C Stuart, a classic Australian baby products brand, lost $25,000 Australian dollars after hundreds of fake orders were placed and then cancelled on their Tmall store in China. The CEO believes it was a deliberate attack. He advises other Australian companies to thoroughly research the Chinese market before selling on third-party e-commerce platforms in China like Tmall due to risks. Meanwhile, the Chinese market for Australian products continues to grow rapidly, driven largely by individual purchasing agents ("daigou") who buy products in Australia and resell them in China. Many Australian brands have since partnered directly with major Chinese e-commerce companies like Alibaba to better access the huge Chinese market.
Inside Retail Asia Magazine April 2020 IssueJasper Chung
The article discusses the long-term outlook for Hong Kong retail after the coronavirus pandemic subsides. It argues that a full recovery will be difficult due to pre-existing structural trends, including narrowing price advantages over mainland China, shifts in mainland Chinese tourists traveling more widely, and increased competition from retail developments in the Greater Bay Area. The crisis may further ingrain online shopping habits, reducing customers' desire to return to physical stores even after restrictions are lifted. Brands are advised to re-evaluate their strategies and focus on omnichannel operations to engage customers both online and offline.
A Very British Black Friday: The Real Winners and LosersFITCH
Black Friday is perceived as a frantic one-day sale, when shoppers lose control in the fight for bargains and retailers move mountains of stock to get a good chunk of Christmas sales in the bag.
This study on Black Friday in Britain shows that the reality is somewhat different. While there will always be a small proportion of shoppers willing to fight for a bargain, the majority are sensible human beings happily buying online, at home.
The losers are the retailers. Black Friday discounts drive shoppers to open their wallets earlier, but not necessarily deeper, so the idea that they are a major boost to UK Christmas spending is flawed.
Find out about our predictions for the future of Black Friday in Britain, and our recommendations for what retailers should really be focusing on.
Fashion Trends and Brand Opportunities in ChinaTechnomic Asia
Presentation given by Michael Zakkour @michaelzakkour at Fashion Institute of Technology on Oct 3 - China Fashion, Beauty and Status A Year on the Frontlines of China's Apparel and Luxury Market.
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50FITCH
Against a backdrop of seismic shifts in our retail landscape, Christian Davies, Executive Creative Director, Americas at FITCH took the audience on a global tour of the major trends that will be the norm by the time we’re ringing in the New Year of 2020. Emerging trends are mapped against new shopper behaviors and the rise of Gen Z – set to be the largest group of shoppers globally by 2020 – and by new realities of retail operations, language and purpose. This presentation was given at Globalshop in Las Vegas on March 26th, 2015.
report on customer relatioship management1225101994
BDG Metal & Power Ltd. is part of the Goyal Group, established in 1960, which is now a premier manufacturer and trader of iron and steel with a group turnover of over USD 240 million. The company's vision is to be a premium global conglomerate focused on the businesses it operates in, and its mission is to deliver superior value to customers, shareholders, employees and society. The company is involved in the manufacture of ferro alloys, carbon steel, thermo-mechanically treated bars, wire rods, structural steel and prefabricated steel products.
The document provides an overview of retailing in India. It discusses that organized retail currently contributes only 2% of total retail sales in India but is growing rapidly. As incomes and western lifestyles grow among India's middle class, conditions are favorable for organized retail chains like Shoppers Stop and Westside to expand. While retail is a large sector, it remains highly fragmented in India compared to developed countries. The opportunities for retail growth are substantial as Indian retailing is poised for major changes with rising consumer purchasing power.
1. Crossroads was a large retail mall in Mumbai that aimed to provide an entertainment shopping experience. However, after imposing an entry fee requirement where visitors needed a credit card or mobile phone, mall foot traffic dramatically fell by over 70%.
2. Many visitors and tenants were insulted by the entry fee requirement. As foot traffic declined, some tenants like a bookstore opted to leave due to significantly lower sales. Other tenants demanded lower rent.
3. While some premium stores saw improved conversion rates with less crowds, most tenants relied on large foot traffic and were disappointed with the declining numbers of visitors entering the mall. This case highlights the challenges of restricting access at a retail destination.
This report marks the 20th year of identifying
the 250 largest retailers around the world and
analyzing their performance across geographies,
sectors, and channels.
Over the last 20 years we have seen a seismic shift
in retail and the customers that retailers serve.
Consider that in 1997, the inaugural year of this report,
today’s average Amazon Prime customer was just
16 years old, AOL was pioneering social media, and
handheld virtual pets were the hottest-selling toys.
Today, handheld (or wearable) digital devices are
ubiquitous and a younger, social customer has come of
age. We are living in an era where customers are in the
driver’s seat more than ever before and they are craving
authenticity, newness, convenience, and creativity. We
are living in the customer-driven economy.
Inside Retail Asia Magazine April 2020 IssueJasper Chung
The article discusses the long-term outlook for Hong Kong retail after the coronavirus pandemic subsides. It argues that a full recovery will be difficult due to pre-existing structural trends, including narrowing price advantages over mainland China, shifts in mainland Chinese tourists traveling more widely, and increased competition from retail developments in the Greater Bay Area. The crisis may further ingrain online shopping habits, reducing customers' desire to return to physical stores even after restrictions are lifted. Brands are advised to re-evaluate their strategies and focus on omnichannel operations to engage customers both online and offline.
A Very British Black Friday: The Real Winners and LosersFITCH
Black Friday is perceived as a frantic one-day sale, when shoppers lose control in the fight for bargains and retailers move mountains of stock to get a good chunk of Christmas sales in the bag.
This study on Black Friday in Britain shows that the reality is somewhat different. While there will always be a small proportion of shoppers willing to fight for a bargain, the majority are sensible human beings happily buying online, at home.
The losers are the retailers. Black Friday discounts drive shoppers to open their wallets earlier, but not necessarily deeper, so the idea that they are a major boost to UK Christmas spending is flawed.
Find out about our predictions for the future of Black Friday in Britain, and our recommendations for what retailers should really be focusing on.
Fashion Trends and Brand Opportunities in ChinaTechnomic Asia
Presentation given by Michael Zakkour @michaelzakkour at Fashion Institute of Technology on Oct 3 - China Fashion, Beauty and Status A Year on the Frontlines of China's Apparel and Luxury Market.
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50FITCH
Against a backdrop of seismic shifts in our retail landscape, Christian Davies, Executive Creative Director, Americas at FITCH took the audience on a global tour of the major trends that will be the norm by the time we’re ringing in the New Year of 2020. Emerging trends are mapped against new shopper behaviors and the rise of Gen Z – set to be the largest group of shoppers globally by 2020 – and by new realities of retail operations, language and purpose. This presentation was given at Globalshop in Las Vegas on March 26th, 2015.
report on customer relatioship management1225101994
BDG Metal & Power Ltd. is part of the Goyal Group, established in 1960, which is now a premier manufacturer and trader of iron and steel with a group turnover of over USD 240 million. The company's vision is to be a premium global conglomerate focused on the businesses it operates in, and its mission is to deliver superior value to customers, shareholders, employees and society. The company is involved in the manufacture of ferro alloys, carbon steel, thermo-mechanically treated bars, wire rods, structural steel and prefabricated steel products.
