Australia’s Top 10 Advantages as the Ultimate Destination for Japanese Exporters
As Japanese businesses contemplate expanding their horizons, the Australian market stands out as a highly attractive destination filled with opportunities. With its robust economy, diverse consumer base, and supportive trade policies, Australia offers a welcoming environment for Japanese exporters looking to grow. Here are the top 10 reasons why the Australian market is an appealing choice for Japanese businesses:
1. Stable and Prosperous Economy:
Australia's economy is known for its stability and consistent growth. Its GDP has been growing positively for more than 30 years, with the exception of 2020 during the coronavirus shock. Although Australia is known as a resource-rich country, the tertiary services sector accounts for more than 70% of GDP. It is one of the most stable and secure countries in the world in providing a reliable environment for foreign investment and business expansion.
2. Growing population and a promising market for the future
Australia's population is projected to continue growing due to natural increase and the government's immigration policy. As of June 2023, the population was estimated to be approximately 26.6 million, and in 50 years' time, it is estimated to be around 40 million. In addition, compared to Japan, which has an ageing population, the largest age group in Australia is in their 30s.
3. English-speaking and Diverse society
Australia is a multicultural society, with approximately one in three of its citizens born overseas. As a result, it has a diverse consumer base and tends to be open to international products. The size and composition of its market also make it a suitable market for pilot testing and new business development among English-speaking countries. Furthermore, the multicultural Australian society has a particular appreciation for the quality and innovation of Japanese goods.
4. Strong Bilateral Trade Relations:
The long-standing economic partnership between Japan and Australia, bolstered by agreements such as the Japan-Australia Economic Partnership Agreement (JAEPA)., facilitates easier market entry and lower tariffs for Japanese products.
5. Advantage of minimal time difference from Japan:
Australia's proximity in time zones to Japan stands as a significant advantage, facilitating seamless real-time communication with Australian partners and customers. This synchronicity enables efficient and effective online business meetings, allowing for immediate discussions and decisions without the hassle of time zone conversions, directly from Japan.
6. Advanced Digital Infrastructure:
Australia is more digitally advanced than Japan in many respects, including the digitisation of federal government services, the use of digital technology in public facilities, and a cashless society. Australia's well-developed digital infrastructure and high internet penetration rates make it an ideal market for e-commerce and digital marketing strategies.
7. Support for SMEs and start-ups :
Australia offers various incentives and support programs for foreign businesses, including those from Japan, making it easier to establish and grow operations. Since the launch of the National Innovation and Science Agenda in December 2015, international recognition of Australia's start-up ecosystem has increased. It has a range of support programmes for SMEs and start-ups, including international companies.
8. Growing interest in sustainability:
The Australian market is increasingly focused on sustainability and environmentally friendly products. Like Japan, the government has announced plans to achieve virtually zero greenhouse gas (GHG) emissions by 2050, and there is a willingness to pay a premium for organic and quality products.
9. Strategic location linking Europe and North America with the Asia-Pacific region:
Australia's strategic location serves as a pivotal link between Europe, North America, and the Asia-Pacific region. Boasting numerous trade agreements, it acts as an operational hub for European and North American firms aiming to navigate the Asia-Pacific markets. Additionally, Australia's diverse market size and multicultural demographic make it an ideal pilot test ground for businesses considering expansion into English-speaking territories. Utilising Australia as a foundational base offers unparalleled strategic advantages for broadening your company's reach into the Asia-Pacific, capitalising on its extensive network and established trade connections
10. Respect and affinity for Japanese culture:
There's a strong cultural affinity between Australia and Japan, with Australians holding a deep appreciation for Japanese culture, cuisine, and products, which can aid in building brand loyalty and consumer interest. In addition, the number of visitors to Japan is increasing year on year, making Japan a popular destination for Australians.
For Japanese businesses considering the leap into international markets, Australia represents not just a destination for expansion but a land of opportunity. With its welcoming business environment, affinity for quality, and openness to innovation, the Australian market offers a fertile ground for Japanese exporters to thrive. At Narrative Creatures, we're dedicated to assisting Japanese companies in navigating this promising landscape, offering expert guidance and support to unlock the full potential of the Australian market for your business. Let's explore this vibrant market together and turn opportunities into success.
