ABF Digital Magazine- Vol 5 issue 4

VOL 5 ISSUE 4

AUSTRALIAN

BUSINESS FORUM China Digital Conference Launched in Melbourne & Sydney The Free Trade Experiment The biggest step in the liberalisation of China’s financial services sector or a damp squib?

A Delegate Experience at Australia-China BusinessWeek 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

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 Doris.Li@abforum.com.au Art Director/Design Rong Wang Digital Media Ahmed Arayne Marketing Assistant Iris Fu Contributers Cathryn Austin Doris Li David Simms David Thomas Richard Cant Robert Moorman Dr He-Ling Shi Advertising Media/Sales Simon.You@abforum.com.au Australian Business Forum Magazine. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of Australian Business Forum Pty Ltd. Published by quartly by Australian Business Forum.

CONTENTS 4

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China Digital Conference Launched in Melbourne & Sydney

Australia-China Business Week 2014 will be Presented in Melbourne, Sydney , Guangzhou& Shanghai

The Free Trade Experiment The biggest step in the liberalisation of China’s financial services sector or a damp squib?

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9

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Shanghai Free Trade Zone Launches Australian National

A Delegate Experience at Australia-China BusinessWeek

Why Corporate Video Needs To Be Social

Shanghai

18 E-commerce in Practice

21 Opening up the Chinese market for online payments

23 China Lunch Club Melbourne & Sydney

Daily A380 Sydney - Guangzhou www.AustralianBusinessForum.com.au

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In 2013 we upgraded our entire fleet, All New A330s and an A380.

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A330 Economy Class TVs Vol 5 Issue 4

Plus enjoy a Guangzhou 72-Hour Stopover Visa-Free on the Canton Route

See your Travel Agent or call CSAIR for details 1300 889 628

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// ABOUT THE AUTHOR

Doris Li, Director of Marcom, Australian Business Forum

CHINA DIGITAL CONFERENCE LAUNCHED IN MELBOURNE & SYDNEY Experts share latest insights into China’s enormous Online market

T

he inaugural China Digital Conference was successfully launched in Melbourne and Sydney. More than 10 China online experts, including executives from Alibaba, Tencent and China Telecom, shared their insights into the latest development and trends of China online market. Organized by Australian Business Forum, the Conference attracted business owners and marketing managers from Australian SMEs who are aggressively expanding the China market and trying to identify the most effective ways.

591 million internet users; average 21 online hours per week; 271 million online shoppers.

38% of the brand awareness is created online and 48% purchase intent is made on company websites.”

– Mark Tanner from the Shanghai-based digital agency China Skinny, shared some impressive numbers at his opening speech. He emphasized the importance for companies to build their online presence in China, since “38% of the brand awareness is created online and 48% purchase intent is made on company websites.”

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Dean Capobianco from China Search International, Baidu’s largest international reseller, introduced the advertising solutions on China’s dominant search engine. With Google missing its presence in the China market, it is crucial for any business in China to look at the offer from the local search engine giant Baidu to optimize their online exposure.

China has its own complex social media landscape, with Facebook and Twitter both banned. It requires a strategic approach including localizing the products and messages. According to Ashley McVey, the social media expert from Next Digital Group, social media has changed Chinese consumers’ shopping behaviours as “Chinese consumers are increasingly opting for quality goods at higher prices and adopting online shopping and social media to gather product information”. “43% of Chinese Netizens are interested in products shared by friends on social networking sites, and 38% of Chinese Netizens take shopping decisions based on recommendations on their social networks”, added Ashley. Mark Tanner shared a similar view by appointing that “95% Chinese Netizens trust a brand more if they’ve seen it on social media”.

Vol 5 Issue 4

Next year’s China Digital Conference will return in October 2014 will be presented in Brisbane, Sydney and Melbourne.

For more info, visit: www.abforum.com.au/events/chinadigital Tony Shu, the Australian Representative of Tencent WeChat, one of China’s most influential social media networks, shared a couple case studies on how WeChat helps Australian businesses to increase their brand awareness, showcasing the fact that WeChat is in the process of globalizing and switching its focus from individuals to businesses. According to Tony, WeChat has created certain opportunities for some businesses categories to expand into China market in a less complicated way, for example, retailers now could establish their e-stores on WeChat to receive orders from China directly.

China Telecom announced its launch of Yixin, a similar instant messaging tool as WeChat but targeting mainly at university students.

