Qi Chen, Manager Marketplaces, speaking at Trade Victoria for the China International Beauty Exhibition launch in Melbourne. In collaboration with Trade Victoria and Health More, Australia Post will also bring 30 local merchants to Shanghai in May 2018 to exhibit the quality products available from Australia, whilst showcasing our own products, services and global reach.
Welcome everyone. We hope you get a lot out of the guest speakers we have with us this morning, they have a wealth of knowledge and information to share with you all.
In 2018, the estimated global spend for online shopping will reach almost $2.5 trillion dollars, thanks to the growing global internet penetration and usage of smart phones. In China alone, there are over 730 million internet users.
Only yesterday, Australia Post released our latest eCommerce market update, where we confirmed the opportunity value for cross-border trades with China to sit at almost $500 billion USD, and the top selling categories are health and cosmetics.
The opportunity for Australian businesses is huge. Not only health supplements and baby formulas, we are also seeing a significant demand for cosmetics and skincare products from Australia. Australian products are becoming increasingly popular with Chinese consumers, because of the clean and natural ingredients, safe and strict manufacturing procedures and standards, and the premium quality we deliver.
Whilst our products are trusted and reliable, the challenge for businesses lies in navigating through new markets, understanding consumer expectations, finding the right supply chain partners, and knowing the customs and cultural processes, and these often differ from the market in Australia.
This is why Australia Post partners with government entities like Trade Victoria, organisations like Alibaba, JD, Kaola, and VIP.com, to bridge the gap in cross-border trades for you. Initiatives like CIBE is also a great platform for you to showcase your brands, educate the market, and directly engage the customers.
Our ecommerce journey with China started many years ago, and Australia Post formed a joint venture with China Post, called Sai Cheng Logistics International. Saicheng has 13 bonded and non-bonded warehouses spread across China, and offers a range of domestic and cross-border supply chain solutions such as 3PL, warehousing, commercial freights and last mile delivery. Our online and offline foot prints are also growing every day, reaching China and other international markets, thanks to the teams working behind it, and the strong support from our partners and customers.
As your business grows, know that we are expanding our global network, and are deeply committed to supporting your business whenever and wherever you are.