ABF Digital Magazine Vol5 Issue1

www.AustralianBusinessForum.com.au Vol 5 Issue 1

Australian

Business Forum Australia China BusinesWeek 2013 Shanghai Melbourne Sydney

Shanghai Feature Shanghai Melbourne Sydney

Shanghai Life Style Local Cuisines Local Attractions Local Hotels

Meet You in Shanghai

Imagine 4.2 billion buyers at your door After 40 years of doing business on the world’s largest continent, we know how to broaden boundaries. That’s why we’re the only Australian bank that offers our customers complete access to Asia’s largest payment card, UnionPay International – through NAB merchant terminals, ATMs and online.

For more information visit nab.com.au/asia

© 2013 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686 A101459 SBPj382_ABF190313

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Australian Business Forum Magazine is published by Australian Business Forum Melbourne Postal address: Po Box 568 South Yarra vic 3141 Shanghai Level 23, Citigroup Tower 33 Huayuanshiqiao Road Pudong, Shanghai, China 200120 Contact Details: Tel: +61 (0)3 8689 9898 Email: info@abforum.com.au Twitter: @ausbusforum AustralianBusinessForum.com.au Editor Judith Davenport Marketing / China Operation Doris.Li@abforum.com.au

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Contents 5

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Shanghai Feature

Trademark registration in China

Women business builders: The top 5 in 2013

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Payment options are king in the Year of the Snake

Australia-Asia trade & investment

Steve Vamos: Become comfortable being uncomfortable

Art Director/Design Rong Wang Digital Media Ahmed Arayne Contributers David Thomas Lisa Goodhand Jason Clout Richart Cant Myriam Robin Cara Waters Patrick Stafford Doris Li Jenny Williams

16 Business Network Gaints face China “Guanxi” Battle

19 Advertising Media/Sales David.Frost@abforum.com.au Simon.You@abforum.com.au

Is your company talking to China online?

24 China’s assets industry set to tripple in only the next three years

10 www.AustralianBusinessForum.com.au

1

Fly

CANTON ROUTE to the WORLD Ask your travel agent about our great Business Class fares on the Canton Route, to China and beyond, or call China Southern Airlines 1300 889 628 2

Vol 5 Issue 1

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Presents

Australia-China

Business Week Shanghai 2013 10-12 April 2013 The Westin Bund Center Shanghai

Meet with Chinese investors & Joint venture partners For the past five years, Australian Business Forum has established a unique business platform to promote the Sino-Australian business investment relationship. This year ABF is launching this platform in Shanghai.

Australia-China Business Week Shanghai 2013 offers the opportunity to meet with Chinese investors and potential

partners while showcasing Australian projects, products and investment opportunities in the following sectors:

• Food and Agriculture • Healthcare and Biotech • Technology • Clean Energy

REGISTRATION CLOSE 28TH MARCH +61 3 8689 9898 info@abforum.com.au www.ACBW2013.com.au

NAming Sponsor

Organiser

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EVENT PARTNERS

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• Education • Professional Services • Property • Infrastructure

Shanghai Feature

Australia- China BusinessWeek 2013 Shanghai A study recently released by PwC confirms that “foreign mergers and acquisitions by Chinese investors set a record in 2012 and have forecasted another record year in 2013”. It is therefore imperative that any serious business looking to attract investors should be looking to China.

How then does an Australian investment opportunity find an investor from China? And how does an investor from China who is ready willing and able to invest discern which investment is right for their needs and sufficiently risk adverse?

These questions will be answered at the Australia China Business Week 2013 Shanghai. The Forum will focus on bringing together delegates to meet, explore and inquire about potential investment projects.

A

fter 5-year establishment in Australia, this year AustraliaChina BusinessWeek (ACBW) 2013 is for the first time hosting the event in Shanghai, China. This year’s ACBW is expected to mark a new millstone with National Australia Bank (NAB) on board as the naming sponsor.

SME’S seeking Chinese investors and joinventure partners. Amongst the Chinese delegates attending include high net worth investors who have registered interest in Australian products, services and investment projects.

Since its launch in 2008, ACBW has grown to become the premier annual event serving to strengthen SinoAustralian business links across all industry sectors by establishing and strengthening business connections.

ACBW 2013 creates an important platform for Chinese investors looking for investment opportunities and Australian

“Our main focus is the SME sector, who depend more on external resources, partners and platforms when seeking opportunities in international markets.” added John Rashleigh. “Our aim is to create a credible business platform for businesses to connect with the right contacts and have access to timely information.”

The 3-day Shanghai event will consist of a keynote breakfast and luncheon, a number of forums, business matching sessions, networking function and day-trip to the influential second-tier city Hangzhou. The events will provide delegates with the opportunity to connect with Chinese partners; showcase Australian products, services, projects and investment opportunities to potential Chinese investors; review economic and business opportunities in China; and gain firsthand knowledge about how to maximise business in China from local experts.

ACBW 2013 will be held in Shanghai, Melbourne and Sydney. For more information, please visit: acbw2013.com. au

This is the first time AustraliaChina Business Week will be presented in China and we are delighted to have NAB on board as the naming sponsor for this year. As Australia’s major business bank NAB’s strong regional connections, in-depth industry knowledge will bring a fresh perspectives to ACBW forums

John Rashleigh, Chairman of Australian Business

www.AustralianBusinessForum.com.au

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Shanghai Feature

Shanghai in Focus

By Jason Clout

S

hanghai is regarded by many as the most Western city in China and that presents both opportunities and challenges for Australian businesses.

The opportunities stem from its huge size and the fact that it is has been central to the rapid development of China in the past few decades. Unlike many parts of China, locals say there is a good amount of English spoken.

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But there are also obstacles in that it has become a more expensive place to do business, meaning business decisionmaking has to accurate and for the longterm.

‘’That’s what you need to cover rent and pay wages while you are setting up. The other thing people need to understand is how competitive the market is in Shanghai,’’ says Cant.

Regional director for business advisors Dezan Shira & Associates Richard Cant says companies need to have $100,000 if they are thinking of setting up in Shanghai.

‘’Businesses from everywhere are here doing business. I’d say it’s the most competitive market in the world.’’

Shanghai Feature

As China is adapting to its newly created wealth, so has Shanghai been changing as well. Where is was once mainly a manufacturing centre and port, the new push is to cater for the emerging demand for consumer goods.

The busy port still provides an essential link to the supply of raw materials for its manufacturing supply chain. But for the past decade more of the manufacturing is being carried out in the provinces of Zhejang and Jiangsu, says de Freitas.

Editor of the Shanghai Business Review Geoff de Freitas says the restructuring has been occurring over the past few years.

The busy port still provides an essential link to the supply of raw materials for its manufacturing supply chain. But for the past decade more of the manufacturing is being carried out in the provinces of Zhejang and Jiangsu, says de Freitas.

‘’Such operations have been steadily moving out of the immediate Shanghai region either to nearby provinces well-serviced in respect of supply chain or up the Yangtze river to cities such as Chongqing or Chengdu where the tradeoff of lower labour costs against logistics costs add up favourably.’’

‘’It has moved away from an overdependence on basic manufacturing for export to being a services centre and a leading consumer marketplace. It has successfully positioned itself as the location of choice for many national and regional headquarters of multi-national corporations and it is still a major gateway for goods coming into and going out of China.

China generally has been able to keep much of its manufacturing and not see it moved to countries like Vietnam because more of the Chinese production has been slanted to the local rather than export market. There has also been an increasing emphasis on R&D, where Shanghai has played a leading role. ‘’As Shanghai’s middle class continues to grow in numbers and disposable income, that will provide growth opportunities

As Shanghai’s middle class continues to grow in numbers and disposable income, that will provide growth opportunities in consumer orientated industries, particularly those that relate to improving quality of life

in consumer orientated industries, particularly those that relate to improving quality of life,’’ says de Freitas.

But while healthcare, insurance, personal financial services, education and training among other businesses should benefit from the emerging middle class , that will have to within the context of rising costs within Shanghai which can squeeze margins.

www.AustralianBusinessForum.com.au

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Shanghai Feature

While Shanghai has a long and venerated history, it has been the recent past which has stirred interest in the massive city.

More than 23 million people live in the city which more than any other has come to symbolise China’s progress. The towering buildings that form its skyline underline the vast changes which have occurred in China.

However although China and Shanghai have altered substantially in the past few decades, businesses looking to make their mark in the city should still follow some old business precepts.

For while the city has modernised, there is a need to respect the style of doing business in China, which can be unfamiliar for many Australians.

Senior trade commissioner at Austrade, Michael Clifton, says the city has become the ‘’commercial, cultural and entrepreneurial’’ centre of China.

