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August/september 2016

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Cargo theft on the rise Page 22

Why we must secure ties with Indonesia //

august/september 2016

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World’s Top 10 airlines named // 1

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a smarter way to trade

From the editor

T

Our team

Indonesia FTA remains high on Minister’s wish list

rade Minister Steven Ciobo is on a mission. The Minister has made no secret

of his aim to nail down a free trade agreement with Indonesia as a top priority. Mr Ciobo returned from a trip

Director and National Sales Manager

Julie Fletcher

julie@dynamicexport.com.au

Editor

Tim Michael editor@dynamicexport.com.au

to Jakarta earlier this month one step closer to

Production

achieving his goal.

Veronica Avant

At a joint media conference with his counterpart

IT Manager

Indonesian Trade Minister Enggartiasto Lukita, it

Rob Fearn

was confirmed that both countries would stick to

Contributors

the 18-month timetable agreed to in March to seal a

David Gray, Alannah James, Kim Mauch, Stephen Smith, Andrew Watson

Comprehensive Economic Partnership Agreement. Mr Ciobo was all smiles – and justifiably so. He is pushing for the progressive removal of all trade barriers and facilitation of two-way trade in

Advertising enquiries:

goods and services, plus investment.

advertising@dynamicexport. com.au

Australian education, skills training, infrastructure, agriculture and financial services would be the big

Editorial submissions:

winners. Products such as rice, sugar, wine and

editor@dynamicexport.com.au

spirits are now subject to high tariffs to help protect

Published by: Think Positive Pty Ltd PO Box 221 Waverley NSW 2024 Australia

Indonesian farmers. Both ministers have indicated they are keen to

Tim Michael Editor

collaborate on areas such as infrastructure and vocational education, where Australia could provide

editor@ dynamicexport. com.au

skills training for Indonesia's rapidly expanding labour force.

www.dynamicexport.com.au

@dynamicexport

With a population of more than 255 million – including a middle class of more than 45 million – Indonesia presents a golden opportunity for Australia to supply much needed goods and services. And with the Trans Pacific Partnership agreement (TPP) now looking decidedly shaky, Mr Ciobo is keen to get some runs on the board. He is also keen to build on the legacy left by former Trade Minister Andrew Robb, who successfully sealed an FTA trifecta with our three biggest Asian trading partners – China, Japan and Korea. Indonesia would be a great way to open his innings.

//

Think Positive Pty Ltd cannot be held liable for any person(s), company or business acting upon or using the information provided in this e-magazine in any way. Information and content in Dynamic Export e-Magazine is provided to the best of our knowledge. We advise that you should seek independent professional advice to verify that all information is accurate and correct.

august/september 2016

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news

4-6

NEWS

How business innovation leads to export success

8-9

finance Why it pays to use a tax professional when exporting

10

AUSTRALIAN MADE

How new labelling laws will affect exporters

CONSUMER 14-15 GOODS Azoya opens e-commerce door to China

16-17

SPECIAL FEATURE The rise and rise of modern China

20

FREIGHT

news

Inaugural health mission to Vietnam explores business opportunities

A

Gardisil and Cervarix. While in Vietnam the delegation met with leading hospital and healthcare providers, research institutes, medical universities and key industry players based in Hanoi and Ho Chi Minh City. “Vietnam is one of ASEAN’s fastest emerging economies and is the next big healthcare market. It is also viewed as a gateway to the region,” said Janelle Casey, Austrade’s Hanoi-

delegation of top

based Trade Commissioner.

Australian medical

“Strong economic growth has also given

professionals visited

rise to a middle class which has higher

Vietnam last month to

service expectations, especially for quality

showcase Australian

healthcare,” Ms Casey said.

capabilities and forge

Vietnam’s healthcare spending in 2014

new partnerships.

totalled nearly US$13 billion (5.8 per cent

The 14-member delegation, organised by

of GDP) – the highest among all ASEAN

Austrade, and led by Professor Ian Frazer

countries.

is the first medical science and health

Vietnam’s health sector priorities include:

Qatar Airways to expand Asia-Pacific freight service

services mission to that country. Professor Frazer is one of Australia’s most

• Improving basic and preventative

innovative immunologists and researchers.

healthcare services

INDONESIA 24-25

He is President of the Australian Academy

• Infrastructure

Why we must secure economic ties with Indonesia

for Health and Medical Sciences, and 2006

• Developing human resources and

Australian of the Year.

information systems

Professor Frazer is also recognised as the

• Developing pharmaceuticals and bio-

co-inventor of the basic technology behind

medical products

the human papilloma virus (HPV) vaccine

• Investing in advanced technology to

for treating cervical cancer, also known as

improve domestic production.

26

TRAVEL

Qantas unveils plans for new luxury Brisbane Airport lounge

WINE FEATURE

30-31

“The Vietnamese Government is also seeking to turn Vietnam into a pharmaceutical hub,”

Wine export boom continues

FEATURE

Ms Casey said. “This move will reduce the country’s reliance

32-33

on pharmaceutical imports, as this currently

Your guide to setting up a virtual office

accounts for around 80 per cent of total

WHAT’S ON 34-35

Contact Austrade to learn more about the

Local & international events

annual hospital pharmaceutical spending.” business opportunities in Vietnam. • • •

Austrade Ph: 13 28 78 www.austrade.gov.au

//

august/september 2016

// 3


business & finance

Three areas where business innovation can lead to export success Innovation seems to be the buzzword at the moment – you hear it everywhere you go. But when people hear innovation they normally think of ground-breaking inventions when most of the time, innovations are small changes that deliver large rewards.

H

Andrew Watson ere are

players and reshape entire industries.

Australia are also exploring new

three areas

Businesses such as Amazon, Google

business models which make them

where export

and Apple have revolutionised the

more competitive.

businesses

advertising, books, music, and retail

should seek to

industries with powerful digital

company Marand Precision

innovate.

platforms that can be used to

Engineering is a great example of

deliver products while sidestepping

how evolution of a business model

traditional distribution channels.

can win new customers.

1. Find ways to innovate your

business model New business models have the power to overturn established

But it is not only the Googles of

Melbourne-based family owned

Founded in the mid-1950s, Marand

this world which can use innovative

has an established reputation as

business models to disrupt their

an engineering services provider to

competitors. Small businesses across

clients across the automotive, steel,

//

august/september 2016

// 4


business & finance

aviation and aerospace sectors. But in the early 2000s, a downturn in car manufacturing began to affect the company’s revenues. Marand responded by adapting its business to create a new offering for clients in the fast-growing mining sector: a fully automated workshop to maintain the rolling stock that miners

‘Small businesses should consider ways in which they can automate and streamline internal systems’

rely on to transport their commodities to market.

affordable.

With $10 million in financial support

Small businesses should consider

from Efic, Marand was able to win

ways in which they can automate

multinational customers including

and streamline internal systems to

BHP and Rio Tinto, and employ 100

increase efficiency and drive down

new staff in the process.

costs. For example, connecting an online ordering platform directly to

Putting it into practice:

accounting, stock control and order

• Analyse your existing business

management systems can help

model and identify the areas where

reduce data errors, cut administration

you add the most value for your

overheads and speed up satisfaction

customers

while reducing inbound calls.

