Australian manufacturers should look at tapping into China’s e-Commerce market this 2015


China’s e-commerce is rapidly increasing with a growth rate of 120%. With this in mind, many businesses are investing time and effort to tap China’s e-commerce industry. How about you? Do you have a clear plan on how to do it?

Read on to learn:

The future of China’s e-Commerce

How Yihaodian helps Australian products tap into China’s e-commerce market

Tips on how you can tap into China’s e-commerce market

The Future of China’s e-Commerce

“Among the thirty developing countries indexed, China has the first position in terms of online sales initiatives with 84.0 %, following by Japan with 83.3% and the United States came in third with 82.8 %. ” Source: AT Kearney courtesy of Marketing China

China's fast e-commerce growth

Surprising facts about China

Surprising China fact #1

“Within the next five years, China is expected to reach $271 billion from online shopping.” – Red Luxury 

Suprising China Face 1 infographic

 You might be asking, “How can China attain this huge online sales initiative?” The facts about it’s population will give you a better understanding of it

Surprising China fact #2

Half a billion of its citizens do not have access to the internet. Considering this, imagine how much growth it will reach by the year 2020? 700 million? Most probably.

E-commerce growth of China

Surprising China fact #3:

Currently, over 200 million people in China are earning between $20k to $50k per annum. However, this is believed to reach 500 million people by the year 2020.

Over 200 million people in China is earning $20k to 30K per annum.

With a rapidly growing e-Commerce market and population capacity to buy more, wouldn’t you want to tap into the Chinese market?

Yihaodian helps Australian products tap into China’s e-commerce market

December 2013 – More than 400 Australian products were promoted in China through Yihaodian, one of the leading B2C e-commerce companies in China.

What is Yihaodian?

Yihaodian is an e-commerce trading site that features various products online. Through this initiative, they were able to accumulate sales revenue of RNB 10.9 Million ($2Million) within the span of 25 days.

Who participated?

Hundreds of brands were given the opportunity to market their products in China online. Many Australians participated including established brand names such as:

  • Devondale
  • Blackmore and Leggos
  • Beechworthy Honey
  • Cripps Newbake
  • Joney’s Farm Milk

What does this result imply?

China’s appetite for Australian products is very evident with the revenues accumulated through Yihaodian promotion. The next big question is, how will Australian businesses maximize this opportunity?

4 smart tips to tap the Chinese market

Tapping the Chinese market requires strategic planning. Consider these following tips and make it work to your advantage.

Choose between bundled and unbundled options

Jim Barksdale of Netscape once said, “There are only two ways to make money in business: One is to bundle; the other is to unbundle.”


bundled vs unbundled options in e-commerce

What do you choose?

Bundling tends to favor the seller. First, there is the simplicity of a single priced product. If you can sell the same bundle to everyone, it makes life easier, which usually means lower marketing and selling costs.

Keep it simple and more profitable with one package deal and the customer is likely to focus on the total experiential value, perceive greater total value, and try features that they may not have otherwise.

Develop both an offline and online strategy to market your goods

You have a huge online market in China. However, remember that almost half of their population does not have access to the internet yet.

Tap both of these markets by developing an offline strategy to market your goods.

Transform your products for it to adapt to the Chinese market

Do you recall “Domino’s Pizza” early attempt to penetrate the Australian market? It nearly failed because it underestimated the need to adapt its offerings to local tastes. But when they re-invented their menu, it made them into the largest pizza chain in the country.

The same principle applies to the Chinese market. You need to understand what they want and re-invent your product and marketing strategy according to this thinking.

Think Chinese. Begin by labelling your products in their language and style.

Learn more about logistics compliance in China which includes:

David Lander, general manager of growth and emerging markets at Austrade, pointed the importance of logistics compliance when tapping into the Chinese market.

“You have to have the ability to be a reliable source for your own product and prove to the online provider you are working with that. If people buy online there is going to be a product there to deliver.”

What businesses need to consider?

The logistics and compliance required for exporting to China can often act as a barrier for SMEs. Thus, it is important to consider the following:

  • Using correct import licences
  • Adhering to quality testing and inspection requirement
  • Following China’s compliant labelling rules
  • Processing regulatory approvals
  • Developing efficient inbound and shipping returns

BRi is the logistics partner of choice of Australian businesses exporting items to China

BRi is a leading provider of global supply chain management solutions to a diverse range of companies from small businesses to large enterprises.

We have a proven track record of working with our customers to understand their business issues, their priorities and needs, then provide a truly tailor-made and end-to-end supply chain solution. At BRi we deliver what we promise:

  • Export Sea Freight
  • Export Air Freight
  • Warehousing
  • Distribution
  • Supply chain management

Talk to us at 1300 348 828.


This entry was posted in Private Client News, Public News on by Aaron Poole.

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