ABF Bulletin August Issue

Bulletin ABF

VOLUME 1 ISSUE 4

DEVELOP YOUR CHINA STRATEGY Become China Active

AUSTRALIA CHINA BUSINESSWEEK 2015 SYDNEY

CHINA’S “ONE BELT, ONE ROAD” INITIATIVE

ACBW 2015 CHINA CIFIT-XIAMEN ABF PAVILION

SYDNEY MESSAGE FROM THE PM Australia-China BusinessWeek is an opportunity to consider the increasing trade, investment and business opportunities between Australia and China.

This has been an historic year for Australia- China Relations with the completion of our landmark Free Trade Agreement. This Agreement will enhance trade and two-way investment between our nations and is a sign of the trust and respect between our two nations.

I wish all delegates an enjoyable and productive Australia- China BusinessWeek 2015 THE HON. TONY ABBOTT MP PRIME MINISTER OF AUSTRALIA

SYDNEY SPEAKERS THE HON. STUART AYRES MP Minister for Trade, Tourism and Major Events, New South Wales Government

HUANG RENGANG Minister Counsellor for Economic and Commercial Affairs, Embassy of China

ALEX KAUFMAN

LIDDY MCCALL

Manager, Human Capital - Global Immigration, EY

Director, Yuuwa Capital

DAVID CHU Partner & International Relations, ShineWing

SIMON TALBOT

DAVID THOMAS Chair, ACBW Forum

LIVIA WANG Cross-Cultural Negotiator & Mediator, Business Strategist, Entrepreneur, Access CN

BENJAMIN SUN

Senior Wealth Advisor, NAB Private Wealth

Director, Think China

DAVID CAMBRIDGE

PENG GANG

ROHAN BAKER

Partner-New South Wales , Succession Plus Australia

Consul (Commerce) , ConsulateGeneral of the P.R. China, Sydney

Managing Director, Berlitz Australia

MATTHEW BRENT

MICHAEL YANG

MICHAELA BROWNING

Executive Officer - East Asia Growth Markets AusTrade

CEO, GIFANG. COM

ABF Ray Evans

PRODUCTION

CEO, Australian Business Forum; Chairman ACBW Committee

Rochelle Wang, Creative Manager Jonathan Zhang, Assist Design Bao Laung, IT Web Development

John Rashleigh

MARKETING

Chairman, Australian Business Forum

Chris Hunter

David Thomas

SALES MEDIA

Chair, ACBW Forum

Noah Melnikoff

Speacial Investment Advisor, Austrade

ABF BUSINESS

Qin Hang, Manager William Breedon, Assistant

BUSINESS AFFAIRS Robert Russi

EXECUTIVE ASSISTANT Natalie Walker

CONTACT DETAILS: T: 03 8689 9898 E: INFO@ABF.EVENTS W: WWW.ABF.EVENTS

SYDNEY PROGRAM 5 AUGUST 2015 WEDNESDAY ACBW 2015 BREAKFAST ACBW 2015 FORUM SESSION 1 ACBW 2015 FORUM SESSION 2 ACBW 2015 INVESTMENT FORUM (MANDARIN) ACBW 2015 CHINESE FORUM (MANDARIN) ACBW 2015 MIX AT SIX NETWORKING FUNCTION

8:00am - 9:30am 10.00am - 12:15pm 1.30pm - 5.15pm 10.00am - 12:15pm 1.30pm - 5.15pm 5.30pm - 7.30pm