According to Roy Ng, the speaker from China Telecom at China Digital Conference, the new Yixin will “complement China’s existing social media landscape” rather than bringing further competitions. “Since China has a huge online market, we saw the opportunity to introduce a new social media tool”, said Roy. The e-commerce session at China Digital Conference generated great interest with the perception that China’s e-commerce market is growing at a significant pace and will surpass the US to become the world’s largest market by 2015. According to Bing Liu, Trade Commissioner of Austrade Shanghai, “According to predictions by Chinese e-commerce commentators, by 2020, e-retailing might account for 10-50% of all retails in China”. At the conference, Bing introduced Austrade’s series of initiatives to help Australian businesses start their e-commerce activities in China, such as establishing “Australian Malls” on China’s most popular online malls, JD.com, Tmall and YHD, which will operate as “base camps” for Australian e-stores.

Michael Lee from China, the world’s largest e-commerce platform Alibaba.com, spoke about Alibaba’s legend of $5.75 billion sales on a single day – November 11th, Chinese Single’s Day invented by Alibaba. This was only to prove the dramatic potential of China’s online shopping capabilities. As an insider, Michael shared some tips for e-commerce success in China, including presence on established platforms, understanding of local shopping behaviour, utilizing social media, consistent service and various payment methods. David Simms from NAB, strategic partner of UnionPay in Australia, added on the importance of adapting UnionPay as a key payment method for Australian businesses.

Last but not least, the young social influencer William Chen from China Key, made the audience to realize that “when everyone is looking for China Opportunity in China, the opportunity may already lying in front of you, here, in Australia.” His presentation brought everyone’s attention back to Australia, a market with 700,000 Chinese tourists, 170,000 Chinese international students and 600,000 Chinese social media users.

The inaugural China Digital Conference has proved to be a success by attracting a mix of delegates and looking at a relatively new but essential topic for Australian SMEs. We were proud to have speakers from China digital giants Alibaba, Tencent, Baidu and China Telecom to share their expertise to Australian local audience.” said John Rashleigh, Chairman of ABF “From the feedback of our delegates, the Conference has brought valuable insights and added a new dimension to their China strategies. We’ve perceived the need from Australian SMEs of understanding China’s online market, which will be a driver for ABF to make China Digital Conference an annual forum.”

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SHANGHAI FREE TRADE ZONE LAUNCHES AUSTRALIAN NATIONAL EXHIBITION & TRADING CENTRE // ABOUT

Offering a rare opportunity for Australian business to establish a high-profile presence in China

THE AUTHOR Copy by Doris Li, Director of Marcom, Australian Business Forum

T Information contributed by Dr He-Ling Shi, Associate Professor, Monash University (Department of Economics)

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he “in the spotlight” Shanghai Free Trade Zone (SFTZ) reveals the establishment of a series “National Exhibition and Trading Centres”, in which Australia is a founding member, officially named as Australian National Exhibition and Trading Centre (ANETC). Australian Business Forum has been appointed as the strategic partner of ANETC to recruit Australian companies into the Centre.

SFTZ, which launched on 29 September 2013, is perceived as a bold step in economic reform that will redefine the role of government and further open up the economy to the private sector. SFTZ promises to cut red tape and make regulations and rules more transparent and predictable, which will certainly simplify and speed up the imports of goods and services from overseas.

The establishment of ANETC is among the first implementation of SFTZ, which will be located in Waigaoqiao, one of four and certainly the most active blocks of SFTZ. ANETC is contemplated to host all trading activities with Australia and consequently enjoys a level of exclusivity. The Centre is designed as a permanent exhibition to showcase the signature Australian goods and services, which will become a centralized trading venue for the wholesalers from every region of China to source the genuine Australian products.

Australian businesses setting up in ANETC not necessary need to go through the complex registration process, but instead to be managed

by ACIM, an Australian management company appointed by Shanghai Government. This means they do not need to set up their own offices in SFTZ to enjoy its preferential policies, but to use

BENEFITS OF SETTING UP IN ANETC Vol 5

Issue 4

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Contract with an Australian management company (appointed by Shanghai Government) and be protected by the Australian legal system

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ANETC facilitates the full-scale market access

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With the convertible RMB, repatriation of full profits back in Australia

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Companies can choose NOT to register a company in China

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All year round exhibition and trading with well established distribution channels

ANETC’s fully equipped facilities. Meanwhile, ANETC has developed a series of marketing initiatives to promote businesses residing in the centre, including two trade fairs every year within the FTZ and frequent trade shows in different cities around China.

With Shanghai Free Trade Zone as a key focus for Chinese Government at the moment, businesses taking the early advantage to set up in the zone could expect a high recognition and strong support from the local government. In a country where government relations is a key factor of business growth, this will be a real benefit and a rare opportunity for Australian businesses who want to expand their presence into China.

