Australia: E-commerce essential for China success - Westpac

Christopher Niesche, Research Analyst at Westpac, suggests that Australian businesses with a well-developed e-commerce strategy for China are more profitable and more optimistic about their prospects in the world’s largest online market than those that don’t, according to the 2018 Westpac Australia-China Business Sentiment Survey.

Key Quotes

“In China, e-commerce is a key driver for growth. Last year, its value was expected to surpass USD1.13 trillion, accounting for around half of the world's e-commerce sales and 56 times the size of Australia’s online market.”

“This is a particularly exciting time for Australian businesses in or looking to enter China – where the convergence of unprecedented demand for quality Australian-made products and China’s world leading e-marketplace presents vast opportunities for engaging with this market,” says Michael Correa, General Manager Asia Pacific at Westpac.

“However, despite the importance of e-commerce, just 16 per cent of Australian businesses have a detailed digital and e-commerce strategy for the China market, according to the survey. A further 37 per cent are developing or improving their e-commerce strategies, yet 27 per cent of businesses are not currently planning to develop any e-commerce strategy.”

“The results point to the huge untapped potential of e-commerce in China for Australian business. In fact, almost half of Australian businesses say that online accounts for less than 10 per cent of sales in China, suggesting there is room for significant growth.”

“And the returns are there. The survey revealed businesses that do have a detailed digital and e-commerce strategy to be 12 per cent more profitable between 2016-2018; 18 per cent believed that their China revenue would outpace other markets; and 12 per cent felt more optimistic about their prospects in China over the next year.”