Exploring E-Commerce opportunities in China-Ben Franzi
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Transcript of Exploring E-Commerce opportunities in China-Ben Franzi
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Exploring eCommerce opportunities in ChinaEmerging trends and channels China Digital Conference2 June 2016
Ben FranziGeneral ManagereCommerce Platforms & Digital
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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
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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
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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
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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
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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
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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
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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).
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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
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• 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
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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?
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How we help businesses sell into China
Tmall (B2C) auspost.tmall.hk
1688 (B2B) auspost.1688.co
m
JD.COM (B2C) auspost.jd.hk
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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
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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)
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• Exciting time for Australian businesses
• Huge opportunities• We have the solutions to help
you succeed in China
Summary
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Thank you. Questions?For more information: Ben [email protected]