Though geographically distant, Australia has emerged as a highly attractive market for premium European consumer brands. Its multicultural population, political stability, and strong purchasing power continue to draw significant foreign direct investment.
With the Australia–EU Free Trade Agreement now finalised (pending ratification), the market is more enticing than ever. Tariffs on European favourites like cheese and wine are set to be removed, and EU exporters can expect smoother access.
But the real question isn’t why to enter. It’s how.
Should you partner with a local distributor? Or take on the challenge of entering the market directly?
In this blog, we’ll unpack both options, weigh their pros and cons, and share real-world case studies to help you choose the best path for your brand.
Option #1: Partnering with a Distributor
For many international brands, partnering with a distributor is the most common and often most practical path to entering the Australian market. The appeal is clear: a well-connected distributor provides immediate access to retail networks, handles importation, and brings deep local market knowledge. This kind of on-the-ground insight is difficult to gain from research alone and can help you adapt your product to meet local tastes.
Distributors also take care of compliance, customs, warehousing, and delivery, allowing you to avoid setting up costly infrastructure. This reduces upfront investment and speeds up your time-to-market.
But these benefits come with trade-offs. Distributors typically take a share of the margins, which can reduce your profitability. More importantly, they become the face of your brand, so if their marketing approach, sales priorities, or positioning don’t align with your vision, your product may be misrepresented or deprioritised in favour of other more promising brands in their portfolio.
A strong example of a brand succeeding through a fully distributor-led model is Elle & Vire Professionnel®, the French premium dairy brand. Rather than establishing a direct presence, Elle & Vire entered the Australian market via Eustralis Food, a specialist distributor of high-end European products. By aligning with a partner that understood their market positioning, customer base, and quality standards, Elle & Vire built a strong presence in the food service sector, all without needing to set up local infrastructure or staff.
This approach shows that with the right partner, distributors can do more than move product – they can become trusted brand custodians in-market.
#2. Going Direct-to-Market
In contrast, choosing to go direct-to-market gives you full control over your brand’s positioning, pricing, and customer relationships. Without a distributor in between, you retain 100% of the margins and have the flexibility to test new product lines, refine messaging, and respond quickly to market feedback. For premium brands, this also means avoiding portfolio competition – your products are the sole focus of your sales and marketing strategy.
However, this route comes with significant barriers to entry. For one, establishing a direct presence requires major upfront investment, including setting up warehousing, handling logistics, hiring local staff, and ensuring compliance with Australian regulatory requirements. These operational demands not only lengthen your time-to-market but can also prove challenging for SMEs with limited budgets or market experience.
Additionally, without a local partner, you’re navigating a foreign landscape alone, and any misstep, such as from misinterpreting consumer behavior or being penalised for non-compliance, can be costly.
One premium brand that successfully navigated this path is L’Occitane en Provence, the French natural beauty label. Rather than relying on distributors, L’Occitane launched its wholly owned subsidiary in Australia, opening its first boutique in Sydney in the early 2000s. By investing in physical retail stores and managing its own operations, L’Occitane was able to maintain strict control over its customer experience and brand image. Today, the brand boasts dozens of retail stores across Australia and a strong online presence, validating that with the right resources and strategy, direct entry can equally pay off, especially for brands that want to protect their identity and build deep customer loyalty.
Key Considerations When Choosing
Expanding into Australia offers opportunity, but the right market entry strategy depends on several factors unique to your business. Here are some of the key considerations to help guide your decision:
Brand maturity and recognition
- Are you an established name in other markets, or are you new to the region?
- Can your brand command attention on shelves without heavy marketing investment?
Product Category and Regulatory Load
- Does your product fall into a highly regulated category like food, beverages, or supplements?
- What local compliance and labelling standards will you need to meet before launch?
Cash flow and risk tolerance
- How much are you willing (and able) to invest up front to enter the market?
- What’s your appetite for slower-burning, higher-return approaches versus fast-track strategies?
In-house capability vs local partnerships
- Do you have a team with the time and knowledge to manage Australian operations internally?
- Would a local distributor, importer, or brand partner accelerate traction and reduce risk?
Long-term Strategy: Quick Win or Sustainable Presence?
- Are you testing the waters with a short-term campaign or aiming to build a long-term footprint?
- How will this market fit into your broader global strategy three to five years from now?
Conclusion
There’s no one-size-fits-all approach to entering the Australian market. If you value speed, local insight, and lower operational risk, partnering with a distributor can be a smart move. If you have the capital, internal capability, and want full control, a direct-to-market model might be the better fit.
Many brands, like Lavazza, take a hybrid path, starting with a distributor to gain traction, then transitioning to direct operations once they’ve established a foothold.
Ultimately, the key is to align your market entry strategy with your brand maturity, resources, and long-term vision, and to choose partners who can represent your brand with integrity.
If you’re wondering whether your brand is ready to make the leap, I’ve also put together a 10-point export readiness checklist – you can check it out here.
