Research in 2018 shows that the United States, China and Germany are the leading importers in the world. Among these countries, China is the strongest importer of goods from Australia, purchasing approximately AUD $9.8 billion every month on average.
Between 2018 and 2019, Australia reflected a gain in exports of 7.3%. In 2019, Australia exported approximately USD $272.4 billion worth of goods around the globe. Based on country-specific data, it shows that 69.7% of products exported from Australia were bought by importers from China (32.7%), Japan (9%), South Korea (5%) United Kingdom (3.8%) and the United States (3.7%). (DANIEL WORKMAN, Australia’s Top 10 Exports, 27 April 2020)
Coming as no surprise, the majority of the exports to China consisted of natural resources and agricultural, forestry & fisheries produce. Between 2018 and 2019, China imported approximately AUD $134.7 billion worth of goods from Australia. (DFAT, Trade Investment at Glance, 2020)
In 2020, due to Covid-19, the global economy has seen some downturn and in April, oil prices turned negative. With the economic slowdown, Australian unemployment rates have been on the rise and consumer confidence has dropped.
Businesses that are proactive and take this opportunity to reach out to their clients and the general consumer can gain an edge in the market. This is especially true if the business can provide value-added services and solutions to help their customers.
Reported on 31st March 2020 by The Sydney Morning Herald, $800 million worth of seafood has been flown on emergency freight flights to Japan, China, HongKong, Singapore and the United Arab Emirates. With funding from the government, this move was an effort to get the export sector back on its feet to reduce job losses and ease up the pressure on Australian exporters.
While China is recovering from Covid-19 and reopening its economy, the demand for natural resources and agricultural produce from Australia has started to rise again. As a result, our economy is slowly recovering and businesses are able to hire more people.
With China again beginning to import resources and produce from Australia, local businesses and exporters will need to start finding methods to deliver and reach out to larger clientele in China and around the globe post Covid-19.
This can be achieved through various methods including with an international trading app like what we have developed for one of our clients below.
How Software and App Development Can Help Your Business
One of Lateral’s clients – Geraldton Fishermen’s Co-operative (GFC), exporter of Brolos lobsters, has moved decisively to take advantage of opportunities in China following the China-Australia Free Trade Agreement (ChAFTA) in December 2015. They engaged with Lateral to build a dedicated app for international trading with their clients in China. Their overseas clients can access it to make a direct purchase online, trace their orders and even chat with an online representative if they face any issues.
With a custom international trading app, GFC is able to create an online marketplace that is easy to use for their large customer base in China. Reaching out to China’s market has significantly increased GFC’s revenue and by harnessing custom app development to streamline their customers’ ordering experience. This will allow them to quickly bounce back to success post Covid-19.
If you want to start using technology to give your business an edge in the local or global market, get in touch with us today!
To find out more about how Lateral has transformed the business through mobile and web application by reading our case study here.