The document provides an overview of retailing in India. It discusses that organized retail currently contributes only 2% of total retail sales in India but is growing rapidly. As incomes and western lifestyles grow among India's middle class, conditions are favorable for organized retail chains like Shoppers Stop and Westside to expand. While retail is a large sector, it remains highly fragmented in India compared to developed countries. The opportunities for retail growth are substantial as Indian retailing is poised for major changes with rising consumer purchasing power.
1. Crossroads was a large retail mall in Mumbai that aimed to provide an entertainment shopping experience. However, after imposing an entry fee requirement where visitors needed a credit card or mobile phone, mall foot traffic dramatically fell by over 70%.
2. Many visitors and tenants were insulted by the entry fee requirement. As foot traffic declined, some tenants like a bookstore opted to leave due to significantly lower sales. Other tenants demanded lower rent.
3. While some premium stores saw improved conversion rates with less crowds, most tenants relied on large foot traffic and were disappointed with the declining numbers of visitors entering the mall. This case highlights the challenges of restricting access at a retail destination.
This report marks the 20th year of identifying
the 250 largest retailers around the world and
analyzing their performance across geographies,
sectors, and channels.
Over the last 20 years we have seen a seismic shift
in retail and the customers that retailers serve.
Consider that in 1997, the inaugural year of this report,
today’s average Amazon Prime customer was just
16 years old, AOL was pioneering social media, and
handheld virtual pets were the hottest-selling toys.
Today, handheld (or wearable) digital devices are
ubiquitous and a younger, social customer has come of
age. We are living in an era where customers are in the
driver’s seat more than ever before and they are craving
authenticity, newness, convenience, and creativity. We
are living in the customer-driven economy.
Global Powers of Retailing Deloitte 2018Oliver Grave
The document discusses trends in the global retail industry, including the rise of e-commerce and omnichannel retailing, stores closing as retail shifts online, and retailers investing in digital capabilities and creating unique in-store experiences. It also examines how technologies like artificial intelligence, augmented reality, and robots are impacting retail. Young consumers were asked about their shopping preferences, with responses showing they do significant online shopping but still value knowledgeable in-store staff.
ASD Market Week Post Show Report August 2015ASDExhibitor
Learn why ASD Market Week is the most comprehensive B2B trade show in the US! Our Post Show Report from August 2015 outlines how you can reach new buyers and find new markets at ASD.
1. Several predictions are made for trends in 2011 including: Facebook rising as a corporate icon, recovery beginning but uneven, China innovating as labor costs rise, emerging markets driving growth, and brands finding new ways to bring manufacturing local.
2. Other predictions include more data leaks, consumers building personal "walled gardens", better social media management, mobile technology advancing, and data being used more for marketing. Reputation management, hybrid creativity, and specific regions like London and Brazil are also highlighted.
3. Publishers are predicted to continue struggling while tablets expand, the status quo ends, Skype's rise accelerates, the 2010 census impacts are felt, an aging population grows, and more behavioral experiments are conducted
Vietnam has experienced major economic and social changes over the past few decades that are shaping its consumer landscape. After gaining independence from France in the 1950s, Vietnam opened its economy and saw rapid GDP growth starting in the 1980s. It has since developed a growing middle class, especially among youth and urban populations. However, traditions still play a large role in many families and rural areas. The document examines trends in Vietnam's growing economy, consumer behaviors, and shifting social values across generations.
- Sainsbury's has completed the removal of multi-buy promotions ahead of schedule as part of its value simplicity program to establish lower regular prices. This was a response to shopper demand for simpler pricing.
- Amazon was named the UK's favorite retail brand in a consumer survey, with 25% of respondents selecting it. John Lewis and M&S followed in second and third place.
- Nine out of ten UK retail sales involve "touching" a bricks-and-mortar store through either direct in-store purchases, click-and-collect, or in-store browsing before an online purchase. Certain categories like electronics have a stronger connection to physical stores than others.
Made in China: 8 Insights into the Chinese ConsumerBrand Genetics
A succinct overview of key factors influencing Chinese Consumer behaviour.
China truly is a land of opportunity with 30 years of growth that have helped lift millions out of poverty, enriched a middle class that is expanding fast and created 2.7 million millionaires and over 250 billionaires (US$). Given this speed of change and the complexity of a country with a population of 1.35 billion, making sense of the consumer and market context is not just useful, it's vital for success. Even if you're not working directly with China, you may be feeling its growing influence.
At Brand Genetics we're constantly working to understand the direction of change in global markets and identify the implications and opportunities for brands. To share some of our learnings the attached Speed Briefing outlines 8 key insights into the fast evolving world of the Chinese consumer.
This document summarizes a student's photowalk project exploring how malls have adapted to changing consumer shopping behaviors. The student photographed areas of declining attendance and empty storefronts at a local mall. However, the mall has attempted to attract niche retailers targeting local interests to replace mainstream stores struggling with the rise of online shopping. While some stores catering to pop culture and loyal customer bases have survived, the near-empty state of the mall calls into question how much longer it can last without more customers.
The document discusses predictions for the future of retail beyond 2020:
- Retail will increasingly focus on experiences as online shopping grows, with stores providing sensory, interactive experiences that can't be replicated online. Technology like augmented reality will enhance in-store shopping.
- Online retailers will become truly multi-channel, integrating online, mobile, social and physical store platforms. Stores may function as showrooms or pickup points for online orders.
- Two concepts for the future are outlined: "The Experience Bazaar" envisions retail spaces full of immersive experiences to attract customers, while "Autopilot Shopping" describes a future where consumers fully automate routine purchases through connected devices.
This document provides an overview of industrial tourism, which has grown in popularity. It defines industrial tourism as visiting manufacturing sites out of curiosity for how products are made. Benefits include improving company image, employee morale, and generating income. Four case studies are presented on different industrial tourism sites, examining their visitor profiles, economics, and marketing. The conclusion discusses industries with tourism potential, like food and drink, and target market segments like families and tour groups. Income is generated through admission fees and retail, though some sites like Autostadt also include attractions and hotels. Industrial tourism provides educational novelty and opportunities for businesses.
1) IKEA is cutting office jobs but opening more stores, creating net new jobs. Retail must adapt to changing consumer preferences and technology.
2) Successful retailers like Amazon and Alibaba put consumers first and move quickly, forcing others to focus on value, selection, and convenience.
3) Retail will be more integrated across digital and physical channels to provide seamless shopping experiences, but physical stores will still be important. The divide between large and small retailers will also increase.
樂You probably know about the N°1 e-commerce festival in China: 11.11, but do you know about the second largest?
It's 618 (June 18th), here are a few insights, and if you interested in a full report about this year festival, let me know in the comments ⬇
618 campaign in China was initially launched by Jingdong for its anniversary in 2010. Every June is the anniversary month of JD; and, the promotion and discount reach a peak on 18 June.