Collins.

In our business we certainly too a long-term approach,’’ says

Andrew Collins bought the Mailman Group in 2007, the first foreign owned advertising company in China. Since then it has transformed into a digital and technology company which has worked with many of the large brands like American Airlines, Citibank and Manchester United. It has also been active in social network with Fanstang ‘’In our business we certainly too a longterm approach,’’ says Collins.

‘’This attitude ensured our business, our brand and our people were here for the long-term.and it began to show returns in years 3 - 5 of our operation. We also spent time to invest in out brand by creating activities to better promote our history There are more than and positioning.

This 400 multi-national helped build our credibility and create enormous corporations with an office opportunities.’’ in Shanghai. There is a goal

to make it a major financial services hub.

Michael Clifton Senior trade commissioner Austrade

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Collins says he wishes he had been even more attuned to the differences of local culture and commercial dealings when he first started the business, as that may have saved time and money. ‘’I wish in year 1 and 2 we’d been more adaptive to local cultures and played a little more by their rules. This may have saved us more capital investment and time.’’

Speaker at ACBW Shanghai Andrew Collins CEO & Founder Mailman Group He makes a point that many make about doing business in China - that there may be an initial period of laying groundwork. ‘’Understand the key people you need to be building relationships with and work to find mutual value. This will likely involve you ‘giving first’, says Collins. ‘’However take a long-term approach to business and you will see benefits.’’

The long-standing close ties between Australian and China should be emphasised. As Australians were generally wellrespected in China, that should be possible to achieve in a mutually supportive way.

Shanghai Feature

The huge global brands have invested heavily in China. The firm is a foreign direct investment practice for multi-nationals operating in Asia.

Speaker at ACBW Shanghai Richard Cant Regional director of business advisers Dezan Shira & Associates

What Australia does lack is the big brand names which will capture the attention of an increasingly consumerist China. Richard Cant, regional director of business advisers Dezan Shira & Associates, says the huge global brands have invested heavily in China. The firm is a foreign direct investment practice for multi-nationals operating in Asia.

that there are differences between it and other parts of the country.

Few Australian brands are prominent in consumer minds, however, meaning it can be an battle to get recognition in a place like Shanghai.

Nor should language provide too many problems. For O’Loughlin, the companies which thrive in China operate as local companies.

Shanghai’s economy probably grew by around 7.5 per cent in 2012, a healthy number by world standards. An Australian Chamber of Commerce survey released in December found most businesses in Shanghai were either optimist or slightly optimistic about the future.

Executive director of AustCham Shanghai, James O’Loughlin, says about 36 per cent of the members of the Shanghai Chamber expected to expand their operations.

But when coming to Shanghai it is important to see

‘’There is a wonderful cultural diversity within China, region by region. While this can create difficulties replicating business development from province to province, it also creates opportunities for innovation and adaptation,’’ he says.

‘’Chinese employees of Australian companies provide the vital cultural and language link between Australian operations and the local business environment.’’

Both Austrade and the various AustCham’s provide assistance to businesses getting started in China. For Austrade’s Clifton, it is a way of navigating through unfamiliar terrain. ‘’You don’t need to go solo. It is important to remember that while you need a business partner in China, it’s critical that you select a partner that is right for you

At some point it will be the world’s biggest economy. That’s a message that more Australian businesses need to be thinking about.

Speaker at ACBW Shanghai James O’Loughlin Executive director AustCham Shanghai

‘’Also just because a partner is right for the Shanghai market, that does not mean they will be the right business to work with in other parts of China.’’

The federal government’s white paper ‘’Australia in the Asian Century’’ elicited plenty of debate when released last year. The message for Clifton is one of engagement with China. ‘’At some point it will be the world’s biggest economy.

That’s a message that more Australian businesses need to be thinking about.’’

www.AustralianBusinessForum.com.au

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Presents

Melbourne & Sydney

Australia-China BusinessWeek 19 June, Melbourne, Crown 29 August, Sydney, Sheraton On The Park ACBW 2013 Program:

Now in its sixth year, ACBW 2013, continues to create a unique platform for Australian businesses especially SMEs who are seeking a path to success in China, as well as Chinese entrepreneurs wishing to engage directly with their counterparts in Australia.

ACBW 2013 Breakfast ACBW 2013 Forum

ACBW 2013 helps companies to define effective entry and expansion strategies in China through a solid knowledge on government policies, business landscape and the latest economic outlook.

ACBW 2013 China Day Forum ACBW 2013 Luncheon ACBW 2013 “Mix at Six” Networking Function

More info visit: ACBW2013.com.au

THE HON. WARWICK SMITH AM Chairman，ACC

Register Now W: ACBW2013.com.au T: 61 3 8689 9898 E: info@abforum.com.au NAMING SPONSOR

SUPPORTED BY

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CM

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ORIENTAL

OBQ LOGO.pdf 1 2/11/2010 12:50:46 PM

DAVID THOMAS Chair ACBW Forum

DAVID CHU Director ACBC

Shanghai Feature Q&A with Jenny Williams

What’s on in Shanghai in April 2013 Qingming Festival 4-6 April 2013 Qingming Festival is when Chinese people visit the graves or burial grounds to remember and honour their ancestors.

Young and old pray before the ancestors, sweep the tombs and offer food, tea, wine, chopsticks, joss paper accessories, and/or libations to the ancestors. It is a public holiday in China.

Transition China, created and produced

by Mailman Group, is designed to celebrate entrepreneurship in China and inspire the next generation of ground breaking professionals.It features both Chinese and China based International entrepreneurs, executives and trending thinkers. Each share a very personal story about their own journey in China. www. transitionchina.com

Shanghai International Circuit is 5.45 kilometers long and features 16 corners, nine right-handers and seven lefthanders. A unique combination of slow spiraling corners, fast corners, hairpins, long and short straights put high demands on the braking systems in the cars, making Shanghai one of the most challenging circuits of the F1 season.

Auto Shanghai 2013 21-29 April 2013, Shanghai International Expo Centre

New

Auto Shanghai 2013 will display the latest car models and technologies, and keep focusing on the latest hot topics now trending in the global automobile market.

With “Innovation for a Better Life” as the theme, Auto Shanghai 2013 will not only testify the development of China’s automobile industry, but showcase a better lifestyle brought about by green technology.

Q

What are your most frequented destinations in recent years?

China, Hong Kong, Malaysia and USA

Q

T13 Transition China 12 April 2013, The Langham Xintiandi

2013 Formula 1 UBS Chinese Grand Prix – Circuit of Shanghai 12-14 April 2013, Shanghai International Circuit

Director of Sales & Marketing Shangri-La Hotels & Resorts

What are the best three places you’ve ever stayed?

Island Shangri-la Hotel in Hong Kong, Le Sireneuse in Positano and The Plaza Hotel New York

Q

What is your “Must Have” in your luggage?

Hair product - to keep hair under control in humid destinations

Q

In your opinion, what’s the best thing about travelling?

Experiencing new cultures, enjoying local cooking, and opening the mind to new ideas

Q

What has been your best overseas dining experience to date?

Restaurant at the end of the World, Penang - best chilli crab sitting on plastic chairs with a bottle of Dom Perignon.

Q

Can you share some tips for business travellers?

Take a change of clothes for the flight, you will feel much more refreshed when you reach your destination and drink plenty of water in flight.

Wi-fi is a necessity for all business travellers - choose a hotel that offers complimentary wi-fi ( a tip - Shangri-la Hotels & Resorts does at all hotels).

www.AustralianBusinessForum.com.au

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Shanghai Feature

]

South Beauty (Sichuan)

Di Shui Dong (Hunan)

881 Yan’an Middle Road, Jing’an District Lunch: 11:30am-2:30pm, Dinner: 5:30pm-11pm

2/F, 56 Maoming South Road, Luwan District 10am-1pm

South Beauty is a large upscale chain restaurant serving contemporary Sichuan cuisine. The branch in Shanghai is by far the most attractive, located inside a beautifully renovated Shikumen mansion. The restaurant is an absolute must-see/taste.

Di Shui Dong in Shanghai offers an inexpensive yet genuine Chinese dining experience. The restaurant serves delicious Hunan dishes (very spicy) in an unpretentious and rustic environment.

Jesse (Shanghainese) 41 Tian Ping Road, Xuhui District Lunch: 11am-4pm, Dinner: 5:30pm-12am

Jesse offers a contemporary Shanghainese dining experience in a large cozy dining room. The restaurant serves traditional Shanghainese dishes such as eight treasure roast duck, complex wine marinated crab and sticky red dates filled with glutinous rice.

