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Cross-border eCommerce
Connecting Australia, Asia and the world
Post Expo 2016Day Two – Wednesday 25 May
Charles ThompsonGeneral Manager, InternationalAustralia Post | StarTrack Group
Page 2
StarTrack & Australia Post
Largest logistics force in Australia Services business
& consumer markets
Offers parcel, freight, express, courier and
international logistics solutions
Delivers end-to-end ecommerce solutions
Reorienting to Asian
opportunities
“Last smile” engagement as a differentiator
Asset-light, Disrupters &
Marketplaces
A changing landscape demands agility and a global perspective
Big themes in parcels and ecommerce today
End-to-end customer
expectations
Global eCommerce and
competition
1 2 3
4 5
Page 4
Shares of global middle class consumption, 2000-2050
Source: OECD Development Centre Working Paper 285
Asia is shaping the future global middle class
Page 5
The Asian region is forecast to have sustained income growth … and we are on their doorstep
Affluent
Converging toward Affluent
Stalled income growth
Struggling
Source: OECD Development Centre Working Paper 285(1) Key drivers – technology, investment, demographic profile
The Four Speed World(1)
Our “tyranny of distance”: replaced by the “power of proximity”
Page 6
Forecast to grow from US$1.5 trillion in 2014 to US$2.4 trillion in 2017
525 681856
1053
483538
598
660
347
383
414
445
2014 2015 2016 2017
$1,505$1,771
$2,053
$2,357
North America
Asia-Pacific
Latin AmericaCentral & Eastern Europe
Western Europe
Middle East & Africa
Source: eMarketer, 2014 analysis
Asia is forecast to underpin the growth of global eCommerce
Page 7
Large and growing populations with increased levels of technology will continue to drive cross-border trade growth in the region
IndonesiaPopulation
250 millionInternet penetration
42m Users(16% of population)
eCommerce – size
4.5bneCommerce - growth
51% p.a.
Source: ITU, e-marketer, AP team analysis
ChinaPopulation
1.4 billionInternet penetration
642m Users(47% of population)
eCommerce – size
440bneCommerce - growth
51% p.a.
PhilippinesPopulation
98 millionInternet penetration
39m Users(39% of population)
eCommerce – size
1.7bneCommerce - growth
17% p.a.
AustraliaPopulation
23 millionInternet penetration
21m Users(94% of population)
eCommerce – size
56.1bneCommerce - growth
10% p.a.
IndiaPopulation
1.3 billionInternet penetration
243m Users(20% of population)
eCommerce – size
30.3bneCommerce - growth
28% p.a.
Legend
Internet penetration – Internet users, 2014
Market size, 2016 forecast (USD)
2011-2016 CAGR
Directional
Demographics and internet penetration drive Asian eCommerce
Government target to connect 1.2 billion (85%)
to 3G or 4G by 2020
Page 8
International tourism
Government incentives & Customs eCommerce leadership (price & choice)
Much of China’s eCommerce growth is driven by increased consumer purchasing power and government policy change
Growing middle-class Appreciation of the RMB (¥)
Rising incomes complement other drivers of Chinese eCommerce
Page 9
Food and wine Clothes & accessories Home
Health & skincare Baby food & products Dairy
Top imports from Australia – Quality, provenance and iconic
Chinese eCommerce preferences play to Australian advantages
Page 10
Key barriers to China market entry that must be considered before you enter
Local knowledge & language
Regulations
Payments
Duties/taxes
Licences
But there are challenges to capturing the China opportunity
Sources: Austrade research and Australia Post intelligence
Page 11
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”
Do your due diligence… … Get your brand ready … Protect your IP
… Know the regs and customs … Export documentation … Company registration
Customer learnings to help your business succeed
Getting export ready for China and Asia generally is critical
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• Postal and commercial solutions
• Marketplace partnerships
• Sai Cheng China JV
• Hong Kong & Asia supply chain (incl. distribution & warehousing)
• Payment solutions
International - Powered by Australia Post
Using our trusted brand, partners and secure supply chain capabilities to meet and exceed the expectations of Asian eCommerce consumers
Our cross-border solutions can open up the Asian opportunity
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Sending overseas, simply
Introducing our new international products
What’s new?
• Easy options
• Enhanced security
• Flexible extras
• Less paperwork
• Competitive pricing to popular export destinations – including China (Zone 2)
For more information visit auspost.com.au/sendoverseas
Page 14
A snapshot of brands selling into China via our Australian flagship store on Alibaba’s Tmall marketplace - auspost.tmall.hk
Our marketplace partnerships complement our direct solutions
Page 15
How we help businesses sell into China
Tmall (B2C)auspost.tmall.hk
1688 (B2B) auspost.1688.com
JD.COM (B2C) auspost.jd.hk
Page 16
StarTrack Warehouses in every major city with aggregation offered nationally
Through our 4400 lodgement points, we
have the largest network in Australia
Perth
Tasmania
Sydney
Brisbane
Adelaide
Melbourne
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
China
Wine acceptance point via import licence provided by China
Merchant International
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 30,000 sqm warehouse
A 10 year relationship to link Australian and Chinese businesses and consumers
Our Sai Cheng JV with China Post provides unrivalled access
Page 17
• Exciting time for Australian businesses
• Huge opportunities
• We have the solutions to help you succeed overseas
Our ambition:
To be the punter’s supply chain into and out of Australia
Conclusion – Let us help you to realise export sales opportunities
Thank you Questions?
Charles ThompsonGeneral Manager of International
For more information:
Page 19
Appendix – Speaker BiographyCharles Thompson, General Manager International, Australia Post | StarTrack
Charles joined Australia Post in December 2010 as Group Head of Corporate Finance & Mergers & Acquisitions.
Since then he has held various management roles and is currently Head of its International business after leading
Australia Post’s successful buy-out of StarTrack Express in 2012. Charles also sits on the board of Sai Cheng International,
Australia Post’s China based Joint Venture with China Post.
Previously Charles worked for 8 years with the Toll Group as its Group General Manager Strategy and M&A, during which
time he played a key role in Toll’s expansion and M&A agenda across the Asia.
Before becoming a senior commercial executive, Charles worked as a management consultant with leading global firm
The Boston Consulting Group. Before that Charles practiced M&A law as a Senior Associate with leading international law
firms Herbert Smith Freehills and Clayton Utz.
Charles has a passion for Asia (first visiting China as a child in 1983) and supply chain thinking, and an
ambition to capture the vast opportunities open to Australia Post | StarTrack, particularly across Asia.
Outside work he enjoys many activities, most of all time with his young family.
Qualifications:
Monash University Bachelor Economics (1991)
Monash University Bachelor of Laws (Hons) (1993)
Australian Institute of Company Directors (2014)
Page 20
Recent publications – Connecting Australia to China and the worldSouth China Morning Post
Link: asiatoday.com.au/content/ati-magazine-april-may-2015
Extract –
“Charles Thompson looks at how Australia Post is positioning its business to win in e-commerce through its international 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”
Asia Today