This year, besides traditional e-commerce players represented by Tmall and JD, Douyin and Kuaishou, the top2 short video platforms, also joined the game.
螺 Over 578 billion yuan of total GMV on Tmall, JD, and PDD, with 250,000 brands participating (x 2.5 more than last year)
️On Douyin, the post-00s accounted for the largest number of new users during the 618 promotion period, with a year-on-year increase of 392.1%. Young consumers’ emergence prompts brands and platforms to adjust their marketing strategies like using virtual influencers
Consumers' demand for improving the quality of life is increasing, and they are more and more accustomed to getting premium, imported, personalized, and diversified products/services on e-commerce platforms.
#china #chinamarketing #chinatrends #chinabusiness #chinaecommerce #ecommercemarketing #digitalcampaigns #digitalmarketing #jd #tmall #618 #douyin #kuaishou #ecommerce
This document provides an analysis for internationalizing the Korean cosmetics brand Soko Glam into the UK market. It includes a profile of the brand, a strategic analysis identifying strengths and weaknesses, an analysis of the target market and trends in the UK, justification for selecting London as the target country, and recommendations for entering the market through wholesaling to test demand before a full store launch. The goal is to bring rare Asian beauty products to the UK market and leverage London's large tourist industry and multicultural demographic to build brand awareness and customer loyalty for Soko Glam.
The document provides an overview of the growing retail industry in India. It discusses the transformation from traditional small shops to modern organized retailers. Department stores are emerging as a popular shopping option for Indians with busy lifestyles seeking convenience and variety. The objective of the research was to understand factors influencing customers' visits to department stores and contributing to their sales and success.
The document provides information and statistics about Market America and SHOP.COM's growth and success, including rankings on top retailer lists and awards received. It encourages attendees to leverage this media coverage and outlines steps for identifying spending habits and how purchases can be redirected through SHOP.COM to earn a Shopping Annuity. The presentation also highlights SHOP.COM's expanding product selection and increased cashback percentages available.
How can retailers incorporate the concepts that underpin the sharing economy into their value chain when their model is based on the principle of acquiring goods? This slideshare enhances 4 types of collaborative models retail is experimenting with, through a selection of examples: co-creation, co-marketing, co-consuming and co-recycling.
Reaching the Next Billion Buyers for Your BrandShipwire
This document discusses strategies for brands expanding into Asia-Pacific markets. It recommends using Hong Kong as a logistics hub due to its central location, shipping infrastructure, and duty-free status. A case study of ToyFoundry shows how using a Hong Kong warehouse helped them reach customers across Asia-Pacific more quickly and at lower shipping costs. Automating logistics through an API integration also improved their efficiency and control over inventory and order fulfillment.
Apo0728 ap a4_content_marketing_guide_china_raster_bg_ntTim Johnson
The document discusses opportunities for Australian businesses to expand into China's growing e-commerce market. It notes that China has over 242 million online shoppers spending over $190 billion annually. As Chinese consumers increasingly shop online, e-commerce sales in China are expected to reach $650 billion by 2020. The document provides an overview of the Chinese consumer market and preferences, as well as opportunities to market Australian products which are seen as high quality and safe. It concludes by outlining logistics and compliance considerations for Australian businesses exporting to China.
Australia Passport 2015: Cross-border Trading ReportwnDirect
Australia shares close historical and cultural ties with the UK, so the market offers fantastic opportunities to British online retailers.
In IMRG's “Australia Passport 2015: Cross-Border Trading Report”, you can find out how to successfully enter this thriving market.
Global Powers of Retailing Deloitte 2018Oliver Grave
The document discusses trends in the global retail industry, including the rise of e-commerce and omnichannel retailing, stores closing as retail shifts online, and retailers investing in digital capabilities and creating unique in-store experiences. It also examines how technologies like artificial intelligence, augmented reality, and robots are impacting retail. Young consumers were asked about their shopping preferences, with responses showing they do significant online shopping but still value knowledgeable in-store staff.
ASD Market Week Post Show Report August 2015ASDExhibitor
Learn why ASD Market Week is the most comprehensive B2B trade show in the US! Our Post Show Report from August 2015 outlines how you can reach new buyers and find new markets at ASD.
1. Several predictions are made for trends in 2011 including: Facebook rising as a corporate icon, recovery beginning but uneven, China innovating as labor costs rise, emerging markets driving growth, and brands finding new ways to bring manufacturing local.
2. Other predictions include more data leaks, consumers building personal "walled gardens", better social media management, mobile technology advancing, and data being used more for marketing. Reputation management, hybrid creativity, and specific regions like London and Brazil are also highlighted.
3. Publishers are predicted to continue struggling while tablets expand, the status quo ends, Skype's rise accelerates, the 2010 census impacts are felt, an aging population grows, and more behavioral experiments are conducted
Vietnam has experienced major economic and social changes over the past few decades that are shaping its consumer landscape. After gaining independence from France in the 1950s, Vietnam opened its economy and saw rapid GDP growth starting in the 1980s. It has since developed a growing middle class, especially among youth and urban populations. However, traditions still play a large role in many families and rural areas. The document examines trends in Vietnam's growing economy, consumer behaviors, and shifting social values across generations.
- Sainsbury's has completed the removal of multi-buy promotions ahead of schedule as part of its value simplicity program to establish lower regular prices. This was a response to shopper demand for simpler pricing.
- Amazon was named the UK's favorite retail brand in a consumer survey, with 25% of respondents selecting it. John Lewis and M&S followed in second and third place.
- Nine out of ten UK retail sales involve "touching" a bricks-and-mortar store through either direct in-store purchases, click-and-collect, or in-store browsing before an online purchase. Certain categories like electronics have a stronger connection to physical stores than others.
Made in China: 8 Insights into the Chinese ConsumerBrand Genetics
A succinct overview of key factors influencing Chinese Consumer behaviour.
China truly is a land of opportunity with 30 years of growth that have helped lift millions out of poverty, enriched a middle class that is expanding fast and created 2.7 million millionaires and over 250 billionaires (US$). Given this speed of change and the complexity of a country with a population of 1.35 billion, making sense of the consumer and market context is not just useful, it's vital for success. Even if you're not working directly with China, you may be feeling its growing influence.
At Brand Genetics we're constantly working to understand the direction of change in global markets and identify the implications and opportunities for brands. To share some of our learnings the attached Speed Briefing outlines 8 key insights into the fast evolving world of the Chinese consumer.
This document summarizes a student's photowalk project exploring how malls have adapted to changing consumer shopping behaviors. The student photographed areas of declining attendance and empty storefronts at a local mall. However, the mall has attempted to attract niche retailers targeting local interests to replace mainstream stores struggling with the rise of online shopping. While some stores catering to pop culture and loyal customer bases have survived, the near-empty state of the mall calls into question how much longer it can last without more customers.
The document discusses predictions for the future of retail beyond 2020:
- Retail will increasingly focus on experiences as online shopping grows, with stores providing sensory, interactive experiences that can't be replicated online. Technology like augmented reality will enhance in-store shopping.