For more information regarding SFTZ and ANETC, contact Simon You at +613 8689 9895 / simon.you@abforum.com.au

OPPORTUNITY FOR 60 AUSTRALIAN COMPANIES TO ESTABLISH A HIGH-PROFILE PRESENCE IN CHINA Shanghai Free Trade Zone – Australian National Exhibition and Trading Centre

contact

| Simon You, Director of China Operations Australian Business Forum +613 8689 9895 7 www.AustralianBusinessForum.com.au simon.you@abforum.com.au

www.AustralianBusinessForum.com.au

AUSTRALIA-CHINA BUSINESSWEEK 2014

will be Presented in Melbourne, Sydney, Guangzhou & Shanghai Australia-China Business Week (ACBW) 2014 has over the past six years, become the major Sino-Australian business platform which facilitates the communications and business connections between Australian and Chinese companies. The focus has always been on the SME sector which depends more on external resources, partners and platforms when seeking opportunities in international markets. The aim is to create a credible business platform for businesses and investors from Australia and China to connect with the right contacts and have access to timely information on the opportunities in these two countries.

Melbourne: 27 March 2014 Guangzhou & Shanghai: 26-30 May 2014

ACBW 2013 has achieved some key developments including: • The official launch of ACBW in China with a successful inaugural ACBW Shanghai event which, according to the feedback from the delegates, has forged quite a few business deals; •

A dramatic increase of attendee number in the two local events – 850 for ACBW Melbourne and over 1300 for ACBW Sydney with more than 500 being local Chinese high-net-worth individuals;

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The launch of “Investment Showcase” session which allows Australian companies to present their businesses and projects directly to Chinese investors who are looking for investment opportunities in Australia.

Sydney: 28 August 2014

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Riding on the success this year, ACBW 2014 will be presented again in Melbourne, Sydney and Shanghai, while being expanded even further to include Guangzhou, one of the most important port cities in South China and the sister city of NSW. ACBW Guangzhou, scheduled at 26-30 May, will include Breakfast, Luncheon, Forum, Networking and Business Showcase functions, as well as a side trip to Shanghai to visit the newly developed Free Trade Zone and attend Auscham Shanghai’s annual Australia-China Business Awards which gathers 500 excellent business executives from all over China.

Register Now at: www.abforum.com.au

Vol 5 Issue 4

A DELEGATE EXPERIENCE AT AUSTRALIA-CHINA BUSINESSWEEK SHANGHAI

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n April 2013, Aus International participated in the hugely successful Australia-China Business Week in Shanghai. This important inaugural event was hosted by the Australian Business Forum and was sponsored by the National Bank and supported by Austrade.

Cathryn Austin, the licensee of Aus International and our representative at the event formed invaluable links on behalf of all our listers and associates with representatives of arguably the world’s most important market and the fastest growing economy.

Both the Chinese and Australian media reported favourably on the significance of the first of an exciting annual Australia-China Business Week event.

The event was to essentially realise the growing commercial links between Australia and China in practical terms. As a direct result of attending and participating in this event, Aus International listers and associates benefited both from the immediate exposure and will continue into the future to profit from the ongoing strategic relationships that were established.

// ABOUT THE AUTHOR

By Cathryn Austin , AUS International

The Australia-China Business Week event provided delegates with a rare opportunity to connect with Chinese partners and to showcase Australian products, services, projects and investment opportunities to interested Chinese parties.

Importantly, the Australia-China Business Week was run as a bilingual and multi-faceted business-

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ABF acknowledges NAB Naming Sponsor of ACBW 2013 and all the partners, supporters and over 2800 delegates & visitors who attended Australia-China BusinessWeek this year.

JOHN RASHLEIGH Chairman, ABF

The Major Sino-Australian Business Forum Melbourne:

27

March

Guangzhou-Shanghai:

26-30 May

2014

Sydney:

28

2014

August

2014

Register Now at: www.ABForum.com.au

Supported by

Sponsor & Partner Packages

E: info@abforum.com.au T: 03 8689 9898 W: www.ABForum.com.au

Vol 5 Issue 4 matching forum. This format was designed to connect Australian businesses with Chinese business leaders, entrepreneurs, investors and the greater population in the most efficient manner possible.

Cathryn Austin also personally showcased Aus International listings to Chinese government officials, migration lawyers, agents and the general Chinese public.

The event also identified and reviewed the economic and business opportunities that exist between the two countries. Specific industries were highlighted and firsthand knowledge about how to maximise opportunities were shared by the many experts in attendance.

The event included six functions held in Shanghai, as well as a day trip to the major city of Hangzhou.

In total there were 30 prominent speakers that delivered presentations both in English and Mandarin, covering a range of critical trade and commercial issues affecting enterprises of all sizes.

All Aus International listings were successfully presented in Mandarin to investors from all over China throughout the three-day event.

The event also focused on the Chinese culture, the legalities and the peculiarities of doing deals in China. An interpreter who presented all current

It was a learning experience for me as our cultures in business are so different to the Chinese business ways

Aus International listings in a Chinese format for the many attendees at the event accompanied Cathryn Austin for the entirety of the AustraliaChina Business Week.

