Successful Aussie brands with a local following have the greatest potential on China’s e-commerce platforms as businesses leverage the Asian consumer market, a business breakfast heard as the two countries further trade links.
Australia on Tuesday signed a strategic collaboration agreement with e-commerce giant Alibaba to expand the variety of fresh products available for purchase while leveraging digital content to build “brand Australia.”
The partnership is designed to allow more small- and medium- sized businesses to leverage the convergence of e-commerce and social media that have so far enabled Chinese consumers to spend almost 500 billion Australian dollars (381.98 billion U.S. dollars) per annum through online shopping.
“Australia is a key market for Alibaba Group and we are excited to extend our collaboration with Austrade to cultivate successful Australian exporters that are capitalising on China’s expanding middle class,” Alibaba Australia and New Zealand managing director Maggie Zhou said in a statement on Tuesday.
“Online delivery of imported fresh food in China is becoming increasingly viable as a result of the improvements in last-mile cold chain logistics,” Austrade’s senior trade commissioner in China, Michael Clifton, said.
Alibaba is providing seminars and workshops to help suppliers understand the nuances of China’s e-commerce market as it expands into Australia.
Alibaba Australia and New Zealand director of business development John O’Loghlen conceded trading on e-commerce platforms may be daunting for Aussie businesses.
But for the consumer, “it’s wonderful” as the competitive marketplace allows price comparisons and full product transparency, O’Loghlen said.