The Australia Giftware and Homewares industry is diverse and dynamic with Australian consumers showing a strong appetite for international brands and design. Online retailing also provides one of the largest areas of opportunities for British businesses looking to enter the Australian market. Key topics covered: • Challenges, Opportunities and Routes to Market • Tips for selling online to Australia • Case studies • Short Q&A session

1. Succeed in Australia’s Giftware & Homeware sectors
Joanna Olivera
Trade Development Manager, UKTI Australia
March 19, 2015

2. Presentation Overview
UKTI Australia: Joanna Olivera, Trade Development Manager
• General overview of Australia
• Trends and Drivers in the Homewares and Giftware Industries
• Opportunities
• Selling online to Australia
• Routes to market
• Barriers to entry
• Tips for selling online
• How can we help?
Julian Gyngell, Solicitor, Kepdowrie Chambers
Q&A session
2

3. 3
An Overview of Australia
• Australia is an island continent and
the world’s sixth largest country
• Population - 23 million
• All states/territories have separate
governments, sitting under federal
government with regulations
varying between them
• Largest and most populous cities
are Sydney and Melbourne
• Capital city - Canberra

4. 4
Why Australia?
•Very similar business, legal and
regulatory culture
•1000 UK companies
• Best performing OECD country
economically, with good growth prospects
• Sophisticated, literate and multicultural
market
• Relatively strong Australian dollar making
UK goods and services more affordable
comparatively
• Closely linked to fast growing Asia-Pacific
nations

5. Overview of Giftware and Homeware market
• Australian Giftware and Homeware
sectors encompass a diverse range
of products
• Combined value of AU$6.6 billion and
is anticipated to experience growth
over the coming years
• Demand for quality, niche and unique
products
• Mix of chain stores, independent
retailers and selling online directly or
through an e-marketplace
5

6. Trends & Drivers
6
• Heavily influenced by various
cultures and trends abroad.
• Australians display appetite for
international design and products.
• Demand for quality and
uniqueness.
• Significant increase in the number
of Australian’s purchasing Giftware
and Homeware online.

7. Opportunities for UK Companies
7
• UK brands highly recognisable and
highly regarded.
• Higher discretionary income increasing
consumer spending.
• Australia imports a greater amount of
goods than it exports, encouraged by
liberal trade policies and low import
quotas
• Market is reasonably competitive with
consumers constantly seeking new
products, new ideas and alternative
designs.
• Rise of e-commerce

8. Homeware
8
• Covers a wide range of products
from tableware to cooking utensils
and linen.
• Australian Homewares industry is
valued at AU$1.6 billion.
• Industry primarily made up of a
large number of small businesses
• Spurred on by the rise of reality
cooking and DIY home decorating
shows, there has been a significant
increase in the amount of consumer
spending on homeware and
kitchenware

9. Giftware
9
• Giftware market is diverse and dynamic.
• Giftware industry is currently valued at
over AU$5 billion.
• Giftware market is reasonably
competitive as consumers are
constantly seeking new products.
• Over 75% of Australia’s Giftware market
is imported from over 46 different
countries.
• Thirst for fresh, niche and innovative
products with international flair.
Increased with online shopping.

10. Jewellery, watches and accesssories
10
• Australian Jewellery and Watch Retail
Sector is valued at AU$4.6 billion and
is expected to continue to grow.
• Increase demand for luxury items
with high range precious jewellery
items representing 30% of the
market.
• With rise of gold prices there has
been an increased demand for silver
jewellery items.
• Steading increase in sales of
costume jewellery.

11. Greeting Cards
11
• Australia is the third largest market in
the world for greeting cards.
• On average, Australian’s purchase
30 greeting cards per person per
annum.
• Australia’s greeting card industry
valued at over AU$500 million.
• The UK is the second largest supplier
of greeting cards to Australia.
• British cards are highly regarded for
their quality and value.

12. 12
UKTI Australia
Selling to Australia

13. Selling Online
13
• Australia’s online retail spending
totaled AU$14.0 billion in 2014/15.
• Over 17 million Australian’s
connected to the internet.
• International online retailing grew
by 27% and is expected to
continue rising in the Australian
market.
• Homewares accounted for 18% of
all online sales in 2014.
• Rise of m-commerce.
• Imports of total value less than
AU$1000 free of duty and tax.