• Consider how you can re-engineer

Small businesses should also

your current model to deliver value

consider upgrading or modifying

more simply and directly

equipment used to produce products,

• Look for adjacent sectors and

so they are easier to operate and

customer segments you can reach

cheaper to run. It can also make

by adapting your existing business

sense to outsource non-core

model to deliver new products and

activities to external providers,

services

leaving staff to focus on value-adding activities, rather than administration.

2. Explore ways of improving business processes

P

Putting it into practice: • Analyse your existing processes

rocess innovation

to identify operational and

can yield

production chokepoints, then find

immediate results

ways to eliminate them

by reducing costs,

• Modify or replace equipment to

and improving

speed up production and reduce

customer service

costs

and speed to

• ntegrate front and back-

market. It can also be relatively

office systems to streamline

simple and inexpensive to execute,

administration

especially as new technologies become more accessible and

How innovative is your business? Use this checklist to identify gaps and potential opportunities for your business. 1. Do you have an innovation strategy that sets out your objectives and priorities? 2. Do you have a process for capturing new ideas and creating an innovation pipeline? 3. Does your business leadership champion innovation? 4. Do you actively collaborate with outside organisations and experts to capture new ideas and technologies? 5. Do you have funding in place to make innovative ideas a reality? 6. Do you seek out talented people with innovation experience and skills in areas like design, user experience and process re-engineering? 7. Do you make innovation part of staff key performance indicators and rewards innovative activity? 8. Do you have metrics to measure and improve your innovation performance?

• Consider outsourcing low-value activities

//

august/september 2016

// 5


business & finance

‘New business models have the power to overturn established players and reshape entire industries’

border exospore at minimal cost

3. Consider how to innovate the

• Use data to understand your

marketing function

A

target market and create tailored

n essential

messages based on their needs and

element of export

behaviours

success is the

• Test and learn. Experiment with

ability to adapt

different messages, channels,

the marketing

imagery and copy – and monitor the

approach to appeal to

customers in different locations. The first step is to analyse the tastes and buying behaviours of key customer segments in each destination and

results to understand what works. Andrew Watson is executive director of export finance at Efic. To read more on export innovation click here. This story was first published in Smart Company

Becoming a successful exporter There are many ways in which small businesses can drive growth through innovation. Whether it is by

then adapt the brand and marketing

exploring new business models which

strategy accordingly. Facebook networks can help

disrupt the competition, streamlining

consider how digital technologies

businesses gain immediate access to

processes to reduce costs, or by using

and social media can make it easier

communities across national borders.

new technologies to modernise the

Small businesses should also

marketing function, there are already

to market products and services internationally at lower costs. For

Putting it into practice:

great examples of small businesses

example, a recent McKinsey study

• Take advantage of digital and

across Australia tapping into their

found that tapping into existing

social platforms to maximise cross-

//

innovation potential. • • •

august/september 2016

// 6


business & finance

Getting started in export: How to avoid the pitfalls With recent Australian Bureau of Statistics Figures showing that Australia added more than 4000 new exporters in 2014-15 – including 300 new manufacturing exporters – it is imperative that newer entrants do their homework. Kim Mauch

I

t is vital to seek assistance before making export transactions. For companies new to export, numerous “risks” need to be considered before you enter a transaction.

These include: Currency Risk: Fluctuations in

currency can have a major impact on your bottom line in Australian Dollar terms. For example, if you have sold your 10 MT of widgets for US$100,000 to a Chinese customer – a shift in the AUD/USD exchange rate of 2 cents (which is not unusual) would affect your Australian Dollar returns by

internet searches to find customers ...

interpretation of trade terms used

around A$3,500. Exporters can use

particularly for big orders.

in international trade. They can be

currency forwards offered by various

Payment Risk: The payment terms

confusing and daunting for new

foreign exchange provides like OFX to

on you contract should match your

players. CargoHound has prepared a

help cover this risk.

assessment of counterparty risk.

nifty reference guide to help: https://

They are arguably one of the most

cargohound.com/Incoterms/

Counterparty Risk: When selling

Ultimately, there are a myriad of

your products outside of your

critical components to get right when

country, it is obviously more difficult

negotiating a contract to sell your

factors considering when embarking

to build a relationship and trust

goods for export or buy goods for

on an export program.

with your counterparty. Cultural and

import.

political differences – particularly in

Careful research of your target

It is also important that new

market is critical, as is finding the

developing countries – can increase

(and existing) exporters fully

right advisors and service providers

the risk of default on a contract. It is

understand the terms of their export

to assist with each leg of your export

critical that you have a good agent

sales contract, and what their

transaction. • • •

on the ground in your destination

responsibilities are when it comes to

market to assist with selecting

executing the shipment.

reliable counterparties and to assist when conflicts arise. Don’t rely on

Incoterms: Incoterms are the international rules for the

//

Kim Mauch is Co-Founder of CargoHound, the first online marketplace for international freight. For advice and assistance call: 1300 883 243 www.cargohound.com

august/september 2016

// 7


business & finance

Why it pays to seek professional tax advice when trading overseas When it comes to the interaction between exporting and international tax law, it can be a minefield – especially for new entrants.

I

n every jurisdiction throughout

to break into a foreign market. This

and challenges facing Australian

the world different tax laws

is especially true when there are on

exporters.

apply, with a myriad of stringent

the ground operations or services

“When it comes to exports there

conditions and requirements

in the other Jurisdiction. No matter

is no one-size-fits-all,” he says. “The

for exporters and importers

how small these may be, the other

world is constantly changing" and

alike. Depending on the type

Jurisdiction can deem certain

when you are trading overseas, in

of export – goods, services,

activities as Permanent Establishment

particular when the exports are

licenced or franchised business

(PE) and this in turn triggers a

other than tangible goods, the tax

operations or intellectual property (IP)

taxing point. Then our Australia’s

laws are constantly changing. “Every

– the legal and taxation goal posts are

International Tax Laws kick in, as does

Jurisdiction now wants a piece of the

constantly moving.

the question of ‘the existence of a

tax pie.”

“The most important thing for exporters is to know your new market, be informed and have a strategy,”

Double Tax Agreement (DTA) and will transfer pricing rules apply.’ Mr Vicca is the principal of Brisbane-

Mr Vicca says the majority of exporters – particularly SMEs – are unaware of tax requirements in most

says international tax expert Noé

based Vicca Chartered Accountants,

jurisdictions – and the risks involved.

Vicca. “It pays to do your homework

a dynamic, enterprise-focused

“The bottom line is they should seek

before you start exporting,” he says.

consultancy firm.

professional advice before sending

“Knowledge of cross-border

A leading tax adviser, Mr Vicca has

taxation will often be a definitive

been in practice for more than 30

factor in deciding where and when

years and is fully aware of the pitfalls

//

goods or services overseas.” Mr Vicca and his team of nine highly qualified accountants provides

august/september 2016

// 8


business & finance

comprehensive research and

To get Noe’s Daily Tax Tips exporters can follow him on Twitter (@noesdailytaxtip).

professional advice for exporters. “We take business to the next level,” he says proudly. Moving a business offshore as part

For more information about Vicca Chartered Accountants visit: www.viccaca.com or email Noé at noe@viccaca.com

of an expansionary strategy is for many a necessity in order to operate in a global economy. “Our experience, coupled with our business relationships in Asia, Europe and America allows us to provide our clients with professional and commercial footing to make informed decisions,” says Mr Vicca. Vicca Chartered Accountants (VCA) is a proud member the Association of International Taxation Consultants

Noé Vicca … ‘we take business to the next level’

(AITC) global alliance. AITC is an association of

“It’s a very useful network … and its

we excel”. And they work with suitable Export

independent professional firms

multi-disciplinary structure sets us

comprising Lawyers and Accountants

apart from other tax and accounting

Market Development Grant and R&D

who specialise in tax and support

firms.”Vicca Chartered Accountants

consultants to help exporters gain

services in their country of domicile.

