The Case for Export a Collection of Case Studies About Exporting Design
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The Case for exporT A collection of case studies about exporting design. The Case for exporT A collection of case studies about exporting design. Disclaimer This information guide is designed to help you better understand the issues associated with export. You should not regard this publication as an authoritative statement on relevant laws, fees or procedures. You should also note that the requirements and fees may change from time to time. Every effort has been made to ensure the information presented is accurate, however no liability is accepted for any inclusions or advice given or for omissions from the publication. © 2009 State of Victoria. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. MinisTer’s Director’s MESSAGe MESSAGe The Victorian Government Our access to export markets is constantly Exporting design, whether Navigate your way through The Case for Export being improved through tariff reductions, and learn some of the skills required to export is proud to support The new Free Trade Agreements and improvements services or products, is design services. What research is required? Case for Export, inspiring in technologies. The Brumby Government like taking a journey into What should be included in a fact finding has set an overall export target of $35 billion mission? Is it possible to communicate with Victorian designers to take by 2015 and has recently boosted support with the unknown. clients from Australia? Once an overseas their design services to the a number of new measures including a $24.8 Some designers find the process to be a roller commission is obtained, does it require a rest of the world. million Global Markets Action Plan as part of coaster ride, while others find the ‘journey’ change in office structure? What assistance the $245 million Building Our Industries for relatively smooth. is available to help with export, either financial At a time of global economic uncertainty, the Future initiative. incentives from government or advice from Victoria’s design sector is making a significant Some export markets present risk, others private sources? How can collaboration This publication is an important element of contribution to our economy. It contributes are lucrative and worthy of the trip offshore. across disciplines and countries contribute the Brumby Government’s $15 million Design $7 billion annually, directly employs more The Case for Export is a collection of case to export success? than 76,000 Victorians and accounts for more Victoria Strategy, dedicated to encouraging studies that provides valuable insight into than $300 million in design-related exports. the design-led growth of Victorian industry exporting design, including some of the The Victorian Government and various and boosting our reputation as a leader in opportunities available and pitfalls to avoid. business associations have produced resources This publication is a great example of the innovation and a centre for design excellence. to assist with export. These guides, such as Brumby Government taking action to develop Most companies featured here enjoyed both Easy Guide to Exporting, discuss a variety of By developing a more globally competitive Victorian designers’ export skills and assist positive and negative experiences taking their issues such as preparing an export plan, Victorian design sector, we can enrich our them to compete in export markets, services offshore — however all emphasised promoting a brand overseas and intellectual economy and the Victorian community, accelerating the design-led growth of the the importance of communication to making property protection. A comprehensive list driving social cohesion while showcasing Victorian economy. inroads. Some practices have hired employees of these resources has been included in our design excellence to the world. to communicate with clients in places such as The Case for Export to assist emerging The current economic climate presents China; others work closely with representatives and established designers to export an ideal time for design consultancies to overseas, who have language skills, as well as with confidence. strengthen their export knowledge and business acumen. expertise. This resource will ensure our I would like to thank and acknowledge the Victorian designers have the necessary Export Working Group for their valuable skills to take full advantage of new business contribution and also the designers who Gavin Jennings MLC opportunities as the global economy recovers. Minister for Innovation generously shared their experiences and learnings that are sure to assist designers seeking to export. Michele Azzopardi Director, Design Victoria 4 Design Victoria The Case For Export 5 Learning from the experiences of others The is invaluable for people considering entering firsT the export market. One design practice featured herein was Designers have also discovered the importance delighted to find someone who would of knowing their limitations when dealing with represent their interests in China — the overseas clients. One design group included in sTeps representative could search for suitable this guide, explains that their ability to design commissions and communicate effectively a project does not extend to actually building in the same language as the client. However, the project. Although this division of tasks is when the representative failed to forward perfectly achievable, they have found it crucial payment from a client to the design practice, that it be made explicit to overseas clients the earlier hurdles of communication paled from the outset. in comparison to the amount of money the practice lost. Choosing a reputable partner may In some cases, Victorian designers have seem an easy task, but as the architects in this preferred to establish their own office instance discovered, it is not always the case. abroad to oversee a specific project. When such projects are complete, the “You need to be extremely diligent when you office is often disbanded and reassembled are exporting your services overseas. You need in another country to begin work on a to know exactly who you are dealing with,” new project. says Stan Roche, Senior Export Advisor with Austrade. This information is particularly While establishing an office overseas is pertinent at a time when economies around sometimes the best option there are issues the word are adjusting to a new economic that need to be considered such as cash flow, order. “Credit is the blood of any corporation. staff and resources, that place a demand on Without it, there’s no movement,” says Roche. the office back home. Many designers intending to deal with overseas Working overseas also calls for a different companies would be advised to first approach type of sales pitch. One designer, for example, government departments. “There are checks speaks about the need to ‘play taller’, that is to that we can make with information brokers,” appear as a larger, more experienced practice. says Roche, who also keeps his ear to the According to Roche, pricing is also crucial when ground regarding rumours. “It’s too late to delivering a pitch. “You need to seriously think act after money has been lost,” he adds. about what a company can afford to pay for your services,” he says. “You need to have realistic expectations from the outset.” Fees that are too low can be as problematic as overstretching the mark. “If you quote too low, it may cause serious damage to your business.” 6 Design Victoria The Case For Export 7 THE FIRST sTEPS Ten Top exporT Tips Knowing who the decision Haywood emphasises the importance of 1. Consider whether this is the right time 7. For a successful market visit ensure your conducting research before meeting a new for you to export. itinerary is well planned. This will help makers are is as important client. “Do everything you can to understand you see the right agents and customers. 2. Be absolutely sure that your company is the client’s business, so that the first meeting as delivering the right pitch. capable of exporting. 8. Be proactive in addressing potential becomes a concise and targeted demonstration problems by developing a risk management Roche uses the example of a group of young of your capability to meet their needs. 3. Develop a sound export strategy to ensure plan and talking to advisers and insurance executives sitting around a boardroom table. Ask a lot of questions so you can modify you grow within your capability and avoid and finance groups. “In one corner sits an elderly man who keeps your presentation as required and rehearse stretching your resources. out of the discussions. It’s only later that you responses to typical objections. Discussions 9. Check out the range of financial products 4. Consider which markets you should focus find out that he makes all the decisions, and surrounding prices should also be avoided to help you get started in export such as on and undertake targeted research about sometimes, it might be at midnight, well after until you believe you have satisfied the client the Export Market Development Grant. these markets. the young executives have gone to bed,” he adds. that you understand their needs, and they 10. Contact Austrade for more advice. fully understand the value of your offering.” 5. Research the different cultural and According to Professor Roger Simpson, Visit www.austrade.gov.au or call 13 28 78. religious customs of the markets that Director, Design Centre, Swinburne University Like most ventures that take time to mature, you are considering. of Technology, one of the most common pitfalls success overseas is not instant. “Don’t expect of export is designers not presenting to clients immediate results. It is guaranteed to take 6. A good website is a calling card. Include a compelling set of reasons to use their services. longer to secure a new project in a foreign product descriptions, indicative prices and “Marketing by fledging design offices must country when operating there for the first time unique selling points for your product or demonstrate insight into the local business and than designers expect in the local marketplace,” service and make contact details prominent.