- Online retailers will become truly multi-channel, integrating online, mobile, social and physical store platforms. Stores may function as showrooms or pickup points for online orders.
- Two concepts for the future are outlined: "The Experience Bazaar" envisions retail spaces full of immersive experiences to attract customers, while "Autopilot Shopping" describes a future where consumers fully automate routine purchases through connected devices.
This document provides an overview of industrial tourism, which has grown in popularity. It defines industrial tourism as visiting manufacturing sites out of curiosity for how products are made. Benefits include improving company image, employee morale, and generating income. Four case studies are presented on different industrial tourism sites, examining their visitor profiles, economics, and marketing. The conclusion discusses industries with tourism potential, like food and drink, and target market segments like families and tour groups. Income is generated through admission fees and retail, though some sites like Autostadt also include attractions and hotels. Industrial tourism provides educational novelty and opportunities for businesses.
1) IKEA is cutting office jobs but opening more stores, creating net new jobs. Retail must adapt to changing consumer preferences and technology.
2) Successful retailers like Amazon and Alibaba put consumers first and move quickly, forcing others to focus on value, selection, and convenience.
3) Retail will be more integrated across digital and physical channels to provide seamless shopping experiences, but physical stores will still be important. The divide between large and small retailers will also increase.
樂You probably know about the N°1 e-commerce festival in China: 11.11, but do you know about the second largest?
It's 618 (June 18th), here are a few insights, and if you interested in a full report about this year festival, let me know in the comments ⬇
618 campaign in China was initially launched by Jingdong for its anniversary in 2010. Every June is the anniversary month of JD; and, the promotion and discount reach a peak on 18 June.
This year, besides traditional e-commerce players represented by Tmall and JD, Douyin and Kuaishou, the top2 short video platforms, also joined the game.
螺 Over 578 billion yuan of total GMV on Tmall, JD, and PDD, with 250,000 brands participating (x 2.5 more than last year)
️On Douyin, the post-00s accounted for the largest number of new users during the 618 promotion period, with a year-on-year increase of 392.1%. Young consumers’ emergence prompts brands and platforms to adjust their marketing strategies like using virtual influencers
Consumers' demand for improving the quality of life is increasing, and they are more and more accustomed to getting premium, imported, personalized, and diversified products/services on e-commerce platforms.
#china #chinamarketing #chinatrends #chinabusiness #chinaecommerce #ecommercemarketing #digitalcampaigns #digitalmarketing #jd #tmall #618 #douyin #kuaishou #ecommerce
This document provides an analysis for internationalizing the Korean cosmetics brand Soko Glam into the UK market. It includes a profile of the brand, a strategic analysis identifying strengths and weaknesses, an analysis of the target market and trends in the UK, justification for selecting London as the target country, and recommendations for entering the market through wholesaling to test demand before a full store launch. The goal is to bring rare Asian beauty products to the UK market and leverage London's large tourist industry and multicultural demographic to build brand awareness and customer loyalty for Soko Glam.
The document provides an overview of the growing retail industry in India. It discusses the transformation from traditional small shops to modern organized retailers. Department stores are emerging as a popular shopping option for Indians with busy lifestyles seeking convenience and variety. The objective of the research was to understand factors influencing customers' visits to department stores and contributing to their sales and success.
The document provides information and statistics about Market America and SHOP.COM's growth and success, including rankings on top retailer lists and awards received. It encourages attendees to leverage this media coverage and outlines steps for identifying spending habits and how purchases can be redirected through SHOP.COM to earn a Shopping Annuity. The presentation also highlights SHOP.COM's expanding product selection and increased cashback percentages available.
How can retailers incorporate the concepts that underpin the sharing economy into their value chain when their model is based on the principle of acquiring goods? This slideshare enhances 4 types of collaborative models retail is experimenting with, through a selection of examples: co-creation, co-marketing, co-consuming and co-recycling.
Reaching the Next Billion Buyers for Your BrandShipwire
This document discusses strategies for brands expanding into Asia-Pacific markets. It recommends using Hong Kong as a logistics hub due to its central location, shipping infrastructure, and duty-free status. A case study of ToyFoundry shows how using a Hong Kong warehouse helped them reach customers across Asia-Pacific more quickly and at lower shipping costs. Automating logistics through an API integration also improved their efficiency and control over inventory and order fulfillment.
Apo0728 ap a4_content_marketing_guide_china_raster_bg_ntTim Johnson
The document discusses opportunities for Australian businesses to expand into China's growing e-commerce market. It notes that China has over 242 million online shoppers spending over $190 billion annually. As Chinese consumers increasingly shop online, e-commerce sales in China are expected to reach $650 billion by 2020. The document provides an overview of the Chinese consumer market and preferences, as well as opportunities to market Australian products which are seen as high quality and safe. It concludes by outlining logistics and compliance considerations for Australian businesses exporting to China.
Australia Passport 2015: Cross-border Trading ReportwnDirect
Australia shares close historical and cultural ties with the UK, so the market offers fantastic opportunities to British online retailers.
In IMRG's “Australia Passport 2015: Cross-Border Trading Report”, you can find out how to successfully enter this thriving market.
Opportunity In Chinas Consumer Economy Despite Crisisa Dec08KC Yoon
The document discusses the growth of consumer spending in China and opportunities in the Chinese retail sector. It notes that increasing affluence is turning China into a consumer market, with department stores and supermarkets benefiting from rising disposable incomes. Several large retail companies in China are profiled that have seen significant profit growth in recent years. The analysis indicates the Chinese government is actively promoting policies to further drive domestic consumption and shift the economy away from exports, presenting opportunities for foreign retailers.
The document discusses the arrival of Alibaba in Australia as an opportunity for retailers, rather than a threat like Amazon. It notes that Alibaba has officially opened an office in Melbourne, and describes Alibaba as "reimagining and reinventing global trade" by connecting China and the world. While some Australian retailers are focused on threats from companies like Amazon, the author argues they should see Alibaba as a chance to access the growing Chinese consumer market and expand beyond Australia's small domestic market.
Australian Business Forum helps Australian SMEs and businesses to understand the Chinese market and refine their China strategy.
http://abf.events/
ABOUT THE PRESENTATION BELOW
Chinese consumers want Australian products. Australia Post and StarTrack are the largest logistics force in Australia. If you want to grow your business into China, then AusPost is here.
Presentation covers Chinese online and retail market, payment methods, demographics and supply chain solutions.
Originally presented at Australia-China BusinessWeek 2015 Sydney by Charles Thompson, General Manager of AusPost | StarTrack International
614 part 7 cases specifically (built in instant messagingAASTHA76
1. There should be a global standard for toy manufacturing to ensure child safety worldwide. Benefits include consistent safety levels and enforcement. Drawbacks could include costs of compliance for manufacturers and less flexibility for countries. Overall a standard would help prioritize child health over all others.
2. The US should place more emphasis on its relationship with China regarding toy exports since China manufactures 80% of US toys. The US could conduct more frequent and rigorous inspections of Chinese factories. It could also negotiate agreements with penalties if inspections find violations. Increased oversight would help ensure Chinese manufacturers follow safety standards.
