Apparel trade norms between Australia and India

8/14/2019 Apparel trade norms between Australia and India

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Presented by:Shikha Prakash

([email protected])


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The Worlds smallest continent

The Worlds largest island


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History of Australia

Aboriginal settlers arrived on thecontinent from Southeast Asia about40,000 years before the firstEuropeans began exploration in the

17th century. No formal territorialclaims were made until 1770, whenCapt. James COOK took possessionin the name of Great Britain. Sixcolonies were created in the late 18thand 19th centuries; they federated andbecame the Commonwealth of

Australia in 1901.

Area

Total: 7,686,850 sq kmland: 7,617,930 sq kmwater: 68,920 sq km


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Economic indicators for Australia

Currency: 1Australian Dollar ($A or AUD) = 100 cents

Capital : Canberra

Fiscal year: 1 July - 30 June

Trade organizations: WTO and Bilateral Trade

GDP by sector: Agriculture (3.4%)mining (4.9%)industry (23.2%)

services (68.4%)

Main partners: Japan 19.6%China 10.2%South Korea 7.7%

US 7.4%New Zealand 7.2%


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Symbolizes:Australia's history as sixBritish colonies and the principle onwhich Australia federation is based.

representing the 6 States ofAustralia and the Territories

Southerncross

It is a constellation in

southern hemispherewhich in British timesused to representAustralia


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DemographicsPopulation: 21,007,310 (July 2008 est.)

Age structure: 0-14 years: 18.8%15-64 years: 67.9%

65 years and over: 13.3%Median age: total: 37.1 yearsmale: 36.4 yearsfemale: 37.9 years (2008 est.)

Population growth rate: 1.221% (2008 est.)

Sex ratio: 1 male / femaleBirth rate: 12.55 births/1,000 populationDeath rate: 6.68 deaths/1,000 population


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Psychographics It divides the market into groups based on social class, lifestyle and

personality characteristics

Social class

Social grade Description of occupation Example

A higher managerial administrative company Director

or professionals

B Intermediate managerial Middle manager

administrative or professionals

C1 supervisory clerical, junior

administrative or professionals Bank Cleark

C2 Skilled manual workers Plumber

D Semi or unskilled manual

workers. Labours

E state pensioners with no other

widows and casual and low wage unemployed

earners


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Sociographics

Religions: Anglican 26.1%,

Roman Catholic 26%,

other Christian 24.3%,

non-Christian 11%, other 12.6%

Government: Democratic

Languages Spoken: English is the primary language. In1788 there were 250 different languagesbut now only 20 languages survives.


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Culture The current cultural scenario in Australia is a

perfect blend of the Australian Aboriginal Cultureand the European influence.

Natives of Australia followed their own indigenouscultural traditions and evolved their own arts andcrafts. But during the world war 2 the Europeanswho migrated to Australia also influenced itsculture lot.

Art and Crafts in Australia, marked by themulticultural impacts.

Architecture in Australia developed under theskilled oversight of the European settlers.

Australian Cuisine originally synonymous withEnglish cooking has now become a vibrant blendof Turkish, Italian, Chinese, Indian, Thai, Greekand Arab culinary styles.


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Business etiquettes of Australia Emotions and feelings are not important in the Australian business

climate.

Australians are very direct in the way they communicate.

There is often an element of humor, often self-deprecating, in theirspeech.

Aussies often use colorful language that would be unthinkable inother countries.

Appointments are necessary and relatively easy to schedule.

They should be made with as much lead time as possible.

Punctuality is important in business situations. It is better to arrive

a few minutes early than to keep someone waiting.


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Business etiquettes

Australians get down to business quickly with a minimum amount of small talk.

Australian handshakes are firm and quick. Women typically don't shake hands withone another in Australia.

Business dress is conservative in Melbourne and Sydney

Men should wear a dark colored, conservative business suit.

Women should wear a smart dress or a business suit.

Arrive on time in Australia is very important.

Business cards are exchanged at the initial introduction


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India and Australia trade relations

India Australia trade relations can be traced back to whenthe first Australian ship laden with coal came to India in1801 as a part of the East India Company.

India Australia trade relations are active today but their fullpotential has still not been achieved.

There is considerable scope for development in IndiaAustralia trade relations.


