Aussie ally in China
Social media key to tapping young market online
CHINESE consumers are still interested in buying Australian-made goods, particularly if they can be promoted through influencers and cutting-edge social media platforms, according to the chairman of ASXlisted e-commerce platform Aumake, Keong Chan.
“The Australian brand in China is still really strong,” he said. “The idea that it is clean and green hasn’t changed.”
But Mr Chan said Australian brands had to find new ways to connect with the younger generation who were buying products on their phones as
they watched online streaming videos, often as they travelled to and from work. Aumake sells 150 or so Australian brands to Chinese consumers through its online platform in products such as dairy, health supplements and cosmetics, targeting mainly women between the ages of 18 to 35.
It recently announced a deal with Kissed Earth, a company founded by Australian model and television host Rachael Finch, which makes skincare and health-food products.
Mr Chan was speaking after China’s Ministry of Commerce announced a new five-year
tariff regime on the sale of Australian wine into China in March, adding to moves which have already killed the $1.2bn Australian wine export market to China.
There was also a warning from Australia’s ambassador to China, Graham Fletcher, that Australian companies selling in the Chinese market could face trade retaliation at any time for political reasons.
Mr Chan said Aumake’s business, which focuses on selling consumer goods to the Chinese market, had not been affected by the political tensions between the countries.
Aumake was initially
founded in 2011 as a company working with Australian-based “daigou”, or personal shoppers, who were buying goods to sell back to friends and family in China, with plans to set up a network of stores across Australia.
But its business has been hit by the closure of international borders and the lack of Chinese tourists and students in Australia.
Aumake has over the past year expanded its focus on its e-commerce platform, signing up Australian brands to sell directly to consumers in China. Mr Chan said COVID-19 had accelerated the trend in China
for younger consumers to buy through live streaming marketing videos such as TikTok.
Influencers such as movie stars and singers are playing an increasingly important role in promoting brands and setting new trends.
“The demand is really strong for good brands and products, including those from Australia, but the way you need to market to younger consumers has changed,” he said. “It’s all around social media and engaging through people on the ground.
“There are still influencers here in Australia selling product into China.”