6 AUGUST 2015 THURSDAY 10.00am-12.00pm 12.30pm-2.15pm 2.30pm-5.00pm

ACBW 2015 PATHWAYS TO CHINA FORUM ACBW 2015 KEYNOTE LUNCHEON ACBW 2015 INVESTMENT & MIGRATION FORUM

RICHARD YUAN

STACEY MARTIN

JAMES O’LOUGHLIN

Specialist Wealth Advisor, NAB

Executive Director , AustCham Shanghai

PHILIP KUNG

NICK MCNAUGHTON

PETER CAI

Head of Business & Professional Services, Invest HK

Chief Executive Officer, ANU Connect Ventures

Editor, China Spectator

DR. ZANE YANG

JERRY WEI

MARK RICHARDSON

ADRIENNE BATEUP-CARLSON

DEBORAH JOHNS

YIN ROBARDS

Partner, Gilbert & Tobin

Deputy Head Australia & New Zealand, Invest Hong Kong

MIKE MOSEL

SEAN FLANERY

JOSEPH RODARICK LAW

Director , Era Strategy Consulting

CEO, Protocol Global Consulting

Senior Agribusiness Manager - Asia Desk, NAB

Investment Specialist- Greater China, Austrade

Managing Director Australian Farm and Resource Management

Managing Director Wolseley Private Equity

Director - Business Development & Marketing, Asia Pacific Stock Exchange

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

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ORIENTAL

Founder and CEO , ABC World Pty Ltd

ATTEND CHINA’S

LARGEST INTERNATIONAL INVESTMENT & TRADE EXHIBITION

Now in its 3rd year, Australia China BusinessWeek (ACBW) China Mission returns in 2015, taking SME delegates to the most prestigious UFI-approved Chinese investment and trade exhibition – China Investment Fair for Investment and Trade

(CIFIT). Supported by the Chinese Central Government and Ministry of Commerce, CIFIT has been running for 18 years and has attracted the highest level of interest and engagement from China and overseas.

AS AN ACBW 2015 CHINA MISSION DELEGATE YOU WILL:

SHOW

KNOW

Over 200m2 of floor space in the ABF Pavilion to showcase to over 50,000 attendees

Privileged access to China Know-how sessions with local industry and Chambers of Commerce

SUMMARY OF THE 18TH CIFIT FAIR, 2014

FLOW

A three-day program of business matching, site visits and networking co-organised by the Fujian Government

DELEGATE & EXHIBITOR PROFILE

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15,763

Countries and regions represented by exhibitors

13,426

100,000 1,600 15,685 53,307 300 126 Exhibition Space (m2)

Exhibiting enterprises

Overall trade visitors

GROW

An unprecedented chance to efficiently and effectively expand your China reach

11,942 8,850 5,315

Overseas trade visitors

Media Outlets

Countries and regions represented by visitors

Government officials

Investors Investment service providers

Traders

Others

EXHIBIT AT ABF PAVILION IN CIFIT CHINA’S LARGEST INTERNATIONAL INVESTMENT & TRADE EXHIBITION

Exhibitors receive prime exhibition space with 200m2 in the ABF Pavilion and delegates will attend comprehensive business matching and information sessions supported by the Fujian Government, local industry and Chambers of Commerce.

ABF PAVILION

The ABF Pavilion is ideally located within the International investment zone, holding a high traffic area between USA & Indonesia pavilions.

BENEFITS OF EXHIBITING HIGH TRAFFIC LOCATION

The ABF PAVILION is ideally located in the centre of the International Investment hall, near the main entrance and next to the USA Pavilion & Indonesia Pavilion and opposite the India Pavilion at CIFIT 2015 .

POSITIONING

Position your company to Chinese investor, distributors, suppliers and customers. Engage with Chinese Government across all of China provinces.

COST EFFICIENCY

Australian enterprise may be eligible for both the EMDG (Export Marketing Development Grant Australia) or a state government grant/rebate (Please refer with appropriate state government authority)

SCARCITY

There are only 26 stands within the ABF PAVILION available; exhibitors are also eligible to participate in exclusive ABF Fujian Government - Department of Commerce Business Matching sessions.

CONTACT US DELEGATE REGISTRATIONS T: 03 8689 9895 E: Qin.Hang@abf.events

www.ABF.Events

CIFIT SPONSORS & PARTNERS

THE WORLD’S LARGEST INVESTMENT EXPO UNTAPPED BY AUSTRALIA

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015 is a landmark year in the China Australia relationship with the signing of ChAFTA, and China implementing broad strategies to expand trade across freight, rail, road and digital media through the “One Belt One Road” (OBOR) central policy. Australian businesses have the chance to witness China’s integrated, global approach firsthand through the globally acclaimed China International Fair for Investment and Trade (CIFIT) in Xiamen, now in its 19th year. With support and exclusive events from the Fujian Government, the Australian Business Forum (ABF) invites delegates and exhibitors to CIFIT as part of the high-profile outbound Australia international fair. The 18th CIFIT drew China BusinessWeek (ACBW) 2015 1,600 exhibiting enterprises and 53,307 trade visitors. Australian exhibitors will China Mission. benefit from over 7 dedicated pavilions CIFIT, hosted by the Ministry of including Property, Health, Wine and Commerce of the People’s Republic of E-business, gaining exposure to over China, is on a scope unlike any other 11,000 investors and innumerable

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ABF Bulletin August Issue

potential trade partners. Non-exhibiting Australian delegates at CIFIT will meet competitive Chinese investors, and engage with distributors across 100,000 square metres of exhibition space. The ABF invites early-stage and China-ready Australian SMEs to attend CIFIT as an

ABF Bulletin August Issue

outbound delegation in the third Australia China BusinessWeek China Mission.