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Australian merchandise trade with

IndiaAustralian merchandise Total share Rank Growth (YOY)trade with India, 2007

Exports to India (A$m): 9,288 5.5% 6th 5.4%

Imports from India (A$m): 1,459 0.8% 24th 14.0%

Total trade (export + import) (A$m): 10,746 3.0% 10th 6.5%


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Australia's merchandise exports to

India

Major Australian exports, 2007 (A$m) Major Australian imports, 2007 (A$m)

Non-monetary gold 4,167 Pearls & gems 108

Coal 2,396 Rotating electric plant 88Copper ores 1,113 Jewellery 63Wool 151 Medicaments (incl. veterinary) 38


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Australia's trade in services with India, 2007: Total share:

Exports of services to India (A$m): 2,062 4.3%

Imports of services from India (A$m): 459 1.0%

Indian merchandise exporters to Australia in the textile sectorare1. men's clothing

2. women's clothin3. Make up articles4. textile yarn5. floor coverings

The Indian merchandise exporters to Australia are

1. Leather2. Footwear3. travel good4. leather goods


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Australias investment in India

The total value ofAustralian investments inIndia during the period

August 1991 to December2003 was Rs 67986.2million or A$ 2124.6million.


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Indias investment in Australia Major Indian investmentsin Australia include that by Indias Oswal

Group to construct an ammonia plant at Karratha.

The Aditya Birla Group has acquired copper mines at Nifty (WesternAustralia) and Mt Gordon (Queensland).

Asian Paintsacquired Pacific Paints in the State of Queensland.

The Oberoi Hotels International manages the Hotel Windsor inMelbourne


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The Australia-India Council (AIC) was established on 21 May 1992

The Council's purpose is to broaden the relationship betweenAustralia and India by encouraging and supporting contacts andincreasing levels of knowledge and understanding between the

peoples and institutions of the two countries.

The Council initiates or supports a range of activities designed topromote a greater awareness of Australia in India and a greaterawareness of India in Australia

These include visits and exchanges between the two countries,development of institutional links, and support of studies in eachcountry of the other.

The Council offers support, in the form of funding, for projects likely tocontribute to the development of the relationship, within the context of

AIC objectives and guidelines.

Australia India Council (AIC)


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Utsav Australia (Celebrate Australia) is an Australian Government's initiative toaccelerate Australias commercial engagement with India.

To help, tap the enormous potential flowing from Indias growth opportunities theAustralian Government has launched "Utsav Australia"(Celebrate Australia) amajor promotional programme.

It is a sustained marketing and promotions program to raise awareness ofAustralian business and industry amongst the Indian business community.

It creates awareness on Australias capabilities and showcase Australianexpertise across a wide range of sectors to further strengthen Australian exports

to India.

It is managed by Australian Trade Commission.

Utsav Australia programmed features events, promotional activities, awarenessseminars & outreach programmes across India.


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Trade Policy of Australia

Australia shielded its industry for most of the past decades behindtariff protection.

Australia began to reduce its tariff including in its most protectedindustries such as automobiles and textiles in the 1980s.

The Australian economy has since reaped as the result of tariffreduction productivity increased and international competition also

increases.


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Customs Valuation and Tariff Of

Australia The Australian Government has planned for the progressive

reduction of tariff protection for local industry.

Tariff reduction programme has already reduced 48% of Australiantariff to zero and 35%.

About 86% of tariff rates now range between zero and 5%.

The average applied most-favoured-nation (MFN) rate for industrialproducts is 4.6%, while the applied MFN tariff for agriculturalproducts is less than 1%.


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Anti-dumping and Countervailing

Duties Where a consignment of goods has been imported to Australia, or is

likely to be imported, and an Australian industry producing the likegoods believes there are reasonable grounds, an applicant mayapply for a dumping duty and/or a countervailing duty notice to bepublished.

Australia has initiated a number of anti-dumping proceedingsagainst certain countries including China.

Goods subject to Anti dumping measures are: Preserved Pineapple,

mushrooms and certain other chemicals.


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Marking and Trade Descriptions

Importers are required to ensure that goods entering Australia arecorrectly labeled.

It is an offence to import goods that do not bear a required trade

description, or bear a false trade description.

Imported goods that require a trade description must be marked withthe name of the country in which the goods are made and a truedescription of the goods in English language, in legible charactersand in prominent position with weight or quantity


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Documentary Requirements

Bill of lading Certificate of Origin

Export costing Out of Australia Drafts & Lodgments

Purchase Order Forward Exchange

Pro-forma Invoice Dangerous Good Declaration Form

Commercial Invoice

Packing list

Packing Declaration

Beneficiary Certificate
http://www.australiatrade.com.au/Shipping/ExportDocuments/certificate.htmlhttp://www.australiatrade.com.au/Shipping/ExportDocuments/packingD.htmlhttp://www.australiatrade.com.au/Shipping/ExportDocuments/packing.html


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Product Standards and Consumer

Protection Australia is a signatory to the WTO Standards Code and has agreed

to the WTO Agreement on Technical Barriers to Trade.

