Textile Industry Issues in Australia

The development of strong export market is essential. TCF and Allied industries seeking to export products and/or services will work through a number of phases as indicated in this chart.

An initial commitment to exporting is an important first step and can lead to substantial financial outlays.

There are risks involving exporting:

· Distance- if there’s an issue, it’s a long way to go to rectify it.

· Currency fluctuations can severely affect the price obtained for goods if the exporter is not paid in Australian dollars.

· Shipping and transport-loss or damage considerations

· Industrial action- can hold up delivery and affect supplier-customer relations

These are issues that are often out of the hands of the potential exporter but which can severely impact on the business unless the exporter is aware of the risks and plans for all contingencies.

Consideration of the geographical, political and cultural circumstances of potential export markets must be considered and their feasibility determined from the outset

A review of potential business contacts/buyers will need to be undertaken. Embassies and Consultants carry business directories of organisations in the country they represent. Such directories contain contact details and are a bit like our Yellow Pages. Government Agencies like Austrade can assist in many ways including searching the market for details of likely competitors, pricing and distribution as well as identifying potential importers and distributors.

Forward planning is essential and can save a lot of time and money.

There’s nothing like visiting the market first hand to follow up and make contact with parties identified in the previous phase. It’s an opportunity to promote the product or service intended for export. Meeting with potential customers will establish whether a supplier/customers business relationship is feasible and allows the conditions of trading to be established.

After a visit to the market place it will be necessary to follow through on all meeting and issues discussed. Further visits will probably be necessary to finally “clinch” the deal and establish by way of contract or agreement conditions of supply and purchase.

When the first order has been received the exporter will probably establish a Letter of Credit facility. Theis ensures the exporter receives payment for their product or service. It is far more difficult to chase up outstanding payments when you live on the other side of the world to your customer.