By better understanding these nuances in a practical and cooperative environment, cultural bridges were more easily crossed, forging greater understanding and opportunities.

The assigned interpreter was genuinely impressed by the number of interested parties that singled Cathryn Austin out expressing their interest in Australian investments in business, properties and the enviable Australian lifestyle. Cathryn Austin reported the cultural differences between the two cultures from her perspective, “It was a learning experience for me as our cultures in business are so different to the Chinese business ways,” explained Cathryn. “We are more eager and swift to make decisions, whereas the Chinese people are cautious, suspicious and conditioned to taking their time to be sure the deal is right,” Cathryn added. “The Chinese believe you make a friend first before embarking on business deals.

Respect and loyalty between the two parties is a must when doing business with the Chinese.”

Many emails from investors, government bodies and potential buyers from China greeted Cathryn Austin when she arrived back to Australia. Cathryn expects a steady flow of enquiries to continue from the listings currently circulating China that originated from the many contacts she made at Australia-China Business Week Following successful launch of the inaugural Australia-China BusinessWeek, the ACBW 2014 Forum will return in 26-30 May, in Guangzhou & Shanghai Registration Now Open.

To register, please vist: www.ABForum.com.au

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THE FREE TRADE EXPERIMENT The biggest step in the liberalisation of China’s financial services sector or a damp squib?

// ABOUT THE AUTHOR

David Thomas , Chair of ACBW 2013 Forum;CEO of Think Global Consulting

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ith the recent media hype about Shanghai’s New Free Trade Zone (“FTZ”), questions are being raised as to whether the FTZ opportunity will live up to expectations or if it is a damp squib. The FTZ, another Deng Xiaoping style pilot reform strategy has the potential to be expanded and/or replicated. China’s mantra, “crossing the river by feeling the stones” is particularly pertinent to describe the FTZ experiment that, if successful will be slowly disseminated nationwide as China moves to liberalise its economy and integrate with the rest of the world.

On September29 2013, China officially opened its first ever FTZ as opposed to the ‘special economic zones’ (“SEZ”) such as Qianhai. The Shanghai FTZ covers an area of 29km2 and promises to act as an experimental ground for the heterogeneous liberalisation of 18 chosen industries (the majority of which are services based – financial, shipping, business, professional, cultural and social), liberalisation of interest rates, RMB convertibility, less stringent foreign investment criteria and much more. Furthermore, the FTZ will allow foreign banks to operate without a Chinese partner and provide access for financial institutions and qualified foreign individuals to invest

and trade in Shanghai’s securities and futures markets (access was previously restricted to buying into funds regulated and restricted with quotas through either the Qualified Foreign Institutional Investor (QFII) or Qualified Domestic Institutional Investor (QDII) programs). In addition, as the world’s largest energy consumer, officials have stated plans to create an international oil futures trading platform in the FTZ to improve the nation’s commodity markets and to hedge its risk.

Foreign banks who open a branch (as opposed to a representative office) in the FTZ will be offered simpler and faster regulatory requirements, specifically when applying for RMB settlement licenses. The ultimate intention being to create an international hub for financial services, shipping, law, and architecture as China takes steps towards deregulating its financial system. Particularly attractive to foreign institutions is the proposed relaxation of the Great Firewall to provide access to popular web sites like Twitter, Facebook and YouTube which are otherwise banned in China.

Shanghai’s FTZ has attracted a lot of positive and negative media attention, but there is no doubt that, should the scheme be successful, it will pave the way for China’s integration into the modern world. Labelled by some as the “third wave of economic reform” (the first being Deng Xiaoping’s policies in the 70s and 80s and the

Vol 5 Issue 4 second when China entered the WTO in 2001), the Shanghai FTZ has the potential to allow the nation to, in the words of Premier Li KeQiang, reap the “dividends of opening-up”, unleash more “reform dividends” and share greater “development dividends”. Strong supporters of the new FTZ see it as a momentous step away from China’s export led growth model, to a more sustainable and liberalised consumerled growth model. As China begins to foster domestic growth, it will be crucial for its services based industries to both develop and mature to be able to compete on the world stage. In the next five years, the Shanghai FTZ is expected to contribute between 0.1 per cent to 0.75 per cent to China’s GDP each year and, more importantly, provide a new model to attract foreign investment which can be applied to other cities and provinces.

Looking further forward, the Shanghai FTZ will also stimulate a fresh wave of investment and infrastructure spending, which will offer a wide range of opportunities. Local property prices and FTZ stocks have soared since the opening of the FTZ in September, and full convertibility of the RMB in the FTZ will allow foreign companies to raise capital through derivatives trading or private share placements – a huge step forward for the local financial services industry.

