"taking your products to the world - capitalising on the asian century"
TRANSCRIPT
Taking your products to the World
Opening up the global eCommerce opportunity3rd Annual Online Retail Supply Chain Summit29 February 2016
Charles ThompsonGeneral Manager, InternationalAustralia Post | StarTrack Group
Reorienting to Asian
opportunities
“Last smile” engagement as a differentiator
Asset-light, Disrupters &
Marketplaces
A changing landscape demands agility and a global perspective
Big themes in parcels and ecommerce today
End-to-end customer
expectations
Global eCommerce and
competition
1 2 3
4 5
Page 3
Shares of global middle class consumption, 2000-2050
Source: OECD Development Centre Working Paper 285
Asia is shaping the future global middle class
Page 4
The Asian region is forecast to have sustained income growth … and we are on their doorstep
Affluent
Converging toward Affluent
Stalled income growth
Struggling
Source: OECD Development Centre Working Paper 285(1) Key drivers – technology, investment, demographic profile
The Four Speed World(1)
Our “tyranny of distance” is replaced by the “power of proximity”
Page 5
Recent weakness of Australian dollar has catalysed export opportunities
Growing share of Australian merchandise exports go to North Asia
Page 6
Forecast to grow from US$1.5 trillion in 2014 to US$2.4 trillion in 2017
525 681 8561053
483538
598660
347383
414
445
2014 2015 2016 2017
$1,505$1,771
$2,053$2,357
North America
Asia-Pacific
Latin AmericaCentral & Eastern Europe
Western Europe
Middle East & Africa
Source: eMarketer, 2014 analysis
Asia is forecast to underpin the growth of global eCommerce
Page 7
Large and growing populations with increased levels of technology will continue to drive cross-border trade growth in the region
IndonesiaPopulation
250 millionInternet penetration
42m Users(16% of population)
eCommerce – size
4.5bneCommerce - growth
51% p.a.
Source: ITU, e-marketer, AP team analysis
ChinaPopulation
1.4 billionInternet penetration
642m Users(47% of population)
eCommerce – size
440bneCommerce - growth
51% p.a.
PhilippinesPopulation
98 millionInternet penetration
39m Users(39% of population)
eCommerce – size
1.7bneCommerce - growth
17% p.a.
AustraliaPopulation
23 millionInternet penetration
21m Users(94% of population)
eCommerce – size
56.1bneCommerce - growth
10% p.a.
IndiaPopulation
1.3 billionInternet penetration
243m Users(20% of population)
eCommerce – size
30.3bneCommerce - growth
28% p.a.
LegendInternet penetration – Internet users, 2014
Market size, 2016 forecast (USD)2011-2016 CAGR
Directional
Demographics and internet penetration drive Asian eCommerce
Government target to connect 1.2 billion
(85%) to 3G or 4G by 2020
Page 8
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 9
International tourism
Government incentives & Customs eCommerce leadership (price & choice)
Much of China’s eCommerce growth is driven by increased consumer purchasing power and government policy change
Growing middle-class Appreciation of the RMB (¥)
Rising incomes complement other drivers of Chinese eCommerce
Page 10
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 11
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 12
Sources: Wikipedia and Australia’s International Business Survey 2014
An optimistic outlook 74% of Australian businesses (1700 surveyed) plan to expand into 2+ markets over the next two years
Recent free trade agreements with China (2015), Japan (2014), Korea (2014), Malaysia (2013)
UK
China USA New Zealand
Japan
China is now the top export target for Australian business
Page 13
Key barriers to China market entry that must be considered before you enter
Local knowledge & language
Regulations
Payments
Duties/taxes
Licences
But there are challenges to capturing the China opportunity
Sources: Austrade research and Australia Post intelligence
Page 14
Visit austrade.com.au for further information to help you get export ready
“Doing business in China has its
own risks, success is
not guaranteed”
“Get your product and brand ready for the Chinese
market”
“Protect your intellectual
property with a Trademark”
“Understand key regulations and
customs procedures”
“Ensure that you have the
necessary export documents”
“Be prepared to register your
company as a legal entity”
Do your due diligence… … Get your brand ready … Protect your IP
… Know the regs and customs … Export documentation … Company registration
Customer learnings to help your business succeed
Getting export ready for China and Asia generally is critical
Page 15
• Postal and commercial solutions
• Marketplace partnerships
• Sai Cheng China JV
• Hong Kong & Asia supply chain (incl. distribution & warehousing)
• Payment solutions
International - Powered by Australia Post
Using our trusted brand, partners and secure supply chain capabilities to meet and exceed the expectations of Asian eCommerce consumers
Our cross-border solutions can open up the Asian opportunity
Page 16
We leverage postal and commercial capabilities to deliver superior value and service
Our international solutions will evolve with your business needs
Micro business(B2C, Marketplaces)
Customer segment
Small & Medium business(B2C, B2B, Marketplaces)
Larger enterprises(B2C, B2B, B2B4C)
Optimised network (freight profile, speed)
Postal or commercial network solutions to and from Asia and the World
Tailored to customer need, e.g.• Volume, freight mix• Receiver type• Speed
Additional featuresE.g.• 3PL, VAS, returns• Packaging solutions• Tracking
Additional features (features and VAS)
Advice to expand into new markets
Talk to us: international.sales@
startrack.com.au
Consumers(C2C)
International
Page 17
A snapshot of brands selling into China via our Australian flagship store on Alibaba’s Tmall marketplace - auspost.tmall.hk
Our marketplace partnerships complement our direct solutions
Page 18
StarTrack Warehouses in every major city with aggregation offered nationally
Through our 4400 lodgement points, we
have the largest network in Australia
Perth
Tasmania
Sydney
Brisbane
Adelaide
Melbourne
Zhenzhou
Shanghai
Ningbo
Shenzhen
1 bonded warehouse3,000m2 warehouse
5 warehouses (1 bonded)20,000m2 warehouse space
1 bonded warehouse3,500m2 warehouse
2 bonded warehouses, 1 non-bonded12,000m2 warehouse space
China
Wine acceptance point via import licence provided by China Merchant International
More than 3 million sqm of warehouse that is located in 31 provinces across China owned by China Post that are available to Sai Cheng
In Tier 1 and 2 cities, Sai Cheng owns more than 30,000 sqm warehouse
A 10 year relationship to link Australian and Chinese businesses and consumers
Our Sai Cheng JV with China Post provides unrivalled access
Page 19
Product Market Overview
Fashion and accessories
We have an iconic Australian fashion brand sending to China who sell through their own sales channels and use our Express Courier International product to fulfil direct to customer within 4 days
Vitamins and Supplements
We support one of Australia's largest vitamins and supplements companies to export $3.5m worth of product to China. They have their own Tmall platform and consumer network
Milk Powder and dairy products
The growth in Milk Powder into China has seen our international product revenue grow as Chinese customers trust the EMS brand which is the largest delivery network worldwide
Wine and produce
We are building B2C, B2B and B2B2C solutions into China using our combined postal and commercial capabilities in international logistics
We provide B2C, B2B and B2B4C supply chain solutions into China for over 100 Australian businesses
International
We are already helping businesses build secure sales in Asia
Page 20
• Exciting time for Australian businesses
• Huge opportunities
• We have the solutions to help you succeed overseas
Our ambition:
To be the punter’s supply chain into and out of Australia
Conclusion – Let us help you to realise export sales opportunities
For more information: [email protected]
Thank you Questions?
Charles ThompsonGeneral Manager of International