(VCA) specialise in providing

government assistance.

It is one of the world’s largest tax

individually tailored business

“We call ourselves a solutions

advisor networks with members in

solutions small to medium and large

based accounting practice,” Mr

over 60 jurisdictions across Europe,

enterprises.

Vicca says. “We pride ourselves on

US and Canada, South America, Australia and Asia. AITC members work together to

As well as international tax advice the company also provides ancillary services in areas of litigation support,

providing accurate, confidential and professional advice.” VCA has set new standards in the

deliver a diverse range of services

both domestic and international

field of international tax accounting

and international tax solutions.

business structuring and SME

and was recognized earlier this year

business operations review.

with an Acquisition International

“At AITC we take a collaborative approach,” says Mr Vicca. Because

VCA also provides advice for

Award for 2016 – Most Innovative Accountancy Firm.

AITC is a multi-disciplinary group of

company executives and employees

professionals, “If one of our clients

when claiming overseas travelling

has a problem in a jurisdiction we can

allowances. “When it comes to a mix

ACQ5 Global Awards: Australia –

put them in touch with an expert in

of both domestic and international tax

International Tax Advisory Firm of the

that country.

and accounting matters, this is where

Year. • • •

//

This was followed up the

august/september 2016

// 9


australian made

How will new labelling laws affect Aussie food exporters? The Government’s new country of origin food labelling laws came into effect from July 1, this year.

T

he new laws require most Australian food

change however it must be under a licence with AMCL

products that are offered for retail sale in

or alternatively they can choose to adopt the new

Australia, to be labelled with a country

Government labels.

of origin statement, the Australian Made,

The well-recognised AMAG logo has been used in export

Australian Grown (AMAG) logo as well as a

markets for three decades. The symbol provides crucial

bar chart and text statement to show the

authenticity in the global marketplace, reinforced in recent

proportion of Australian ingredients.

years by the registration of the mark in China, Singapore,

Businesses have two years from the commencement

South Korea and the US.

date to adopt the new labels.

The logo is the only registered country-of-origin

The new labelling system means the Australian Made

certification trade mark for the full range of genuine

Campaign (AMCL) will no longer issue any new licences

Australian products and produce.

for food products,

“For many small businesses involved in export, the

which are to be sold in

Australian Made, Australian Grown logo, with its proven,

Australia.

established links to Australia, becomes their strongest

Importantly,

brand in the marketplace,” said Ian Harrison, AMCL Chief

Australian food

Executive.

products intended for

“Opportunities for exporters are booming, especially

sale in export markets

given Australia’s reputation for producing products and

are not required to

produce to high quality and safety standards, we’re seeing

carry the new labels.

a huge impact overseas especially for those products

There is no doubt

which carry the AMAG logo.”

the widespread use of

The Australian Made Campaign also facilitates access to

the AMAG logo, which

a range of exclusive promotional and export opportunities,

will now feature on

via media and service partners, and its network of

most food products,

Australian Made branded stores and distributors

will strengthen the

throughout Australia and Asia. • • •

logo’s connection to Australia and help boost sales of genuine Aussie goods in export markets. Companies whose products fall into the export category can continue to use the AMAG logo without

//

For more information on the AMAG logo visit www. australianmade.com.au/for-business. For more information on the Australian Government’s new mandatory country-of-origin labels, visit www.foodlabels.industry.gov.au. Businesses should also visit www.business.gov.au/foodlabels

august/september 2016

// 10


australian made

Strong demand for Australian hemp products in Japan

H

The First Lady showed strong interest in Hemp Foods Australia's vision during the meeting at the Kyoto Hemp Forum. "Hemp has strong roots in Japanese

emp Foods

product development and to expand

Australia is the

its factory at Bangalow on the NSW

culture, and the First Lady is excited

largest hemp food

North Coast.

about continuing the tradition of hemp

wholesaler, retailer,

Founded by CEO Paul Benhaim in

in her great country," Mr Benhaim said. The inaugural Kyoto Hemp Forum

manufacturer and

2000, Hemp Foods Australia now

exporter in the

exports to South Korea and distributes

focused on the environmental benefits

in Japan through its sister company

of using hemp for industrial purposes,

Southern Hemisphere.

Hemp Foods Japan. Its products were

in place of more toxic products that

reputation for its organic, nutritional

nominated for the 2016 Japanese

pollute and damage the atmosphere.

products made from high-quality

Vogue Beauty Awards.

The company has gained a strong

hemp seeds, hemp oils and hemp protein powder. Late last year it received a $600,000 government grant for hemp food

In July this year Mr Benhaim met with the First Lady of Japan Akie Abe

All products produced by Hemp Foods Australia are 100% Australian Certified Organic.

to discuss the future of the hemp industry in Japan.

//

http://www.hempfoods.com.au

august/september 2016

// 11


australian made

Success for

Australian tech firm

in Singapore

C

ommunicAsia2016, held earlier this year, is Asia’s largest integrated info-communications technology event, showcasing products and solutions across the

entire ICT value chain. Australian-based technology provider,

flexAnswer Solutions, has attended the trade event over the past few years and used this year’s event to officially announce it had secured a Whole of Government contract to provide a Virtual Assistant (VA) system to all Singapore Government

agencies. The three-plus-two year deal will initially include providing 18 Singapore Government agencies with the flexAnswer VA system. flexAnswer Solutions won the tender because its web-based customer services technology is able to correct spelling mistakes, understand colloquial terms and relationships between words and analyse a range of questions asked by customers. Chris Rees, Austrade’s Senior Trade Commissioner for Singapore, said the Singapore Government had been looking at smart e-services offered by a range of public agencies to deliver a faster service that remains user-friendly. “A particular focus was finding a software provider which offered virtual assistants to respond to routine questions from telephone calls and emails, and flexAnswer won the tender,” said Mr Rees. “For an Australian SME to win such a huge overseas government contract, is indeed an achievement and again demonstrates Australia’s technology capabilities. “With the Singapore Government implementing its digital future plan Smart Nation Vision, it is hoped this will open additional opportunities for Australian companies,” Mr Rees

Asia’s leading infocommunications and technology event, CommunicAsia2016, has been a springboard for helping Australian companies secure deals in Singapore.

added. flexAnswer Solutions also extended its contract with Changi Airport Group, signing a five year contract extension. This follows another contact the company secured with Tenaga Nasional Berhad, the largest Malaysian electricity supplier. More than 30 Australian technology companies showcased their products at CommunicAsia2016 which featured 1100 exhibitors from 49 countries. • • •

//

august/september 2016

// 12


australian made

Natural Aussie hair care products make a splash in the US Alannah James An Australian eco-hair product company has broken into the lucrative United States market with its natural range of products.

D

avroe has been

were eating but what they were

manufacturing

putting on their body.

chemical-free,

Mary said Davroe was producing more than a million units a year.

