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Exploring eCommerce opportunities in ChinaEmerging trends and channels China Digital Conference2 June 2016
Ben FranziGeneral ManagereCommerce Platforms & Digital
Page 2
Worldwide B2C eCommerce
$57.7bnLatin America
$482.6bn
North America
$347.4bn
Western Europe
$58.0bnCentral & Eastern
Europe
$33.8bnMiddle East & Africa
$525.2bn
Asia Pacific
This year, worldwide B2C eCommerce sales are set to total $2 trillion USD
Page 3
Populations in Asia to stimulate growth and tradeAs 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 billionIndia: 1.3 billion
Indonesia: 255 million
Australia: 24 million
Philippines: 100 millionJapan: 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
India44%
Philippines
Singapore
Australia
IndonesiaAsia Pacific online spend:
$525.2bn
National internet usage figures%
Populations
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
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
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
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
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).
Page 9
Sending overseas, simplyIntroducing our new international productsWhat’s new?
• Easy options • Enhanced security• Flexible extras • Less paperwork • Competitive pricing to
popular export destinations – including China (Zone 2)
Find out more at: auspost.com.au/sendoverseas
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
Page 11
Third-party marketplaces can be an easier way to sell your productsMarketplaces
• One-stop shop – wide product variety• Generates strong consumer confidence
and trust• Broad reach and increased revenue
opportunities (for merchants)
Why marketplaces?
Page 12
How we help businesses sell into China
Tmall (B2C) auspost.tmall.hk
1688 (B2B) auspost.1688.co
m
JD.COM (B2C) auspost.jd.hk
Page 13
A snapshot of brands selling into China via our Australian flagship store on Alibaba’s Tmall marketplace - auspost.tmall.hk
Brands already trading on Tmall
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)
Page 15
• Exciting time for Australian businesses
• Huge opportunities• We have the solutions to help
you succeed in China
Summary
Thank you. Questions?For more information: Ben [email protected]