Liability laws provide consumers with a ready cause of action

against the manufactures or importers of defective products.

The Trade Practices Act prohibits restrictive or unfair tradepractices, misleading or deceptive conduct, false representations,deceptive offering of gifts and prizes in connection with the sale orpromotion of the goods and services.


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Free Trade Areas

An FTA is a contractual agreement between two or more partiesunder which they give each other preferential market access.

Australia has 5 existing Free Trade Agreements (FTAs) with

important trading partners and is in negotiations and discussions forfurther agreements with a number of countries.

Australias FTAs cover trade in goods and services, as well as othernon-tariff issues such as the recognition of standards, customs co-operation, the protection of intellectual property rights and the

regulation of foreign investment.


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The Australia-Chile Free Trade Agreement,(1st Jan, 2009)

The Australia-United States Free Trade Agreement (AUSFTA),(January, 2005)

The Australia-Thailand Free Trade Agreement (TAFTA),(January, 2005)

Singapore-Australia Free Trade Agreement (SAFTA), (July, 2003)

The Australia New Zealand Closer Economic Agreement(ANZCERTA), (1983)

Australia Free Trade Agreements


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Future FTAs

The Government is currently negotiating a range ofFree Trade Agreements with:

1. China

2. Malaysia and ASEAN

3. Japan

4. the Gulf Cooperation Council

5. Australia/New Zealand ASEAN6. And conducting a joint study on an agreement with South Korea.


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Australias retail industry

Australias retail industry countrys major economic forces and is thelargest employer, providing a platform for entrepreneurship andinnovation.

Factory outlet centers selling excess product.

According to a survey 4 out of top 10 unsalaried CEOs in Australiawere retailers and if we include retail banking then it is 6 out of 10.

It is estimated that more than 50% of the adult population is currentlyworking or has worked at some time in their life in the retail industry.

Highlight the magnitude of the retail industry in Australia. More than 77,000 retailers in Australia; operating more than 200,000 retail outlets; and producing more than $200 billion in annual sale

growing at more than 6% compound per year


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Australias retail history

In 1880s, gold mining, wool and wheat exports created wealth,the well to do came to view shopping as a form ofentertainment.

In the first half of the nineteenth century, large departmentstores became a prominent feature of the Australian retailinglandscape.

The first department store opened in Sydneys in 1838 aDavid Jones store.

Today, only four department store chains remain in AustraliaMyer, David Jones, Harris Scarfe and Dimmeys-Forges.

The Westfield Group became a driving force in the development

and management of shopping centers in Australia andsubsequently the world over.


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Australia Retail History

The evolution of supermarkets has also had a large impact onAustralias retail landscape.

Woolworths is the Australasias top retailer with annual sales of $31.1billion and Coles is the second with $28.6 billion in sales annually.

Franchising has become a major retail model for expansion in Australiaover the past three decades.

In Australia, franchising is regulated by the Franchising Code ofConduct, one of the most comprehensive codes anywhere in the world.


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Home furnishing market in Australia

The total Australian market for furnishing fabrics is estimated to beapproximately A$60 million.

The market is dominated by imports.

Climatic variations over the Australian continent play a part in choice offabrics and colors.

Although the furnishing fabrics industry is a fashion industry, the homefurnishings market must cater for a variety of tastes. Color trends and

textures vary. Chenille, jacquards and textured fabrics are popular at present.

In general, Australians do not change their home decoration schemes asfrequently as Europeans or Americans. The average Australian changes theirdecor every ten (or even twenty) years.


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Apparel Market

The apparel market in Australia is well developed, with consumersknowledgeable, discriminating and selective.

Total market for apparel is estimated at US$1.869 million.

Australian buyers attend major international collection releases andpurchase directly from the shows.

Formal and working fashion trends are sourced from Europe, and leisureand sports fashion from the U.S.

China is Australias largest supplier of apparel having 73% import share.


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DOMESTIC PRODUCTION

Along with designer wear, the three main product areas thatAustralian companies specialize in are:

1. Industrial work wear

2. Socks and hosiery, especially pantyhose

3. Female outerwear, such as dresses and skirts.

The apparel industry has become a modern, well-equipped sectorthat is highly specialized, with particular firms concentrating onparticular market segments.