“So we decided that we would go

She said the key to Davroe's success

plant-based

down the wellness pathway and look

was finding the perfect balance

hair products

at how we could appeal to that,” Mary

between natural Australian made,

in Adelaide

said.

low-irritant products that still offered

for nine years

“We were offering 100 per cent

great results in the salon or home

after observing a gap in the hair care

vegan products before it was even

product market.

cool to be vegan.”

The first drop of products through

setting. “We have had reports of clients

In 2016, the global hair care market

with serious scalp problems find our

popular American e-commerce site

is estimated to be worth about $US

products to be the only thing that

Birchbox began earlier this year.

83.1 billion.

worked on their skin.”

“We are still in the very early stages,

Davroe showcased products at

After receiving positive feedback

but we are already receiving some

the Cosmoprof North America in

from people in Canada, New Zealand

fantastic reviews from our American

Las Vegas last July, which sparked

and Europe, the Centofantis are

consumers especially about our

talks with several US suppliers about

confident Davroe can go global.

shampoo and conditioners and

stocking the natural products.

“We have experienced growth in the

curling cream,” owner Mary Centofanti

past three years

said.

and demand is

“Davroe is now available on

only going to get

American e-commerce site Birchbox

stronger,” Mary

as well as in their bricks and mortar

said.

stores in New York and in Washington

The Davroe

DC.”

team will head to

Mary worked for the company as

New York again

a receptionist when it was known

this September

as Dresslier before purchasing

as the official

and rebranding it in 2007 with her

hair sponsors for

husband John. She said consumers

Fashion Pallet New

were becoming increasingly

York Fashion Week. •••

concerned about not only what they

This story was first published in The Lead, South Australia

//

august/september 2016

// 13


CONSUMER GOODS

Azoya opens door to China for big business Breaking into the China e-commerce market can be a challenge for any Australian business. Apart from language and cultural barriers, thousands of companies globally are vying for the lucrative Chinese consumer market. Tim Michael

W

ithout local knowledge and expertise Australian retailers face many

hurdles – and financial risks. Azoya is an eCommerce solutions

provider that helps overseas retailers break into the Chinese market. Established in 2013, Azoya has signed exclusive agreements with the largest number of overseas retailers in China. The company has won trust from more than 35 overseas retailers in 11 countries, such as La Redoute, the largest online retailer of women's apparel in France and Feelunique, the largest online premium beauty retailer in Europe. Earlier this year one of Australia’s largest pharmaceutical companies, Sigma Pharmaceuticals, announced a partnership deal with Azoya to target China’s booming online shopping market. Sigma boasts the largest pharmacy network in Australia with over 1,200 branded and independent stores,

Chemist King and Discount Drug

site. “Given the language and cultural

Stores. In June, Amcal was the first of

barriers, we wouldn’t have been

including leading retail brands

Sigma’s leading Australian brands to

able to fulfill our Chinese expansion

Amcal, Guardian, PharmaSave,

go live with a Chinese e-commerce

plans without a local partner,”

//

august/september 2016

// 14


CONSUMER GOODS

‘We see great potential in the Australian market’

particularly for healthcare and food supplements, Chinese consumers are increasingly looking to Australia to buy directly through cross-border e-commerce.”

said Mark Hooper, CEO of Sigma

buy directly from overseas retailers

Pharmaceuticals.

on Haituncun.

“Azoya’s innovative e-commerce

offering well-known brands have

Mr Zhao and Alex Huang, Azoya

platform and expertise dispels our

co-founder and CEO, are both former

concerns over business expansion

telecom senior executives.

into a market we barely know.” The Chinese version of the Amcal online store enables Chinese customers to choose from its range

Mr Zhao says they formed the new company to help “build a bridge” for overseas companies into China retail. With Azoya there is no need to set

of products and place orders, which

up a local business entity in China,

will be shipped from Australia.

hire local staff, open an office in

As well as setting up an e-commerce platform, Azoya offers its clients a total solution. Services include e-commerce cloud hosting, managed operations, warehousing & logistics, branding & e-marketing campaigns, RMB payment settlement, customer service, Chinese content engine, supply chain finance, brick-andmortar introduction and consulting & advisory. At the same time Azoya remains

Mr Zhao says larger companies more chance of success in the China e-commerce market. “For smaller brands the crossborder landscape can be very cruel,” he warns. “SMEs are very vulnerable and making an investment in the Chinese market can be very risky.” Smaller retailers should try to

China or find a trusted and reliable

partner with larger companies to

local partner.

value add to their product offering.

“Azoya will significantly reduce the risks,” says Mr Zhao. “By using Azoya, Sigma has been

Azoya is currently in talks with a number of large Australian department stores, supermarkets

‘Larger companies offering well-known brands have more chance of success’ able to avoid any frustrations

and retail chains to assist them in

invisible to Chinese customers.

arising from traditional international

gaining access to the online China

Instead, Chinese customers only

expansion, such as setting up local

market.

know they are buying products and

business entity, confusion over

services directly from your company.

government policies and market

be targeting China’s e-commerce

adaptation.”

market, Mr Zhao says.

“Each company has its own identity,” says Azoya co-founder and executive director, Don Zhao. Azoya has set up a cross-border eCommerce platform named Haituncun to help overseas retailers to sell their quality products to Chinese consumers. Haituncun.com enjoys a high reputation for trust and authenticity among Chinese overseas online shoppers. Chinese customers can

More Australian companies should

Demand for high quality Australian

“They should be more aggressive –

products in China is currently strong,

otherwise they are losing this market

says Mr Zhao.

to overseas competitors.”

“We see great potential in the Australian market.” Products such as pharmaceuticals,

In the future Azoya hopes to offer Australian businesses access into other e-commerce markets including

cosmetics, health foods, vitamins

Japan, South Korea, the UK and

and supplements and baby products

Germany.

in particular are in high demand. “Deterred by safety and quality

“China is just the starting point,” says Mr Zhao. • • •

issues with domestic products,

//

august/september 2016

// 15


CHINA

Like other ancient civilisations clustering around temperate fertile river valleys where multiple crop planting and harvesting could take place each year the main Chinese population group (Han Chinese) flourished.

The rise and rise of Modern China David Gray

S

Numerous attempts to invade Japan, Taiwan and other island regions were also undertaken with mixed success. The Japanese term kamikaze for example refers to a divine storm which wrecked a Chinese invasion fleet off the coast of Japan. Whilst frequently invaded from North central Asia by the Mongols the

ophisticated

considerable influence on Chinese

legacy of which is the fortifications

administrative

Governmental administration for many

of the Great Wall – China enjoyed a

systems and

years thereafter.

period of relative calm and insidious

technologies along

The teachings of Confucius were

with philosophical

prominent in Chinese revolutionary

adopting attitudes of inward looking

developments

thinking well into the early 1900s.

paranoia in regard to the outside

consistent with

Many Chinese dynasties had pursued

decline following the early-mid 1500s

world.

urban lifestyles of the day were in

policies of militaristic expansion

evidence.

intermittently controlling areas such as

the Manchu peoples from the north

modern day Tibet, Vietnam, and as far

east to invade in the mid 1600s

was once the largest economy in the

south as modern day Singapore and

whereupon the Manchu or Qing

world.

the Malacca straights.

(Ching) dynasty was formed.

