A common language and familiar business framework may lead Americans to overlook Australia’s cultural and market differences. It is vital for U.S. companies to first gain an understanding of the Australian context for a product or service as well as the current competitive environment. Successful companies take time and effort to examine and adapt to local standards, regulations, and sales channels relevant to their products or services.
Success in the Australian market often requires establishing a local sales presence with a robust service network to provide after-sale support. For many American exporters, this means developing a relationship with a qualified distributor and in some cases appointing an agent. The bounds of these relationships are negotiated, and may include only certain states of Australia, the entire country, or New Zealand as well.
The distance from many of their trading partners and the sheer size of the Australian continent – comparable to the continental United States – causes Australian firms to stress the importance of local support and service. American companies should expect to visit Australia regularly both to meet with partners, address issues, and demonstrate commitment to the market, as this is the common practice of their competitors.
Most of the criteria American firms use to select distributors or other partners in markets throughout the world are also applicable to Australia, with expectations adjusted to the scale of the market given the population of about 27 million. Performing due diligence is just as important in Australia as in the United States, and the U.S. Commercial Service in Australia offers services to assist in this area.