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eat o t re Whe ine s i u l C a c o L

Shanghai Life Style

Wh

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The Bund

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The Bund is Shanghai’s most popular attraction. Located directly on the Huangpu River, it offers the most iconic view of Pudong’s contemporary buildings. Along the Bund itself is a row of historic 1937 architecture, which is even more magnificent when illuminated by its famous golden lights at night. The Bund also offers luxury shopping, restaurants, art galleries and bars and lounges.

Yu Yuan Garden Yu Yuan Garden is considered to be one of the largest and most lavish gardens in the world. It was created in 1577 by the Ming Dynasty. The garden features 30 pavilions linked by corridors, artificial hills, bridges over lotus pools and groves of bamboo. Surrounding the garden’s beautiful architecture are temples, shops, restaurants, art galleries and bars and lounges. Be sure to check out Shanghai’s most famous dumplings while you’re there.

Opens daily from 8.30am to 5pm.

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Xin Tian Di Xin Tian Di is Shanghai’s premier urban attraction. It is unique because of its contrasting architecture. It retains the antique walls, tiles and other elements of the Shikumen housing of old Shanghai while featuring contemporary shops, restaurants, art galleries and bars and lounges.

Tian Zi Fang Tianzifang is a pedestrian street featuring multiple shops that have been converted from old Shikumen houses. It’s a popular place to shop for traditional and contemporary Chinese art, ornaments and handcrafts.

The street also offers restaurants, bars and lounges, art classes and photo studios.

[

ay Where to st

Local

Hotels

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THE WESTIN BUND CENTER SHANGHAI

Discerning guests who prefer more convenience and privacy will find their haven staying in Westin Executive Club accommodation that features many additional services and privileges.

Enter a world of harmony at The Westin Bund Center Shanghai where modern aesthetic has been cleverly combined to provide you with elements of well-being that can only be found at Westin.

Boasting a dramatic crown rooftop that lights up the city sky, the iconic Westin Bund Center Shanghai is centrally located in downtown Shanghai.

Just a stroll away from the hotel is the magnificent Bund architectural site and waterfront. Yu garden, a 400-year-old classical Chinese garden and the popular pedestrian shopping precinct on Nanjing Road are also within short walking distance. Lujiazhui Financial District is a mere 10-minute taxi ride away.

Guests will be pleasantly delighted on arrival with the grand atrium lobby.

A striking cantilevered glass staircase inlaid with delicate rice paper and beautiful soft-glow lighting adds a warm, welcoming and artistic touch. Along with the signature white tea scent and contemporary music, hostesses in qipao await each guest with a warm towel and a cup of refreshing elixir as part of the Westin Sensory Welcome experience.

Featuring two towers with 570 tastefullydecorated guest rooms and suites, every room promises superior comfort. Our signature Heavenly Bed® ensures you serene, restorative sleep night after night while our Rainforest® shower and separate bathtub complete your rejuvenating stay.

Dining options include three restaurants, namely The Stage, a delightful restaurant featuring international buffet, EEST serving Asian cuisines, and Prego offering homestyle Italian favorites. Westin afternoon tea is served at Heavenlies lounge. By night, Heavenlies comes to life, inviting guests to unwind with a cocktail while Niche bar offers popular Happy Hour prices to fuel your gathering.

Unwind and indulge in Banyan Tree Spa located within the hotel featuring a dedicated 1,000 - square - meter spa with 13 treatment rooms complemented by experienced therapists providing unrivaled pampering.

www.AustralianBusinessForum.com.au

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Payment options are King in the Year of the Snake

By National Australian Bank

The emergence of China’s middle class has triggered strong growth in household spending creating opportunities for Australian businesses to tap this ever expanding market.

C

hina’s real urban per capita disposable income has averaged growth of 9 per cent per annum over the past decade . Retail sales have also risen 13.6% year-on-year to November and have been growing at a double digit annual rate since late 2004.

In 2011 alone, the Chinese internet shopping market reached US$300 billion.

These numbers are impressive by any means and more and more Australian businesses are jumping in to take advantage of this ever expanding consumer market.

Currently National Australia Bank (NAB) is the only Australian bank who can accept China UnionPay cards, which is China’s leading card payment provider.

Now with the introduction of UnionPay Online Payment (UPOP), not only can Chinese tourists use their China UnionPay cards on most NAB EFTPOS and ATM terminals Australia wide, shoppers can use their China UnionPay cards to buy goods and services from Australian businesses online.

China Union Pay is also the only payment scheme able to settle directly in Renminbi (RMB), and with 80% of Chinese tourists ranking shopping as a must-do activity when traveling, it is as important time as ever to ensure you have the capability to capitalise on the US$7.2 billion spent globally by this market.

“China UnionPay is the largest card payment provider in the world and with over 3.1 billion cards in circulation it is essential we are providing our customers with the opportunity to tap into this rapidly growing market.” David Gall, Executive General Manager NAB Working Capital Services said.

Chinese shoppers have the ability to use their UnionPay cards online to buy goods and services from Australian businesses in Renminbi (RMB) which is then automatically converted into Australian dollars with no currency conversion fee.

If your business is within the education, retail, travel, hospitality and tourism

industries frequented by Chinese consumers, then accepting UnionPay Online Payments through your website could give you a competitive advantage.

While there are number of challenges businesses need to consider when expanding into Asia, including the changing risk profile of global markets, it is important to think seriously about expanding your online merchant offering to ensure you are making the most of China’s solid income growth, which is bolstering consumer’s purchasing power.

www.AustralianBusinessForum.com.au

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Business network giants face China

guanxi 关系 battle

P

rofessional social networking websites such as LinkedIn trying to tap into China’s vast business world are finding a formidable domestic foe -- the ingrained system of personal connections known as “guanxi”.

Two leading sites, California-based LinkedIn and the French company Viadeo, are targeting networkers in the world’s most populous country, but acknowledge the challenges they face.

China has the world’s biggest online population at 564 million web users, but the history of Western Internet giants looking to establish themselves in it is littered with failures and disappointed retreats.

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Google relocated its servers to Hong Kong over censorship and hacking and now has only a small share of China’s search market, while Yahoo! has had a troubled relationship with partner Alibaba.

Groupon’s entry was turbulent from the start, and it closed several offices and laid off hundreds of staff just months after launch.

Business network sites face a huge extra obstacle of their own: guanxi, China’s system of personal relationships reinforced by mutual favours which plays

Tianji, and its own founder and chief executive Dan Serfaty has relocated to China.

It has sought to promote the site as a way to maintain users’ guanxi and the service now boasts 14 million users, with half a million more registering each month, he says.

“For a long time the Internet in China was about fun and gaming,” he said.

“We try to make the user experience more fun than on other platforms,” citing emoticons and a salary game which lets users compare their pay to others’.

With fake qualifications rife in China and distrust of the Web ingrained, Viadeo is also developing a system to check profiles, akin to Twitter’s verified identities, which Serfaty says will be launched “very soon”.

Tianji user and Beijing-based software designer Li Lian believes this type of online service will play a valuable role as China’s job market evolves.

“I find all kinds of companies on the site and the job descriptions they are offering, which I can apply to if I think I have a chance,” he said.

a vital role in conducting business and navigating a messy government bureaucracy.

Wei Wuhui, a professor at Jiaotong University in Shanghai, says that online alternatives will have a hard time supplanting its deeply embedded role.

“I don’t think the Chinese middle class has the same needs in terms of professional networks as people in the West, because of the concept of guanxi,” he said.

“In China people do not want to meet with people they don’t know. The Chinese have a culture based on relationships among family members and close friends.”

Just one percent of LinkedIn’s 200 million worldwide users come from China. It opened an office in Hong Kong in 2012 but has yet to offer a platform in Mandarin, despite already being available in Romanian, Malay and a dozen other languages.

“Entry into China is complicated and not something that we take lightly,” said company spokesman Roger Pua. “We’re focused on getting it right.”

France’s Viadeo has made its way in by trying to adapt to the environment -- it acquired the leading Chinese equivalent,

“I can also put my personal details on Tianji to let potential employers know my skills, and that allows me to increase my chances of getting a better job.”

Serfaty believes professional social networks will gain increasing traction.

Though acknowledging the primacy of guanxi, he argued that services like Tianji could play a complementary role.

“The boundary between private and professional life in China is not always very clear,” he said. “You go to karaoke and get drunk with your clients.

“Guanxi is a strong link,” he said. “But we say, thanks to the Internet you can maintain your strong connections and develop your weak ones.”

www.AustralianBusinessForum.com.au

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is a unique Australian company,

China

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O N L I N E

Is your company talking to China online ?

