Logical industry segmentation for the purposes of search (AU / NZ only)

March 08, 2025

by a searcher from University of Western Australia in Sydney NSW, Australia

Hi All, I'm curious if the searchers / former searchers / investors here have any clever frameworks or methods of segmenting Australian / New Zealand-based industries.

Purpose is to logically create segments / clusters of sub-industries, + combine these segments with geographies to create natural SMB company 'clusters' to target.

The most obvious place to start is with the ABS ANZSIC codes, but I would love to hear any thoughts or approaches that you've found particularly useful.

Thanks!

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Reply by a searcher
from University of Melbourne in Melbourne VIC, Australia

Hi Josh, Some industries segment more easily than others as there is consistency between the firms in customer segments and/or product/services. I have found codes like ANZSIC to be completely useless for the types of businesses a searcher would normally go after. I tend to go bottom-up build - I like this business, what segment would it fall in, what are related segments with businesses that I like, and I build up to the highest level I can get where there is still some similarity between the segments, but each segment is unique enough that it needs it's own targeted outreach. The best segments I have found so far have been through lead gen looking at other segments and finding something interesting, and then working bottom-up. Trying to go top down through industry segmentations that have been developed for other purposes i.e. tariff applications, statistical analysis etc. I find less useful.

Reply by a professional
from Macquarie University in Sydney NSW, Australia

I've experimented with ANZSIC code cut-downs, and agree with Jackson - too big, too broad, doesn't really give enough. Perhaps a cursory scan to prompt some thinking, but if you're trying to do targeted search within identified industries, better to take a first principles approach on what the industry dynamics are that you see value in, and identify industries that fit that criteria. ChatGPT et al are pretty good for that second step.

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