WHY
DO WE SUPPORT AUSTRALIAN COMPANIES ?
Australian
companies:
- Pay
higher taxes in
Australia
than multinational companies.
- Keep
profits in
Australia
.
- Are
more likely to manufacture in
Australia
.
- Are
more likely to use Australian produce from Australian farmers.
- Employ
Australians.
You can
choose to make a difference too !!!!
All products on our website are from Australian owned companies.
Consumer awareness of Australian Made
Buying Australian is much more important to consumers than Australian
business believes. That’s a major finding from 1999 research to assess the
importance of country of origin information to consumers and business.
The research suggests Australian businesses have underestimated the value of
promoting the origin of their products. Over 95 per cent of consumers recognise
the Australian Made logo and most consumers say made in Australia is an
important purchase criteria, but only half of Australian businesses believe such
branding is an important marketing tool.
The awareness level of the Australian Made logo is high, with 96% of
respondents aware of the Australian Made logo.
The research shows some 91% of respondents have purchased goods with the
Australian Made logo. The most commonly reported types of purchases made with
the logo were food (25%), adult fashion clothing (20%), children’s clothing
(11%) and other grocery items excluding food (11%).
Females were more likely to consciously look for the Australian Made logo
than males when purchasing food, clothing and a range of other items.
The main reasons why people buy Australian Made products are:
- to create jobs
- to help the economy
- to support fellow Australians
- for the future of our country
- to reduce imports
- to help manufacturers.
Importance of buying Australian
Overall 89% of respondents felt it was important to them that the goods or
products they purchase are of Australian origin. Some 19% of respondents
considered it "extremely important", 37% considered it "very
important" and 32% considered it "important".
When respondents were asked how often they actively sought goods or products
of Australian origin, 12% said "always", 43% said "mostly"
and 27% said "sometimes".
Awareness of the importance of buying Australian, and frequency of seeking
Australian made goods, is higher amongst older respondents (35+ and highest
amongst 50+) than younger respondents (18-34).
Country of origin research
Industry and consumer research conducted nationally by Sweeney Research on
behalf of the Commonwealth Department of Industry, Science and Resources (in May
1999) found that industry underestimates the importance consumers place on
country of origin information.
Almost 70% of consumers look for information about a product’s origin when
making purchasing decisions. This far exceeds industry predictions. Of the
businesses surveyed, only 55% agreed that consumers look for country of origin
information when shopping.
The consumer research found that:
- Consumers look for country of origin labels to help them determine the
quality of an item and to support local industry and employment
- Around 88% of consumers prefer to buy Australian whenever possible and 77%
are happy to pay a little extra for Australian made goods.
Consumers are keen to know where a product comes from and are more likely to
purchase a product if they know its origins. When consumers specifically ask for
country of origin information at the point of sale 78% of those who receive an
answer go on to purchase the product whereas only 45% of those who do not
receive the requested information go on to purchase the good.
Importance of buying Australian varies with product type
Research shows that the importance consumers place on country of origin
varies according to product type:
- 83% of consumers believe country of origin information is important when
purchasing fresh food
- 72% believe country of origin information is important when deciding which
packaged foods to buy
- 63% believe country of origin information is important when choosing
clothing and shoes
- 63% of consumers purchasing white goods look for country of origin
information
- 57% of consumers think country of origin information is important when
looking at big ticket items such as cars, motorbikes and boats
- 51% of consumers still look for country of origin information on items
such as tools and electrical appliances
- 50% of consumers believe country of origin information is important when
purchasing household furniture.
The research also revealed that:
- 64% of industry respondents show country of origin labelling information
on their products
- but only 7% could accurately describe what ‘made in’ means
- and only 14% could describe what ‘product of’ represents.
Measurement of awareness of the Australian Made
logo was commissioned by the Australian Made Campaign and undertaken by Roy
Morgan Research in August 1999 and September 1999. Research results reported
here are reproduced from the report to the Campaign by Roy Morgan Research.
Results from the Sweeney Research are reproduced from DISR Country of Origin
Labelling, Industry – Industry Fact Sheet available at www.isr.gov.au/labelling
This information was taken from The Australian Made Campaign
website at: http://www.australianmade.com.au/faq/factsheet/consumerawareness.asp
.
Why we need balance
By Dick Smith
A number of articles have appeared recently, including two by Dennis Shanahan,
accusing me of the most extraordinary sins. I have been denounced for misusing
patriotism to sell products and stirring up everything from paranoia and
jingoism to outright xenophobia in the Australian public.
Unfortunately, the writers of these articles have all made the same fundamental
error. They have failed to understand my overriding goal ever since I started
Dick Smith Foods. That goal has been simply to achieve balance. As the publicity
material said over 12 months ago, at the time of the company's launch, "I
am determined to back our farmers and fight back for a fair balance of
Australian ownership in our food industry."
