Hi-tech branding for Australia

Business Asia, Nov, 2003 by Sarah Jones

Australia's business credentials will be pushed to the forefront as part of a new global branding campaign by Invest Australia.

The Future is Here--Technology Australia, will be the new investment brand for the nation globally. Invest Australia chief executive Garry Draffin said the new campaign was designed to position the country as a "modern, sophisticated and progressive destination that is relevant to the future of business growth".

Draffin said Australia's strong iconic image as a tourist mecca with overseas markets was one of the main prompts for Invest Australia to launch the three-year marketing strategy and a national investment brand.

"We are very much trying to say that the business credentials of Australia, which are impressive, should be at the forefront," he said.

Common brand

Invest Australia was called upon by the Federal Government to put together a national marketing plan, following a national investment framework program that was approved by Cabinet last year.

Draffin said the key strategy was to have all of the states and territories to work under a common brand, which in the past was not the case.

"We think we are likely to get a lot more leverage if we have a common brand ... and that is the key part of the national marketing plan," he said.

The marketing plan picks up from where a report by Ian Blackburn released three years ago left off. The report, sent to the Howard Government, recommended the development of a new strategy to attract foreign investment dollars, including a single agency to promote Australia overseas and a central body to coordinate all federal and state agencies.

Improving image

Draffin said while overseas markets recognised Australia as resource rich with vast reserves of energy, the country was not as well known for its new knowledge industries such as ICT, biotechnology or its R&D capability.

"Our perception overseas is very much driven by that iconic tourist image backed up by the large sunburnt country with minerals aplenty," he said.

"We have a tremendous number of things going for us that we need to communicate to the market. The fact is that Australia is a world leader in R&D that offers a significant cost base advantage, offers much better IP protection than anywhere else in the world, and we are rated as the best and fastest country in the world to set up a business."

However, despite the need to improve Australia's image as a viable business opportunity for overseas investors, last year the country's foreign direct investment (FDI) trebled to US$14 billion, the fastest growth rate in the world, and the second largest source of FDI in the Asia Pacific region behind China.

Draffin said while US$14 billion in absolute terms was not as big compared to the FDI levels of the US, UK or China, Australia's levels were still favourable. "We are definitely floating above our weight," he said. "Our GDP is about 0.6 per cent of world GDP and our share of investment inflows is probably around 2.5 per cent.

"The bottom line is we have a very good environment, and what we need to do is take that story to the world and that comes back to the marketing plan and brand."

Riding the China wave

Strong growth experienced in China is also expected to boost Australia's FDI levels.

Draffin said the trend in countries moving factories to China, lured by a competitive labour environment, presented an opportunity for Australia to leverage off. "We see ourselves to a certain extent piggy hacking off China's growth," he said.

"We are putting our hands up and saying 'move your factories to China but think about where you establish your R&D and your IP protection, and think about where you establish your regional head office, and your back office operations, as Australia is the world's most desirable expatriate place to live'. China is also starting to and will be in the future, a significant investor in its own right."

However, a global economic recovery and creating a harmonious working relationship between the states and territories still present challenges for Invest Australia to overcome

Despite this, Draffin predicts Australia will be well placed to get a significant slice of global FDI over the next five to 10 years. "The overriding challenge for us is a global economic recovery," he said. "If the American economy and the European economy fire then we will start to see significant increases in investment."