Australian wine industry resilience over China's tariffs
January 2024
In recent years, the Australian wine industry faced an unprecedented challenge with the imposition of tariffs by China, a once-thriving market that accounted for a substantial 40% of total exports. This abrupt shift dealt a severe blow, causing the market value to drop from an impressive $1.28 billion to a mere $8.1 million. The root of this issue can be traced back to strained diplomatic relations between Australia and China, further exacerbated by export bottlenecks during the COVID-19 pandemic.
Amid this challenging landscape, a glimmer of hope emerged during the China International Import Expo (CIIE) in November 2023. It was announced that Australian wine tariffs are expected to decrease within the next five months. This announcement sparked optimism within the Australian wine industry, especially among winemakers who had previously faced substantial losses.
Now is the time for Australian wineries to adjust and thrive in a transformed and complex market.
To reconquer the Chinese market, Australian wineries must ask themselves:
/ What unique value proposition can they offer to stand out in the competitive Chinese market?
/ How can they tailor their products to meet the changing preferences of Chinese consumers
/ What strategic decisions around marketing, distribution channels, and partnerships need careful consideration?
Australian wineries need to understand the importance of formulating effective strategies and not overlook the importance of a robust business plan. Beyond simply welcoming the potential reduction in tariffs, wineries need to be proactive in shaping their future by understanding the nuances of consumer behaviour and market trends.
The Australian wine industry, having weathered the storm of Chinese tariffs, now stands at a critical juncture. The expected decrease on tariffs not only signifies the potential for a revival of exports to China but also marks the beginning of a new chapter—one where resilience and adaptability are the keys to unlocking the industry’s full potential.
Are you an Australian company looking to expand or re-enter in China?
ALTIOS Australia: your trusted advisor in navigating India's complex mining sector
February 2024
With a team of 270+ India-based experts, ALTIOS International stands as a trusted advisor who can help you navigate India’s burgeoning mining sector and reap the many benefits of.
India boasts the production of nearly 95 minerals across fuel, metallic, non-metallic, and minor categories and holds a significant position in the global mining landscape. This, coupled with the recently established Free Trade Agreement between India and Australia paves the way for a host of opportunities.
ALTIOS Australia has been a proud member of Austmine for 5 years, – Australia’s leading association in the global mining industry.
Most recently, ALTIOS was privileged to take part in Austmine’s first training program of the year 2024: “Australian METS India Growth Program”. This provided the most innovative businesses in the Australian METS sector with a detailed introduction to the Indian Mining Market and an overview of the key networks and events in the industry.
ALTIOS’s experts delivered insights on:
- Successful Market Entry Strategies for India
- How to do business in the Indian business environment (clue: it is not a single market)
- Step-by-step overview of the export plan essentials and the considerations in the Indian market
- Advice on how to refine a marketing and value proposition, and Pitch Preparation
”India’s markets are exciting and growing and we find more companies asking us how to best enter and succeed in India. Having helped 100s of companies from all types of industry including many machinery manufacturers for mining and associated industries, we know that preparation is key to success. Understanding your market potential and the best way for you to tap it can help you save a lot of time and money down the line” says our Head of Advisory in India Vipulansh Sharma. “One case study is the journey of Ammann in India: here is our MD interviewing their Director”
“The insights provided by ALTIOS have been critical to preparing our members for entry into the Indian market. This will no doubt lead to increased sales and business growth for the Australian METS sector, and will help participating companies manage the complexities and risks of operating in international markets.” Sheldon Varcoe, Manager – International Projects, Austmine.
Why India?
Want to learn more?
Contact our team for more information on market entry strategies and insights on conducting business in India and fostering networking opportunities.
/ Daniela TOUZE, Business Development Manager, Australia email: d.touze@altios.com
/ Vipulansh Sharma, Head of Advisory, India email: v.sharma@mv-altios.com