Overseas markets delivering higher profits for Aussie businesses
Government support and proximity to customers tagged as keys to int’l expansion.
New research released today by global workplace provider Regus revealed that Australian exporting businesses are experiencing higher profit growth than companies focusing solely on domestic trade. The data showed that exporting firms are in the lead with 44% reporting profit growth over the last 12 months, compared to 38% of those trading within Australia only.
The research also found there are many significant benefits for businesses who have a physical presence close to their clients or customers – with 85% of Australian businesses reporting physical proximity boosts sales. The respondents also believed being close to clients helps: improve customer retention rates (84%), increases customer satisfaction (82%) and allows for a better understanding of customers and markets (81%).
However, overseas expansion is a big step for both small and large businesses to take and a difficult one if support is lacking. Small businesses reported a stronger need for government assistance on taxation advice (41%), and information on networking locations (29%) compared to that of large businesses.
|Government support required for helping businesses expand overseas||Small Business (0-49 Employees)||Large Businesses (250+ Employees)|
|Advice on legal and regulatory matters||66%||64%|
|Advice on taxation||41%||34%|
|A directory of flexible workspace providers||8%||11%|
|A directory of local service/product suppliers||20%||26%|
|A staff search and recruitment service||12%||17%|
|Information on locations where I can network with businesses similar to mine||29%||26%|
|Information on local culture, customs, style and social locations||35%||41%|
|Introductions to local business organisations/associations||48%||47%|
Commenting on the study, CEO of Regus Australia and New Zealand, Paul Migliorini, said that exporting firms are doing well because of their abilities to shift their focus to areas of the world where demand for their products or services are growing.
“People always talk about ‘getting close to the customer’, but in export markets that can be literally true. Our survey respondents told us that having a physical presence close to their customers brings a number of benefits. In particular, businesses reported improved customer retention, faster problem resolution and greater satisfaction can be achieved by setting up a location in proximity to their customers or clients,” he said.
“Businesses around the globe have reported that the best help they should see from Government is legal and regulatory advice, taxation and local custom information and tips on where to network and meet local businesses. Where this information is not made available or is incomplete, businesses would benefit from partnering with firms that understand the world of business and that can provide local know-how and connections.”
Regus is the global workplace provider.
Its network of more than 2,000 business centres in 102 countries provides convenient, high-quality, fully serviced spaces for people to work, whether for a few minutes or a few years. Companies like Google, Toshiba and GlaxoSmithKline choose Regus so that they can work flexibly and make their businesses more successful.
The key to flexible working is convenience and so Regus is opening wherever its 1.5million members want support - city centres, suburban districts, shopping centres and retail outlets, railway stations, motorway service stations and even community centres.
Founded in Brussels, Belgium, in 1989, Regus is based in Luxembourg and listed on the London Stock Exchange. For more information, please visit: www.regus.com.au