Equipping Australian eCommerce businesses for China engagement
5 December 2023: As Australia’s top overseas market for agriculture, resources, and services, and with an increasingly wealthy population 56 times larger than ours, China is Australia’s biggest trading partner by a considerable margin.
With the pandemic accelerating the shift to a digital marketplace, China has become one of the world’s fastest-growing digital economies, featuring a range of eCommerce platforms, including technology giants Baidu and Tencent.
Now in its fourth round, The China Digital Economy Academy aims to help Australian brands and small to medium-sized enterprises (SMEs) that already sell in China or have China on their roadmap, to further benefit from China’s digital eCommerce opportunities.
Since the program’s inception in 2021, it is clear that Chinese consumers remain resilient. In a post-pandemic world, lifestyle has not been traded down – but rather, consumers are becoming more selective in product quality and consumer experience. Gone are the days of a clear division between online and offline retail. Therefore, cross-border eCommerce and general trade export are critical channels that need to be aligned if Australian businesses are focused on successfully building for the long term in China.
Over the three months from August to October 2023, The China Digital Economy Academy featured a range of experienced and knowledgeable experts. Participants were joined by the Alibaba team, Pier Smulders, James Sung, Keiko Li and Hong Zhen – including an offer to participants to take part in an “Alibaba Dream Trip”. We also had experts join us from: Polaris Media, RedFern Digital, RooLife Group, The Gaibo Agency, Yaru Ventures and others.
One thing that was clear from the program is that it is the Chinese Millennial and Gen Z consumers that are currently the driving force behind a strong consumer economy – preferring personalisation and customisation in their product purchases. This also reflects on the way that consumers are engaging in digital and social media marketing, and it was a real pleasure being joined by KOLs (key opinion leader); Celia Pang, Elizabeth Gao and Anna Wang to discuss all things digital, social media, and influencer marketing.
For SMEs, cross-border eCommerce can provide a scalable option to build brand and product awareness. However, participants were warned that in the process of localising a product, its distinctiveness was not lost. Localisation required significant consumer testing and a consideration of brand, product features, pricing and marketing.
A noticeable difference between the initial 2021 program and now is the increasing speed at which the eCommerce landscape has changed. For example, 5G has underpinned explosive growth of short video content on social media platforms, like Douyin and Kuaishou.
“In China, the eCommerce landscape is evolving at a breathtaking pace, outstripping trends observed globally. This rapid transformation is fuelled by advanced technology, changing consumer demand, and innovative business models - supported by the digital infrastructure and superior logistics networks. We're seeing a dynamic shift in how retail operates, with Chinese eCommerce setting new benchmarks in efficiency, customisation, and consumer engagement.” - Shiraz Engineer, China Digital Economy Academy Lead.
Sixty-two participants representing industries across clothing, apparel goods and fashion, food, drinks and liquor, beauty, skincare and makeup, health and nutritional supplements, advisory and consulting firms, and government participated in online workshops. Organisations such as Probio Skin, The Golden Bone Bakery, and Speckles for Kids were just a few of the businesses that attended workshops that also covered negotiation strategies, influence and professional relationships in China, understanding Chinese business culture and behaviours, and establishing credibility with Chinese counterparts.
Participant Katharina von Heusinger from The Golden Bone Bakery said, “Asialink Business has created an intensive and comprehensive guide about entry strategies into the Chinese market. The team and their guest speakers have a wealth of knowledge and are encouraging the group sessions to be interactive. I highly recommend Asialink Business’s workshops for any business looking to establish new export distribution channels to diversify their income streams.”
The China Digital Economy Academy is just one of the series of programs that Asialink Business has developed to promote and strengthen understanding and engagement between Australia and China. It is supported by The National Foundation for Australia-China Relations (an Australian Commonwealth Government initiative), and our partners, Austrade, Global, Victoria, The Department of State Growth (TAS), The Department of Industry, Tourism and Trade (NT), and Trade and Investment Queensland .
In China’s rapidly changing economic landscape, if you want to stay on top of the latest in engaging in business in China, or you are interested in taking your first steps into China, contact our team here.