Brand Australia: Domestic Industries in Need of a Makeover

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IBISWorld report In 2009, the Australian Government put out a $20 million tender to find a new brand to redefine and enhance Australia’s global image as a provider of quality goods and services. It certainly may be needed. During 2009, Australia’s brand took a beating in industries as diverse as wine, wool, and international education.

Australia’s wine exports are worth $2.4 billion and account for about 8.1% of total global wine exports. Historically, Australian wine has been attractive to overseas markets for its quality and price. This has changed, however. The growing output by new low-cost wine producers, like Chile, and the appreciating dollar have reduced the ability of Australian wine to compete on price.

Now quality is under threat. Wine producers are suffering from an oversupply of grapes and unfavourable weather conditions resulting in a poorer quality product. Added to this is declining global demand. These conditions are leading to the production of cheaper, poorer quality, mass-produced vintages, undermining Australia’s reputation as a high-quality wine producer.

Regaining and maintaining a consistent reputation for quality wine is now the major challenge for Australian wine producers. The industry is expected to rise to the occasion. While export revenue dropped by nearly 18% in 2008-09, IBISWorld forecasts that exports will achieve a small recovery in 2009-10.

Like wine, wool had a tough 2009 as well. Australia is the world’s largest producer of wool. While Australia has long been associated with the production of high-quality wool, the importance of this industry and the value of wool exports have been steadily declining.

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