Due to population mass alone China

A near contemporary of the Greek philosophers Plato and Aristotle, Confucius has been recognised as one of the greatest philosophers of the time emphasising the virtues of morality and harmony which has a

Decline and internal dissent allowed

‘Disputes over trade and trading agreements with the Europeans frequently broke out’ //

august/september 2016

// 16


china

Arguably, the Manchus were unable to fully subjugate or satisfactorily integrate with the Han Chinese and other provincial states previously subdued by the Han Dynasties which produced an extended period of simmering tensions, rivalries that

‘China had very little to offer the world other than a large surplus population and cheap labour’

frequently resembled sporadic civil war. It was this scenario of foment and

was not easy for China in spite of

occurred without these stimulants but

Soviet Russian aid. Clumsy and

at a very much slower rate. Even so, if we consider the rate of

drift that greeted the European traders

homicidally brutish attempts at

during the mercantile age and later

achieving ideological purity via the

economic development to population

the industrial age.

so called cultural revolution and

ratio it will probably take about 35

industrialisation via the inappropriately

years from the early 1990s for the

agreements with the Europeans

named “great leap forward” kept China

first 100 million of Chinese population

frequently broke out with each side

as a relatively poor largely peasant

to achieve full western purchasing

claiming the other was acting in

economy.

power, and 10-15 years for the second

Disputes over trade and trading

hundred million and 5-10 years for

bad faith. Military means were often

Following the death of Mao Tse Tung

employed to “resolve” these issues

and the jockeying for position by those

each hundred million thereafter

with western technological/industrial

in the Governing central committee

assuming current attitudes of western

superiority and unity of purpose being

of the party a softening of China’s

indulgence, consistent growth rates,

decisive in determining outcomes.

position began and with the influence

policy projections and increasing rates

of leaders such as Deng Xiaoping

of personal consumption.

Even today the Chinese state

Bloomberg predicts China will

generically refers to this period early

China eventually moved away from its

1820s to late 1940s the 100 years

isolationist policies and slowly towards

overtake the US as the world’s largest

of humiliation where it is alleged,

engaging economically with the rest

economy in just 10 years.

China and its people suffered an

of the world.

unspeakable loss of face and

But the changing of the guard hinges

To a large extent this engagement

on China’s ability to manage the shift

respect. Children in school are taught

was moved along by the collapse

from its government-run centralised

the subject from a Government

of state sponsored revolutionary

growth model to a more market-

interpreted perspective.

communism by 1990.

driven system.

In 1911 the Manchu dynasty fell

In the first instance China had very

And the future of the global

and China was declared a republic

little to offer the world other than a

economy rests on the bilateral

with figures such as Sun Yat Sen

large surplus population and cheap

relationship between the two

(a Hawaiian educated Christian

labour.

countries.

Communist) having played a

Chinese economic growth since

But the historical social, political

prominent role over the preceding

1990 has relied disproportionately

and economic development of China

years.

on western multinationals

and the west could not be further

transplanting western jobs, particularly

apart and the bridge of mutual

plunged into a time of constant civil

manufacturing, to China along with an

understanding and appreciation

war, invasions, capitalist communist

artificially undervalued fixed exchange

required reflects the many differences.

ideological struggle until communist

rate. Chinese growth would have

•••

Over nearly four decades China was

forces formed government in 1949. The capitalists fled to Taiwan. The first 30-40 years of communism

David Gray is lead consultant at BizTechWrite providing documentation, language translation and export advisory services.

//

august/september 2016

// 17


china

Putting China trade opportunities in perspective With a population of almost 1.4 billion people China would seem like a huge market for any Australian exporter. David Gray

Y

et, so many come away after having spent considerable sums on planes and hotels and hiring exhibition suites with nothing in hand except a bewildering zero to show for their time and effort. But is China such a big export market as its massive population

would suggest? Similarly, what are the current export opportunities and how can they be capitalised upon. American businessmen always go into a rock hard swoon every

time they think of so many potential customers but the reality outside of starry notions is quite different. Depending on whose figures we use, Chinese wages on average per capita are less than one fifth of Australian wages. In western terms more than half the population lead a subsistence lifestyle and possess negligible purchasing power. The proportion of the population that can afford western prices is relatively quite small. Most if not all the well-paying jobs and worthwhile money making opportunities are tightly controlled by the ruling political party, their supporters and sundry anointed poster children. The amount of trickle down and spill over is increasing and, over time, will make a transformational difference but that development is still some years off. Very few Chinse wage earners can afford to purchase quality. Corruption, nepotism and patronage are a way of life with the party jealously guarding its control of the patronage machine. It should be kept in mind China did not and has not economically modernised through economic or market pressures and achievements. It has been a modernisation by Governmental administrative fiat. The complexion of the

//

august/september 2016

// 18


china

economy must therefore be regarded thus. There is no question headline trade numbers with China are impressively voluminous but prominent product groups of minerals and agricultural and related products make up most of the exports. Services exports while giving an imposing appearance are disproportionately represented by hugely capital intensive industries such as mass insurance provision, college education, bulk travel and tourism, gambling and casino’s, big ticket financial services. Private residential land is now among our biggest exports in terms of capital inflow and well attended by property management services and associated creative accounting. Western exports successes generally are particularly noticeable in cases of exotic products and luxury brand names such as French Champagne, Mercedes-Benz cars, leading clothing fashion labels, high end value added machine tools and cultured dairy foods. In a day to day business context, Chinese buyers are mostly reluctant to pay for exported western services as they compare the wage differential with own workers and deem the western offering as too expensive. Quality is rarely an issue with many potential Chinese buyers still prepare to accept the lowest possible quality rather than pay western prices for better quality services. In terms of manufactured goods do not blithely assume your patent will be respected. The best protection is to have high value add technical complexity

‘The fact remains the export market from Australia to China is a selective one’

built into your product that will make it just too hard, difficult and expensive to copy or to easily come by alternatives. Any attempt to export simpler manufactures that can be produced relatively easily in large production runs, regardless of design cleverness just cannot compete with Chinese cheap labour and will probably not get very far. The better market opportunities for smaller exporters can be identified within the following perspectives: • Any complex value-add manufacture that is well up the value chain. SmallMedium enterprise German export manufacturers have done very well in this area. • Big brand name products particularly those associated with western exotica, such as alcohol and fashion clothing. • Long developmental cycle “space intensive” products such as wine, cultured milk products, exotic flowers. While this list is meant to be indicative and does not cover every conceivable micro niche, the fact remains the export market from Australia to China is a selective one with opportunities far less numerous than many might imagine. One day, perhaps decades in the future, China may very well be a huge broad based consumer export market but for now most Australian exporters will need a strong professionally presented value-add story to tell if they are to export to China successfully. • • •

//

august/september 2016

David Gray is lead consultant at BizTechWrite offering export advisory, documentation, language translation and planning services to Australian exporters. David can be contacted on 0458 701 990 or biztechwrite@ gmail.com

// 19


freight

Qatar Cargo unveils plan to become major player in Australian market Qatar Airways Cargo, the world’s third largest international cargo carrier, has unveiled ambitious plans to become a major player in three new markets: Transpacific, Australia and South America in the next nine months.

I

“We ensure the animals receive

n a major announcement at Air

you see us becoming a strong player

Cargo China 2016 in Shanghai,

in all these markets in the next nine

special care and treatment all the

Qatar Airways Chief Officer

months.”

way, on the ground as well as in the

Cargo, Ulrich Ogiermann said

Mr Ogiermann also officially

air. As a committed member of IATA,

the goal will be achieved

launched QR Live, a new addition

we comply with the Live Animal

through the constant growth

to the cargo carrier’s portfolio of air

Regulations, which set out strict

of its fleet as well as the

freight solutions.

guidelines regarding the welfare of

opening of its new European hub in Luxembourg.