Whilst the plan seems to be an overwhelmingly positive step forward for China, there are sceptics and critics of the Shanghai FTZ, who see it as a potential ‘damp squib’. Most of the criticism and scepticism stems from the lack of detail that has emerged so far, and many wonder how the Government will prevent the major changes proposed for the FTZ from spilling over into the rest of the nation. For example, it is not clear how banks in Shanghai’s FTZ will be allowed to set different interest rates within the zone to that of the rest of the country.

One month after the SFTZ’s official opening, 25 companies and 11 financial institutions have received approval to start operating in the FTZ from a variety of sectors. Whilst it is not easy to tell, the success of the FTZ will be a long term

process as reforms in China typically start slowly out of the gate. However, local government officials have confirmed their commitment to maintaining the integrity of the FTZ by erecting a “rigid and impermeable wall” around the FTZ so as to ensure nobody ‘games the system’.

However, much of the details of the benefits and principles to be applied within the FTZ have yet to be confirmed.

Described as the boldest reform in decades and with the opportunity to spur investment and innovation, particularly in China’s services industry, the success of the new Shanghai Free Trade Zone is uncertain. But one thing is certain, the symbolism, reflecting a new vision of China’s leadership and a step towards a more liberal and sustainable long term growth model, is promising.

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In Asia – immense change can occur in the blink of an eye. Imagine the magnitude of that change spanning six decades.

Come with us as we document Asia’s journey over the past 30 years – and project probable and possible change over the next 30 and more, through to 2050.

Our journey through time is documented in the October 2013 issue of Asia Today International, to mark our first 30 years of continuous publication.

Travel through Myanmar and Pakistan; through Laos, Cambodia, Vietnam and North Korea; China, Japan, India, Australia, Singapore and more. Departing October 1983.

Stay on board as we project forward into future Asia.

Advertising bookings for this very special issue are now open.

Reserve your place in our journey through time.

Call us now on (61 2) 9970-6477 or email advertising@asiatoday.com.au INTERNATIONAL Asia is Our Business

// ABOUT THE AUTHOR

Robert Moorman is the video strategist at Hunting With Pixels, a social video strategy and production agency based in Sydney and Melbourne.

WHY CORPORATE VIDEO NEEDS TO BE SOCIAL

U

ntil very recently, having a 3 minute video about your company explaining the features and benefits of your product was a great way to engage your audience.

•

More than 320 million Chinese people watch online video, and time spent watching content nearly doubled over the last two years.

Not anymore. Online video has become a crowded space and our audience have become experts in dodging marketing messages.

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When asking about choice between TV and online videos, 76.3% respondents chose online videos.

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In Australia the market for online video grew a whopping 58% last year.

|| WHAT HAPPENED? Both in China and Australia, Social happened.

Our audiences has moved on to multiple devices and platforms and the expectations of what we as businesses need to offer have changed dramatically.

|| GROWTH & OPPORTUNITIES But it’s not all doom and gloom, on the contrary!

|| ENGAGEMENT IS THE NEW MARKETING As SMEs, we need to seize the opportunity by developing engaging and targeted online video campaigns, where the primary goal is to engage the audience.

We need to be more strategic, less transactional.

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// HOW DO YOU MAKE VIDEO SOCIAL China is the most socially-engaged market in the world, with 84% of Internet users contributing at least once a month on various social platforms.

On the other hand, worldwide 83% of customers is more likely to act on peer recommendations than on marketing messages.

•

• •

This means that our audience isn’t listing to any marketing the brand has to offer.

of Digital Rev. They get great traction with relatively low cost video by making reviews fun.

Short form. You have about 8 seconds to establish relevance for online audiences before they click away. Make those first lines count!

Regular. You need to re-engage on a regular basis to stay top of mind; one awesome clip won’t achieve that for you.

Social proof. Authentic user reviews and recommendations are very powerful tools because they’re credible.

// SO WHAT CAN WE DO?

// MOBILE FIRST

The good news is that our audience still wants to engage with our brands, and technology offers solutions too: we can now measure impact in great detail, which allows us to optimise content for a specific audiences.

69% of the Chinese population accesses the internet on mobile devices, mainly on Android devices, so we need to make sure they have a seamless user experience.

// WHAT WORKS? Here are videos that have shown to do well in the SME space both in China and Australia: • •

Useful. What’s in the box? How does your service and product solve problems? Where can I find helpful information?

Fun. Have a look at the fun product reviews

// LIGHTS, CAMERA, ACTION! So if you’re ready to take the plunge and engage your audience with online video, here are three things you can’t afford to get wrong: • • •

Understand the mindset of the audience.

Be more strategic; more engaging, less transactional.

Make sure you have a mobile website and mobile specific video content.

