During a recent conversation with a former French acquaintance, the director of a small business specialising in watchmaking, one question kept coming up: "Why Australia now?" This question resonates particularly with me since my move to Perth. After years of navigating the French and European business ecosystems, and then observing the Australian market from the inside, I see this evolution daily. Australia is no longer just a distant export destination for French companies. It is becoming an essential strategic partner, particularly for small businesses looking to diversify their markets while relying on shared values.
Vivant désormais à Perth, en Australie-Occidentale, j'observe cette transformation avec un regard particulier. La distance géographique qui nous sépare de l'Europe devient paradoxalement un atout. Elle nous positionne comme porte d'entrée naturelle vers l'Asie-Pacifique, tout en offrant la stabilité institutionnelle et culturelle que recherchent les entreprises européennes. Cette position unique mérite qu'on s'y attarde, car 2025 représente bien plus qu'une simple fenêtre d'opportunité.
A meaningful Franco-Australian rapprochement
The diplomatic crisis of 2021 surrounding the submarine contract seems to belong to another era. Since then, French ministerial visits to Australia have multiplied, reflecting a shared desire to build a mature and mutually beneficial relationship. I had the honour of recently attending, as a member of the Franco-Australian Chamber of Commerce in Western Australia, the visit of the French Secretary of State for the Francophonie and International Partnerships, Mr Thani Mohamed-Soilihi, to Perth. His message was clear: France recognises Australia as a top-tier strategic partner.
This rapprochement is not limited to statements of intent. It is concretely reflected in facilitated trade agreements, strengthened cooperation in strategic sectors, and above all, a climate of trust that is being renewed between our two nations. For French small businesses considering international expansion, this means a stable and favourable political environment, an element that cannot be underestimated when committing significant resources to a new market.
Australia also occupies a unique geographical position in the Indo-Pacific region. For a French company looking to expand in the Asia-Pacific, Australia offers an ideal base: a comprehensible legal system inspired by British common law, a Western business culture, while providing privileged access to Southeast Asia, New Zealand, and the Pacific Islands. This position becomes even more valuable in a context where Europe is seeking to strengthen its ties with this strategic region.
Since my move to Perth, the capital of Western Australia, I have observed a particular dynamic. This state, often considered peripheral compared to Sydney or Melbourne, actually represents the heart of the economic relationship between Australia and the rest of the world. Its mineral resources, its energy sector in full transition to renewables, and its relative proximity to Asia make it a strategic anchor point. French companies that understand this reality can benefit from opportunities that their competitors based on the East Coast have not yet identified.
A resilient economy with exceptional purchasing power
Let's talk numbers, as they reveal a reality often unknown in France. Australia boasts one of the highest median incomes per capita in the world. The Australian minimum wage exceeds 23 Australian dollars per hour, which is about 14.50 euros. For a French SME offering premium products or services, this figure fundamentally changes the economic equation. The Australian market has considerable purchasing power and a higher middle class ready to invest in quality.
The Australian economy has demonstrated remarkable resilience in the face of recent global turbulence. Unlike many developed economies, Australia has navigated successive crises thanks to its abundant natural resources, robust services sector, and generally prudent economic management. This macroeconomic stability offers French businesses a predictable environment, a crucial element when committing significant resources to a new market.
Several sectors are experiencing exceptional growth, creating direct opportunities for French SMEs. Technology and cybersecurity are seeing massive government investments in digital sovereignty. Renewable energy is progressing rapidly, with Australia setting ambitious carbon neutrality targets and making substantial investments in solar, wind, and green hydrogen. Here in Perth, I see large-scale projects in these areas daily, with tenders actively seeking international expertise.
Australia is also facing a significant skills shortage in many technical and specialised sectors. This reality, which I particularly observe in Western Australia in the mining, energy, and technology sectors, creates exceptional opportunities. The Australian market is not just looking for products; it is actively seeking the expertise that accompanies them. This nuance profoundly changes the business approach that French companies must adopt.
Promising niche markets for French SMEs
Australia has long relied on imports for specialised manufactured products. The current geopolitical context and recent disruptions in global supply chains have created strategic awareness. The country is now seeking to develop certain local production capabilities, particularly in critical sectors. This evolution represents a major opportunity for specialised French SMEs.
In niche manufacturing, the Australian mining and energy industry, the backbone of the economy, is seeking high-precision equipment. Industrial valves, sensors, filtration systems, and control equipment made in France are in sustained demand. The Australian healthcare sector, one of the most advanced in the world, also offers remarkable prospects for specialised medical devices, laboratory equipment, and diagnostic technologies. What I observe here is a genuine recognition of French quality. Australian buyers are not necessarily looking for the lowest price; they prioritise reliability and technical expertise.