The Mission commences on the 6th of September in Guangzhou, then travels to CIFIT in Xiamen from the 7th to the 11th. Beyond CIFIT benefits, the ACBW 2015 China Mission offers delegates a tailored program of in-depth market evaluation, exclusive business matching and official support from the Fujian Department of Commerce. Delegates will achieve immediate exposure to the industries at the heart of new Chinese economic initiatives.

such, Xiamen's place in OBOR policy is manifold, not only through its dominance as a port city but also with its unique role in cross-Straits economic relations with Taiwan. Under State Council focus, Xiamen will be built as a demonstration zone for emerging industries, crossStraits exchange of capital and personnel, and financial services.

The Australia China BusinessWeek 2015 China Mission invites delegates to attend CIFIT at the heart of China’s newly forged paths and to stand them in good stead to capitalise on ChAFTA and the promise of the One Belt One Road policy.

To register your interest, please visit:www.ABF.Events/acbw2015/china

As the host city for CIFIT, Xiamen is a well-developed second-tier city, a stone's throw from Taiwan across the Taiwan Strait. Xiamen lies at the geographic and economic centre of OBOR policy. Alongside other coastal cities Fuzhou, Shenzhen, Zhoushan (in Ningbo), Xiamen is cited in the OBOR initiative as a key port to develop increasing maritime trade. Historically, growth has been bolstered by foreigninvested export-oriented companies but has diversified in recent years. As

UNSW Institute of Languages

Stand out among a growing number of Australians engaging with China.

UNSW Institute of Languages in partnership with the Confucius Institute at UNSW are now offering Chinese for Business courses in the Sydney CBD and at our Randwick campus.

Customised and in company training also available.

Chinese for Business

For further information:

www.languages.unsw.edu.au

are you? w o 。 h 我很好 Never Stand Still

www.ABF.Events www.languages.unsw.edu.au

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CHINA’S “ONE BELT, ONE ROAD” INITIATIVE

By David Thomas, BRIC Expert, CEO, Think Global Consulting; Chair, ACBW Forum

W

ith a decade of unprecedented economic growth, China is now entering a new era of economic, social and political development, impacted by its new position as the world’s second largest economy, with a booming middle class population but crippling environmental concerns. China is now focusing more on the quality of their growth rather than growth ‘at any cost’. Out of the plethora of new Plans, Strategies and Visions created by Chinese government agencies, the “Vision and Actions on Jointly Building the Silk Road Economic Belt and the 21st Century Maritime Silk Road” or more simply known as the “One Belt, One Road Initiative” epitomises China’s new approach to foreign policy. The Initiative is an extension of China’s ‘go out’ and ‘go west’ policies and represents a move by the Government to be more targeted, strategic and focused in its future development.

The Initiative aims to consolidate and upgrade existing infrastructure and build new transport routes to improve cross-border trade. It also includes efforts to promote a greater financial integration of the Renminbi with foreign countries and create a “Digital Silk Road” of international communication and information distribution. The “Silk Road Economic Belt” connects China via land with Central Asia, Russia, Europe and Southeast Asia. The “21st 8

ABF Bulletin August Issue

Century Maritime Silk Road” makes a link from the Indian Ocean, through the South China Sea to the South Pacific Ocean (see map). Geographically positioned in the middle of both the Belt and the Road, China has emerged as the facilitator in developing a connection between Europe and Asia.

ALL ROADS LEAD TO CHINA Similar to the Roman Empire’s network of roads, rail and ports, The Initiative has given major priority to infrastructure.

Plans are already in place to build railway networks, port facilities, airports, highways and electronic communication networks to guarantee smoother and more efficient transportation of goods and people, from Southeast

Asia to Western Europe. The Asian Development Bank, managed by Japan and independent of The Initiative, has estimated that in order to support the expected volume of international trade produced from The Initiative, Asian countries must invest US$8 trillion to bring their facilities up to world standards. China has already conducted feasibility studies on four international high-speed railways – the Europe-Asia, Central Asia, Pan-Asia and ChinaRussia-America-Canada high-speed rail lines. Poland also recently signed an MOU with China which includes railway projects linking China’s city of Chengdu with the Polish city of Lodz, as well as linking Suzhou, in Jiangsu Province, with Warsaw. Supporting these infrastructure developments, China has opened up

ABF Bulletin August Issue

discussions to open new ‘free trade zones’ and ‘trade co-operation zones’.

