1. Prepared for Gulf Small Business Forum 15 October 2009 by Dr Kim Houghton Strategic Economic Solutions Market trends and opportunities for Gulf-Savannah businesses

2. 4 small business hot spots 1. Wealth-driven ‘niches’ 2. Active & affluent retirees 3. Quality-driven - resurgence of local & authentic 4. Experience seekers

3. It’s all about people Dentyne from trendwatching.com 2009 Report

4. Source: ABS Census 2006 and ABS forecasts Australian population trends

5. Carpentaria Shire ABS Census 2006, ‘usual residents’ over 5 years old 522 newcomers, 29% of population over 5yo

6. Etheridge Shire ABS Census 2006, ‘usual residents’ over 5 years old 242 newcomers, 31% of population over 5yo

7. Burke Shire ABS Census 2006, ‘usual residents’ over 5 years old 191 newcomers, 40% of population over 5yo

8. Croydon Shire ABS Census 2006, ‘usual residents’ over 5 years old 72 newcomers, 31% of population over 5yo

9. Split markets Cost conscious locals Cost conscious visitors High value visitors Visitor arrivals, Short-termResident departures, Short-term

10. More split markets Disappearing middle The Vanishing Middle Market, McKinsey Quarterly 2005, No 4

11. Big business thinking Low Margin: Tevion $39 DVD High Margin Haier – also made in China... and America 45 bottle wine chiller $690

12. Small business tactics Know your margins and your industry Forget low margin market Excel at the middle market if you are in it Understand the value perceptions behind high margin products and services

14. Opportunities in maturing markets – Business to business Outsourcing opportunities for both sides Small business specialists – Business to consumer Goods Services © SES 2009 Martha Shepherd from Galeru, RIRDC Rural Woman of the Year 2006

15. Quality and ‘value’ Differentiate Customise Be real Be passionate – Because passion sells (EUR26/pair) www.netgranny.ch (from www.trendwatching.com)

16. Local and service-focused How far would you go? Information vs experiences – More value in trust and authenticity Global vs local – Customer led – Personalising and feeling special This is small business territory! www.trendwatching.com

17. Passion sells Customers are buying experiences and memories – BridgeClimb – Beechworth Bakery – Elvis Parsley’s Grapelands (Nick Cominos) – From beauty salons to day spas

18. Opportunity Hot Spots Know your market – And how it is changing Emphasise value – Not just price or quality Love your customers – Grow around those you want to stay with

19. kim@economicsolutions.com.au www.smallbusinessfutures.com.au