H

aving just recently completed the Ad:Tech Trade Show in Sydney, I can now say there is a healthy interest in digital marketing in Australia. Our companies are getting the message and do engage with their customers online. What I found most interesting though was that China, a popular topic in most Australian business minds, is not on the radar when it comes to digital marketing and importantly social media engagement. It just seems all too hard for most, including the marketing agencies themselves. In fact, I found myself in numerous conversations, which started out along the lines “no, we are not interested in China”. Fortunately for me though, after some discussion it then ended more like,

you know what, I need to talk to my team to find out why we are not engaging with China For companies, a digital media campaign is no longer something we can put on the ‘to do’ list. But what does it actually mean? Digital media marketing is the new age of marketing, using platforms such as your website, blog, microblog and a whole range of integrated marketing activities online. It also includes improving your searchability – online that is! It is a long way from more traditional marketing activities such as advertising in a magazine or a billboard. Using digital media to market in China is becoming the most common and effective marketing tactic brands are turning to.

It’s understandable that getting online and doing such a brand exercise in China is an imposing, if not daunting feat.

It is all in Chinese, there are cultural considerations, not to mention other barriers to entry. It is not even a simple case of setting up a blog or microblog

account and dipping your toe in the water as there are literally hundreds to choose from.

What’s heartening though, is that when you see the numbers stack up, it becomes more a case of ‘how do we make it happen’?

A popular component of digital marketing is social media engagement. This means direct communication online with your customers using the popular microblog and blog platforms. In China, platforms such as Twitter, Facebook and YouTube are all banned. Having a China suitable social media campaign means partnering up with the likes of Sina Weibo, Renren and Youku. Weibo and Renren alone have 400 million and 280 million users respectively. On top of this around 500,000 Sina Weibo users are registered in Australia.

Who is using digital marketing in China well? Mostly the high-end luxury brands and multinationals with big budgets. In fact companies such as Johnny Walker

have even gone so far as to engage Chinese film producers, local mega stars such as Han Han and developed massive multi platforms campaigns that would have cost millions.

Do all companies need to go t h i s level? Well no, not exactly, the first step if I may bring it back to basics is to consider what your China marketing strategy is? Most companies would assume it is the same as their home strategy. Once you figure out this part, then you can slowly integrate various plug in platforms to your website to start the relationship with your Chinese customers. Most importantly though, no matter what you do, be sure you can deliver on your call to action. There is no point in talking to over 400 million Weibo users if you can’t answer them in Chinese.

By Lisa Goodhand Chair ACBW China Day Forum

www.AustralianBusinessForum.com.au

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Melbourne • Sydney

1 15th March 2013, Melbourne

2 Keynote Speaker Danny Armstrong China Country Head/General Manager, China Banking , NAB, presented an in depth overview of engaging with China

3

4

1. Giuliana Cumble, NAB Danny Armstrong, NAB Vera Ou-Young, NAB 2. David Thomas, Chair, ACBW Forum 3. Jennifer McQueen, Ausnindo-Asia Pacific Graeme Hart, Telstra Cathryn Austin, AUS International Business Brokers 4. June Anderson, AusAsia Investment Pty Ltd Jeremy Oliver, Jeremy Oliver Tony Bridge, Bridge Advisory Group 5. John Fillippo, Fillippo Angela Maguire, Fillippo

5

www.AustralianBusinessForum.com.au

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Supporting Organisations

Dr. Anand Gautam Director Biopharmaceutical Innovation Sourcing NOVO NOrDISK

Dr. michael Keyoung Managing Director BUrrILL & CO

Jeremy Curnock Cook Managing Director BIOSCIENCE mANAGErS

Dr. Zhi Yang Managing Partner BIOVEDA CHINA FUND

Brigitte Smith rebecca Smith Dr. Benjamin P. Chen Managing Director Vice President, Co-Head Managing Partner GBS VENTUrE PArTNErS of Issuer & Client Services IGNATIUS TrANSACTION HONG KONG ExCHANGES PArTNErS AND CLEArING

Dr. Jonathan Wang Senior Managing Director OrBImED ASIA

Nisa Leung Partner QImING VENTUrE PArTNErS

Silver Sponsor

Scott Power Senior Analyst – Healthcare & Biotechnology rBS mOrGANS

John P. Wong Senior Partner and Managing Director BOSTON CONSULTING GrOUP

Kimberly Nearing Managing Director CEDrUS INVESTmENTS

Sam Olsen Managing Director and Head of Asia Security Practice KrOLL ADVISOrY SOLUTIONS

Dr. Jimmy Zhang Greater China Lead, Licensing, Acquisitions & External Research, Worldwide Licensing & Acquisitions mErCK & CO; Chairman, BAYHELIx

Dr. Binhui Ni Head of Scouting & Partnering SANOFI AVENTIS

Dr. Samantha Du Managing Director SEQUOIA CAPITAL

Local Host Partners

Supporting Associations

Media Partners

www.pharmachinaonline.com

For speaking / sponsorship opportunities, please contact Hayley Laing on T: +613 9828 1400 / E: HLaing@ausbiotech.org.

Vol 5 Issue 1/ registration, please contact Winnie Louie on T: +852 2531 6121 / winnie.louie@beaconevents.com For marketing Alternatively visit www.AsiaBiotechInvest.com for more information

22

ABF 2013 Lunar New Year ABF Lunar New Year , Melbourne

VIPs, Guests, Partners & Sponsors attended the ABF 2013 Lunar New Year Function which was hosted at the brand new Red Spice Road QV Restaurant & Function Venue.

Liu Yu, Consulate-General of PRC-Melbourne

ABF Lunar New Year , Sydney

VIPs, Guests, Partners & Sponsors attended the ABF 2013 Lunar New Year Function which was hosted at the Shangri-La Hotel & resorts Sydney.

NAB presented at the Shangri-La Hotel Sydney.

Li Shaojun , Consulate-General of PRC, Sydney Virginia Greville, DFAT Dr Caroline Hong, SME Association of Australia Danielle Morris, DFAT Qiang Mingxuan, Consulate-General of PRC, Sydney

Jenny Williams, Shangri-La Hotels & Resorts

www.AustralianBusinessForum.com.au

23

China’s Asset Management Industry set to triple in only the next years!

3

W

hen I led my first Australian financial services delegation to China in 2005, I was surprised by the lack of progress being made within their local funds management industry.

There was a lot of talk of future growth potential but a combination of confusing regulations, investor indifference and a somewhat closed environment meant that the industry was still in its infancy.

This was not lost on our delegates from Australia’s wealth management sector who concluded that it was far too early to consider China as a serious business proposition.

How much has changed since then. In a recent report commissioned by Citi and published by local researchers, Z-Ben Advisors, entitled “China: The world’s best opportunity for asset managers?” they make a number of startling and eye-opening predictions and observations, including the following:

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Vol 5 Issue 1

mutual fund market is expected to triple in size to RMB6.8 trillion 1 China’s (AUD1 trillion) in only the next 3 years (by 2015).

2 The above figure is expected to double again by 2020 ageing demographic profile is causing China’s policy-makers to 3 China’s accelerate industry reforms and encouraging the participation of leading

foreign players. Insurers will be the key growth area among institutional investors as a stop-gap for an incomplete and under-funded national pension system

4 5

Very few foreign asset managers have a definable China strategy when it comes to targeting institutional investors Whilst China represents 11% of global market capitalisation, the total amount of offshore money invested in China is very small (between 1% and 2% of total global portfolio allocations if Taiwan and Hong Kong are included) meaning that a rebalancing will inevitably take place and a likely ten-fold increase in future allocations to the Greater China region

the coming decade, China will no longer be viewed simply as an element of 6 Inemerging market exposure, but rather as a distinct asset class in its own right, with Chinese A share investments making up a significant part of this allocation.

Apart from ANZ, whose commitment to Mainland China and the region is well known, the above should act as a wake up call to Australia’s financial services sector which is seriously under-represented in China and now has a once-in-ageneration opportunity to significantly ramp up its engagement.

Distribution China’s local banks dominate the local savings and wealth management market due to their national reach, their size and scale and, above all, the high levels of trust they command from local investors.

Whilst this is unlikely to change in a hurry, the Z-Ben report predicts that foreign banks will soon be given approval to promote mutual funds to domestic investors. This is a significant step forward and opens up numerous possibilities for the four largest foreign banks in China (Citi, HSBC, Standard Chartered and Bank of East Asia) but also smaller players and potential new entrants. China is a huge market with deep niches across different cities, regions and investor segments. As the report concludes “with distribution as one of the most lucrative elements in China’s funds management industry, the rewards for a commercial bank that manages to get a solution right are significant”. New entrants are advised to look for opportunities to innovate, disrupt and/or diversify the current offerings rather than adopting “follow-the-leader behaviour”. This demands a fresh and new approach for China by Australian business leaders looking for growth in the current environment.