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E-COMMERCE IN PRACTICE 18

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lthough far from a level playing field for foreign investors, the Chinese economy has one sector that is relatively accessible for foreign businesses: online retailing. For Australian businesses which have set up a Foreign-Invested Commercial Enterprise (FICE) they can sell online the same range of products that they sell in their physical locations. Actually getting Chinese consumers to buy these products however, requires navigating the universe of the Chinese-language internet.

Businesses can either set up their own websites of use one of the many third-party platforms already available.

Alibaba undoubtedly dominates the B2B world, while its subsidiaries Tmall and TaoBao are for B2C and C2C vendors, respectively. Surf brand Island Haze uses the Tmall platform. Their online retail experience has a bilingual English/Chinese interface that includes integrated multimedia content hosted within Youku (China’s equivalent of Youtube). To reduce risk aversion for first-time buyers the AutoNavi map on Tmall pinpoints where transactions across China have been carried out. Other FIEs seeking to get their brands off the ground in China and want to use third-party platforms will be required to upload pictures of their business license, passport (or id certificate) of legal representative and company bank account info for examination and approval by the online trading platform. For some industries, such as cosmetics and food, additional permits will be required. Business licenses must also be prominently displayed on store homepages.

The alternative to these third party platforms such as Tmall is to set up a stand-alone online shop. Again, these online shops can only sell the same range of products as are sold in the physical store. Also, an ICP filing must be made (this is the “ICP备” seen at the bottom of many websites). Although third party platforms may

appear to be faster routes to market, it may be easy to be overshadowed by competitors on those shared services and there are advantages to having a user experience that is 100% designed and developed by your own brand. Wine importer Everwines complements its physical stores with a robust online presence. The Everwines online store allows for subscription to a regular newsletter that features in-store events along with online promotions. The company also offers membership schemes to promote the development of strong customer relationships, and even holds wine tasting classes via a self-branded ‘wine college’.

These offline activities ultimately translate to online sales, which are often more convenient to fulfil compared to buying in-store. The Everwines online retail platform requires registration to process payments, which are enabled via standard bank transfers with Chinese banks and Alipay, which is China’s dominant online payment solution (the equivalent of Paypal). Customers can also opt to pay via cash and credit card upon delivery, significantly lowering risk.

// ABOUT THE AUTHOR

Richard Cant, Dezan Shira & Associates

The issue of risk is a great hurdle for retailers in China, where a ‘low-trust economy’ prevails.

Contrary to the developed nations where individuals and businesses are more willing to take one another’s word on meeting payment or delivery obligations, the Chinese are still highly risk averse, preferring face-to-face transactions.

This is slowly changing, and payment solutions such as Alipay, that withhold funds until deliveries are fulfilled, help to distribute risk evenly between buyers and sellers.

Australian brands looking to sell online in China should plan ahead during the initial set up. Be sure to include online sales on the business scope of the China entity so that it doesn’t have to be changed later. No matter whether a business uses a platform such as Tmall or has its own online shop, content needs to be fully localized and retailers should adapt to payment methods that Chinese consumers feel comfortable with, such as Alipay or cash on delivery. www.AustralianBusinessForum.com.au

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OPENING UP THE CHINESE MARKET FOR ONLINE PAYMENTS

T

he Chinese market continues to grow faster than most others, with the amount spent by Chinese consumers through eCommerce rising significantly. To help Australian businesses access this opportunity, NAB is proud to be the first Australian bank to offer (China) UnionPay card acceptance for eCommerce transactions.

UnionPay is one of the largest card schemes in the world with over 3 billion cards issued, and is China’s equivalent to EFTPOS in Australia.

OFFER A SOLUTION THEY CAN ACTUALLY USE The two single biggest issues for Western sites offering an e-commerce experience to a shopper located in China are payment and freight. The ordinary household citizen in China can’t simply pay you in Renminbi (RMB) and let the bank do the maths and send you Australian dollars. You need to offer your Chinese customers a suitable payment platform that can receive Chinese currency.

The solution is UnionPay Online Payments (UPOP).

NAB has enabled UnionPay eCommerce on its NAB payment gateway for business. Once you integrate with NAB, your site can start accepting payments in Chinese RMB.

// ABOUT THE AUTHOR

SO HOW DOES IT WORK? • • • •

•

NAB enable you to accept UnionPay cards through NAB Transact.

You advertise that you accept UnionPay transactions to ensure Chinese consumers are aware.

Your payment page includes UnionPay as a new payment option (like PayPal).

When the customer selects UnionPay a new screen will appear which prompts them to provide their information. This information is then authenticated by UnionPay. We settle the transactions to you in Australian dollars.

