Helping you grow your business into ChinaCharles ThompsonGeneral Manager of International
Page 2
“The Changing Landscape”Big themes in the parcels and supply chain industry
1. Digital – Marketplaces, asset-light models and social media Converging physical + information supply chains Market places (e.g. eBay, Alibaba, Tmall, JD.com,
Amazon) The sharing economy (e.g. Skynet (Aliabab), Uber,
Tujia.com)2. Australia and the world reorienting to Asia
Traditionally a net import nation Rapidly growing Asian middle class, demand for quality Declining A$ and FTAs creating niche export
opportunities3. Customer expectations “end-to-end” and who is “The
customer” End-to-end solutions (“channel NOT cost to market”) Final mile convenience and choice judged by social
media4. Global opportunities, global and regional competition
Globalisation means global competition and rapidly changing
The increasing importance of partnering for success
5. Safety and engagement as a differentiator
Page 3
StarTrack and Australia Post
Largest logistics force in Australia
Service business and consumer markets
Unrivalled parcel, freight, express, courier and international logistics solutions
Deliver end-to-end eCommerce solutions
Page 4
Demographics & technology will effect cross-border trade
Dynamic demographics and increasing technology uptake will continue to have a pronounced effect on cross-border trade in the region
IndonesiaInternet penetration71m Users(20% of population)eCommerce – size 4.5bneCommerce - growth 51% p.a.
Source: ITU, e-marketer, AP team analysis
ChinaInternet penetration642m Users(47% of population)eCommerce – size 440bneCommerce - growth 51% p.a.
PhilippinesInternet penetration44m Users(41% of population)eCommerce – size 1.7bneCommerce - growth 17% p.a.
AustraliaInternet penetration21m Users(94% of population)eCommerce – size 56.1bneCommerce - growth 10% p.a.
IndiaInternet penetration243m 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
Page 5
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
Last year, worldwide B2C eCommerce sales were predicted to total $1.5 trillion USD
… this year B2C eCommerce sales are predicted to total $2 trillion USD
Page 6© 2015 Australia Post
Connecting Australian SMBs to consumers around the world through key partnerships
B2B B2C B2B2C
Largest network in Australia with 4400 lodgement points
With aggregation points all around Australia, StarTrack can assist with all your end-to-end outbound solutions
International Products & Solutions Group
Helping Australian businesses expand around the world…
Page 7
Source: Australia’s International Business Survey 2014
An optimistic outlookDespite a sluggish world
economy a above average AUD currency, 74% of the 1700 Australian businesses
surveyed have indicated plans to expand into two or
more markets over the next two years.
Australia’s current overseas marketsThe top five export
markets for Australian businesses are US, China,
NZ, UK and Japan, indicating the continuing importance of advanced
economies
Market & Competitive Environment - OutboundAustralian businesses plan to expand to China and USA despite a range of barriers
Page 8
Supporting cross border trade
Flagship store for Australian branded products
Third party logistics joint venture with China Post
Reloadable prepaid dual- currency card with CUP
Flagship store and logistics partnership
Market Places International logistics Payment
Hong Kong & International supply chain solutions
Alipay vouchers sold exclusively by Australia Post
International - Powered by Australia Post
Page 9
Australia Post eParcel International ReturnsProcess Flow
The merchant can ask their consumer to contact them to arrange a return. The customer sends the consumer an eParcel Returns – International label for the consumer to attach to their article and lodge at their local Post Office
International Returns Process
Page 10
Australia Post eParcel International ReturnsKey Features and Pricing
Express Courier International • Up to 2kg = $14.00• Over 2kg = $10.50 per item & $2.70 per
kg Airmail• Up to 2kg = $12.00• Over 2kg = $9.10 per item & $2.40 per
kg
Express Courier International
• Up to 2kg = $38.00• Over 2kg = $22.10 per item & $8.90 per
kg
Airmail• Return rates not available
NEW ZEALAND - PRICING
UNITED KINGDOM - PRICING
* You pay – The merchant pays Australia Post for the return and decides whether or not to charge their consumer
*
Page 11
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
Perth
Tasmania
Sydney
Brisbane
AdelaideMelbourn
eStarTrack Warehouses in every major city with aggregation offered
nationally
Connecting Australian SMBs to Chinese
consumers
China
Linehaul
Wine acceptance point via import licence provided by
China Merchant International
International Products & Solutions Group
Through our 4400 lodgement points, we have the largest
network in Australia
Helping businesses expand into Asia…
Joint venture
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 thousand sqm warehouse
B2B B2C
B2B2C
Page 12
A one-stop shop for supply chain solutions, helping businesses establish reliable and efficient channels to market
Sai Cheng Logistics InternationalAustralia Post and China Post joint venture since 2005
AP InternationalChina Post Logistics
Sai Cheng Logistics International
Page 13
Warehouse services• Bonded and non-bonded
warehousing • Global distribution • Import and export trade and
re-exports• Pick/pack processing• Supply chain design
Value add services • Linehaul booking • Customs declaration • Sorting and labeling• Palletizing• De-vanning• Pick-up• Trucking
Sai Cheng – our services
Page 14
Sai Cheng warehouse at work
Page 15
How does TMALL work?