3. All countries
Consumers are increasingly realising that the state will not be there for them as it has been in the past. We’re on our own.
Solo Citizen relates to the increasingly large consumer group that lives in an age of cuts, restrictions, lowering living standards and diminishing state support, which is affecting their purchasing behaviour and trust in governments and corporations alike.
People are coming together in communities or supporting themselves with their own resources to counterbalance the lack of support from the state. Our dramatically ageing population means that the pension burden is at a critical level, and will continue to soak up scarce resources going forward.
Throughout this issue, we’ll highlight how consumers are responding to this tough environment.
The retail industry is undergoing major technological changes driven by the growth of online shopping and off-price retailing. In 2016, retailers will have to respond by focusing on online sales, customer experience, and innovation. Traditional retailers will increase their online investments while decreasing store investments. Acquisitions will increase as retailers battle for market share. The South Asian market will become a major force in retail, driven largely by India and China.
This document discusses trends in China's consumer market and opportunities for American companies. It outlines three phases of consumer growth in China from 1994 to the present: 1) The emergence of early consumers from 1994-2000 with 100 million people having disposable income. 2) Rapid consumer boom from 2000-2012 where 300-400 million had income. 3) The current "Age of the Super Consumer" from 2012 onward with 800 million Chinese having varying levels of income. It emphasizes that e-commerce ubiquity, effects of globalization 2.0, and the global Chinese consumer demographic are key realities American companies must embrace to succeed in China and globally.
Transition in Asia – How to grasp opportunities & meet new challenges in a tr...Zubin Poonawalla
1. The economies of Asia are in a state of transition as technology, consumer behavior, manufacturing, and security have all affected daily operations. This transition presents both challenges and opportunities that must be considered.
2. Demand in Asia has remained constant despite the global economic slowdown. The recovery of the Indian economy is on track and signs point to continued growth in 2016. E-commerce is growing rapidly, especially in China and India, driven by increased internet connectivity and use of mobile devices.
3. Over the next decade, 500 million new middle-class households will emerge in Asia, further driving consumer demand. This will contribute to the tight labor market and income growth in the region. Technology is changing both consumer
Global e-commerce sales are increasing 25% in 2015, fueled by Asia-Pacific growth. U.S. retailers cite growth and expansion as risks to their business. Shrinkage and errors cost retailers 1.4% of sales in 2014. The number of purchases made globally via digital devices will reach 125 billion annually by 2018. Sixty percent of consumers often add items to qualify for free shipping. Numerous retailers have announced store closings and bankruptcies in 2015 due to financial strain from unprofitable physical locations and a new consumer motivated by changing tastes and technology.
Introducing our 2015 FMCG trend report. We have looked at all the recent global and local trends on the FMCG category across the Consumer and Food Services industry. Enjoy!
Inside Retail - Starting a Retail BusinessKate Disley
A free report from Inside Retail, aimed at young and established indies. It’s filled with insight and advice from some of the biggest names in the industry.
"Taking your products to the World - Capitalising on The Asian Century"Charles Thompson
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. 26 27| BUSINESS-CIRCLE.COM.AU BUSINESS-CIRCLE.COM.AU |
中国热点 中国热点
CHINA HOT TOPICS CHINA HOT TOPICS
During the Spring Festival and the start of the
Year of the Monkey, a news item regarding Chi-
nese e-commerce suppliers became a talking
point in Australia’s business community.
The news story ‘Tragedy! Classic Australian
brand opens store on Tmall and loses 25,000
Australian dollars!’ shocked readers:
C Stuart is a classic Australian brand of no small
size. For the last few decades it has concen-
trated on retail baby products. Among its well-
known brands are Merino Baby, Big Softies and
Snugtime.
At the beginning of 2014, C Stuart partnered
with a Chinese supplier to sell Merino Baby
products on Tmall. Although sales for the initial
period did not meet expectations, the response
from consumers was very positive.
Disaster struck at the end of 2015. C Stuart’s
Chinese partner found that several hundred
fake orders had suddenly appeared in the store,
which after confirmation would then be cancelled
within a few minutes. Reasons for the cancellation
of the orders included insufficient stock or that the
products could not be delivered on time. However,
the CEO of C Stuart, Paul, declared that plenty of
stock was available. He believes that this was a
deliberately planned attack and that the attackers
had a deep understanding of Tmall’s system.
Before opening a store, according to Tmall’s re-
quirements, C Stuart had to pay Tmall a 100,000
RMB security deposit - valued at the time at
$25,000 Australian dollars - to serve as compen-
sation where customers possibly might have their
orders cancelled due to the seller having insuf-
ficient stock. After several hundred orders had
been cancelled, C Stuart’s bond was ‘appropriated’
by Tmall.
The investigation into the incident is still ongoing,
but Tmall’s response to the issue has been rela-
tively muted. Paul has already made the decision
to close their Tmall store, with the $25,000 Aus-
tralian deposit never to be seen again.
Paul has the following recommendation for oth-
er Australian companies currently considering
whether to sell their goods to the Chinese mar-
ket through a third party e-commerce platform:
‘Unless there is research showing they will be
able to sell the products into the Chinese mar-
ket, do not go into the Chinese market. And if
you are thinking of providing Tmall with a se-
curity deposit, think about our experience, and
judge whether the risk is worth it.’
A modern and successful business tested the
waters on the world’s largest e-commerce plat-
form in a huge 1.4 billion consumer market,
with the result that it was sent home packing.
This provides fellow businesses with a caution-
ary lesson.
We feel very sad for C Stuart about their expe-
rience in China. But Paul’s comments should not
be considered as the final word on the matter!
In the last few years, e-commerce has taken
over China. In 2009 Alibaba launched its first
‘Singles’ Day’ event and the amount traded
on that single day for today’s Tmall, (formerly
Taobao Mall), was 52 million Yuan; in 2010 this
jumped to 936 million; in 2011, Taobao Mall
and Taobao launched a joint promotion with
transactions reaching 5.2 billion; in 2012, the
total amount for all Tmall and Taobao transac-
tions broke through 19.1 billion; in 2013 it was
36.2 billion; in 2014 it was 57.1 billion; in 2015
Singles’ Day - and only for Alibaba’s platform
Tmall - reached 91.217 billion Yuan.
All this in only 7 years.
It’s a fairytale! A fairytale that happened in
China!
The visage of the main architect of this fairytale
and the boss of Alibaba, Ma Yun, has already
come to represent the image of a God of Wealth
and master businessman - one who is held in
awe and respected by e-commerce suppliers.
In 2015, there were over 300 million consumers
in China participating in internet shopping; total
shopping expenditure reached 500 billion Austra-
lian dollars with a 50% increase year-on-year.
This year, China will come to have the first
e-commerce retail market valued at 1 trillion US
dollars.
By 2018 at the latest, the Chinese e-commerce
domain will have become the largest online
goods importing market in the world.
It seems to really validate the saying: do
e-commerce or don’t do business at all!
But there have certainly also been those who
have had a less than supercharged e-commerce
experience - C Stuart, for example.
