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Slides backing up my speech to exporters and potential exporters to the Americas.
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Victor PertonCommissioner to the Americas Victorian Government Business Office, San Francisco, CA
Agenda
• The US market
• Victoria’s trade with the US
• Exporting to the US
The US market
America is STILL the world’s biggest economy even with current economic
conditions:
• US$14.5 trillion GDP in 2010
• +3.0% growth over 2009
• +.4% growth Q1 2011
• +1.0% growth Q2 2011
• US$5.9 trillion China GDP
• US$5.5 trillion Japan GDP
• Population over 300 million
America is the world’s largest investor
Source: *US Bureau of Economic Analysis & CIA
America is the world’s biggest importer of goods and services
• Imports reached US $2.3 trillion in 2010*
• Imports up from US $ 1.9 trillion in 2009*
• US exports reached US $1.8 trillion in 2010*
• Trade deficit of US $500 billion*
The US market
Source: *Bureau of Economic Analysis
• STRONG Australian dollar value from 2009 into 2011
• US currency forecasts vary
The US market
Destination of Victorian Goods Exports
USA/Latin America/Canada
12%
India2%
Indonesia3%
Japan8%
Korea5%
Malaysia3%
New Zealand10%
Saudi Arabia5%
Singapore4%
Thailand3%
UAE3%
UK3%
China/HK15%
Other24%
Victoria’s trade with the US
• North America is Victoria’s biggest export market after China
and New Zealand, worth US $1.7B in sales in 2010 *
• Victoria’s second biggest trading partner (exports/imports) *
* DFAT
Exporting to the US
Where are the opportunities?
– Defence and Security
• Australia & US strategic alliance
– Water
• US is seeking Australian expertise
– Demand for leading edge technology
• Medical devices
• Software for social networks, games, security, etc.
• Energy efficiency and renewable energy
– Products that require cultural/language similarities
• Food, entertainment, etc.
Exporting to the US
• AUSFTA – Tariffs are not the major barrier to export
• Other challenging barriers include:
– different business culture
– regulatory environment
– costs
– strength of competition
American business culture
• Americans are the best sales people in the world
• Everyone will say they are extremely busy
• You have to “talk the talk”; be aggressive and straight to the point
• Don’t be the shy and self depreciating Australian; your competitors will eat you for breakfast!
• Presentations should be clear, concise and high quality; they must have an easy to understand ‘value proposition’
• US customers expect products that they can evaluate and benchmark; don’t sell the technology, sell the solution
• America has more opportunities, that also means more
competition
• America is the most litigious society on the planet and the most
expensive – budget accordingly – it is a necessary evil
• Don’t expect US companies to have heard about your business;
over 25 million US businesses file income tax returns*
• Expect some skepticism - “How are you going to service me
from way down there?”Source: *Estimates www. bizstats.com
American business culture
• Call answering systems are designed to make it difficult to get
through and they’re getting tougher all the time
• Don’t expect an executive to return your call - you need to keep
calling and create multiple contact points
• “Gate Keepers” protect senior executives from sales executives –
use your accent to get access!
• Australians are popular in America; your accent and style will intrigue people and open doors – make the most of it!
• You will have only one shot – make it count by being prepared
American business culture
• Do Your Homework:
– research the market and evaluate competitors
– www.business.vic.gov.au
– research and target potential customers
– develop a strong value proposition
– understand your customers’ business and target market before you call
• Perfect your “Company Elevator” pitch
• Understand who you are pitching to: employee, partner, investor….
• Each one has different needs – make sure you address and understand the differences
Ready to export?
• Be realistic about your initial sales goals as well as potential results
• ‘Rome was not built in a day’
• Use Government programs, grants and assistance as much as possible – they want you to succeed
• Use local talent as early as possible; they can save you time and effort with their US market and business savvy
Ready to export?
How about your US sales team?
• US salespeople / distributors / agents / partners are the ticket to your success
• You must spend the time and money to train them properly or they will fail
• Provide them with US marketing material not Australian “hand me downs”
• In-country sales calls with US staff are critical
• Plan on a number of trips in the first year or two while you ramp up your new sales team
Ready to export?
Victorian Government Support
• Access Programs
– Industry Incubators i.e.. Plug and Play
• Export Website
• Trade Fairs and Missions
• Grant Programs
• Designed to assist Victorian companies interested in exporting to,
and doing business in, the North American
• AA helps reduce the cost, time and risk associated with conducting
business in the USA
• San Francisco, Hong Kong, Shanghai, Bangalore, Tokyo, Kuala
Lumpur, and Dubai
Access America (AA) program
Access America (AA) program
• The AA program has evolved due to continuous positive
customer feedback
• Export-related assistance includes:
– market intelligence
– market-entry advice
– partner identification assistance
– business culture training
– competitor analysis
• Particular expertise in ICT, manufacturing, agribusiness,
food and wine
• The Victorian Government Business Office (VGBO)
in San Francisco offers:
– the complimentary use of office facilities
– export-related advice and assistance
• Facilities include an individual desk, broadband
connection, copier and fax
Access America (AA) program
Access America (AA) program
• Dozens of Victorian companies
have been provided with
assistance over the past few
years
• Tens of millions of anticipated
export orders and business
development has been generated
• A wide range of companies have
used the program from innovative
manufacturers to service
providers
Who should use Access America?
• Any Victorian owned company looking to enter the North American and Latin American market
• Companies interested in partnering with US, Canadian and Latin American companies
• The most successful will have products or services that can be clearly differentiated from their competitors
• Companies must have staying power
– sales do not happen overnight
– you need to be willing to invest the time and money to do it right
Case study: Invetech
• Develops systems and technologies for scientific analysis and laboratory automation
• AA used as a first step to establishing an office to support existing clients and grow North American business
• San Francisco chosen because it offered good market access and appealing lifestyle choices
• “The staff assisted with business, marketing and strategy planning as well acting as a sounding board for local market
entry ideas. We definitely recommend the program”. Ian Macfarlane, Vice President, North America
What next?
• Start at your local Victorian Government Business Office
• To apply to use Access America contact:
– George Di Scala (03) 9651 9916
– george.discala@dbi.vic.gov.au
• For further information about Victorian Government
export-related programs and services:
www.export.vic.gov.au
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