It was great to have the opportunity to deliver a keynote at The 3rd Annual Online Retail Supply Chain Summit, focussing on how Australian businesses can capitalise on ecommerce opportunities presented by The Asian Century

1. Taking your products
to the World
Opening up the global
eCommerce opportunity
3rd Annual Online Retail Supply Chain Summit
29 February 2016
Charles Thompson
General Manager, International
Australia Post | StarTrack Group

2. Reorienting to
Asian
opportunities
“Last smile”
engagement as
a differentiator
Asset-light,
Disrupters &
Marketplaces
A changing landscape demands agility and a global perspective
Big themes in parcels and ecommerce today
End-to-end
customer
expectations
Global
eCommerce and
competition
1 2 3
4 5

3. Page 3
Shares of global middle class consumption, 2000-2050
Source: OECD Development Centre Working Paper 285
Asia is shaping the future global middle class

4. Page 4
The Asian region is forecast to have sustained income growth … and we are on their doorstep
Affluent
Converging toward Affluent
Stalled income growth
Struggling
Source: OECD Development Centre Working Paper 285
(1) Key drivers – technology, investment, demographic profile
The Four Speed World(1)
Our “tyranny of distance” is replaced by the “power of proximity”

5. Page 5
Recent weakness of Australian dollar has catalysed export opportunities
Growing share of Australian merchandise exports go to North Asia

6. Page 6
Forecast to grow from US$1.5 trillion in 2014 to US$2.4 trillion in 2017
525
681
856
1053
483
538
598
660
347
383
414
445
2014 2015 2016 2017
$1,505
$1,771
$2,053
$2,357
North America
Asia-Pacific
Latin America
Central & Eastern Europe
Western Europe
Middle East & Africa
Source: eMarketer, 2014 analysis
Asia is forecast to underpin the growth of global eCommerce

7. Page 7
Large and growing populations with increased levels of technology will continue to
drive cross-border trade growth in the region
Indonesia
Population
250 million
Internet penetration
42m Users
(16% of population)
eCommerce – size
4.5bn
eCommerce - growth
51% p.a.
Source: ITU, e-marketer, AP team analysis
China
Population
1.4 billion
Internet penetration
642m Users
(47% of population)
eCommerce – size
440bn
eCommerce - growth
51% p.a.
Philippines
Population
98 million
Internet penetration
39m Users
(39% of population)
eCommerce – size
1.7bn
eCommerce - growth
17% p.a.
Australia
Population
23 million
Internet penetration
21m Users
(94% of population)
eCommerce – size
56.1bn
eCommerce - growth
10% p.a.
India
Population
1.3 billion
Internet penetration
243m Users
(20% of population)
eCommerce – size
30.3bn
eCommerce - growth
28% p.a.
Legend
Internet penetration – Internet users, 2014
Market size, 2016 forecast (USD)
2011-2016 CAGR
Directional
Demographics and internet penetration drive Asian eCommerce
Government target to
connect 1.2 billion
(85%) to 3G or 4G by
2020

8. Page 8
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

9. Page 9
International tourism
Government incentives & Customs eCommerce leadership (price & choice)
Much of China’s eCommerce growth is driven by increased consumer purchasing power and
government policy change
Growing middle-class Appreciation of the RMB (¥)
Rising incomes complement other drivers of Chinese eCommerce

10. Page 10
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)

11. Page 11
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

12. Page 12
Sources: Wikipedia and Australia’s International Business Survey 2014
An optimistic outlook
 74% of Australian businesses (1700 surveyed) plan to expand into 2+ markets over the next two years
 Recent free trade agreements with China (2015), Japan (2014), Korea (2014), Malaysia (2013)
UK
China USA New Zealand
Japan
China is now the top export target for Australian business

13. Page 13
Key barriers to China market entry that must be considered before you enter
Local knowledge & language
Regulations
Payments
Duties/taxes
Licences
But there are challenges to capturing the China opportunity
Sources: Austrade research and Australia Post intelligence