DAVID SIMMS National Business Development Manager, NAB Find out more about accepting UnionPay eCommerce transactions via NAB Call 1300 EFTPOS (1300 338 767) or visit nab. com.au/asia

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Melbourne • Sydney • Shanghai

Melbourne, Sydney Recent speakers include Hon, Ted Baillieu, Dr Heling Shi

1 Each China Lunch Club luncheon features a keynote speaker to discuss critical topics and latest issues in the SinoAustralian business sector, creating a robust vehicle for business development and social networking.

2

3

1.The Hon. Ted Baillieu BLA 2. Peng Gang, Consulate-General of PRC in Sydney 3. Dr Heling Shi, Monash University 4. Scott Gardiner, KWM

4

Exclusive Business Networking

China Lunch Club China Lunch Club will be held in Melbourne, Sydney and Shanghai quarterly. It provides a vibrant and environment for C-level executives to share their China knowledge and experiences. China Lunch Club Membership now available.

For all enquiries contact: +61 3 8689 9898 or info@abforum.com.au

Membership Now Open for 2014

www.AustralianBusinessForum.com.au

Investors Direct Financial Group (IDFG) was founded in 2001. Since its inception providing mortgage finance to property investors and developers, IDFG has now become a one-stop-shop property investment group with offices in Melbourne, Sydney, Brisbane and China.

IDFG has 7 business units: Investor Education Property Advisory Financial Planning Mortgage Solutions Property Management Property Development and Funds Management.

Contact

Gloria Lin on 1300 663 836 Gloria.lin@investorsdirect.com. au www.investorsdirect.com.au 24

Vol 5 Issue 4

IDFG has served over 14,000 English speaking clients in Australia as a full service property solution provider. It has advised on the financial planning and implementation of hundreds of millions of dollars in property investment and development for its clients and strategic partners.

IDFG had recently expanded into the Chinese market mainly by forming strategic partnerships with other experienced Chinese business operators. Our products for the Chinese market are: 1) Australian investment properties consistent with FIRB’s approval policy 2) SIV compliant Australian property funds IDFG’s business model relies heavily on our ability to produce significant financial benefits to our strategic partners while strengthening their client relationships, and we have good track record working with businesses from small one man operations to large public companies.

We are currently looking for more strategic alliances with Chinese operators such as immigration agents, property marketers, accountants, mortgage brokers, media companies, travel agents or business brokers for client referrals or product distribution.

THE AUSTRALIAN BUSINESS FORUM: CORPORATE CLUBBUSINESS FORUM: THE AUSTRALIAN ABF CORPORATE CLUB CORPORATE CLUB

The ABF Corporate Club is perfect for business’s who value the long term commitment and benefit of the Australian-Chinese relationship. The Club provides you with an exclusive opportunity to engage andthe participate in The ABF Corporate Club is perfect for business’s who value long term the growing SinoAustralian relationship in a unique way. commitment and benefit of the Australian-Chinese relationship.

The Club provides you with an exclusive opportunity to engage and participate in Clubgrowing Membership is only for those SME’s and the Sino- Australian relationship in a Corporates unique way.who are actively engaged in the Australia China trade space, and particularly those who wantMembership to take their is engagement to the next level.

Club only for those SME’s and Corporates who are actively engaged in the Australia China trade space, and particularly those who want to take their engagement to the next level.

The ABF Corporate Club provides members the unique opportunity to force personal The ABF Corporate Club relationship with senior provides members the unique government,tobusiness leaders opportunity force personal and decision-makers from relationship with senior across industry sectorsleaders in both government, business Australia and China. and decision-makers from across industry sectors in both Australia and China.

The ABF Corporate Club is part of the Australian Business Forum Group as a membership club The ABFand Corporate Club is part provides access to the ABF events, of the Australian Business Forum media and and as business matching Group a membership club platform. provides access to the ABF events, media and business matching platform.

The ABF Corporate Club provides a premium business/ corporate membership The ABF Corporate Clubfor organisations seeking to grow provides a premium business/ and enhance their business corporate membership for interests in Australia China. organisations seekingand to grow It is exclusive, informative and enhance their businessand represents value. interests in excellent Australia and China.

It is exclusive, informative and represents excellent value.

To join the Corporate Club Contact Us To join the Corporate Club To join the ABF Corporate Club www.ABForum.com.au Contact Us Contact info@abforum.com.au 03 8689 9899 www.ABForum.com.au info@abforum.com.au 03 8689 9899

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Vol 5 Issue 4

HOTEL: KERRY, BEIJING Vol 5 Issue 4

KERRY HOTEL, BEIJING Situated in Beijing’s central business district and just 25 minutes from the international airport, Kerry Hotel, Beijing’s location is enhanced by its proximity to major cultural, shopping and entertainment sites.

T

he 486-room hotel offers some of the city’s most modern and stylish accommodation matched by modern day comforts.