The new solution QR Live provides stress-free and comfortable

animals during transportation.” The spacious 4,200 sqm air-

Qatar’s current cargo fleet includes

transportation of horses, pets, exotic

conditioned live animal facility at

nine Boeing 777F, eight Airbus 3330F

animals and livestock from origin to

Qatar Airways Cargo’s hub in Doha

and two Boeing 747F aircraft,

the final destination.

is designed with special features

The fleet is expected to grow to 22 aircraft by next year.

“In cases where transit in Doha is

including: large holding areas for

required, our state-of-the-art cargo

horses, eight stalls for horses (300cm

terminal at Hamad International

x 300cm each), a 24/7 dedicated

becoming the world’s third largest

Airport has a fully-equipped

expert animal health care service,

international cargo carrier, but

live animal facility and a team of

300 sqm paddock, rubber pavers for

there are still areas we have not yet

experienced ground and animal

soft walk area, hydraulic loading and

targeted to their full potential,” Mr

handling staff to provide round-

unloading docks as well as hydraulic

Ogiermann said.

the-clock care for live animals,” Mr

workstations.

“Last year, we succeeded in

“In 2017, we will target areas such

Ogiermann said.

A dedicated email address for live

as Transpacific, Australia and South

animal shipment enquiries qrlive@

America – do not be surprised if

qatarairways.com.qa has also been introduced. The cargo carrier offers red-carpet treatment and world-class service for the transportation of thoroughbreds. This includes controlled temperature zones, a network of more than 150 destinations, comfortable and spacious horse stalls and seats for grooms on board the freighters. • • •

//

august/september 2016

// 20


freight

FAST FREIGHT FACTS 1

2

In 2014, total world trade in goods and services was worthUS$23.9 trillion, that’s more than double of what it was worth in 2004.

The Port of Shanghai is the busiest in the world - in2014 it processed 35.29million TEU containers!

3

4

Australian agriculture ships enough produce to feed 60 million people around the world each year!

14,000 ships pass through the Panama Canal annually! It connects 160 countries and 1,700 ports around the world

5

The world’s four largest container ships can each hold up to 19,224 containers. Each container can carry 800 cases of wine - that's nearly 185 million bottles of vino!

//

august/september 2016

// 21


freight

High tech used

to curb cargo theft In a concerted bid to cut down on cargo theft, companies are investing more in goods tracking technologies to monitor transported goods.

them difficult for cargo thieves to detect. There is a growing number of goods tracking service providers now in the market place. Prominent players include FreightWatch International, 3SI Security Systems, Ctrack, Telenav, Starcom Systems, Sendum Wireless, Rockwell GPS Tracking Tracker), chipset vendors (Qualcomm,

stolen

MediaTek), module vendors (Telit,

shipments,

u-blox), third-party logistics providers

even when

(FedEx, DB Schenker), and telecom

those

operators (AT&T).

shipments are

new technologies emerge. Many

new container

are revolutionizing their stealing

or trailer, which

techniques by committing

is not being

cybercrime, GPS and cellular

tracked.

jamming, GNSS spoofing, and

“These solutions are

A

But thieves are adapting as

reloaded into a

deceptive pickups. The new threats are reshaping

covertly placed

tracking requirements. For instance,

into product

if a thief attempts GPS jamming, the

packaging

goods tracking device will send real-

BI Research, a

so that they can continue to ping

time alert of possible theft via cellular

global leader

its location in real-time, enabling

technology, enabling companies to

in technology

companies to track and recover

act immediately.

market research,

stolen shipment and apprehend

estimates the

criminals,” says Raquel Artes, Industry

standard features of goods tracking

market, which

Analyst at ABI Research. “This is

devices.

was worth $3.6

particularly suitable given the

GNSS and cellular technologies are

New cellular network technologies

billion in 2016, will swell to $5.6 billion

market’s complex ecosystem wherein

will also reduce connectivity costs to

by 2021.

products are handled and transferred

drive further adoption. Goods tracking

among a handful of different players

solutions will migrate either to EC-

and the risk of theft is high.”

GSM, an extended coverage version

Sophisticated goods tracking technologies play a key role in the recovery of stolen assets by detecting

The compact, portable, and

of 2G, or leverage the more network

the location of stolen premium goods

rechargeable goods tracking devices

efficient LPWA LTE technologies in

such as pharmaceuticals, electronics,

use satellite and/or cellular networks

LTE Category 1, LTE Category M1, and

jewellery, tobacco and alcohol, cash,

to obtain a shipment’s location.

LTE Category M2. • • •

and retail products.

As the devices are relatively small,

The technology also provides

they can be covertly hidden inside the

additional security by enabling

product, packaging, box, or pallet and

companies to track and recover

then monitored via Internet, making

//

august/september 2016

For more information visit: www.abiresearch.com

// 22


freight

Government approval has been given for unrestricted cargo services at the privately held Wellcamp Airport in South West Queensland.

T

he airport’s owner,

capitalize on the state’s annual

demand for regular services with a

the Wagner

perishables output, which is valued

747-8 freighter. Exports included two

Group, one of

at almost US$500 million.

helicopters to Miami and 50 tonnes

Queensland's

“South West Queensland already

of produce, including chilled beef to

largest

produces around a third of

Hong Kong, frozen beef to Shanghai,

privately owned

Queensland’s agricultural output,

and lettuce, pecans and mangoes

construction

and maximizing export opportunities

from Queensland.

materials and

for the industry is critical to

Wagner Group chairman John

mining services companies, said it

future growth,” said Minister for

Wagner predicts strong demand

hopes to position the airport as a

Infrastructure and Transport, Darren

for Australian produce in Asia will

major airfreight hub for Australian

Chester.

validate the massive investment. "They (Asia) want fresh produce

exports to Southeast Asia. Opened

The airport was developed at an

in 2014, the airport is about 150km

estimated cost of $150 million and

from this region,” he said. “It's not

outside of Brisbane and was built

offers 26 weekly flights to Sydney

unrealistic to think within 12 months

from the ground up with private

and other destinations.

we could have a freighter a day

funding. The owners hope to

Late last year Cathay Pacific tested

//

running out of Wellcamp.” • • •

august/september 2016

// 23


FREIGHT

Australia must act now to secure economic ties with a rising Indonesia Deputy Prime Minister Barnaby Joyce’s remarks during the recently concluded federal ealection campaign that suggested a link between asylum seekers and live exports was an unfortunate reminder of the diplomatic and political sensitivities that have long vexed Australia-Indonesia relations.

I

Stephen Smith

n defusing the issue, Australia’s

The resumption of negotiations presents the

two major party leaders, Malcolm

opportunity to bring the countries’ economies

Turnbull and Bill Shorten, both praised

closer together to enhance trade and improve

Indonesian President Joko Widodo

access to each other’s markets.

and emphasised the need for greater Australia-Indonesia co-operation. Much of this increased co-operation

must begin by strengthening supply

But the truly significant economic outcome the agreement could achieve would be to enhance Australian investment in Indonesia and, most importantly, encourage long-term

and value chains and investment ties between

Indonesian investment flows into Australia.

the two countries.

