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RetailAustralia

Why global business tests its products in Australia

Erika Fry
By
Erika Fry
Erika Fry
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Erika Fry
By
Erika Fry
Erika Fry
Down Arrow Button Icon
October 26, 2015, 12:00 PM ET
Gigantic Sea Turtle Sculpture Floats Past Sydney Harbour Bridge and Sydney Opera House
SYDNEY, AUSTRALIA - AUGUST 15: To celebrate the World's First Undersea Art Exhibition, a 5 metre tall, 15 metre long Sea Turtle cruises past Sydney Harbour at Mrs Macquarie's Chair on August 15, 2014 in Sydney, Australia. (Photo by Mark Metcalfe/Getty Images)Photograph by Mark Metcalfe — Getty Images

When McDonald’s (MCD) and KFC (YUM) wanted to try out new hipster-friendly quinoa-selling restaurant concepts, they first tested the ideas in Australia. They’re not the first. Citigroup is using the country as a proving ground for digital banking tools, AOL (VZN) for ad products, and Coke (KO) for packaging. It’s also a top country for new gaming apps, says German firm Priori Data, with 350 daily launches. Of those, 58 make it onto the charts every day, far more than any other country.

What makes the land Down Under such an appealing lab? Michael Silverstein, senior partner at BCG and author of the book Rocket, says the continent’s educated, affluent population of 23.9 million is “open aperature”—by which he means, hungry for new experiences and products—and makes a “good proxy for white, Christian America.” Australia also offers a ready and relatively contained infrastructure—media, distribution channels, talent—and some privacy. “I call it undercoverd Down Under,” Silverstein says. Plus, if a product flops in the outback and no one hears about it, did it really happen?

First Launched in Australia

Tesla Powerwall battery

A Tesla Powerwall on display at Intersolar 2015.Courtesy of Katie Fehrenbacher, Fortune.

Popular for energy-company testing, the country will be among the first to get the powerwall.

McDonald’s McCafé

McDonald?sProfitClimbs4.8%AsNewMenuItemsDriveU.S.Sales
Photograph by David Paul Morris — Bloomberg via Getty Images

The coffee concept debuted in 1993 in Melbourne. The U.S. was the 18th country to get it.

Farmville 2

Image (1) 120905071123-n-zynga-farmville-2-00000426-gallery-horizontal.jpg for post 335174

Australia, New Zealand, the U.K., and Canada are all popular test markets for new games.

A version of this article appears in the November 1, 2015 issue of Fortune with the headline “Australia: Test kitchen to the world.”

About the Author
Erika Fry
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