Currently, there are 77 economic and trade co-operation zones in 23 countries along the Belt and Road including within Russia, Hungary, Romania, Laos, Thailand and Indonesia.

FINANCIAL SUPPORT

DOMESTIC INVESTMENT

To support these major plans, China has been actively promoting the establishment of the Asian Infrastructure Investment Bank (AIIB), The BRICS New Development Bank and the Silk Road Fund. The US$100 billion AIIB attracted global controversy in early 2015 when the US publically criticised the Bank and typical allies like the UK and Australia who ‘broke ranks’ and joined the Bank.

The creation of the AIIB represents one of the first steps of The Initiative.

57 nations, including Australia, Brazil, Germany and Russia have signed up.

Still in its development phase, it is maybe too early to assess whether or not the Bank will operate effectively. What has been noted is that it represents a shift in Chinese diplomacy from typically acting independently and unilaterally to being more collaborative and regionallyfocused.

Besides forming the basis of China’s new foreign policy, Xi Jinping has also made The Initiative a key domestic economic strategy. Under the plan, China plans to develop various key regions in China – the inland regions, north-western and north-eastern regions, south-western region and coastal regions. In the north-western region, the Initiative has appointed Xinjiang province as a key area on the Belt as it shares its borders with Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan and Pakistan. Rail links are also expected to improve transportation between Heilongjiang province and neighbouring Russia. In the south-west, Guangxi and Yunnan provinces will play key roles in opening up the Greater Mekong sub-region. Ports in China’s coastal cities such as Ningbo-Zhoushan, Fuzhou, Xiamen and Shenzhen will be further developed to facilitate increasing volumes of maritime trade.

DON’T WONDER IF THE WORLD WILL LIKE YOUR PRODUCT. GO ASK IT.

fedex.com/au/smallbusiness

FEX2118_137.5x210_FA.indd 1

29/07/2015 3:12 pm

www.ABF.Events

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ABF Bulletin August Issue

UNIONPAY INTERNATIONAL INKS KEY DEALS TO FACILITATE AUSTRALIA-CHINA RELATIONS New partnerships with Australia Post and Westpac highlight the role of UnionPay International in facilitating business relations between China and Australia

W

ith a number of successful ventures between Australia and China announced during and immediately following the recent G20 meeting in Brisbane, UnionPay International has announced key agreements with partners Australia Post, Westpac and NSW Government, to improve and simplify business transactions between the two countries.

In addition to being part of the prestigious Australia–China CEO Roundtable Meeting in Canberra following the G20, UnionPay International has also launched Australia’s first UnionPay multi-currency travel card with Australia Post, to support the 800,000 Australians who travel to China annually for business or leisure.

majority of immigration and international An agreement announced with Westpac will add to the network of ATMs and students to Australia. point-of-sale (POS) devices that A partnership with Destination NSW, the State Government’s tourism and major events agency, encourages Chinese people to visit and spend more in Sydney and NSW, with rebates and significant discounts offered to people travelling and shopping with UnionPay cards while in NSW. The Australia Post / UnionPay ‘Load & Go China’ prepaid travel card can hold both Australian and Chinese currencies Left: Brian Hartzer, CEO, Westpac; simultaneously, and be used to securely Right: Ge Huayong, Chairman, China UnionPay access cash, as well as make payments in China and around the world, wherever accept UnionPay cards, building on UnionPay cards are accepted. It will be partnerships with National Australia available from more than 4,000 Australia Bank, Commonwealth Bank of Australia and Australia Post.

UnionPay cards are now accepted across all ATMs under the Westpac Group, including the St. George Bank, Bank of Melbourne and Bank of South Australia, and will be accepted by all Westpac POS devices in the near future.