Complimentary Wi-Fi connectivity is available throughout the hotel, guestrooms, public areas, and even in the limousines, while complimentary mini bar service in all guestrooms is a signature standard.

The interiors of all 486 guestrooms and suites matches silver textured wallpaper with cushioned and lightwood panels. Standard guestroom features include 40” flat screen LED television, executive writing desk with multi-socket electronic panel, electronic safe, automatic multi-purpose washlet, bathroom mirror with digital clock and a rain shower. The Club rooms and suites offer discerning travellers a line up of enhanced hardware and amenities, including exclusive access to The Club Lounge with exclusive privileges.

With more than 6,000sqm of function space, the hotel is the preferred choice for star-studded galas, meetings and conventions. Featuring two pillarless ballrooms and 11 meeting rooms, accompanied by charming and experienced staff, the hotel stands apart as a destination for travellers seeking contemporary luxury with anticipatory service.

Wine and dine facilities are presented through four establishments. Reflecting the all-day-dining restaurant’s cuisine philosophy, Kerry’s Kitchen is all about delivering authentic, well-cooked Asian cuisine using the finest quality ingredients.

Located adjacent to Kerry’s Kitchen, Kerry’s Pantry is a cosy spot to pass time or grab a quick bite. The Horizon Chinese Restaurant is famed for its traditionally prepared wood-fired Beijing duck, along with Beijing and Cantonese signature dishes. An award-winning bar and lounge, Centro features live music fine wines and real cocktails in a seductive atmosphere.

Spreading 7,000sqm across three levels, the hotel’s fitness centre, Kerry Sports features a 24-hour gymnasium, indoor swimming pool and Jacuzzi, multi-purpose courts, recreation room, exercise studio, outdoor jogging track, and indoor and outdoor children’s playgrounds.

Adventure Zone is Beijing’s ultimate kid powered space that is designed to be an indoor retreat where kids rule the space. Patrons will find one-of-a-kind attractions such as drop slides and themed party rooms. Located within Kerry Sports, Adventure Zone is an exciting and unique family entertainment venue in the heart of the CBD and is professionally managed with friendly services. www.AustralianBusinessForum.com.au

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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 4

HOTEL: KERRY, PUDONG Vol 5 Issue 4

KERRY HOTEL PUDONG, SHANGHAI When it comes to Shanghai business and productivity, it all happens at Kerry Hotel Pudong, Shanghai.

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aunched in February 2011, Kerry Hotels are a new generation of luxury hotels of ShangriLa Hotels and Resorts. Flowing seamlessly within the Kerry Parkside complex, integrating the hotel with an office tower, serviced residences and a lifestyle retail mall, Kerry Hotel, Pudong, Shanghai is located in the heart of Pudong, opposite Century Park, the largest eco-park in Shanghai. It is directly connected to the Shanghai New International Expo Centre (SNIEC) and accessible to the rest of the Shanghai metropolis via the underground metro within the complex.

Pudong International Airport is 30 minutes away by car and 15 minutes away by Maglev train.

The guestrooms are designed for optimum ease in work, rest and leisure. The 574 rooms and suites range in size from 42 to 168 square metres and offer sweeping views of Century Park or the city. Complimentary mini bar beverages and snacks on arrival and complimentary broadband and wireless Internet access are standard.

Anchoring the hotel’s lifestyle experience is an innovative three-in-one integrated destination for dining, entertaining and socialising: The COOK (international all-day dining restaurant with 13 open kitchens and a gourmet deli), The MEAT (a contemporary steakhouse and grill) and The BREW (a craft brewery with its own signature beers created by the resident brew master).

Arguably one of the largest sports clubs in town, Kerry Sports, spanning 6,000 square metres across three levels, includes a 24-hour fitness centre, a 25 meter indoor swimming pool, a wellness spa, outdoor tennis and basketball court, studios for yoga, pilates, spinning, dance and aerobics plus a children’s Adventure Zone. The spa offers a proactive and multidisciplinary approach to holistic well-being with physiotherapy, restorative massage, skincare and body treatments inspired by Wudang Wushu (Chinese martial arts) and natural skin care. The 700-square-metre Adventure Zone is designed to appeal to children’s fantasies and includes age-appropriate play zones, three slides and three festive-themed party rooms.

The hotel also offers the most flexible portfolio of hotel-based meeting and banqueting facilities in the city, with more than 8,500 square metres of space across 26 multipurpose function rooms, including the 2,230-square-metre Grand Shanghai Ballroom and 1,018-square-metre Pudong Ballroom. To complement this, the hotel features the Business Centre and Office Suites with 16 serviced offices and an additional four meeting rooms.

Business never sleeps in Shanghai and Kerry Hotel Pudong, Shanghai is a perfect venue to make things happen.

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