This investment will ultimately be crucial to

Negotiations for the Indonesia-Australia Comprehensive Economic Partnership

Australia’s ongoing economic prosperity. To achieve that, Australia and Indonesia must

Agreement (IA-CEPA) were revived recently

start now to make mutual investment the

after a three-year hiatus.

hallmark of their economic relationship.

Together with government-to-government

To achieve such investment we cannot simply

negotiations, the proposed agreement’s main

adopt provisions of free-trade agreements

mechanism for business engagement, the

that have gone before, however high quality

Indonesia-Australia Business Partnership

they may be. As talks on the IA-CEPA resume,

Group (IA-BPG), has also restarted

negotiators should not simply pick up where

consultations, including a recent session in

they left off three years ago.

Perth. This is a unique bilateral business forum to

The strategic and economic ground has shifted over that time. There are new, fast-

provide both governments with proposals for

developing trade and investment links centred

the agreement to drive a fundamental change

on the Indo-Pacific.

in the economic relationship between the countries.

In Asia, trade in services is growing faster than trade in goods. Goods and services are

//

august/september 2016

// 24


freight

Stephen Smith is Winthrop Professor of Law, University of Western Australia

Greater co-operation … Indonesian President Joko Widodo greets Australian PM Malcolm Turnbull being traded within single, complex products.

after the US, China and India. Australia’s North

Global supply and value chains, where value

Asian partners are already active in Indonesia,

is added to goods and services at multiple

laying the groundwork for future Indonesian

locations before being delivered to customers,

investment flow to North Asia.

make up the newest, fastest-growing mode of

Indonesian investment also flows south.

trade and investment. The trade landscape in the Indo-Pacific

A modest investment by Indonesia now,

is a complex web of old and new trade

from Australia’s perspective, opens up the

agreements and economic groupings:

opportunity for collaboration in a whole range

the Regional Comprehensive Economic

of areas – not just for one-off projects but for

Partnership (RCEP), the Trans-Pacific

decades to come.

Partnership (TPP), the ASEAN Economic

‘Australia and Indonesia must make mutual investment the hallmark of their economic relationship’

Australia must start the job of ensuring

IA-CEPA therefore needs to address the

Community (AEC), Australia’s free-trade

building of transborder industries, supply and

agreements with Japan, South Korea and

value chains to other markets, co-operation in

China, and APEC.

energy, natural resources and infrastructure,

Some, like the TPP and AEC, are known for

working together on skills formation and

their broad scope and for tackling difficult

capability-building, transferring knowledge

issues in agriculture and human movement.

and technology, and enabling movement of

Other agreements have focused principally on the old trade agenda – lowering or abolishing tariffs and tackling non-tariff

students, professionals and tourists between our countries. This is a major task for Australia. The

barriers to trade in goods and services. And

agreement’s scope and depth should focus

others have such broad membership that it is

on how we can turn the Indonesia relationship

uncertain what real outcomes will be achieved.

into a substantial investment opportunity for

By the mid-point of this century, Indonesia

prosperity into the future. • • •

will be the fourth-largest economy in the world

//

august/september 2016

Source: The Conversation

// 25


travel

Brisbane’s Qantas

lounge gets an upgrade Inspired by the success of its airport lounges in Hong Kong and Singapore, Qantas is now giving its lounge in Brisbane a multi-million dollar facelift.

T

he International

continued investment in the entire

opening planned from early next

First and Business

customer journey. The new lounges

year.

Lounges will be

will offer an outstanding experience

In designing the new lounge

redesigned to create

in premium design, service, and food

concepts, the airline conducted

a single International

and wine,” said Mr Capps.

research in to what customers valued

Premium Lounge, which will welcome

its first customers in October.

“Brisbane and broader Queensland is one of our most important markets. We started direct daily

most in their lounge experience and food, wine and coffee topped the list. The International First and Business

services to Tokyo last year, increased

Lounges closed on June 29 while

Queensland, the new design will

seasonal services to New Zealand

construction work is carried out.

enlarge the lounge by more than 25

and have nearly finished our A330

percent.

aircraft upgrade at the Brisbane

Qantas customers and their guests

Maintenance Facility.”

are being offered complimentary

A tribute to the natural beauty of

Travellers will enjoy seasonal menus by Qantas Chef Neil Perry,

The beginning of construction

During the refurbishment, eligible

access to the Plaza Premium Lounge

a bar serving Rockpool-designed

signals the start of a comprehensive

or vouchers to redeem at food

cocktails and all-day barista service.

redevelopment of the Qantas

outlets in the terminal.

Qantas Head of Customer Product

Brisbane Lounge, with the domestic

Brisbane provides daily

and Service Development Philip

terminal lounges also set for a

connections between Qantas’ major

Capps said the Brisbane Airport

complete redesign in coming

domestic routes and services into

investment would deliver a new

months.

regional areas as well as direct

benchmark in premium travel from Queensland’s capital. “The new Brisbane International Premium Lounge highlights our

Qantas will build a new lounge

international services to Auckland,

precinct with a new Business Lounge

Wellington, Christchurch, Los

and refreshed Qantas Club, including

Angeles, Singapore, Hong Kong and

a new Valet service, with a staggered

Tokyo. • • •

//

august/september 2016

// 26


travel

Cathay Pacific to introduce Wi-Fi during flights

C

In a recent technical bulletin issued to staff members, the airline is said to have decided on two prices for the service, offering passengers the option to pay US$20 to access Wi-Fi throughout the flight or US$10 for an hourly fee. Members of the Marco Polo Club, will be offered Wi-Fi connectivity free-of-charge by using a special voucher.

athay Pacific

“We are in the final stages of

passengers may soon be able

concluding our preparations

to access the

for the introduction of an

internet during

in-flight connectivity service

some international

onboard our A350 aircraft,” a

flights, according

spokeswoman of the airline was

to a report by Business Traveller

quoted in the report, adding

Asia-Pacific.

that full features and final pricing for the service is yet to

The airline is looking at providing

be announced. • • •

the new Wi-Fi service on its Airbus A350 aircraft.

You’ll never miss a flight with this handy bag

quickly turning this scooter-suitcase into a traditional piece of wheeled luggage. Measuring 56cm x 35.5cm x 25.5cm, the Micro Luggage scooter is normally approved as hand luggage on most airlines and fits in standard overhead compartment. The scooter is steered with the tilt and

Z

lean style of steering. The rider moves their body in the direction the want to go.

ooming around an airport terminal is a breeze with the

The Micro Luggage scooter can be

new Micro Luggage scooter.

ordered online at RRP $499. Delivery is via Australia Post eParcel and is FREE to

This ingenious piece of

all locations in Australia for orders over

luggage is suitable for riders

$100. • • •

weighing up to 100kg. Swiss designed and engineered, the Micro Luggage scooter weighs just 5kg and

For more information visit: www.microscooters.com.au/scooters/ adult-scooters/ml0005-micro-luggage-ii

has a capacity of 26 litres. The scooter footplate folds up easily and

//

august/september 2016

// 27


travel

World’s Top 10 Airlines of 2016 1. Emirates 2. Qatar Airways 3. Singapore Airlines 4. Cathay Pacific 5. ANA All Nippon Airways 6. Etihad Airways 7. Turkish Airlines 8. EVA Air 9. Qantas Airways 10. Lufthansa

Global survey reveals

the World’s Top 10 airlines Emirates has been voted the World’s Best Airline by customers at the 2016 Skytrax World Airline Awards – the fourth time it has won the top prize in the awards history.