Regulation China has many challenges to overcome in building a modern, dynamic and diversified financial services industry to rival the rest of the world. At the same time, they have to grapple with the

problems of an ageing population, an unfunded domestic pensions system, a non-convertible currency, restrictions on international capital flows and maintaining a sensible balance between the influence of local and foreign players. All of this at a time when global financial markets are in turmoil due to the aftermath of the global financial crisis and the debt problems in Europe.

Despite, or because of, all of the above, Chinese regulators are now moving swiftly and purposefully to introduce a number of changes, announcements and adjustments to open up, improve and diversify their financial services sector, including:

The internationalisation of the RMB, with the ambition for the RMB to one day become an international reserve currency

The expansion of cross-border investment programs – QFII, RQFII and QDII to encourage foreign players to play a greater role in the local funds management industry

The introduction of programs to encourage pension savings, insurance investment and co-operation between financial firms

The opportunity for foreign firms to establish their own 100% owned subsidiary (wholly owned foreign enterprises “WFOEs”) in China rather than relying on joint ventures or representative offices to serve their local interests

By David Thomas, Chair, ACBW Froum

All of the above is designed to improve operational flexibility, access and business scope for foreign players and, at the same time, open up the market to those who have the ambition to play a direct role in the opening up of China’s global capital flows.

It’s now or never!

As the authors of the report conclude “you’ll never hear the word “easy” when describing the Chinese asset management industry”. The challenges are numerous, complex and often hard to predict in advance. However, with global financial markets in turmoil, resulting in bailouts, job losses and an increasing cost of capital, China offers a potential which is unmatched anywhere else in the world.

Foreign firms across the whole financial services value chain (banking, funds management, research, technology, software, back office etc.) who take the time and make the effort to do proper research, build local relationships, develop innovative solutions and target the right customer segments have the opportunity to participate in the world’s fastest growing market. Why shouldn’t they come from Australia?

www.AustralianBusinessForum.com.au

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26

Contact Contact CarlCarl Jetter: Jetter: +613 +613 9650 9650 1598 1598 carlj@chinaconnections.com.au carlj@chinaconnections.com.au or Jamie or Jamie Mi: Mi: jie.mi@chinaconnections.com.au jie.mi@chinaconnections.com.au www.chinaconnections.com.au www.chinaconnections.com.au Vol 5 Issue 1

Trademark Registration in China China trademark application procedures explained in full

By Richard Cant, Dezan Shira & Associates

T

he on-going Proview vs. Apple trademark case over the rights to the iPad name continues to rumble on in China, provoking much commentary about the security of trademark registrations in the country.

The Proview case aside, which is likely to be something of a one-off, the registration of trademarks in China is actually quite a simple and inexpensive procedure. Of course it makes sense to register marks in China – as Apple have found to their cost – and trademark registration should be part of any start-up kit for a foreign business entering the China market.

In practice, fours kinds of trademarks are recognized by the Trademark Law in China: •

General trademarks: In which “trademarks for goods” and “trademarks for services” are included.

•

Collective marks: Signs which are registered in the name of bodies, associations or other organizations to be used by the members thereof in their commercial activities to indicate their membership of the organizations.

•

•

Certification marks: Signs which are controlled by organizations capable of supervising some goods or services and used by entities or individual persons outside the organization for their goods or services to certify the origin, material, mode of manufacture quality or other characteristics of the goods or services .

Well-known trademarks: Marks which have a strong reputation among the relevant public in China—where a dispute arises in the procedures of trademark registration and

the party concerned believes that its trademark constitutes a well-known trademark, it may request the Trademark Office or the Trademark Review and Adjudication Board to determine whether its trademark fulfills the criteria for a well-known trademark.

Three-dimensional trademarks were newly added to Trademark Law in 2001 and reflected in Article 8 of the law. In 2009, this Article has been proposed to be changed to the following:

With the rapid expansion of the Internet, more and more people have realized the importance of domain names. Usually, a company will register their trademark or their enterprise name as their domain name—an additional domain name ending “.cn” is often useful for marketing purposes in China. Domain name registration follows the principle of “first come, first served.” It is very important to register the trademark or enterprise name before it is hijacked by others. A simple search of your company name or trademark on the Internet will show the importance of a domain name. The annual fees for registering such a domain name are very low.

Any visual sign capable of distinguishing the goods and service… including words, devices, letters, numerals, three-dimensional symbols, colors, or any combination of the above elements may be applied for registration of a trademark.

The general principle governing trademark applications is that of “first to apply, first to be served.” The valid period of registration is 10 years from the day of approval and registration can be renewed for an unlimited number of times. Each renewal prolongs the trademark validity of another 10 years from the date of expiration of the previous period of validity.

It is highly recommended when registering a trademark in China to also register it in Chinese characters. Not only do Chinese customers recognize a trademark more easily in their own language, but a trademark owner also protects the Chinese character trademark from being used by competitors.

www.AustralianBusinessForum.com.au

27

Australia

Asia

Trade &

Investment

By David Thomas, Chair, ACBW Forum

T

he past ten years of Australia-Asia trade and investment have been a phenomenal growth story centered around the resource sector and funded by mainly Chinese State Owned Enterprises (SOEs). As technology changes and societies evolve, we will see a new phase emerge with its roots in clean energy, real estate, agriculture and services. We are seeing an increasing number of capital injections from private high net worth individuals and entrepreneurs looking to strategically diversify their investment portfolios.

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The Significant Investor Visa, otherwise known as visa category 888, was launched on 24 December 2012.

It allows foreign investors a four year residency visa in Australia (which can then be converted into citizenship) for individuals who invest over AUD5million into three main areas – Australian government debt, privately owned Australian companies and managed funds investing in Australian assets overseen by the local regulator, ASIC.

There is expected to be strong demand for these visas, Deloitte estimates that approximately 700 visas will be issued under this scheme per year – a combined investment of $3.5bn into Australia’s economy.

The aim of the scheme is primarily to attract three things: people, money and entrepreneurial experience. There are over 60,000 individuals in China with over AUD16million in assets; if Australia were to issue visas to just 1% of these individuals, it would be a $30bn injection into the Australian economy, which doesn’t even account the multiplier effect or their personal contribution to the economy – i.e. housing, necessities, luxury goods, taxes, retail items. With over 1 million millionaires in China, of which, 85% send their children abroad to study – Australia and its education sector are well positioned market to attract these high net worth individuals to invest in our economy.

Whilst there has been some controversy surrounding this new visa category (“Australia sells visas”) – from an economic standpoint, it is a beneficial transaction for all involved. Last year, Asian nations purchased over two thirds of our exports – worth $175billion to the economy. As a net importer of capital – Australia must welcome these innovative, entrepreneurial and energetic individuals to our door step. Investment

creates job opportunities, boosts income, infrastructure, services and expenditure.

Interestingly, Australia is not the first to offer this type of visa category. In fact, the UK, Singapore, New Zealand and Canada all have similar visa categories.

As such, Australia does have competition both domestically and internationally with such a scheme. The UK, Singapore and NZ threshold are all below that of Australia’s, sitting at GBP1million, SD1million and NZD1.5million (with language requirements), respectively.

As demand for food security, safety and sustainability is propelled by swelling and evolving populations in the emerging world, there is a new wealth of opportunities in the agricultural sector and this is raising Australia’s attractiveness in Asia. In fact, Australia is poised to capture between AUD 0.7 - 1.7 trillion in agricultural exports by 2050.

This boom in global agricultural trade will play a crucial role in correcting the worldwide imbalance in productivity growth and resources. This 888 visa scheme will also see investment flow into agricultural assets, projects and technology as wealthy individuals in an economy of a rapidly rising middle class invest in securing long term access to safe and nutritious food.

Food security is particularly important for China for four main reasons: sustainability, demand, political stability

and national sovereignty. China is home to approximately 21% of the world’s population; however it has only 8.5% of the world’s arable land and only 6.5% of the world’s water reserves.

China currently consumes 25% of the world’s soybeans, 20% of its corn, and 16% of the world’s wheat and, in just 3 years, its consumption is expected to exceed US$1 trillion. With the Chinese population expected to reach 1.462 billion by 2030, China knows that it will be unable to provide food security for its entire population despite a desire for self-sufficiency. By contrast, Australia consumes only 40% of its agricultural produce. The new visa program will act as a platform for the opportunities in this space. Investment will also allow for innovation and development in the agricultural arena under Australia’s strict regulatory framework.