14. Routes to Market
14
• A number of ways to approach the
Australian market:
1. Distributor
2. Agent
3. Selling online directly to consumer or
through e-marketplace

15. Barriers to Entry
15
• Barriers to entry are
relatively low but competition
is high
• Most of the retailers in these
industries are small to
medium sized
• Some customs restrictions
E.g. the importation of
wooden or animal products
to Australia

16. Tips for selling online to Australia
• Adapt dimensions and measurements
• Credit card and payment mechanisms
• Currencies – display prices in Australian
dollars
• Remember not to charge VAT
• Be mindful of seasonality differences
• Be explicit about returns policies
• Provide enough content for a consumer to
make an informed decision
• Creation of company social media sites and
mobile-friendly e-commerce sites are also vital
16

17. Doing Business in Australia
17
• Relatively easy to to business in
Australia due to similar business and
regulatory environment
• A company must register its business
to operate in Australia and then will
have an Australian Company Number
to have a com.au address
• Goods and Services Tax (GST), at a
rate of 10%, applies to most imported
goods over a A$1,000 threshold

18. 18
UKTI Australia
How we can help?

19. How can UKTI help your business?
• Carry out in-depth research on the
market and research local contacts to
your specifications through the
Overseas Market Introduction
Service(OMIS)
• Put you in touch with our industry
partners
• Help you attend trade fairs and
missions
• Product launches and PR and
marketing support
• Whatever you need to succeed in the
market!
19

20. Giftware and Homeware Sector Reports
• A sector report which expands on
the topics featured in this
presentation is available free of
charge from UKTI Australia
• Features opportunities, trends
and tips on selling to Australia
• Will provide a background that will
allow you to make a reasoned
and logical analysis of
opportunities and the realistic
potential for your product in
Australia

21. Australian Gift and Homewares Association (AGHA)
• Main industry Association for the
Homeware and Giftware markets in
Australia
• Over 3000 members
• Offers a range of support and
assistance for members from
advocacy to trade show guidance
• UKTI can assist with advertising in
AGHA’s bi-monthly Giftrap magazine

22. 22
Contact Details:
Joanna Olivera
Trade Development Manager,
(Creative Industries, Fashion, Giftware,
Homeware and E-Commerce)
UKTI Australia
British Consulate-General, Sydney
joanna.olivera@mobile.ukti.gov.uk
Next Presenter:
Julian Gyngell, Solicitor, Kepdowrie Chambers

23. Exporting to AustraliaExporting to Australia
Julian GyngellJulian Gyngell
Principal, Kepdowrie ChambersPrincipal, Kepdowrie Chambers

24. IntroductionIntroduction
 Setting the SceneSetting the Scene
 Corporate structuresCorporate structures
 Distribution and Reseller AgreementsDistribution and Reseller Agreements
 Intellectual PropertyIntellectual Property
 Regulatory ComplianceRegulatory Compliance
 Tax and AccountingTax and Accounting

25. The Legal LandscapeThe Legal Landscape
 Company lawCompany law
 Contract lawContract law
 Employment lawEmployment law
 IP lawIP law
 Trade practices, competition law, anti-trustTrade practices, competition law, anti-trust
 Tort (i.e. negligence and misrepresentation)Tort (i.e. negligence and misrepresentation)
 Privacy, data protectionPrivacy, data protection
 Product liability and consumer protectionProduct liability and consumer protection
 Fiscal, income tax, GST, CGT, FBT, withholding tax, stamp duty,Fiscal, income tax, GST, CGT, FBT, withholding tax, stamp duty,
excises and more! Proper advice required!excises and more! Proper advice required!

