stretching your brands ability to compete effectively in this region. 

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Accessing new markets

I have been having discussions with various major manufactures in Australia who are all being lured off shore.

The funny thing about this policy is that they are ignoring two important points.

China wants quality overseas products

The Chinese middle class markets are not necessarily buying their own locally made products (from baby formula to cars) and new supermarkets are being launched in China, that specialise in ONLY imported items.

 China has a very large emerging middle class consumer market

Here I am referring to the approximately 300 million Chinese who are the emerging middle class as of NOW.

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( Posted in: Ceo's Corner | 0 Responses )