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Consumer goods to Fiji

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(Last update: 13 Feb 2012)

Trends and opportunities

The market

Australia continues to expand its exports of consumer goods to Fiji. As an island nation with a vast array of requirements the breadth of trade is substantial. Items exported include:

  • Clothing – both new and second-hand suitable for tropical climates
  • Footwear – safety, ladies, men’s and children's
  • Household items – cutlery, cooking utensils, plastic ware products, air fresheners, and car care products
  • Electrical household/whitegoods – lamps, cooking and catering utensils, fridges, stoves, fans, radios, videos
  • Domestic/office furniture and fittings– blinds, chairs, cushions, tables, trays, manchester, towels
  • Books – educational, entertainment, religious
  • Stationery – paper, pens, paints and other painting accessories
  • Toys, games and sports requisites, parts and accessories
  • Sporting goods – balls, nets, shoes, jerseys, water sports equipment
  • Jewellery – genuine stones, imitation and fashionable
  • Cosmetics – perfumes and eau de toilette, colour cosmetics, skincare and hair care products
  • Health, medical, wellbeing and pharmaceutical supplies
  • Textiles – woven fabric (yarn of combed wool, metal thread, unbleached cotton), terry fabric (knitted or crocheted), non-woven special yarns and synthetic woven fabrics (unbleached or bleached)

There are a number of advantages for Australian exporters in this sector, including:

  • Proximity and frequency in flights and cargo vessels (although transport costs can be high)
  • Good market for new exporters, small orders suit customers to trial market prior to repeat business
  • Receptive markes for Australian goods and services
  • By selling to Fiji your products can be regionally marketed to other neighbouring islands such as Tonga, Samoa, Tuvalu and Kiribati

Opportunities

Opportunities vary from the top end of the market catering for expatriates, to retail stores including supermarkets and variety stores that service the average consumer with products, price ranges and choices aimed at the lower to middle income buyers.

Clothing, footwear and accessories

There is growing interest from the youth market for mid-range priced clothing, footwear and accessories from Australia ranging from casual to formal wear. There is also a growing market for career women.

Department stores and airport boutique stores such as MHCC, Tappoos, Prouds and Jack’s Handicrafts continue to sell premium brands sporting goods and equipment. Fiji has a large resort tourism market catering for over 600,000 tourists annually primarily from Australia and New Zealand. Each resort usually has a number of gift/convenience stores that also stock consumer lines.

Cosmetics, body and baby care products

There are opportunities for various cosmetics, spa and body care products in the lower to mid price range targeting the increasing numbers of career women. There are a few a few multi-national companies in Fiji but consumers are always on the look-out for better pricing and new alternatives.

Health, medical and pharmaceutical supplies

Australian standards are widely accepted for medical and pharmaceutical supplies. Australian manufactured drugs and pharmacy line items are found in many pharmacies, chemists and drugstores in the market.

Fiji’s Pharmaceutical & Biomedical Supplies Centre supplies pharmaceuticals to other Pacific Islands and annual tenders are called by Fiji’s Finance Department. A number of Australian exporters supply to this tender through their partners here in Fiji.

Household, electrical items

Many household and electrical brands in Australia in the whitegoods area are also popular and widely available in Fiji.

Many suppliers enter the market by selling to local agents and distributors or selling direct to major retailers. Fiji’s electrical system use is 240 volts, 60 cycles AC.  Electrical outlets take the three pronged, angled configuration plugs used in Australia.

Textiles

Australia is the largest supplier of textiles to the garment industry in Fiji. Opportunities exist in the supply of textiles and other inputs to the garment industry, which specialises in cut, make and trim (CMT) of garments for re-export.

The majority of textiles exported from Australia are suit material, knitted fabric and work wear cloth. Textiles not imported under CMT arrangements are normally priced CIF/FOB on metre lengths.

Competitive environment

Australian textile suppliers must recognise the potential threat to their position coming from aggressive price based competition. Suppliers in Asia and South Asia such as China, Taiwan, Pakistan and India, have started to market to the industry. China and Taiwan have quickly become significant exporters of fabric to Fiji, along with New Zealand.

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Tariffs, regulations and customs

Import duties range from five to 32 per cent – plus 15 per cent Value Added Tax (VAT) that is applicable on all imports and a 5-10 per cent import excise on all whitegoods.

There are no restrictions on the import of textiles for hides and skins. Textiles for manufacturers within Tax Free Factories or Tax Free Zones (ie. for re-export) are duty free. Otherwise, duties range from five to 32 per cent, depending on the nature of the textile.

Whilst the above was correct at the time of writing, duty rates are subject to change.  Austrade strongly recommends you reconfirm duty rates prior to selling to Fiji.

Customs authority contact details:

Customs Service
Fiji Revenue and Customs Authority
Lot 1, Corner of Queen Elizabeth Drive & Sukuna Road
Nasese, Suva
Private Mail Bag
Suva, Fiji
Tel: +679 324 3000
Fax: +679 331 5537
Web: www.frca.org.fj
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Marketing your products and services

Market entry

Market entry could be either selling to local agents and distributors or selling directly to major retailers. However, a few key points to note include:

  • It is a requirement for Australian pharmaceutical suppliers to register their interest with Ministry of Health, Pharmaceutical Supplies Division to obtain tender documents for bulk supply of pharmaceuticals and medicinal products.
  • Australian exporters of textiles mostly deal direct with Cut, Make and Trim (CMT) garment manufacturers or overseas buyers of the finished products. The latter seems to be more common as the industry is largely export orientated.

 Some other general points to consider include:

  • The lead up to Diwali and Christmas is the key procurement period for local retailers while Australian and NZ winter school holidays are the key retail periods in the resort sectors.
  • It would be beneficial to offer promotional incentives to customers to further promote the products and work more closely with local partners.

Issues and challenges:

  • Price controls
  • There is significant competition from NZ, USA and Asia
  • Quality and pricing is crucial
  • Quarantine and health regulations apply specially for import of second hand items
  • Ability to export low volumes at regular intervals
  • Innovative packaging, identification of most appropriate distribution channels for products and market visits to develop personal relationship with customers all assist to capture opportunities in Fiji
  • Follow up sales and servicing plan in place to support local partners is critical
  • Ensure you conduct due diligence on buyers of your product especially if dealing in unsecured payment terms

Distribution channels

Consumer distribution channels are:

  • Agency agreements
  • Direct distribution and retail
  • Government tender submissions
  • Private sector quotations for projects

Payment terms vary according to the relationship between the buyer and supplier. Methods include, trading terms of 30, 60, 90 or 120 days, sight draft and letter of credit. We recommend you consider secure payment terms.

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Links and industry contacts

TCF Council of Fiji
Secretary
P.O. Box 14998
Suva, Fiji
Tel: +679 3309 603
Fax: +679 3303 654
Email: jtaoi@connect.com.fj

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Contact details

The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.

Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.

For more information on how Austrade can assist you, contact us on:

Australia ph: 13 28 78 | Email: info@austrade.gov.au

A list of Austrade offices (in alphabetical order of country) is also available.

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