Speaking in Canberra, Chairman of UnionPay International Mr Ge Huayong said China was Australia’s ‘number one’ trade partner, as well as the source of the

The increasing use of UnionPay cards by Australian consumers and businesses will facilitate the retail and finance elements of the China-Australia Free Trade Agreement, enabling easier and Post Offices from December 2014. The simpler financial transactions between card also provides exclusive discounts the two countries. and offers at selected hotels, tourist and shopping destinations. www.ABF.Events

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Winestate Magazine’s Australian Wine Company of the Year 2012 & 2014 Winestate Magazine’s Australian Winemaker of the Year 2012

源自澳洲最古老最著名的酿酒世家之一， 长达160年的家族酿酒史 全澳洲唯一一家拥有三个五星级品牌的酒庄 被澳洲顶级葡萄酒杂志Winestate Magazine评选为 澳大利亚2012 & 2014年度最佳酒庄 澳大利亚2012年度最佳酿酒师

winesbygeoffhardy.com.au

ABF Bulletin August Issue

HONG KONG WHERE BUSINESS GOES TO GROW

H

ong Kong has long been home to a variety of Australian companies looking for a foothold in Asia. It is an ideal hub for business given its low and simple tax regime, ease of setting up, strong rule of law, world-class infrastructure, proximity to Mainland China and some of Asia’s fastest growing markets. The city’s international culture, dynamism and bustle are second to none.

The startup scene in Hong Kong has grown rapidly through the concerted efforts of the broader startup community.

In 2013, InvestHK launched the StartmeupHK Venture Programme which included a one-stop portal for startups (www.startmeup.hk), a global business plan competition, integrated social media-led marketing, and a Venture Forum to promote Hong Kong as a startup destination.

Hong Kong is home to an estimated 80,000 Australians. Over 600 Australian companies do business in Hong Kong, with many of them using the city as a springboard to Mainland China. These businesses are a diverse and vibrant group and active in insurance, building, road construction, telecommunications, banking and education.

products (Aesop), ICT (AccessHQ), food and beverage (Wooloomooloo Group), business and professional services (King & Wood Mallesons), and financial services (ANZ).

Setting up a company in Hong Kong is easy and inexpensive and is made even easier with the ongoing support of InvestHK. The department has industry specialists in eight priority sectors: Business & Professional Services, Consumer Products, Creative Industries, Financial Services, Information & Communications Technology, Innovation & Technology, Tourism & Hospitality and Transport & Industrial. It partners with clients on a long-term basis and is available at any stage of their business development process.

InvestHK’s services are free, customised and confidential.

CONTACT US NOW InvestHK Sydney Office Luca De Leonardis, Head (Australia and New Zealand) Address: Hong Kong Economic and Trade Office (Sydney), Level 1, Hong Kong House, 80 Druitt Street, Sydney NSW 2000, Australia Tel: (61) 2 9283 3222 Fax: (61) 2 9283 3818 Email: Luca_de_leonardis@ hketosydney.gov.hk

STAY TUNED Website: www.investhk.gov.hk LinkedIn: www.linkedin.com/ company/invest-hong-kong Twitter: #investhk Youtube: www.youtube.com/user/ investhk

InvestHK has been actively supporting Australian businesses to set up or expand their business in Hong Kong.

Examples span across a wide range of businesses in sectors such as consumer

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ABF Bulletin August Issue

ABF Bulletin August Issue

Events Business

T

he ABF Corporate Club Membership is ideally suited for companies involved in international trade and business specifically between Australia and China/Asia. ABF Corporate Club members are able to refine their China strategy effectively by gaining access to ABF’s extensive information base and networks within the Australia & China business space, while also attending ABF’s full calendar of events.

As an ABF Corporate Club Member, representatives will be entitled to discounted tickets and benefits across ABF’s events and media platform, along with complimentary passes to Australia China BusinessWeek (ACBW). Of significance to being an ABF Corporate Club Member are exclusive invitations to ABF events including the annual ACBW China Forum, and a number of yearly Inbound Delegations from Mainland China. These delegations of High-Net Worth (HNW) Chinese investors and

businesses take place across Australia in 2015 and 2016 with the purpose of matching the HNW Chinese Investors with local Australian Businesses.

ABF Corporate Club Members will have exclusive access and rates to attend ACBW, China Digital Conference, Australia China 2016 Business and Investment Expo, China Lunch Club and VIP networking functions across Australia.

JOIN ABF CORPORATE CLUB TO RECEIVE 20% OFF FOR ACBW CHINA 7-11 SEPT, XIAMEN T: 03 8689 9898 E: INFO@ABF.EVENTS W: WWW.ABF.EVENTS

www.ABF.Events

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E-COMMERCE

ABF Bulletin August Issue presents

TRAVEL THE DIGITAL SILK ROAD DEVELOP YOUR CHINA ONLINE STRATEGY

Melb, Syd, Bris Nov 2015

9 November 2015, Brisbane 11 November 2015, Sydney 13 November 2015, Melbourne

C

apture opportunities in China’s rapidly growing online retail and B2B markets, go online to boost your business bottom line, attend this year’s China Digital Conference.