14. Page 14
Visit austrade.com.au for further information to help you get export ready
“Doing business
in China has its
own risks,
success is
not guaranteed”
“Get your product
and brand ready
for the Chinese
market”
“Protect your
intellectual
property with a
Trademark”
“Understand key
regulations and
customs
procedures”
“Ensure that you
have the
necessary export
documents”
“Be prepared to
register your
company as a
legal entity”
Do your due diligence… … Get your brand ready … Protect your IP
… Know the regs and customs … Export documentation … Company registration
Customer learnings to help your business succeed
Getting export ready for China and Asia generally is critical

15. Page 15
• Postal and commercial solutions
• Marketplace partnerships
• Sai Cheng China JV
• Hong Kong & Asia supply chain
(incl. distribution & warehousing)
• Payment solutions
International - Powered by Australia Post
Using our trusted brand, partners and secure supply chain capabilities to meet and
exceed the expectations of Asian eCommerce consumers
Our cross-border solutions can open up the Asian opportunity

16. Page 16
We leverage postal and commercial capabilities to deliver superior value and service
Our international solutions will evolve with your business needs
Micro business
(B2C, Marketplaces)
Customer segment
Small & Medium business
(B2C, B2B, Marketplaces)
Larger enterprises
(B2C, B2B, B2B4C)
Optimised network
(freight profile, speed)
Postal or commercial network solutions to
and from Asia and the World
Tailored to customer need, e.g.
• Volume, freight mix
• Receiver type
• Speed
Additional features
E.g.
• 3PL, VAS, returns
• Packaging solutions
• Tracking
Additional features
(features and VAS)
Advice to expand
into new markets
Talk to us:
international.sales@
startrack.com.au
Consumers
(C2C)
International

17. Page 17
A snapshot of brands selling into China via our Australian flagship store on
Alibaba’s Tmall marketplace - auspost.tmall.hk
Our marketplace partnerships complement our direct solutions

18. Page 18
StarTrack Warehouses in every major
city with aggregation offered nationally
Through our 4400
lodgement points, we
have the largest
network in Australia
Perth
Tasmania
Sydney
Brisbane
Adelaide
Melbourne
Zhenzhou
Shanghai
Ningbo
Shenzhen
1 bonded warehouse
3,000m2 warehouse
5 warehouses (1 bonded)
20,000m2 warehouse space
1 bonded warehouse
3,500m2 warehouse
2 bonded warehouses,
1 non-bonded
12,000m2 warehouse space
China
Wine acceptance point via import
licence provided by China
Merchant International
More than 3
million sqm of
warehouse
that is located
in 31 provinces
across China
owned by
China Post
that are
available to
Sai Cheng
In Tier 1 and 2
cities, Sai
Cheng owns
more than
30,000 sqm
warehouse
A 10 year relationship to link Australian and Chinese businesses and consumers
Our Sai Cheng JV with China Post provides unrivalled access

19. Page 19
Product Market Overview
Fashion and
accessories
We have an iconic Australian fashion brand sending to China who sell through
their own sales channels and use our Express Courier International product to
fulfil direct to customer within 4 days
Vitamins and
Supplements
We support one of Australia's largest vitamins and supplements companies to
export $3.5m worth of product to China. They have their own Tmall platform
and consumer network
Milk Powder and
dairy products
The growth in Milk Powder into China has seen our international product
revenue grow as Chinese customers trust the EMS brand which is the largest
delivery network worldwide
Wine and
produce
We are building B2C, B2B and B2B2C solutions into China using our combined
postal and commercial capabilities in international logistics
We provide B2C, B2B and B2B4C supply chain solutions into China for over 100
Australian businesses
International
We are already helping businesses build secure sales in Asia

20. Page 20
• Exciting time for Australian businesses
• Huge opportunities
• We have the solutions to help you
succeed overseas
Our ambition:
To be the punter’s supply chain into
and out of Australia
Conclusion – Let us help you to realise export sales opportunities

21. For more information:
international.sales@startrack.com.au
Thank you
Questions?
Charles Thompson
General Manager of International
charles.thompson@auspost.com.au