Accompanying this news is the fact that Aus-
tralian products have a huge and extremely
enviable market in China; countless Australian
purchasing agents are throwing themselves into
the buying process on a grand scale; with one
masterstroke after another by large e-commerce
suppliers and brands in Australia and China are
jumping on board too.
A Massive Market
The Melamine Incident was a key turning point.
Beginning with baby infant formula, infant prod-
ucts, and functional natural healthcare products,
cosmetics, even to meat, crayfish, abalone,
eggs, and seasonal fruits, the enthusiasm the
Chinese consumers now have towards Austra-
lian products has become a genie that cannot
be put back in its bottle.
One of Melbourne’s freight companies has
revealed that the amount of Australian baby
infant formula transported every week to China
in 2015 was almost always at least 20 tonnes.
This quickly created an Australian ‘infant for-
mula famine’, and after inciting complaints
from many Australian mothers, in the year just
passed, Chinese consumers and their purchas-
ing agents in Australia have now cast their eyes
towards Australian fresh food products. A few
rounds later and Australians now find them-
selves unable to buy Tasmanian cherries. Even
branded biscuits one day may be available to
all Australians but might be out of stock on the
next. And, of course, there’s Blackmores and
ships-worth of Penfolds currently arriving on
Chinese shores.
In 2013, the total value of agricultural products
exported from Australia to China was around 9
billion Australian dollars, more than that of any
other country, and this has continued to grow in
the following two years. The Australian Bureau
of Agricultural and Resource Economics and
Sciences (ABARES) has forecast that the pro-
portion of global growth attributable to China
in demand for agricultural products will get to
43% in 2050. At that time, half of all increased
demand for Australian agricultural products will
come from China.
But there is something else that has got Austra-
lian companies even more excited – over 80% of
China’s customers for Australian products were
born in or after the 1980s. That means that for
the Australian products now making their mark
in China, their attributes and characteristics have
had a decisive impact on their main body of con-
sumers, and this is the very same body of con-
sumers that today, and also tomorrow, constitutes
the backbone of China’s population and those with
the greatest purchasing power!
Observers in this space have seen the business
opportunities available. Hence there is a con-
stant dance of investment and acquisition now
unfolding between China and Australia focused
around popular Australian products. Dominat-
ing the field is Biostime International Holdings
Limited, a Hong Kong stock exchange listed
company valued at 1.67 billion, that bought
well-known Australian healthcare brand Swisse.
They did not become shareholders, they did not
form a partnership - they bought it outright!
The Amazing
Purchasing Agents
‘daigou’ is not a word officially used in the En-
glish lexicon, nonetheless the Australian public
is very familiar with the concept.
The vastness of the Chinese consumer land-
scape begins with individual purchasing agents
– ‘daigou’. This kind of business model can not
only enable Chinese-based consumers to buy
top quality products at relatively low prices,
they can also provide purchasing agent com-
panies with quite ample returns, and once it
emerged, this model took off in an extremely
short period of time, and even today it is still
the only pathway by which most Chinese con-
sumers purchase their loved Australian prod-
ucts. In the last ten years, mass purchasing by
daigou has become significant in Australia. The
buyers have also become honoured customers of
many Australian businesses as well as a thorn in
the flesh of many an Australian housewife.
Blackmores has revealed that local purchasing
agents have increased their yearly turnover by
about 65 million dollars. Bellamy’s also estimates
that as much as 40% of their baby infant formula
last year was sold to China. During this time, total
retail sales from third party e-commerce plat-
forms reached 27 million dollars in six months,
being nearly twice the figure for infant formula
exported to and retailed in China through official
company channels. Bellamy’s has already opened
its own flagship store on Tmall.
In 2015, the scale of transactions in the Chinese
overseas daigou market reached close to 300
billion RMB. On Taobao there are over 420,000
stores engaging in daigou operations, but it is
more in people’s WeChat friendship circles that
one can find vast numbers of daigou. There are
4,670 Australian agent businesses promoting
Australian products on Chinese websites. On
Taobao, there are nearly 900,000 Australian
products listed for sale.
The first Australian daigou general meeting took
place in Melbourne in 2015 and some migrant in-
vestors from China started to get involved in the
purchasing agent scene. It would be impossible not
to say that the blueprint of the daigou industry on
display via that meeting was not impressive.
Embrace the Era of
Chinese-Australian
E-Commerce!
2. 28 29| BUSINESS-CIRCLE.COM.AU BUSINESS-CIRCLE.COM.AU |
中国热点 中国热点
CHINA HOT TOPICS CHINA HOT TOPICS
There are organizations forecasting that, with
the exception of some terrible event, it is a
foregone conclusion that the scale of the Chi-
nese overseas daigou market will break through
the 1 trillion Yuan barrier in 2018.
China has already unveiled a cross-border
e-commerce ‘test city’ policy. Internet giants
have followed, with cross border e-commerce
platforms based in free trade zones or low-tax
zones such as Tmall International, JD Overseas
Shopping, NetEase KaoLa Shopping, Suning
Overseas Shopping and so on emerging around
these opportunities. Vast hoards of daigou have
already laid the way for the realisation and de-
velopment of cross-border e-commerce.
The Big Fish in the Pool
On 17 November 2014, China and Australia
signed a free trade agreement and in the next
four to eight years the vast majority of products
exported to China from Australia will eventu-
ally be entirely tariff free. This is an extremely
advantageous situation for Chinese-Australian
cross-border e-commerce suppliers.
Sensing opportunity, Alibaba quickly announced
on the following day, with its more than 800 mil-
lion registered users and its subsidiary company
Alipay Australia set up in Sydney doing an aver-
age of 80 million transactions every day, that it
is going to be working with local companies pro-
moting development of its operations in Australia
locally, providing tailored cross border e-com-
merce solutions to grow the Chinese market and
promote cross-border e-commerce between the
two countries. At the same time, Alipay Australia
began partnering with Australia Post selling, dis-
tributing and promoting Alipay Purchase Cards at
4,400 retailers for Australian consumers to use
online at Tmall and Taobao. Soon after, the Tao-
bao Australia Pavilion was released, providing a
one-stop shop for e-commerce services ranging
from product selection, to logistics, from customs
to marketing and receivables, providing Australian
food products and agricultural byproducts to Chi-
nese consumers.
It was 2015 that exemplified the numbers and
dominant position of cross border e-commerce
suppliers. The big fish from each industry started
to gradually take control of the Australian scene.
On 15 April 2015, JD Global Shopping formally
went online, where consumers could select and
buy high-quality imported and genuine prod-
ucts from countries like Australia at discounted
prices and through quick and flexible channels,
receive a high quality, one-stop shop, overseas
purchasing experience.