The textile, clothing and footwear industries are heavilyconcentrated in the states of Victoria and New South Wales.


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Fashion

Modern Australia has a unique fashion style with a casualapproach.

Fashion is distinguished from dress by its nature in that is beenfashioned or created, often by hand, and it reflects the prevailingstyles in 'polite society' rather than being based on function.Fashion can be defined by colour, cut, cloth, garment type,garment styles and interpretation of looks.

Many of Australia's top designers have been inspired by anextraordinary range of Australian fashion textiles and culturalinfluences


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Chinese and Japanese silks and Egyptiancottons

Chinese silk embroidered shawls and Chinese surcoatsbrought into Australia by Chinese Australians in the late1800s through to the 1930s have influenced the choiceof cloth, cut and colour of Australian fashion Women in

the 1920s and 1930s wore silk and embroidered eveningcoats and overblouses made of chiffon, georgette orvelvet.

Coats and stoles 1920s - 1930s

The cut and style of overdresses and coats in Australianfashion have been influenced by Chinese and Egyptiansurcoats and Japanese kimonos.


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Trousers and jackets 1930s - present

Frocks - the mini skirt 1965 - present - The cut of frockwhich has had most influence on Australian fashion was the miniskirt.

Sarongs, saris and skirts 1970s

Headwear and millinery- Due to the lack of imported hats and theneed to wear a hat in hot climate areas, cabbage palm hats werealso a popular item of early Australian dress. These hats aresignificant as the only distinctive item of Australian dress madeentirely from Australian materials, with the plaiting often done bylocal Aboriginal groups.


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Fashion events in Australia

L'Oral Melbourne Fashion Festival

It showcases the autumn/winter collections of Australia's leadingdesigners in a stunning range of venues throughout Melbourne.

The Festival is a consumer event with tickets to events available topurchase by the general public.

Fashion Exposed & Preview

It isAustralias largest Fashion Buying Trade Fair.

Held over three days, twice a year. It is timed to provide an unequalled opportunity for the fashion

industry to source the very best of fashion and accessories as part oftheir seasonal buying.

Spring/Summer held in March in Sydney and Autumn/Winter held inSeptember in Melbourne.


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Perth Fashion Festival

It is 9-day festival. It has thirty fashion events, with sixteen spectacular free-to-the-public

fashion parades, nine fabulous designer runway shows and a FashionBar.

Melbourne Spring Fashion Week

This is the fashion event in spring, featuring all the hottest designers,labels, styles and retailers in and around Melbourne.

A true showcase of all the beauty, fashion and style.

There is a fashion event to suit everyone - day or night - from glamorousOfficial Evening Parades at the Melbourne


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Australian Fashion Weeks - Sydney and Melbourne

- More than 150 Australian designers participate in the Australian FashionWeeks each year - held twice each year with Spring/Summer collections

in Sydney in May and Autumn/Winter collections in Melbourne in Octoberand November. These events are attended by international fashionbuyers and fashion media


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Australian designers

Lisa ho

Lisa Ho has been at the forefront of the

Australian Fashion Industry for the past

22 years.

Bare by Rebecca Davies

A focused fashion

outlook has propelled Davies

to the top of the

Australian and international

fashion world.


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Nicola Finetti

In 1995, the Nicola Finneti label was born.

His design philosophy:

"To create for women who can show sensuality in a modern silhouette."

Alex PerryNicknamed as 'Australias Most

Glamorous Designer',Alex Perry has

dressed some of the world's

most beautiful women since helaunched his label ten years ago.

Other Designers


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Other Designers

Akira Isogawa

Arabella Ramsay Carla Zampatti Claude Maus Collette Dinnigan Easton Pearson

Jason Grech Lisa Ho Martin Grant Mary Shackman Peter Alexander Prue Acton Ray Brown Rivers Saba Tina Kalivas Wayne Cooper

Zimmerman


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Trade fairs held in Australia

China Clothing & Textiles Expo Craft & Quilt Fair-Newcastle Australasian Quilt Convention Stitch & Craft-Melbourne

Stitch & Creative Crafts Show - Belfast Craft & Quilt Fair-Perth Craft & Quilt Fair-Sydney Craft & Quilt Fair-Hobart Craft & Quilt Fair - Melbourne Craft & Quilt Fair-Canberra

Decoration + Design Australian Shoe Fair Gift and Homewares Australia Trade Fair Reed Gift Fair - Sydney