Print

Just 10 years ago Shaw of Australia was bankrupt. However, a new global direction brought the company a second chance at success.

Today, the company has 3 divisions; textile coating, wholesale and manchester. The success of all 3 divisions relies on the company’s international focus.

Exporting

Textile coating remains the core activity of the company. Textile manufacturing in Australia is a difficult market, but the company is taking steps to ensure its longevity. There are only 4 large blind material manufacturers in Australia, and market share is based largely on the location of the business. In order to grow, the company has moved into international markets and now has a very strong export focus.

“Entering the export market was really the start of ensuring our future.”

“Textile manufacturing in Australia, especially in clothing manufacturing, is considered a dying industry,” says Awerbuch. “But we have a niche product, which is certainly the only way Australian manufacturers can grow because they can’t compete on production or price.

The company invested heavily in developing export markets. The success of the program was very much dependent on a strong commitment from the top. The internal technical know-how the company developed was also very important, as it was key to developing a product that was internationally viable and competitive.

“Coming up with a product that was right for the market and met international standards was the biggest challenge we faced,” says Awerbuch. “But when we got that right, we knew we had a product that had international appeal.

“We started visiting other countries and showing retailers our products. We also joined ABL State Chamber because of their strength in International Trade and made a lot of contacts through that membership.

“Because our R&D has put our product so far ahead, even China is a large market for us. As a result of the improvements we have made to our product, our domestic market share has also increased.”

Importing

The wholesale division imports and distributes finished products to large retailers such as Bunnings.

“The success of our wholesale division relies on finding the right products, which are usually niche products,” says Awerbuch.

“We look for products all over the world to make sure the products we import meet the needs of our customers as closely as possible.”

International partnerships

The company’s manchester division manufactures brands such as Australian Heritage for domestic and international sale.

All the products in the manchester range are designed by Shaw of Australia, however the majority of products are manufactured in China to take advantage of competitive manufacturing costs.

The challenges

Despite bringing Shaw of Australia new opportunities for life, the international focus has also brought new challenges to the business.

“The newest challenge is China,” says Awerbuch. “China is copying our products and the quality is getting better all the time. That is something we can’t ignore.

“Also, because we supply internationally, we have to give extended credit terms. That means cash flow has become a challenge for us. Managing cash flow is probably the biggest problem we face in the day to day running of our business.”

In response to these challenges the company is creating a niche by continuously improving its operations and technology. The new machinery, developed in-house, gives the company quick product change times and a flexibility that has allowed it to develop a niche in short runs.

For more information on business opportunities in China, please call Sara Cheng, Client Manager, International Trade on 02 9458 7341.

This article was written on the 17th November, 2006.