On 29 June, JD Mall held an opening ceremony
in Melbourne for its ‘JD Worldwide Australian
Business Forum’ and ‘JD Worldwide Shopping
Australia Mall’. At the meeting, JD announced
three important points of cooperation: firstly,
that they had concluded a strategic partnership
with Australia Post in the areas of e-commerce
and logistics, that both parties would offer
product delivery and retrieval services in Aus-
tralia and in China, and they unveiled strategic
partnerships in many areas such as Australian
and overseas storage, sea and air transporta-
tion, all-region direct postage for small parcels
from Australia to China; secondly, that they had
concluded a strategic partnership with Treasury
Wine Estates, taking hold of a famous Australian
wine brand in their palm in one stroke, and this
implies that more than 80 famous wine brands
under the Treasury Wine Estates banner will
be relying on JD to enter the Chinese market;
thirdly, that they have initiated a Chinese-Aus-
tralian era of e-commerce together with Aus-
trade, Australian Chamber of Commerce and
Industry and Australia Post.
In July, JD spent 20 million Australian dollars to
become Devondale and its milk powder’s sixth
largest shareholder!
On 24 June, Alibaba’s Juhuasuan.com and Tmall
International started a joint ‘global village’ for-
mat. Juhuasuan announced that it had initiated
a comprehensive partnership process with the
embassies of 20 countries, and it is hoped that
more special overseas products might be sold
on Juhuasuan for the first time.
Industry insiders predict that China’s two Inter-
net purchasing giants, Alibaba and JD, will enter
the Australian market in 2016 with real shop-
fronts supported by Internet stores. This will
change the way Australians make purchases,
and even their lifestyles.
Australia in Motion
It takes two to tango.
Many of Australia’s well-known brands are fo-
cused on retailing to their own Australian mar-
ket and enormous interest from the Chinese
market has caused an explosion in sales leaving
some brands at a loss about what to do. Fre-
quent problems such as stock shortages and
insufficient capital, management, production
capacity and productivity and so on have fol-
lowed.
But some have responded very fast
As recently as the beginning of the year, one
of Australia’s largest e-commerce pharmacy
suppliers - Pharmacy Online - had already
started entering the Chinese market, initiat-
ing direct-to-China postage services with their
Chinese website being formally launched on 2
February! Chinese consumers could cross lan-
guage, region, payment and other such barriers
to easily purchase natural organic nutritional
and healthcare products, skincare products, and
mother and infant products from Australia.
In June, former Australian Prime Minister Kevin
Rudd’s daughter, Jessica, entered the ‘Tmart
Mall’, exclusively selling local Australian prod-
ucts. In October, she moved to JD where she
opened a flagship store, mainly focusing on
selling Australian infant and children products.
Business boomed over the next several months.
With plenty to be exuberant about, Jessica Rudd
recommends that Australian companies ought
to take hold of this business opportunity.
In September, Australia’s largest discount phar-
macy chain, dubbed ‘heaven for Australian pur-
chasing agents’ - Chemist Warehouse - signed
an exclusive strategic cooperative agreement
with Tmall International. In November they en-
tered Tmall selling Australian healthcare, skin-
care and pharmaceutical products to Chinese
consumers at discounted prices.
Before this, retail chain Metcash had also regis-
tered on a Chinese e-commerce platform.
Over the last year, Australia’s number one
healthcare products company, Blackmores, saw
their sales volumes on China’s e-commerce
platforms increase exponentially, and they have
been entering into partnerships with China’s
main e-commerce suppliers. Due to their ex-
ceptional performance in the Chinese market,
Blackmores’ Australian share price jumped to
100 Australian dollars per share.
PharmaCare’s e-commerce sales in China have
already developed from their previous daigou
method to a team-orientated company business
model; they participated in both Singles’ Day
(Double 11) and ‘Double 12’ events in China.
In November 2015, the RMB joined the SDR,
which has been extremely advantageous for the
Chinese-Australian e-commerce trade. To have
cross-border e-commerce transactions calculat-
ed in RMB has reduced foreign exchange risks
and costs, raised confidence between Australian
companies and China towards trade, and is
certain to increase significantly the volume of
transactions.
On 23 December 2015, Australian supermarket
chain Woolworths entered a partnership with
e-commerce supplier eCargo, setting up an
overseas flagship store in Tmall International
with four special domains focusing on healthcare
products, food, infants and skincare. The main
focus is on products like milk powder, collagen,
fish oils, cereals and skincare products, cov-
ering more than 80 varieties of products from
many brands including Swisse, Blackmores, Red
Wing, G&M, Kids Smart and so on. In terms of
logistics and post-sale services, Woolworths has
adopted a direct postage model, sending out
goods directly from its Australian warehouses
and has also partnered with Everfast Worldwide
Express.
At the start of 2016, Australia Post formally
unveiled the ‘Australian Pavilion’ with Alibaba’s
1688, providing an online platform for Austra-
lian companies selling large quantities of prod-
ucts to China and attracting Chinese importers
to buy Australian products at discounted prices.
At the moment, there are more than 100 mil-
lion registered users on this platform. Australia
Post’s Managing Director and CEO Ahmed Fa-
hour has stated that China and Australia have
entered a free trade era constituting a historical
milestone, and this is an optimal time for Aus-
tralian companies to enter China’s flourishing
e-commerce area.
E-commerce suppliers have said that the last
ten years have been a ‘golden decade’ for the
development of China’s domestic e-commerce
trade. They believe that the next ten years
will be the ‘diamond decade’ for cross-border
e-commerce.
China’s Singles’ Day and e-commerce explosion
has informed us that today’s Chinese people
have incredible purchasing power. But if we only
look to China’s purchasing power and hastily
enter the field - particularly in joining third par-
ty e-commerce platforms - from being in a for-
eign market, being completely unable to control
sales, or by being forced to accept one-sided
rules or even ridiculous and overreaching claus-
es on foreign platforms, to which is added a
deficit in understanding for the habits and psy-
chology of consumers in a foreign country and
society’s general trust level, one may possibly
endure a harsh baptism of fire as an inevitable
outcome.
The fate of C Stuart in China should also cause
some reflection on the part of China’s e-com-
merce suppliers. Being e-commerce suppliers
who control the world’s largest e-commerce
market, they should be particularly observant of
fundamental business norms. Improvements in
business standards grounded on win-win prin-
ciples guarantees the quality of products based
on a foundation of genuineness and on the in-
tegrity of the platform, and this is essential for
protecting the healthy development of China’s
e-commerce industry. Should consumer dis-
putes continue to skyrocket; should ‘counterfeit
goods’, fake sales reports, ‘negative feedback’,
‘unfair refund charges’, and such other key
words jumbled about in Chinese e-commerce
circles continue to exist; should hidden rules
and ‘mysterious practices’ continue to run rife;
should the ‘return my money QQ hoards’ con-
tinue to grow; should the platform staff ‘honchos’
continue to be unreasonable, dominating, and
capricious, then even if your platform were to
grow and your logistics services become more
advanced, it will still be hard to avoid being
shunned overseas brands or even outright re-
jection. The world is flat. And the idea of using
asymmetric information and such other factors
to gain an advantage belongs to a historical era
that is soon coming to a close!
As a completely new business ecosystem of the
Internet age, the revolution in cross-national
commerce and operational models has arrived.
