The Challenges and Benefits of Expanding to Australia

If you’re expanding your business abroad and considering targeting the Australian market, there are many factors to consider. While the decision will bring with it many opportunities, you may also face a few obstacles. Here’s a rundown of the main pros and cons, to help you decide whether to include Australia in your international expansion of business, and more specifically, whether it’s the right move for your company.

The economy

Australia is one of the world’s best-performing advanced economies, and hasn’t had a recession for going on three decades – which is a big draw if you’re deciding where to expand business internationally.

The country second only to Switzerland in terms of wealth per adult [ JG comment – please validate], its national debt is relatively very low, and the Australian Securities Exchange is the 16th largest stock exchange in the world, in terms of domestic market capitalisation. However, the country has seen low wages growth, which means wages aren’t as competitive as other markets, but which also means consumers may be careful about buying non- essentials.

Australia’s economy is dominated by the service sector, which employs around 80% of the labour force and accounts for around 60% of GDP. If you’re looking to go global, these signs all point in the right direction.


Australia has a population of around 24 million, which is a relatively small population, and only around three times as many as London. However, the vast majority of people live in or close to urban centres, including Sydney, Melbourne, Perth, Brisbane and Adelaide. For retail and service industries, this has real benefits. And, as previously hinted at, Australians have a higher disposable income: the average household net-adjusted disposable income per capita is $33,417 a year, more than the OECD average of $30,563 a year.

Australia is predominantly an English-speaking population, meaning that international expansion for companies who trade in other English-speaking nations will find that the move is significantly smoother, and communication clearer between existing and new employees.

Also, Australians are among the most connected consumers in the world. Each person has access to an average of three devices, which lends itself well for companies relying heavily on online and mobile sales.


The country is comparatively remote to most global markets, and for some businesses, this might make things more difficult. For companies whose employees need to have a regular, physical presence in other parts of the world, for example, it might make things logistically more difficult.

On the other hand, for companies wanting to break into a global market, it might be the perfect option. Australia is often viewed as the gateway between Asian and Pacific markets and the West. Countries including South Korea and Japan can trade with an English- speaking country that’s closer to its time zone. It will also make it easier to learn the cultural differences between the west and east.

Galvin International is on hand to help at every stage of expanding into international market, including expert advice on expansion to Australia and other countries. Get in touch with us to find out more.



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