Report: too few firms export ready

NATIONAL: A new report on the Textiles Clothing and Footwear sector has revealed Australian companies are gravely undercapitalising on potential export markets.
TCFocus - a far-reaching annual report released for the first time in August by TFIA Business Services, a subsidiary of the Council of Textile and Fashion Industries of Australia (TFIA) - revealed that in 2004 to 2005 less than 10 per cent of all TCF goods manufactured in Australia were exported.
"For a developed economy with a relatively small market-place it is surprising to see that exports make up such a small share of Australian TCF companies' income," said TFIA Business Services economist Lachlan Caddy.
Caddy cited Australia's distance from the majority of other developed markets and resulting high transportation costs as possible reasons for the figure.
Government export body Austrade was not available for comment as Ragtrader went to press.
However industry association Fashion Group International (FGI) - part of whose remit is to build the TCF industry skills base - was unequivocal about the Australian TCF sector's track record on exports.
"As a general rule, most Australian companies are not yet capable of exporting," said FGI regional director Dominic Beirne.
Notable exceptions to the rule included high-end labels Collette Dinnigan, Akira Isogawa and sass & bide - the last of which had clinched deals with major overseas department stores including [UK retailer] Selfridges.
Surf brand Billabong and bush gear brands RM Williams or Blundstone had also achieved a strong overseas presence.
However, most companies ignored the importance of exporting and had little knowledge of how to penetrate the world's potential growth markets.
"I think Australia needs to be incredibly cognisant of the export market, particularly China and India, which have the fastest growing middle classes in the world, and are made up of people that are hungry for brands."
Beirne - also a partner of Australian Fashion Partners, a consultancy that aids professional development - said while there was potentially more that could be done at government level, responsibility for exports could not be laid solely at government's door.
"The support of government should only be provided if the business is viable and export-ready. By export ready I mean a company that is consistently delivering in full, on time, to specification, has done the necessary evaluation of the overseas market and identified how their niche offer will fit into that market."
Educational institutions could also play more of a role in terms of providing ongoing professional development beyond undergraduate degree or TAFE level courses, he said.
While businesses might welcome support from government, they also needed to have a full understanding of the requirements and pitfalls of exporting.
"It's no good providing government support to organisations that will not be able to use it meaningfully. Australian companies most definitely need to lift their game."