The complementary nature of the Australian economy to other Asian nations will open enormous opportunities in the agricultural, clean energy and services sectors. As the mining and resources industry slows and the Australian economy adjusts to a new equilibrium – the role of foreign investment will be crucial to expansion and innovation in these fast growing industries. The Significant Investor Visa is just one of a number of catalysts to attracting large foreign investments and successful entrepreneurs to our country.

www.AustralianBusinessForum.com.au

29

30TH YEAR OF PUBLICATION

®

INSIDE On the brink as US broaches its fiscal cliff Europe bracing for continuing recession

Is ASIA’s miracle fading?

Will America’s manufacturing renaissance end the dream?

October 1983

Emerging markets turn to subsidies, protectionism

asiatodayinternational.com Annual subscription including password access to ASIA TODAY ONLINE, Australia AUD280 (including GST), Asia/Europe/USA/Canada USD280.

Print Post Approved PP240725/00001

ASIA2013

Welcoming our 30th year . . .

OVER 30 years, Asia Today International magazine has established itself firmly as Australia’s most authoritative business journal reporting on Asia – a first reference source for both international corporations and SMEs trading, investing and providing services to business in Australia and Asia.

We have earned our special credibility, which brings with it access to the people who matter in business and government – and the critical business information that business leaders need.

We look forward, assessing issues with potential to impact on existing and future business, drawing input from business and government leaders in Asia and across the world. We identify social and political change likely to impact on existing business – or to create new business opportunities. We remain committed to excellence in reporting the business that matters in Asia.

To join our subscriber lists, visit www.asiatodayinternational.com Your subscription will cover ATI Magazine and ATI Magazine Online, our ASIA2014 assessment of the future business climate, password access to daily online updates and our archives, our subscriber e-brief alert, and a free online listing of the products and services you offer.

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Vol 5 Issue 1

INTERNATIONAL

GLOOM or DOOM?

Women business builders: The top 5 in 2013

By Cara Waters and Patrick Stafford , Leading Company

M

eet Australia’s top female businesspeople. They are smart, focused and risk-takers. Many have built their businesses from scratch and together they generated $6.452 billion in revenue last year.

1. Gina Rinehart (Hancock Prospecting, $2.37b revenue)

3. Lesley Gillespie (Bakers Delight, $564m)

Gina Rinehart was briefly anointed as the richest woman in the world last year by BRW. It’s quibbling over small change though as records filed with the Australian Securities and Investments Commission show Rinehart is by far Australia’s wealthiest female entrepreneur with annual turnover at Hancock Prospecting of $2.37 billion.

Lesley Gillespie has built one of Australia’s most successful franchises along with her husband and joint chief executive Roger Gillespie. Their first bakery was in Hawthorn, Victoria and in 1988 the Gillespies owned 15 bakeries which they then began to franchise.

By 1991 Bakers Delight had grown to 43 bakeries and it now operates over 700 bakeries and employs about 15,000 people.

Rinehart has taken a more prominent role in public discourse in the last year, weighing in with her opinions on how Australians need to stay out of the pub and how she is really a small businesswoman. She’s been in and out of the courts too, but has also managed to continue to build her empire with the establishment of her flagship project, the Roy Hill Mine, set to open in 2014.

2. Vicky Teoh (TPG, $663m)

Some are names you will recognise – Gina Rinehart, Australia’s richest woman – but others you may not, such as Vicky Teoh, the co-founder of technology company TPG, and Vanessa Garrard, owner and founder of product development company E3.

Compared with our 2012 list, the combined revenue of the group is slightly down from the record $5.89 billion recorded last year, partly due to a fall in the fortunes of Rinehart and Retail Adventures owner Jan Cameron. But there’s still plenty of inspiration to be had on International Women’s Day from these 30 top female entrepreneurs who have each done their part to shake things up in Australia’s business community.

4. Naomi Milgrom (Sussan Group, $493m) A tough retail environment has caused Naomi Milgrom’s wealth to take another hit this year. As the owner of fashion retailers Sussan, Sportsgirl and Suzanne Grae, she is particularly vulnerable to the vagaries of fashion.

Of the group’s 4500 staff, 95% are women.

But unlike other fashion companies, the chief executives of all three retail brands are women, and women make up the majority of the senior management level.

Malaysian-born Vicky Teoh and husband David moved to Australia in 1986 and set up TPG. Initially it was a computer equipment business, selling hardware such as PCs and printers, as A culture that supports well as network services and women doesn’t come about internet services. spontaneously; it only happens when But by 2005, the equipment sales the leaders of companies create had ceased and policies and initiatives to stimulate TPG was a rapidly growing internet such a culture,” Milgrom said. “In my service provider. experience, mentoring women into Three years later, TPG listed on the leadership is fundamental.

ASX through a reverse takeover of SP Telemedia, 5. Jan Cameron (Retail which saw the Teohs emerge with $150 million Adventures, $336m) and a majority stake in the business. TPG has continued to go from strength to strength with Jan Cameron has suffered a fast fall from grace revenue up 15% on last year thanks to TPG after establishing her name as an entrepreneur growing its broadband and mobile subscriber by founding outdoor retailer Kathmandu and bases. then taking on her former business by heading up competitor MacPac.

www.AustralianBusinessForum.com.au

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Vol 5 Issue 1

Steve Vamos: Become comfortable being uncomfortable

By Myriam Robin , Leading Company

I

n one of his first jobs, Steve Vamos was sweeping a floor as the CEO of the company walked by.

The CEO watched him for a moment before tapping him on the shoulder.

“Steve, you’re a great guy, but you don’t know how to sweep a floor,” the CEO said. Vamos watched while the leader demonstrated. He then tried again, and the CEO said it was better before walking away, shouting “keep up the good work” over his shoulder.

Vamos recalled this incident when giving a speech to the Creative Innovation Conference in Melbourne in December, and said it was exactly the kind of constructive feedback most leaders would hesitate to give their underlings.

Today Vamos is a board member of Telstra, Medibank Private and David Jones, as well as being involved in several start-up ventures.

He’s a former vice-president of Apple Asia Pacific, and was the head of worldwide sales and international operations at Microsoft.

He says most leaders don’t know how to have difficult conversations.

At the heart of highperforming workplaces is how they talk to each other

Vamos says organisations fail because of a lack of “straight talk”.

Sometimes, this comes through in their inability to say no to good ideas.

He describes the first time he had to fire someone. “Human resources gave me a script.

I was scared to death. But I pushed through, and became better at it.”

Vamos says the businesses he’s led are better because he did the firing himself. Four in five of the people he’s fired have understood the situation, while one in five, he says, probably still hate him. But he thinks the benefits to the business of having the conversation is worth it.

“We grossly underestimate the extent to which the world has changed. We’re stuck in these old ways of thinking. Us boomers, we’re controlling know-it-alls.

We hide mistakes. That’s no longer effective. We need to be brave, and willing to fail. Our organisations need to become learning-oriented.

“If we want to improve our workplaces, we need to look at it as a campaign to change how we communicate. With simple terms, we can change behaviour.”

“Don’t turn down all ideas,” he says. “But everything suffers when you’re not willing to make tradeoffs.” Vamos says when he was at NineMSN, his underlings came up with lots of great ideas, like expanding into educational textbooks. But he turned them down because he wasn’t willing to devote the resources away from other priorities. “I felt sick saying no,” he says. “But it was a good call in hindsight.”

When making unpopular decisions, leaders need to explain themselves, Vamos says.

“People need to understand why, and they need to be involved. Without that, there’s no basis for the hard conversations, it just becomes ‘Oh, that’s their opinion’.”

Another part of leader’s inability to have difficult conversations is reflected in the way they avoid giving feedback.

“You need to confront problems to limit the pain and destruction,” he says.

Vamos says leaders show they care by giving feedback.

“You aren’t the company, so make it personal.

Usually the company is as much at fault as the

www.AustralianBusinessForum.com.au

33

FOOD & WINE: RED SPICE ROAD

R

ed Spice Road is contrastingly big and bold, and rather beautiful in a red way. There’s nothing low-key about it. The space is cleverly designed, with a long bar and a number of areas that can be used for dining, or for sitting around over a drink and a chat. Mostly the tables are large and communal, although there are a couple of smaller ones for a more intimate gathering. There are two nice surprises – a real courtyard, open to the sky and with living plants in it, and a fabulous large room dominated by an immense red lantern over a ring table. Two crescents form the ring, which can seat dozens side by side.

