Approximately US$500 million agrochemical products are exported to Australia each year

For most Chinese agrochemical companies, when it comes to the Australian market, they feel that it is a place where you can see the green mountains and rivers from a distance, and there is no oil and water in the close range
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In the eyes of the outside world, the big cake with annual agrochemical sales of 2 billion U.
S.
dollars, this large market with an area of ​​48 million hectares of arable land, how many Chinese companies have succeeded in succession, and have come back one after another, which link has gone wrong, let us this The advantage of a major pesticide manufacturer in the Australian market is beyond reach
.
I personally feel that there is a proposition that has been replaced.
If you look at the export of Chinese pesticides to Australia alone, China Customs data about 500 million US dollars of agrochemical products are exported to Australia each year, accounting for 1/4 of this cake, and many considerations If the pesticides exported to Malaysia, Thailand, New Zealand and other markets are actually returned to the Australian market after changing their packaging, in fact, the share of Chinese pesticides in the Australian market can no longer be considered low
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I even heard that a certain product of a domestic factory can account for 60-70% of the Australian market.
Although the company does not have its own brand, it can still be proud to say that the difference between these brands is only in the color of the label.
Differences, things are the same
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Therefore, as a company, they still have a strong presence in the Australian market
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But as a pure trading company, if you just blindly play the price card and lack obvious uniqueness, it will inevitably run into a wall and suffer a loss
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I believe that in any large overseas market in the future, the road of a pure trading company will not go smoothly
.
You go or not, the market is still there
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The question is whether you have done enough homework and preparation before you go
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Here, based on the feelings of the past, I will share with you some of the current status of the Australian agrochemical market: Multinational companies and large group suppliers still control and will continue to control most of the market share in the future, as these large groups merge with each other In the future, they will be more comprehensive on the product line, and the space for small suppliers will be more severely crushed.
This is an inevitable future pattern in the global market.

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The six traditional Australian commercial distribution channels still occupy the mainstream of the market.
With the demise of the Australian e-commerce model, the market will have several traditional channels fighting in the future.
Who can capture more end users and provide better prices and Service, who will win in the future, the author believes that the future distribution channels may only leave three at most four, and the change in the pattern of the remaining two will contain huge opportunities, and new business models may emerge
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With the increasingly stringent registration system in Australia, the increase in registration costs will set a low entry barrier for small companies to enter the market in the future.
In addition, traditional channels are working hard to reduce the number of their suppliers, and there will be many lack of distinctive features in the future.
The company loses channels, and instead looks for new opportunities or withdraws from market competition
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Because of the transparency of prices in the Australian market, the price difference between large suppliers and small suppliers in running products is gradually narrowing, or higher-content preparations are used to replace traditional preparations to avoid price competition with small companies.
The fight in the future is more likely to be a struggle for survival between small and medium-sized companies
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The above cruel reality makes many Chinese companies feel that they are struggling immediately after entering the Australian market and cannot find a suitable entry point.
One reason for the so-called tastelessness, I am afraid that is the case
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Looking back at the way our Chinese companies enter the Australian market, there are also the following characteristics, and it is precisely these characteristics that may lay the groundwork for future encounters: Copying the successful business model in developing countries such as Southeast Asia: "Registration-- The simple and rude way of selling pesticides at low prices
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Ignoring business chains in mature markets, competitor relationships in developed markets, accurate positioning of customer groups, grasp of entry points, etc.
, making this simple model unacceptable by the market in the future, invest funds for registration, and finally can’t find it.
The embarrassing situation of buying products at the next home
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Copy the successful business model in China's domestic market: crop solutions
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Ignore the differences in the farming habits of the farmers in the two markets and the differences in the level of pesticide spraying by the farmers; Ignore the cost of human resources in the two markets and ignore the modification of pesticides according to local conditions; I lack the patience to delve into solutions and simply package a package of products to sell pesticides 'S thinking is not feasible in the face of savvy Australian farmers
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Create a business model that directly supplies farmers
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Ignore the technical support required behind selling pesticides, ignore the key links of logistics that need to solve the pain points, and ignore that the acceptance of new things in the traditional market requires time testing, and time testing needs to burn money
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And most Chinese enterprises or foreign trade companies do not have this in mind
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The slow-heating characteristics of the Australian market and the fast-paced entry of Chinese companies have led many companies with Chinese backgrounds to blindly enter operations without a full understanding of the Australian market.
This is the main reason for their failure to succeed in the end
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Combining the above two aspects of the situation in China and Australia, it is not difficult to see that whether it is a cake or a chicken rib, the core of the problem is that we have not found a good entry point.
Those business models that have been tried and tested in Southeast Asia and Africa are priceless in Australia.
It is difficult to open a breakthrough
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Chinese factories have manufacturing advantages, information advantages, and global communication advantages.
With the deepening of Chinese companies' going global strategy and financial advantages, it is difficult to do in the Australian market, but it is not impossible.
Choose a good partner and find a suitable local The entry points and pain points of the Australian market are still promising
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