Representatives from some of China’s most influential online platforms including Alibaba, JD.com, and VIP. com will attend this year’s China Digital Conference Series, (CDC) providing firsthand perspectives on China’s Internet revolution.

There are well over 300 million online consumers in China and spending is growing rapidly. This is a market Australian business cannot afford to ignore.

According to China’s National Bureau of Statistics, online retail sales in China grew by close to 50 per cent in 2014, reaching $A 500 billion.

Following the signing of the ChinaAustralia Free Trade Agreement (ChAFTA), popular Australian products sold online in China such as wine, processed foods, cosmetics and baby products, will progressively remove all tariffs and are some of the many products and services ideally positioned for the China market. Agribusiness, Tourism, Education, Health Services, Financial and Business Services, are some of the key industry sectors, which are set to boom.

China Digital Conference , now in the third year, is the premium digital conference in Australia and is ideally suited for enterprises that are engaged or about to enter the China Market and travel the Digital Silk Road.

Conference Chair Mark Tanner Founder & CEO of China Skinny Shanghai said “ I commend ABF for this valuable digital platform providing business with the latest information, trends and solutions.

The calibre of the speakers this year from China and Australia is excellent.

CDC is highly recommended no matter if you are a business owner, digital media agency or C Level executive”.

CDC is supported by Auspost-Startrack (Co-Naming Sponsor) UnionPay International, Austrade Think China and B2B Expo.

SOCIAL MEDIA

Registration is now available at www.

ABF.Events / cdc2015 www.ABF.Events

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D

isruptive technologies, led by e-commerce, are re-shaping the business landscape for Asia in the years ahead. And, as always in a climate of change, there will be winners – and losers. The winners will embrace change, challenging their leaders and educational institutions to properly clothe them for the world of tomorrow.

In our flagship ASIA2016 issue, for release on October 4, we assess the economic and geo-political outlook for Asia in the year ahead, and project forward five years and 10 years to draw a word picture of Asia’s winners and losers come 2025.

ASIA2016 is essential reading for every executive actively involved in cross-border trade and investment in what will continue to be the world’s fastest-growing and most lucrative market.

ASIA2016 is your opportunity to present your business credentials to The Asia Market. To reserve your space, call us today on (61 2) 8068-5570 or email advertising@asiatoday.com.au For advertising rates, scan the QR code below.

Advertising booking deadline: September 4, 2015.

Advertising material deadline: September 18

Part of Asia for 32 years asiatoday.com.au/advertising

ABF Bulletin August Issue

UNDERSTANDING THE CHINESE CONSUMER

By Benjamin Sun, Director of Think China

M

arketers need to understand that the difference between the China and Australia markets is not only about the “Great firewall” and language barriers, but more importantly, the consumer motivations and behaviours. In other words, why do they buy?

One important fact is the Chinese government’s implementation of the one-child policy in 1979. Demographers estimate that the policy averted at least 200 million births between 1979 and 2009. From an online marketing perceptive, today the majority of those 55% of the online population between ages 20 to 40 are from those only-child families.

In China, parents and (post-50s) of these only through the Great Leap the Cultural Revolution,

grandparents children lived Forward and and therefore

see it as imperative to provide their children with a better life than the one they experienced. Similar to parents in post-WWII America and Europe who wanted their children to benefit from the rising global economy in the 1950s and 1960s, consumer behaviour of China’s parents today reflects their desires to live vicariously through providing their children with the products and opportunities that they may have been denied.

and increasingly many foreign ones are starting to realise, may be indirectly by appealing to the Confucian values of respect for family elders. Since, there many Chinese older generations (Pre-50s) are not willing to spend money for themselves, but mainly consume for their child and grandchild.

WHAT DOES THIS MEAN TO MARKETERS?

like a funnel. ‘Post-50s’ are giving full support to their only-child and indeed only-grandchild. The one-child policy allows for Chinese citizens to be more financially secured than ever before, and therefore they are able to purchase more than any other previous generation. It is important for Australian marketers to understand this social phenomenon in order to create more effective marketing campaigns to target their audience.

The age group between 20 and 40 is a huge market and, unlike their elders, they like to try new things, are happier to indulge themselves, are more brandconscious and are more receptive to foreign ideas. On the other hand, the best way to reach China’s older generation, as most local companies

Today, the Chinese family looks more

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Our worldwide network and global partnerships will help you reach your customers – wherever they may be.

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ABF Bulletin August Issue