ChineseConsume
r
Merchant A
Market Management System
Australia Post Store
Customer Service
TABA
O A
PI
Merchant B Merchant C
Page 16
auspost.tmall.hk
Page 17
Helping businesses expand into Asia…
Product Market Overview
FashionWe 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 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.
Australia Post/StarTrack currently provide solutions into China for over 100 Australian businesses
Page 18
How Australia Post helped Olive Oil Skin Care Co create a successful international presence in China
Benefits to the Customer Boost in sales volumes, while reducing the effects of seasonal sales Increased brand exposure Low cost of entry with minimal setup costs Access to the largest eCommerce market in the world
Benefits to Australia Post Increase in customer international outbound volumes Increased postage revenue Sales commission from merchant sales
Success Story: Olive Oil Skin CareOlive Oil Skin Care is a premium organic skin care brand designed and made in Australia. The company began selling through Australia Post’s Tmall store in May this year and have fulfilled 567 orders to date.Tmall Global invited Australia Post to participate in Australia Week (from 8th - 14th Sep) and Singles Day (11th Nov). Olive Oil Skin Care received 118 orders in Australia Week and a staggering 341 on Singles Day.
How can you help create more success stories like this?Contact our Australia Post Tmall team at:[email protected]
Merchants complete a qualification
questionnaire
Tmall team assess merchant’s suitability
to sell on Tmall
Merchant onboarding and products listed
on Tmall
Merchants use Tmall system to fulfil orders
Merchants receive payment via Australia
Post
1 2 3 4 5
567 orders to date $15.9k sales revenue $20 avg. order value Goat’s Milk Soap Tri Pack is the most popular product in the range
Tmall Sales Snapshot: 341 out of 567 orders were on Singles Day only $8.27K sales revenue to the customer in the 1 day
Singles Day Snapshot:
Case study: Success story
Page 19
Parcel lockersTZ
(Parcel Point)
Through the recent Couriers Please acquisition, SingPost can now use their network to compete
with AP in metro areas
Australia’s competitive landscapeSingapore Post and Alibaba
With offices in Sydney, Austin and San Francisco, provides SMBs with digital
support to launch, promote, manage and scale an online store
Sinotrans is a Chinese International freight carrier that provides logistical and delivery
services worldwide. In Asia, Sinotrans and DHL are in
partnership
Alibaba has a 10.35% stake in
SingPostPartnership allows Alibaba to integrate
its buyer and supplier network with Bigcommerce’s ecommerce platform
Wholly-owned subsidiary of SingPost
that specialises in logistics and fulfilment
services within Asia Pacific
Alibaba has formed a strategic alliance with Sinotrans in Australia, agreeing to give then all
outbound volume from Australia to China
ECOMMERCE FRONT-END
(Alibaba) INBOUND(SingPost – Couriers Please)
VOLUME & SCALE
OUTBOUND(Bigcommerce & Sinotrans)
Alibaba’s complete Inbound/Outbound model in Australia
An Australian regional delivery network remains Alibaba’s main gap in their offering
Page 20
Considerations when exporting to China
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”
Page 21
Appendix
Connecting Australia to China and the worldRecent Publications
Page 22
Connecting Australia to China and the worldSouth China Morning Post
Page 23
Connecting Australia to China and the worldAsia Today – The Postman Rings Twice
Link: http://www.asiatoday.com.au/content/ati-magazine-april-may-2015
The Postman rings Twice - Australia Post is positioned to win further e-commerce market share through its logistics joint venture with China Post. New alliances with Alibaba and China UnionPay also allow Australia Post to open the door for Australian exporters to millions of active online consumers.
Page 24
Top Related