Australia may be on the other side of the world to a great deal of the global populous, but that doesn’t mean it’s not an option to consider as part of your international expansion plans. Indeed, the country’s economy is one of the most exciting and vibrant in the world, and so entrepreneurs from all four corners of the globe are fighting to enter the nation and dominate.
If you want to invest in Australia but you’re not ready to set up an entirely new business, then you may want to consider the benefits of establishing a sales office within the country. Below, we round up those benefits and share why a sales office makes perfect business sense…
Sell To Australian Nationals
Perhaps the most obvious reason why you would want to establish a sales office within the country is to gain access to its people. Australia is home to more than 24 million people and boasts the 12th largest economy in the world with a GDP of more than $1 trillion US dollars.
It was one of the only economies not to be hit during the 2008 financial crisis and has defied the odds to sustain decades of economic growth. Australia has a large section of middle-class citizens and a growing number of upper-middle-class citizens, too – great news for businesses looking to sell to consumers and take advantage of their higher-than-average levels of disposable income. According to the Bureau of Statistics, the average salary in the country currently stands at an eye-watering AU$82,436 a year, and with superannuation and a strong pension pot, the country’s elderly citizenship is also in a position to buy from you.
Of course, there are lots of things that you’ll need to take into consideration if you’d like to sell to Australians, and so target market research and a local advertising specialist should be utilized to maximize your chances of success. Remember that Australians may be culturally different to citizens in your own country – don’t assume you can walk into the market and sell.
Make New Business Contacts
There are many reasons to open a business in Australia, including being able to position your brand within the country and make new business contacts. Australia is home to some of the world’s most successful entrepreneurs, and so with an office in the country, you’ll be able to meet with them, sell the benefits of your business, and sell more of your products to local citizens and professionals. Even if you do not want to open a physical store in the country or have the funds to secure a manufacturing plant just yet, a sales office allows you to sell your goods without pressure – and do so in a smart, professional and straightforward manner.
Create A Global Brand Presence
In today’s globalized world, it’s impossible to run a business in one country; if you want to be successful, you have to think big and work with people who may be on the other side of the world. Rather than relying on Skype or WhatsApp, having a physical office where business contacts and potential buyers can visit makes sense – it’s more professional, allows you to conduct meetings, and adds a level of prestige to your business, even if you do not have the capacity for full operations in Australia just yet.
Indeed, a business contact may be interested in working with your business but may change their mind once they see that you’re based on the other side of the world.
With an Australian office, potential partners and clients can at least know that you’re serious about doing business in the country and that you have made the investment in an office. By hiring sales executives to sell your products and drum up trade, you’ll quickly develop a sales base that can be rolled out into other parts of Australia, and indeed further afield.
Compete Against Other Businesses
The business world has never been more competitive – and with brands now looking to take their businesses global, the chances are that you’ll have more competition than ever before. For example, an Australian business in your niche might be making headway in your home country, and so by establishing a presence in their country, you’ll be able to remain at the top of your game claw back some of your market share, even if you have to work harder to get it.
Of course, you should not enter the country until you’re certain there’s a demand for your product or service. So often, businesses fall into the trap that they need to have a presence in every country in order to be competitive, but this often means that their overheads are extremely high and they’re employing people in countries they’ve never visited themselves. Do your research and test the waters before setting up a sales office – entering into Australia requires time, dedication and the right strategy, and it can be extremely expensive.
Unlock New Opportunities
Finally, consider a sales office the first step towards domination in Australia. As mentioned, the country requires a significant level of capital for marketing and opening a physical store, so if you’re not there just yet, a sales office could be a way for you to ‘dip your toe’ into the country and see whether you would be able to make money. If, after a couple of years, there is high demand for your products and you want to cut down on shipping, you could then look to open a manufacturing and distribution plant in the country, safe in the knowledge that you have already got the business contacts and confirmed sales needed to make it a success.
When considering a sales office in Australia, you should weigh up your opportunity costs and decide whether not the demand will make your venture worthwhile. Remember that no good sales department will work without the assistance of a talented team, so focus on recruitment and training to maximize your potential profitability.
If you’re entering the market and would benefit from the assistance of an experienced team to help with recruitment, company formation, and more, contact the experts at Biz Latin Hub Australia today on [email protected] We look forward to hearing from you soon.