Following Single’s Day (11/11), it can be easy to distinguish China’s e-commerce system from others purely by its market size. Alibaba’s sales figures for Single’s Day in 2018 outperformed the combined sales for e-commerce platforms in Australia for the entire duration of 2017. Consumers in China spent approximately A$42.4B[i] on Alibaba platforms on Single’s Day this year, in contrast to the A$21.3B spent online by Australian consumers in 2017.[ii]
MAI Capital regularly gets a variety of questions about market entry in China and the broader trends in the China market. Our Investment Director, Tom Ellis, answers some of MAI Capital’s most frequently asked questions and provide some invaluable insights based on his experience working directly with our China Partners.
In a few weeks, I will be giving a presentation at the Naturally Good Natural Organic & Healthy Products Expo in Sydney.
Ahead of this, Nutra Ingredients-Asia reached out to get some general advice for companies specifically in the health food and supplement space that want to expand their products to China, covering a range of interesting topics.
Throughout 2017, we at MAI Capital have been able to see some of the best that Australian and Chinese business has to offer, and have been regularly posting on our site about developments and events that occur within the space that we operate in. Coming to the end of 2017, we thought that it would be a good idea to take the opportunity to highlight some of the key themes that we have identified this year.
In our previous article, we gave a quick rundown of China’s Singles Day and how we see it as a great opportunity for Australian businesses to expand their sales horizons.
But now that Singles Day is over for the year, it is a good idea to take a step back and see what took place. From our perspective, there are three key takeaways.
For those who exist within the E-commerce space in China, there is no bigger event than Singles Day. During Singles Day 2016, China collectively spent around AUS$22.63bn online. This makes Singles Day the 10th largest e-commerce market in the world, almost being larger than the entire Australian market . Something to think about if you sell anything online to Australians.
Over the past few weeks, our Investment Director, Tom Ellis, was invited to attend multiple events within the Australian early stage community.
This includes the Muru-D Melbourne Boot Camp, a fireside chat at the York Butter Factory, the University of Melbourne MAP Gala and the River Pitch series hosted by River City Labs and Steve Baxter in Brisbane.
At MAI Capital, the team recently returned from one of our regular trips to China. As part of this we were lucky to meet with some great Australian companies. This was a great chance to catch up with some brilliant entrepreneurs who had successfully made their way from Australia to China. These conversations were insightful to highlight both the incredible opportunity, but sometimes challenges, that exist in expanding into new markets.
While many in the west have heard of WeChat, the most popular social network in all of China, many of them do not fully comprehend its functionality and impact. For people in China, it doesn’t matter that they can’t use Facebook, Twitter or Snapchat due to the country’s internet firewall, because they have WeChat.