Irrespective of whether you proceed through
a distributor or wait for purchasing agents to
clear the shelves; irrespective of whether you’re
relying on the help of a third party platform or
wanting to enter directly as a brand, when it
comes to China and Australia do e-commerce or
don’t do business at all! ‘Be there or be square’.
No one can stop it no one can resist!
The Chinese-Australian e-commerce era has
arrived. Apart from embracing it, there’s
nothing you can do!
3. 30 31| BUSINESS-CIRCLE.COM.AU BUSINESS-CIRCLE.COM.AU |
澳中贸易 澳中贸易
AUSTRALIA-CHINA TRADE AUSTRALIA-CHINA TRADE
Online China consumer spending is expected to
reach $6.18 trillion sometime this year, up from
$2.03 trillion in 2010. The Chinese e-commerce
consumer market is growing at nearly 50 per cent
each year. There are now more than 668 million
Internet-connected consumers and more than
596 million mobile Internet users.
For Australian businesses, Chinese consumers’
emerging online spending behaviour presents a
rare opportunity to sell directly into the largest
growing e-commerce market in the world.
Paul Greenberg, Chairman of the National Online
Retailers Association and founder of Deals Direct
says: “The e-commerce opportunity for Austra-
lian retailers in China is the new El Dorado.
“There’s been an explosion of China e-commerce
sites over the last decade. Popular online shop-
ping sites such as Tao Bao, Yihaodian, Jing Dong,
TMall and Suning are delivering shopping pack-
ages to consumers over China in ever-increasing
numbers; bypassing traffic with deliveries, car-
rying their loads in compactly designed electric
scooters.”
Outside apartment buildings in many Chinese
cities, one can see these logistics vehicles on two
wheels gather together as they disperse packages
to local residents. This highly competitive busi-
ness has as its leaders Jingdong and the Aliba-
ba-owned T Mall.
According to Wang Xiao, IT Director at Simba
Innovation, “What gives Jingdong a competitive
advantage is its sophisticated logistics and ware-
house network near many major Chinese cities.
Jingdong promises a same day delivery, a prom-
ise on which they are able to deliver.”
Wang adds: “The customers also get a great,
convenient experience”.
TMall, backed by the Alibaba-group, is high-pro-
file, marketed as a huge online shopping mall with
many different products where designer brand
retailers license third-parties to sell their wares.
Shoppers are then assured of the authenticity
of the product, essential in China where “fake”
goods of all description are easy to come by.
Australian supermarkets chains IGA and Wool-
worths have taken note of these consumer-buying
trends and now distribute their products directly
into China via e-commerce sites. Woolworths
recently struck a deal with TMall Global, the in-
ternational arm of TMall. Through this channel,
Woolworths are focussing on specialized products
such as vitamins, milk powder as well as Wool-
worth’s own branded products.
Similarly, Metcash, Australia’s largest food and
liquor wholesaler and the company who own IGA,
Cellarbrations and Bottle-O, launched their own
shop front on TMall Global promoting Australian
products. TMall Global is much smaller than
TMall, with only 10-15% of the overall consumer
traffic. Interestingly, it is the high-wealth Chi-
nese customers who are purchasing from this site
in order to find genuine imported products.
Chinese consumers have an insatiable appetite for
all things Australian; products labelled “made in
Australia” with the government-licensed kangaroo
logo have become strong identifiers for Chinese
shoppers.
Combine this with Australia’s reputation for nat-
ural and clean food products, natural plant and
animal body beauty and health products and it’s
easy to see why Australian products resonate
strongly with the Chinese as a consequence of
China’s plethora of on-going severe food safety
and air pollution issues.
Australia’s reputation has led to an exponential
increase in Chinese consumers’ demand for Aus-
tralian imported food products, and points to the
opportunities ahead for Australian businesses will-
ing to move into ecommerce.
Milk powder, fresh milk, Blackmore’s vitamins
and meat are some of the hot items for Chinese
imports. According to Greenberg: “…not nearly
enough retailers are harnessing the flat world.
Australia’s advantage is precisely the types of
products that well-heeled Chinese consumers are
now looking for.”
Of smaller Australian e-retailers, Greenberg points
to Black Milk, a fashion apparel company who
specialize in quirky designs from iconic shows like
Dr Who and Star Wars.
“Australian fashion retailing is doing well in China.
You’ve got a business in South Australia selling
Emu Oil; others selling merino wool, UGG boots,
and even lavender bears from Tasmania. There’s
no question in my mind that there are literally
hundreds of mumprenteneurs utilizing Chinese
e-commerce. We’re really seeing that; we’ve got
proof points now”.
Greenberg advises Australian businesses: “If I
was thinking of getting into business again, I
would find products that are unique, aspirational
and have a point of difference. The Chinese are
looking for unique and hand made products and
there are plenty of margins in that range”.
The challenge for Australian businesses is to un-
derstand Chinese consumer needs and online
shopping channels. Chinese consumers are be-
coming accustomed to fast service and delivery
via their mobile device apps.
Location-based service and delivery is a
fast-growing online sector and Chinese consum-
ers, particularly the younger, female generations
are willing to pay for the convenience with service
location apps like 58 DAO JIA providing house-
keeping, child-rearing and beauty services to their
homes.
Chinese women will increasingly need to out-
source traditionally female roles, as their rising
education levels and participation in the workforce
means they are time-poor and yet enjoy the
convenience of online shopping. According to
the Voice of China, Beijing and Shanghai-based
Chinese women aged 30-39 are now the driving
force of online shopping.
Engaging with
China’s savvy
e-commerce spenders By ELIZABETH WINKELMAN
China is entering the “she-economy” with a grow-
ing need for health and well-being.
With 850 million monthly active users, social
media has become the most important function
of mobile phones in China. And WeChat is the
most popular app in China with more than 650
million monthly users, globally. As ubiquitous as
Facebook, Wechat allows users to create shops
and sell within their social circles or by creating an
official account. Thus the rise of entrepreneurial
Chinese students purchasing tins of infant formula
in Australia and on-selling via their Wechat circles
in China.
Tencent, the owner of Wechat is speeding up their
expansion of Wechat wallet overseas. Wechat’s
wallet function links debit and credit cards allow-
ing its users to pay via storing money or transfer-
ring money to other Wechat users. Wechat users
are now able to pay for electricity, food, airtime or
wherever a retailer has a QR code that supports
the SnapScan mobile payment platform.
Users can now scan their Wechat QR codes in Chi-
na at shops, to pay for taxi fares and many other
services. Both Alipay and Wechat wallets have
promoted their services in hot Chinese tourist
destinations like Japan and Korea, allowing their
users to pay for goods via their apps. WeChat
Wallet is now available to be used in stores in 20
countries.
Yet many Australian retailers are still being put off
due to the difficulties of market entry. “With the
introduction of Alibaba’s Alipay wallet and the ad-
vancement of many forms of online payment sys-
tems” Greenberg says, “have been a real game
changer”.
“I would argue that factory to the customer’s front
door is the new reality. The discount market is not
doing very well. There is a new sensibility in Austra-
lia that customers want quality and brand”.