Photo credit; SEOPlanter on Flickr
Asia, particularly China, is going through an e-commerce boom and Australian businesses are missing out on it, warns Sarv Girn, chief information officer at the Reserve Bank of Australia.
Although internet penetration rates in Asia are low when compared with Australia, they are growing more rapidly than the rest of the world, Girn said.
The projected growth of internet usage in the region could see the number of people on the internet in the region basically double.
According to eMarketer, consumers in the Asia-Pacific will spend more money online than the US for the first time ever this year. And for every ten US dollars spent, six will come from China.
According to official figures from the China Internet Network information Center, China has 618 million internet users as of December 2013. That means China has an online population 33 times that of Australia with only a 45.8 per cent penetration rate. Half of that population shops online.
Yet despite the huge opportunity for Australian businesses to sell directly to China’s rapidly expanding middle class via the web, Aussie businesses are lagging behind the competition from other countries.
“There are a range of popular Australian brands sold on China’s Tmall, but sales volumes are still small,” said Ben Simpfendorfer, a Hong Kong-based investment banker at strategy consultancy Silk Road Associates.
“Making your product available is just a first step. But it’s hard to be noticed without an effective marketing strategy, especially a digital media strategy.”
A number of Australian brands such as Penfolds wine, dairy provider A2 Milk, baby food manufacturer Bellamy’s Organic, and clothing store Jeanswest have their own shopfronts on Alibaba’s B2C website Tmall.
If that seems too daunting for Australian businesses, the process has recently been simplified thanks to a partnership between China’s e-commerce giant Alibaba and Australia Post.
Through the agreement, businesses no longer have to overcome onerous obstacles such as registering as a Chinese business entity or employing local staff in the country. Australian businesses now have the option of piggy-backing off Australia Post and shipping their products directly from Australia.
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