Luxury and premium services represent another under-exploited market. Australia has over 400,000 millionaires and a constantly expanding affluent class. These consumers actively seek European excellence, particularly French. However, compared to the American or Asian markets, French luxury remains relatively underrepresented in Australia. Sydney and Melbourne host a sophisticated clientele that understands the value of French know-how and is willing to invest to obtain it.
In the IT and digital transformation sector, Australia is investing heavily. The Australian government has made digital sovereignty a strategic priority, committing billions to cybersecurity, sovereign cloud, and critical technologies. French expertise in cryptography, critical systems security, and data protection is globally recognised. This reputation significantly facilitates entry into the Australian market for French SMEs in the sector.
Real Challenges and Pragmatic Strategies
Geographical distance and time zones remain unavoidable realities. Twelve hours separate Paris from Perth, making real-time exchanges complex. However, this constraint can be turned into an asset with appropriate organisation. Modern technology allows for effective coordination, and even a minimal local presence fundamentally changes the game.
Living in Perth, I can attest that Western Australia offers specific advantages. Establishment costs are generally lower than those in Sydney or Melbourne, while still providing access to the Australian market. The relative proximity to Asia (Jakarta is closer to Perth than to Sydney) is an additional asset for companies with a regional vision. The time difference with Europe, although significant, also allows for near-continuous coverage if teams between France and Australia are organised intelligently.
Regulatory differences present another challenge. Product certifications, safety standards, and industry regulations often differ from European standards. Understanding these specifics before launching avoids costly delays. Investing in local advice from the start of the project is rarely an unnecessary expense. Organisations like the Franco-Australian Chamber of Commerce can facilitate these processes and provide a first level of guidance.
Cultural adaptation also deserves attention. Australian business culture differs significantly from the French. Communication is more direct and informal. The less pronounced hierarchy can unsettle French managers used to a more vertical structure. The importance of personal relationships before business transactions requires a patient approach. Valuing humility and simplicity, along with a certain distrust of what may be perceived as arrogance, demands an adaptation of communication style.
My observation from Perth confirms that these cultural differences, while real, are largely surmountable with goodwill and an open mind. Australians genuinely appreciate French professionalism and expertise. They value authenticity and are generally very welcoming to those who make the effort to understand their culture.
A Pivotal Moment
After navigating the French and European business ecosystems for years, and then choosing to settle in Western Australia, a conviction has formed. Australia in 2025 represents a strategic opportunity for French SMEs, particularly in niche markets where French expertise and know-how are not only recognised but actively sought after.
Conditions rarely converge so favourably. Franco-Australian diplomatic relations have been restored and deepened. The Australian economy demonstrates resilience in an uncertain global context. The demand for French excellence, whether in precision manufacturing, luxury, or specialised IT services, remains strong. The Australian business environment offers stability and predictability.
From Perth, I observe this dynamic with a particular perspective. Western Australia, often overlooked by European companies that favour Sydney or Melbourne, holds specific opportunities. Its diverse economy relies on mineral and energy resources while rapidly developing the IT, infrastructure, high-end tourism, and premium services sectors. The energy transition is creating new opportunities in green hydrogen and renewables, while significant infrastructure projects are transforming the city. Its port infrastructure and geographical positioning make it an export platform to Asia. Its exceptional quality of life attracts talent from around the world.
My personal conviction, shaped by experience on both sides of the Pacific, is clear. Australia is not just a business opportunity for French companies. It is a natural strategic partnership between two nations sharing common values of quality, innovation, and respect for the rule of law. Australians deeply respect French expertise. They are ready to recognise and value this expertise.
The time to explore this opportunity deserves consideration. For French SMEs looking to diversify their markets, Australia offers a stable environment, high purchasing power, and a genuine appreciation for French quality. The question may no longer be "why Australia?" but rather "how to approach this market thoughtfully and progressively?"
Explore the Possibilities
If you run a French SME and are considering Australia as a potential market, a discussion about the realities on the ground can be useful. Drawing on my experience in employer organisations in France and now based in Western Australia, I am currently developing Confluence Pacific to facilitate these Franco-Australian connections.
My approach is intended to be pragmatic and honest. Every business is unique, and every project deserves a realistic assessment of opportunities and challenges. Australia is not the solution for all French SMEs, but for some, in certain sectors, at the right time, it can represent a significant strategic opportunity.
Contact me for an initial discussion about your thoughts regarding the Australian market or go directly tomake an appointmentfor a first direct video exchange.