In 2018, the estimated global spend for online shopping will reach almost $2.5 trillion. That number may seem enormous but it’s actually proportionate to a growing global population which has an increased access to the internet and smartphones. Of the 1.4 billion people living in China, 52.2 per cent of the population have internet access and 83 per cent have smart phones.
Australia Post recently released our latest e-commerce market update, where we revealed the opportunity value for cross-border trade with China is almost $500 billion USD. From health supplements to formulas, skincare and cosmetics, fashion and wine, there is a significant demand for Australian made products. These categories have seen demand from Chinese consumers skyrocket, because of their premium quality, natural ingredients, safe and strict manufacturing standards, and critically, the ecosystem they are delivered in.
The success of that ecosystem comes from the major partnerships Australia Post has built with leading Chinese companies and government agencies like China Post, Alibaba and JD to support the growing strength of cross-border trade for Australian businesses.
Our e-commerce journey with China started many years ago, when Australia Post formed a joint venture with China Post, Sai Cheng Logistics International. Sai Cheng has 13 bonded and non-bonded warehouses spread across China, and offers a range of domestic and cross-border supply chain solutions including third party logistics, warehousing, commercial freight and last mile delivery. Our online and physical footprint is also growing every day, where we deliver thousands of Australian-made products to China and other international markets each year, thanks to our committed team and strong support from our partners and customers.
Whilst Australia products are trusted and reliable, the challenge for businesses lies in navigating through new markets. Understanding local consumer expectations, finding the right supply chain partners, delivery expectations and knowing the customs and cultural processes, as these often differ from the market in Australia.
