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Exploring E-Commerce opportunities in China-Ben Franzi

Emerging Trends & Channels with Australia Post Start Track

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Exploring E-Commerce opportunities in China-Ben Franzi

  1. 1. Exploring eCommerce opportunities in China Emerging trends and channels China Digital Conference 2 June 2016 Ben Franzi General Manager eCommerce Platforms & Digital
  2. 2. Page 2 Worldwide B2C eCommerce $57.7bn Latin America $482.6bn North America $347.4bn Western Europe $58.0bn Central & Eastern Europe $33.8bn Middle East & Africa $525.2bn Asia Pacific This year, worldwide B2C eCommerce sales are set to total $2 trillion USD
  3. 3. Page 3 Populations in Asia to stimulate growth and trade As well as a growing middle-class, large and dynamic populations with high internet usage and reliable supply chains are likely to experience rapid eCommerce growth. China: 1.4 billion India: 1.3 billion Indonesia: 255 million Australia: 24 million Philippines: 100 million Japan: 123 million Singapore: 5.4 million Source: InternetLiveStats, InternetWorldStats, Government data (Singapore); all Q1 2015. Wikipedia for population data. 86% 89% Average global internet average Japan 28% 81% 19% 42% 47% China India 44% Philippines Singapore Australia Indonesia Asia Pacific online spend: $525.2bn National internet usage figures% Populations
  4. 4. Page 4 Tourism Government incentives & Customs involvement eCommerce leadership Much of China’s eCommerce growth is driven by increased consumer purchasing power and government policy change China’s booming eCommerce market Growing middle-class RMB (¥) appreciation
  5. 5. Page 5 By 2030, China’s middle class is projected to equate to 93% of the urban population Projected China urban households (millions) by income groups Source: ANZ Research, Business Insider Australia Chart depicts expected changes to composition of Chinese household wealth from 2015 through to 2030 China’s growing middle class is a key driver of Asian eCommerce
  6. 6. Page 6 Food and wine Clothes & accessories Home Health & skincare Baby food & products Dairy Top imports from Australia – Quality, provenance and iconic Chinese eCommerce preferences play to Australian advantages
  7. 7. Page 7 Despite this growth, there are still many barriers to market entry that need to be recognised so that your business can succeed • Accessing customers • Legislation • Language & culture • Logistics Barriers Overcoming barriers to growth
  8. 8. Page 8Page 8 Key policy changes: • Types of taxes • Commodities list • Value limits • Tax rates • Clarified tax paying subject Changes to China’s import tax laws From 8 April 2016, goods purchased through online marketplaces will be treated as imported goods – carrying tariffs, import VAT and consumption tax (in some cases).
  9. 9. Page 9 Sending overseas, simply Introducing our new international products What’s new? • Easy options • Enhanced security • Flexible extras • Less paperwork • Competitive pricing to popular export destinations – including China (Zone 2) Find out more at:
  10. 10. Page 10 • Postal and commercial solutions • Marketplaces • Sai Cheng China JV • Hong Kong & Asia supply chain (incl. distribution & warehousing) • Payment solutions International - Powered by Australia Post Our cross-border solutions can open doors to new opportunities in China Choosing distribution channels to suit you
  11. 11. Page 11 Third-party marketplaces can be an easier way to sell your products Marketplaces • One-stop shop – wide product variety • Generates strong consumer confidence and trust • Broad reach and increased revenue opportunities (for merchants) Why marketplaces?
  12. 12. Page 12 How we help businesses sell into China Tmall (B2C) 1688 (B2B) JD.COM (B2C)
  13. 13. Page 13 A snapshot of brands selling into China via our Australian flagship store on Alibaba’s Tmall marketplace - Brands already trading on Tmall
  14. 14. Page 14 Alibaba’s 2015 Singles’ Day sales grew 60% YOY to net USD $14.3 billion (AUD $20 billion) 2015 Alibaba Singles’ Day – in numbers: China Singles’ Day – Biggest annual online day (5x Black Friday)
  15. 15. Page 15 • Exciting time for Australian businesses • Huge opportunities • We have the solutions to help you succeed in China Summary
  16. 16. Thank you. Questions? For more information: Ben Franzi