On the style front, polished floorboards are complemented by purple upholstered walls, cheerful oriental couches, ottomans and lampshades that can only be inadequately described as spider-web spheres. Giant red lanterns and glasspanelled ceilings are set above communal tables, whose shoulder-to-shoulder intimacy really sets the tone of the space.

The food is Thai, with some enterprising modern influences. The menu is designed around dishes to share although, at a pinch, you could order on your own.

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Vol 5 Issue 1

There are also really good tasting menus (minimum of two to share) for lunch and for dinner. If not the tasting menu, consider scallops with smoked trout, coriander and kaffir lime to start, and a salad with shredded chicken, mint, bean noodles, lemongrass and coconut to follow. The choices are many and the flavours are zingy, each dish having lots of lovely flavour bursts, though most are not too chilli-fierce. The drinks list includes lots of cocktails, a good range of beers, and a smallish wine list well-chosen to match the food.

Melbourne’s hardly hurting for another Asian themed restaurant, but when one pops up that looks as fabulous as Red Spice Road, qualms are set aside, drinks are poured and you just get on with the task of finding out if this latest addition to the city tastes as good as it looks. John McLeay, formerly of Livebait fame, has managed with aplomb to turn his focus to South-East Asian cuisine and offers a brief but sensational menu, which reassures diners that Red Spice Road can definitely back up its style with more than a little substance. Ideal for dinner for two or a one hundred corporate clients.

Since opening in 2007, Red Spice Road has risen through the ranks to become one of Melbourne’s best restaurants.

Critics hail chef John McLeay’s modern interpretation of pan-Asian cuisine and reinforce his long held reputation as one of our city’s culinary stalwarts.

Situated in the heart of the city, a stone’s throw from the Bourke Street Mall and boasting Australia’s largest red lantern above a unique circular 60-seat communal table. Red Spice Road also has three unique Asian themed portraits specially commissioned by renowned Australian artist David Bromley.

The menu and wine list are long and varied and the price won’t break your budget. The restaurant has several distinct areas including two private rooms, seating 22 and 30 respectively, a courtyard under the stars and skyscrapers, and a buzzing bar with an Asian themed cocktail list.

There are bar specials every weeknight, as well as early bird dinner and lunch banquets for only $25 per person.

FOOD & WINE: RED SPICE ROAD

Red Spice Road QV , Opening hours: Lunch and dinner, 7 days a week.

31 – 37 Artemis Lane (Enter off Russell St), Melbourne Tel: +61 3 8660 6300 info@redspiceroad.com www.redspiceroad.com

Opening hours: Lunch and dinner, 6 days a week.

27 McKillop Street, Melbourne Tel: +61 3 9603 1601 info@redspiceroad.com www.redspiceroad.com

RED SPICE ROAD 27 McKillop Street Melbourne Tel: +61 3 9603 1601 Email: info@redspiceroad.com Web: www.redspiceroad.com

Exclusive Business Networking

under the stars and skyscrapers, and a buzzing Since opening in 2007, Red Spice Road has bar with an Asian-themed cocktail list. risen through the ranks to become one of There are bar specials every weeknight, as Melbourne’s best restaurants. well as earlybird dinner and lunch banquets for Critics hail chef John McLeay’s modern only $20 per person. interpretation of pan-Asian cuisine and reinforce China Lunch Club will be held in Melbourne, Sydney and Shanghai quarterly. It his long held reputation as one of our city’s provides a vibrant and environment for C-level executives to share their China Opening hours: culinary stalwarts. knowledge and experiences. China Lunch Club Membership now available.

Lunch and dinner, 7 days a week.

Situated in the heart of the city, a stone’s For all enquiries contact: +61 3 8689 9898 or info@abforum.com.au throw from the Bourke Street Mall and boasting Australia’s largest red lantern above a unique circular 60-seat communal table. Red Spice www.AustralianBusinessForum.com.au 35 Road also has three unique Asian-themed portraits specially commissioned by renowned

China Lunch Club

投资澳洲

Think Global Consulting facilitates business and investment between Asia and Australia. We work with individuals, entrepreneurs, companies and institutions to build viable, sustainable and powerful connections by leveraging our networks and relationships in both developed and emerging markets.

思环顾问公司致力于促进澳大利亚与亚洲各国 之间的商业投资往来。 凭借我们在发达国家 和新兴国家市场的人际网络，我们与各界精英 人士、企业家、公司及机构紧密合作，并建立 了长久、可行、高效的联系。实施证明，我们 能为客户提供独特的渠道，帮助他们同亚太地 区的政府及产业决策人直接进行洽谈。

We advise our clients on market entry and business development, and manage investments sources from China and the Asia Pacific region into a range of attractive sectors, including Agriculture, Resources, Education, Renewable Energy, Technology, Property Development and Financial Services.

我们不仅为客户提供关于市场准入及业务拓展 方面的战略性建议，并且协助亚洲各国的投资 者投资在极具吸引力的产业中，包括农业、资 源、教育、可再生能源、技术、房地产开发及 金融服务产业。

We work with a number of leading Australian institutions to meet the objectives of our clients and to maximise all opportunities. Our approach is open, collaborative and focused on delivering results.

我们的委托人与多家澳大利亚龙头企业共事， 以确保达到客户预期的目标并充分开发各类商 机。 方式既开放、协作，同时又注重结果的 成功。

投资澳洲

To express interest in investing or doing business in Australia, please contact Think Global Consulting on +61 2 9267 1488 or email us at support@thinkglobal.com.au

如果您有意在澳大利亚进行投资或开展业务， 请通过电话 +61 2 9267 1488 或电子邮件 support@thinkglobal.com.au方式联系思环 顾问公司。

Canton Route to China and the world

China Southern Airlines is undergoing rapid global expansion and Australia is leading the way by developing and initiating product enhancements during a time of exciting change for one of the world’s largest airlines.

A

lthough we are the largest airline in China it’s only in the past three years that we have really expanded our international route network and developed our global presence.

opened new Australian ports including Perth and Cairns and, as we aim for 55 weekly flights by 2015, we continue to consider additional Australian destinations.

superjumbo and during the year we look forward to taking delivery of the first of 10 Boeing 787 Dreamliners we’re planning to operate on key routes. But It’s our comfortable

The success of our Canton Route from Australia and New Zealand to London and Europe has been so overwhelming that we extended the concept to all flights that operate via our southern Chinese hub of Guangzhou, formerly known as Canton.

A330-200s with flatbed comfort in business class and personal screens throughout, that we most look forward to bringing onto our Australian routes from next month.

In coming months we will offer our first direct flights from Guangzhou to Moscow and increase Delhi services to double daily as we continue to bolster our Canton Route to the World.

Our ever-expanding fleet has grown again with the delivery of our fifth A380

Although China Southern Airlines has been flying “down under” since the start of the new millennium, it’s only these past few years that the airline’s Kapok flower tail-fin has really begun making its mark on the Australian landscape - and we look forward to welcoming more Australians onboard to sample our true Cantonese hospitality on their next overseas journey.

Australasia has been one of our key targets and we’re thrilled with the swift growth that has seen scheduled services rise from just seven in 2009 to 45 return flights per week during the summer peak of 2013.

To meet the increasing demands of business and leisure travel between Australia and China, we have recently

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Hotel: Futian Shangri-La, Shenzhen

FUTIAN SHANGRI-LA, SHENZHEN AN EXCLUSIVE HIDEAWAY IN THE HEART OF THE CITY

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utian Shangri-La, Shenzhen is a welcoming luxury retreat in the heart of the Futian central business district, close to the Convention and Exhibition Centre and Shenzhen Civic Centre. Shenzhen’s mass transit railway system, which links directly with Hong Kong via the Futian port, is just a minute’s walk away. The hotel also offers easy access to Shenzhen International Bao’an Airport, the Shekou ferry terminal and the city’s major tourist attractions, making it ideal for both business and leisure travellers.

Testament to the hotel’s commitment to creating engaging experiences for all guests, Futian Shangri-La, Shenzhen has won premier industry awards such as the “Best Business Hotel in Shenzhen 2012” by Business Traveller Magazine Asia-Pacific and the “Golden Pillow Top 10 Business Hotel in China” by the 21st Century Business Herald.

With striking views of the Shenzhen city skyline and Lotus Hill Park, the 40-storey luxury hotel features 548 guestrooms and 53 serviced apartments, which provides discerning travellers legendary Shangri-

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La hospitality, luxury accommodation, extensive catering and meeting facilities as well as recreation and spa facilities.