Because originally I made money from importing electronic components from
overseas, some journalists criticise me for pushing the advantages of buying
goods produced in Australia by Australian-owned companies. However, I am not
being hypocritical; I am being totally consistent. My attitude has always been,
and still is, that you buy the best and sell the best. You never accept
mediocrity. When I was a spokesman for the “Australian Made” campaign I
clearly stated that you should only buy Australian “when it’s as good”.
Australia makes few electronic components, and it does not necessarily make the
best. On the other hand Asian countries - principally Japan - make the best. So
that's where I went in search of products for Dick Smith Electronics.
Now, when it comes to food, I believe Australia grows the best in the world. So
it shocked me to discover that 85 per cent of the food in a typical supermarket
trolley is either imported or comes from foreign-owned companies. I'm a strong
supporter of free trade as it will assist third world countries to raise their
standard of living and I accept globalisation as a fact of life. But here we get
back to the issue of balance. I firmly believe that we should strive for a
balance in our trade, with roughly the same quantities of goods, services and
profits coming into Australia as are going out. We have nothing like that kind
of balance at the moment. Every day $100 million more leaves the country than
comes in.
Another of the sins I'm accused of committing is of only employing a small
number of people at Dick Smith Foods. However, my accusers fail to mention the
hundreds of extra people who have been taken on by canneries and
Australian-owned food producers around the country as a result of my company's
activities.
I believe there are distinct advantages of local ownership of companies as the
profits are most likely to be re-invested in Australia creating further wealth.
This is why I have always believed that Australian made is good, but Australian
made by an Australian owned company is even better.
Not that I have anything against foreign companies operating in Australia. Quite
the opposite: I have stressed this from the moment Dick Smith Foods was
launched.
To accuse me of being against foreign ownership is like saying that an
Australian who barracked for Australian swimmers at the Olympic games must be
against foreign swimmers. Of course that's not the case. It's simply a case of
supporting the home team. Dick Smith Foods is waving the flag for Australia and
Australian companies.
But having said that, I should add that I prefer the old ways of foreign
investment, by which companies would take the risk of creating a new business
here and actually generating jobs. Good examples of this are General Motors and
Ford. These days foreign companies tend to come in, buy up existing successful
Aussie companies at bargain-basement prices (because of the Australian dollar's
low value), “down size” (ie sack staff), put up prices and then repatriate
all the profits out of the country. The Australian funeral industry has been
particularly hard hit in this way. Once entirely Australian-owned and mainly
family-run, it is now in the hands of a large American funeral conglomerate. I
simply cannot see the advantage for Australia of this type of foreign ownership.
I believe this is one of the downsides of globalisation. Another is that as
companies become huge they tend to stop competing with one another because they
operate and think in the same way. These mega companies also result in the
situation where it’s virtually impossible for a new entrepreneur to start up
in competition. Without strong and new competition I believe our proven
successful system of free enterprise could be doomed.
Even so, I accept that globalisation is here to stay. Unfortunately, although
the advantages of globalisation get glowing coverage from some journalists,
there's no rational discussion about some of its disadvantages and how they
should be handled. It is impossible to discuss these issues rationally when
people such as Dennis Shanahan take such an extreme position.
As well as contributing to the creation of hundreds of jobs, Dick Smith Foods is
enabling me to use my marketing skills to help Australian businesses that lack
those skills. A company like Kraft can spend millions of dollars marketing
peanut butter. Through its network of international contacts, it can call on the
skills of very best – and highest-paid - marketing people in the world. Small
Australian business simply can't do this. So I'm putting my skills at their
disposal, and I'm getting tremendous satisfaction out of giving them a boost.
Experience has taught me that it would have taken me 10 or 15 years to create
even one manufacturing facility for a food company from scratch. I feel that by
doing things the way I have done them with Dick Smith Foods I can help
Australian farmers and food producers a lot more simply - and a lot more
quickly.
We are also supporting Australian charities. This is not something that writers
such as Dennis Shanahan and television commentators such as Stuart Littlemore
can bring themselves to mention. They haven't told their audiences about the
$600,000 that we have given so far to charities such as the Salvation Army.
Of course, I give money away purely for selfish reasons - it gives me immense
satisfaction. I am also well off so I don’t need any more money.
I understand that most foreign companies give the majority of their charitable
support in their home countries. This is logical, but just another disadvantage
of the lack of balance of foreign and local ownership in this country.
I believe it’s sad that Dennis Shanahan and a small number of journalists have
taken such an extreme position in attacking me. With over $80 million of sales
of our products in the last 12 months, it is obvious that the marketplace has
shown that many Australians agree that there needs to be a fairer balance
between Australian and foreign ownership.
This article was written by Dick Smith
of Dick Smith Foods. Address: Dick Smith Foods Pty Ltd, 2 Booralie Road, Terrey
Hills, NSW, 2084, Australia. (Est No 2297) Customers in Australia, toll-free
number 1800 622 143