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