Stepping into the tastefully appointed guestroom, guests will feel that every corner of it is meticulously reproduced to reflect Oriental tradition and yet are thoughtfully fitted for the modern traveller. Rooms are furnished with contemporary art, luxurious carpets, marble bathrooms, soothing earth-tone fabrics and sleek designs. Ranging from 45 square metres for a Deluxe Room up to 288 square metres for a suite, all guestrooms feature a desk jack panel, a 37-inch LCD television with CD and DVD players, and wireless Internet connectivity. There is also a 15-inch LCD television in the bathroom.

Treat yourself to a sensational meal.

Three award-winning restaurants and a bar offer a wide range of different flavours. Café Zen serves tantalising specialities from eight interactive kitchens. Each kitchen dishes out an impressive buffet spread of Asian and Western fare. Shang Garden brings the fresh and delicate flavours of Huaiyang and Cantonese cuisine that excite and stimulate your palate. Fook Lam Moon, a renowned Michelin-starred dining institution in Hong Kong, offers the best of authentic Cantonese cuisine. The hotel’s Lobby Lounge is open all day and offers snacks, pastries, desserts and afternoon high tea with live entertainment in the evenings.

Business and conference facilities at the hotel cover over 4,600 square metres, one of the largest meeting venues among Shenzhen hotels. The facilities include the 1,740-square-metre Grand Ballroom, a 500-square-metre junior ballroom, a 93-seat auditorium, seven function rooms, three VIP rooms, the Bridal Room, the Secretariat Room, the Boardroom as well as the Chairman’s Room on level 40 for extra special events.

The fully equipped gymnasium features the latest cardiovascular equipment and a multipurpose function room, while the spa offers guests private deluxe treatment suites, a steam room, a sauna, a whirlpool and a wide range of services, including massages, facials and a range of signature treatments. For the more active guest, the hotel also features a 25-metre indoor heated swimming pool and outdoor tennis courts.

For business or leisure, Futian ShangriLa, Shenzhen is an exclusive hideaway in the heart of the city.

SHANGRI-LA HOTEL, GUILIN OFFERS TRUE Luxury

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pened in March 2010, Shangri-La Hotel, Guilin is the newest luxury international five star standard hotel in the city, and sets new standards for luxury and service.

Located on the banks of the Li River, Shangri-La Hotel, Guilin features many city’s firsts and superlatives, including the city’s largest guestrooms, the largest state-ofthe-art meeting and conference facilities, the only hotel to have a wedding pagoda and the first hotel to feature indoor and outdoor swimming pools.

Situated near Yushan Bridge, the sevenstorey Shangri-La Hotel, Guilin is a 35-minute drive from Guilin Liangjiang International Airport and a 10-minute drive from the city centre.

Nearby tourist attractions include Diecai Hill, the Zhengyang Walking Street, Fubo Hill and Elephant Trunk Hill, which are 10- minute drive from the hotel.

The 449-room Shangri-La Hotel, Guilin features the largest rooms in the city starting at 42 square metres, all with complimentary broadband internet.

There are 17 suites, ranging from an 84-square-metre Executive Suite to the 210-square-metre Presidential Suite.

The hotel also incorporates Shangri-La’s Horizon Club guestrooms and lounge, a haven where today’s traveller can experience an even higher standard of accommodation and personalised service complemented with a host of exclusive privileges and amenities.

For meetings, incentives, conventions and exhibitions, the 1,800-square-metre Grand Ballroom, the largest ballroom in Guilin, is the perfect venue for hosting high-profile events of up to 2,000 people.

The Junior Ballroom at 540 square metres offers natural daylight with a view of the picturesque Li River. With seven additional private function rooms and two dedicated VIP rooms, Shangri-La Hotel, Guilin is able to cater to a diverse range of event needs, from small private gatherings to conferences or large social events. In addition, Guilin’s first and only wedding pagoda makes the hotel a much sought after location for weddings.

Shangri-La Hotel, Guilin also features a comprehensive range of recreational facilities including indoor and outdoor pools in addition to tennis courts and a health club.

The hotel’s dining includes Shang Palace Chinese restaurant, which offers Cantonese, Hunan and Huaiyang cuisines as well as local Guilin specialities against a backdrop of the Li River. Li Café features live food action stations showcasing both Western and Asian cuisine, and U Bar offers an assortment of grills and beers. For business or pleasure, the Lobby Lounge is a location that offers desserts and pastries, a Chinese influenced snack menu and high tea sets

from afternoon to evening. Surrounded by lush gardens, the Pool Bar serves fresh and simple snacks and meals as well as a diverse range of cocktails and juices.

For reservations and enquiries, please contact Shangri-La Hotel, Guilin on (86 773) 269 8888, e-mail reservations. slgl@shangri-la.com or visit www.shangri la.com.

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Australian Importing Club 1/191 Cheltenham Road.

Keysborough. Victoria. 3173 Phone 03 97063356 Email info@howtoimporttoaustralia.com.au Website www.howtoimporttoaustralia.com.au

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tockwell International as a company, and I imagine along with a lot of other small to medium freight forwarders, have experienced some of the toughest market conditions in its 42 years. These prevailing market conditions have forced a divide between loyal customers who rely on a personal service and those looking to lean up their supply chains at any cost; even if by the smallest of margins.

By Stockwell International Higher ocean and airfreight rates have squeezed out smaller freight forwarders to the multinationals who have stronger buying power. Enabling them to maintain their monopoly over the higher volume movers. Shipping lines in partnership with the multinationals offer slightly lower rates ensuring we cannot compete on the same business.

Add to this, current world events such as a weakening economy in China, a recovering USA and a stagnant Europe, it led Stockwell’s to reinvent their services to fall in line with these changing economies. The need for integrated logistics and ultimately a deeper understanding of what our clients were trying to achieve in the long term, meant a more diversified approach to our service offering was required.

We implemented a complete customer service strategy in line with nothing we have ever done before, employing additional staff to implement this strategy rather than lean out our staff in difficult times. Our board felt it was not time to simply react to challenges in China and across the globe but to allow our partners and our clients to capitalise and learn from them. If we were to see out these challenges we indeed needed to move forward through them with solutions.

We sought to find alternative trade lanes for our commodity and garment clients, while remaining focused on providing factories with high integrity to their own staff, with quality manufactured goods.

This meant exploiting markets in Vietnam and Cambodia to name a few. Where it was not feasible to change trade lanes we worked on alternative factories that allowed greater control on Quality and with current suppliers to allow for the building of customised and personalised FAKs to save across the supply chain. We have worked on consolidating in China for multiple suppliers for direct into store shipments or across trade lanes where feasible.

All solutions are met with their own challenges but as Stockwells have grown and diversified we have become a supply chain partner rather than just a freight

forwarder, customs broker or distributor.

We offer IT integration; sign on glass and SMS messaging in line with the rise of social media and the need for instant accessibility of information, just as our competitors, the multinationals do. We are not content to sit in their shadow but to outshine them in all things customer service; because unlike them our clients are GOLD to us and they treated as such, it is not a numbers game but a partnership.

Of course we are not infallible or even near perfect, but we respect who it is keeping us in business.

Our customer service strategy and tailored solutions is starting to win back the larger volume customer and it is always good to hear “that sometime it’s not always about the cost, it’s about the package” come from the mouth of a client returning from a multinational.

China’s increasing wages costs to manufacture have worried some of our clients more recently. China seems to be increasing wages but standards of manufacture is frightfully unchanged.

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portland portland

TERRACE TERRACE

Stage 1 complete. Stage 2 now under construction Stage complete.

Stage 2bynow under construction Secure1 your retirement the sea Secure your retirement by and the sea Delightful seaside harbour township of Portland Delightful seasideGolf harbour Portland Stunning seaside Club and withtownship new clubofhouse Stunning 2 bowlingseaside clubs Golf Club with new club house 2Great bowling clubs (Aldi’s, Safeways and IGA) shopping Great shopping (Aldi’s, Safeways and IGA) Excellent medical facilities Excellent medicalatfacilities Public transport your door Public transport your door Deepest harbouratbetween Melbourne and Adelaide Deepest The area harbour is rich inbetween maritimeMelbourne history and Adelaide

NOW NOW

selling selling

The area is rich in maritime history There is astounding geothermal energy There is astounding geothermal energy

Portland is the largest town in the region yet it retains the charm of a smaller country town, set by the sea, with all the modern amenities.The town revolves around its deep water Port, however tourism is increasing in the area as the many of the south west of Victoria are discovered.

Portland is also world renowned for its tuna fishing with fishermen travelling from all over to catch the southern blue fin tuna which frequent the area between March and September.

portland TERRACE

Dundas Coastal Real Estate 111 Bentinck Street Portland Victoria Australia 3305 Ph: 03 5523 2200 www.dundascoastal.com.au

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