26. Corporate Structures - OptionsCorporate Structures - Options
 RegistrationRegistration ofof “foreign” corporations“foreign” corporations
 Incorporation of a local companyIncorporation of a local company
 independent legal entity, limited liabilityindependent legal entity, limited liability
 protects (shields) UK assetsprotects (shields) UK assets
 Businesses “trading as”Businesses “trading as”
 unlimited personal liabilityunlimited personal liability
 PartnershipsPartnerships
 joint and several (and unlimited) personal liabilityjoint and several (and unlimited) personal liability
 Distributors / Resellers / Agents / RepsDistributors / Resellers / Agents / Reps

27. Distribution and ResellerDistribution and Reseller
Agreements - Checklist IAgreements - Checklist I
 ScopeScope
 Exclusive or non-exclusiveExclusive or non-exclusive
 Territory (States and regions)Territory (States and regions)
 TermTerm
 Trade Channels / Routes to marketTrade Channels / Routes to market
 Minimum sales targets or other KPIsMinimum sales targets or other KPIs
 Marketing Plan and Collateral MaterialsMarketing Plan and Collateral Materials
 Processes / POs / Invoicing / RefundsProcesses / POs / Invoicing / Refunds
 Support / Maintenance / TrainingSupport / Maintenance / Training

28. Distribution and ResellerDistribution and Reseller
Agreements – Checklist I IAgreements – Checklist I I
 Product liabilityProduct liability
 InsuranceInsurance
 Trade mark ownership / Branding / GoodwillTrade mark ownership / Branding / Goodwill
 Compliance with local lawsCompliance with local laws
 INCOTERMS / FOB etcINCOTERMS / FOB etc
 Dispute resolution optionsDispute resolution options
 Term / Termination / Expiry / ConsequencesTerm / Termination / Expiry / Consequences
 Jurisdiction / Choice of lawJurisdiction / Choice of law

29. Intellectual PropertyIntellectual Property
 Copyright, trade marks, brands, domain names,Copyright, trade marks, brands, domain names,
patents, designs, database rightspatents, designs, database rights
 Distinguish the characteristics of, and rightsDistinguish the characteristics of, and rights
applicable to, each category of IPapplicable to, each category of IP
 Due diligence - ownership - non-infringementDue diligence - ownership - non-infringement
 Proper warranties and indemnitiesProper warranties and indemnities

30. Compliance ICompliance I
 Regulatory authorities where applicable (e.g.Regulatory authorities where applicable (e.g.
banking and finance sectors, food and drugs)banking and finance sectors, food and drugs)
 Data protection and privacy, securityData protection and privacy, security
 Labeling and packaging requirementsLabeling and packaging requirements
 Advertising restrictionsAdvertising restrictions

31. Compliance IICompliance II
 Customs and Excise, export controlsCustoms and Excise, export controls
 Trade practices / competition law / anti-trustTrade practices / competition law / anti-trust
compliancecompliance
 Environmental protection lawsEnvironmental protection laws

32. Tax and AccountingTax and Accounting
 BAS statements (quarterly)BAS statements (quarterly)
 Fiscal/tax planning opportunitiesFiscal/tax planning opportunities
 Corporate taxCorporate tax
 Individual income tax (PAYG)Individual income tax (PAYG)
 Sales tax, GST 10% (VAT in UK)Sales tax, GST 10% (VAT in UK)
 Government grants and schemesGovernment grants and schemes

33. Kepdowrie ChambersKepdowrie Chambers
Julian GyngellJulian Gyngell
MBL, LLB, Dip IPLMBL, LLB, Dip IPL
TT +61 (0)2 9988 0067+61 (0)2 9988 0067
MM +61 (0)403 009 060+61 (0)403 009 060
EE julian@kepdowrie.comjulian@kepdowrie.com
WW www.kepdowrie.comwww.kepdowrie.com
SS kepdowriekepdowrie
Kepdowrie ChambersKepdowrie Chambers
PO Box 881, WahroongaPO Box 881, Wahroonga
N.S.W. 2076N.S.W. 2076
AustraliaAustralia

34. 34
Q&A Session
Joanna Olivera
Trade Development Manager,
UKTI Australia
British Consulate-General, Sydney
Phone: +61 (0)2 8247 2212
Email: joanna.olivera@mobile.ukti.gov.uk
Julian Gyngell
MBL, LLB, Dip IPL
Kepdowrie Chambers
Phone: +61 (0)2 9988 0067
Mobile: +61 (0)403 009 060
Email: julian@kepdowrie.com
Skype: kepdowrie