T

he airline also won

top awards being named the World’s

the World’s Best

Best Business Class, the World’s

Inflight Entertainment

Best Business Class lounge and Best

award.

Airline Staff in the Middle East.

Emirates improved

Third placed Singapore Airlines

its position across

achieved top success winning the

a range of awards

award for Best Airline in Asia, as well

categories performing well in First,

as the title for the Best Business Class

Business and Economy Class survey

Airline Seat.

sections and achieving a top-10

Australian carrier Qantas again

finish in the World’s Best Cabin Staff

made the World Top 10 – this year in

category.

ninth place.

Qatar Airways was second in the global ranking and won a range of

Top 10 First Class Airline Lounges 1. Cathay Pacific: Hong Kong 2. Lufthansa: Frankfurt 3. Qatar Airways: Doha 4. Air France: Paris CDG 5. Swiss: Zurich 6. Emirates: Dubai 7. Singapore Airlines: Singapore 8. Thai Airways: Bangkok 9. ANA All Nippon Airways: Tokyo Haneda Top 10 Business Class Airline Lounges 1. Qatar Airways: Doha HIA 2. Turkish Airlines: Istanbul 3. Cathay Pacific: Hong Kong 4. Virgin Atlantic: London Heathrow 5. Singapore Airlines: Singapore 6. Qantas Airways: Sydney 7. Etihad Airways: Abu Dhabi 8. Emirates: Dubai 9. Swiss: Zurich 10. EVA Air: Taipei

Qantas was dominant in the Australia & Pacific region winning

//

august/september 2016

// 28


travel

the Best Airline in Australia/Pacific for the fourth successive year. It also took the award for Best Airline Staff in Australia & Pacific and Best Premium Economy Catering. Australian budget airline Jetstar was recognised as the Best Low Cost carrier in the region for yet another year. The Skytrax World Airline Awards are considered the most prestigious accolades for the world airline industry. Travellers across the globe take part each year in the world’s largest international airline passenger satisfaction survey to decide the award winners. Winners were announced at a gala ceremony held at Farnborough Airshow in the UK. The leaders and top management from over 40 airlines from across the globe attended the event.

Singapore Changi Airport crowned World's Best

S

ingapore’s Changi Airport has been named the World’s Best Airport by Skytrax for the fourth year running. Singapore beat Incheon International Airport, Seoul for the coveted top position. Munich Airport was voted third best, with

Tokyo International Airport (Haneda) and Hong Kong International Airport finishing fourth and fifth respectively. Air France La Premiere lounge at Paris CDG Airport was again named as the World’s Best First Class airline lounge dining experience by customers, with Qantas Airways, Sydney finishing third. Turkish Airlines Istanbul Business Class retained its titles as the World’s Best Business Class airline lounge dining experience.

Cathay Pacific Airways, ranked No 4, was also declared the World’s Best for Cabin Cleanliness. It was a double celebration as Cathay also picked up the award for Best First Class Lounge for its recently renovated facility at its home base airport in Hong Kong. ANA All Nippon Airways achieved repeat success, ranked No 5 in the world in the global results and also securing the awards for World’s Best Airport Services and Best Airline Staff in Asia for the second successive year. Etihad Airways was ranked No 6 worldwide and won three awards. The airline was named as having the World’s Best First Class cabin, Best First Class seat and Best First Class catering. Turkish Airlines ranked No 7 in the world were yet again named as the Best Airline in Europe. The world’s newest 5-Star airline EVA Air ranked No 8 in the world and named as the Best Transpacific Airline. The Taiwanese carrier was also considered to have the Best Business Class Comfort Amenities. Completing the world’s Top 10 airlines, Lufthansa was again successful being named as the Best Transatlantic Airline for the fifth time and also winning the Best Airline in Western Europe award. • • •

//

Top 10 First Class Airline Lounge Dining Experience 1. Air France: Paris CDG 2. Lufthansa: Frankfurt 3. Qantas Airways: Sydney 4. Cathay Pacific: Hong Kong 5. Qatar Airways: Doha 6. Emirates: Dubai 7. Singapore Airlines: Singapore 8. Etihad Airways: Abu Dhabi 9. British Airways: London Heathrow 10. Thai Airways : Bangkok Top 10 Business Class Airline Lounge Dining Experience 1. Turkish Airlines: Istanbul 2. Qatar Airways: Doha 3. Austrian: Vienna 4. Etihad Airways: Abu Dhabi 5. Garuda Indonesia:

august/september 2016

Jakarta 6. Hainan Airlines: Beijing T1 7. Qantas Airways: Sydney 8. ANA All Nippon Airways: Sydney 9. Singapore Airlines: Singapore 10. Emirates: Dubai Top 10 Airports of 2016 1. Singapore Changi Airport 2. Incheon International Airport 3. Munich Airport 4. Tokyo International Airport (Haneda) 5. Hong Kong International Airport 6. Chūbu Centrair Nagoya 7. Zurich Airport 8. London Heathrow Airport 9. Kansai International Airport 10. Hamad International Airport

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wine

Boom times for Australian wine exports Australian wine exports continued to experience strong growth in the 12 months to the end of June 2016 – particularly demand for premium wine in Asia and North America. Tim Michael

T

he value of exports grew by 11 per cent from July 2015 to June 2016, according to Wine Australia’s latest Export Report. This was driven

largely by bottled exports, particularly fine wine. Bottled exports grew by 15 per cent to $1.7 billion and the average value of bottled exports increased by 9 per

‘There is still much work to do in increasing the awareness and availability of premium Australian wine in the US’

“Our finest wines contributed to

America, growing by $46 million (8 per cent) to $646 million. Growth slowed to Southeast Asia, up $7 million (5 per cent) to $142 million. Australian exporters continue to see benefit in export markets with free trade agreements (FTAs). Exports to mainland China grew by 50 per cent to $419 million, despite a slowing economy. This exceptional growth was aided by the ChinaAustralia Free Trade Agreement, and

cent to $5.35 per litre, the highest since October 2003.

Next in absolute growth was North

“Exports priced $10 FOB and over to the United States grew by 16 per

the growing Chinese middle class’ increased interest in wine. When combined with Hong Kong

almost half of the total value growth

cent, mainland China by 71 per cent,

in the last 12 months,” said Wine

the United Kingdom by 15 per cent,

($124 million), China is the largest

Australia CEO Andreas Clark.

Canada by 12 per cent, and Hong

market for Australian wine exports.

Exports priced at $10 “Free on Board” (FOB) and over per litre were

Kong by 5 per cent,” he said. “This growth contributed an

Value to mainland China increased across the price segment spectrum,

up 26 percent to a record $499

additional $102 million to the value

with the greatest growth once again

million.

of Australia’s wine exports.”

in exports valued at over $10 per

The FOB value of the wine is

All export regions recorded growth

litre, up 71 per cent to $169 million. Exports to Japan increased by 4 per

calculated when goods placed are

in the last year, except for Europe,

on board the international carrier, at

which declined by 1 per cent to $574

cent to $45 million, while exports to

the border of the exporting country.

million.

South Korea were up 29 per cent to

Mr Clark said the increased demand

Northeast Asia continued to lead

for Australian fine wine was reflected

growth, with value increasing by $158

in the top five export markets.

million (34 per cent) to $618 million.

//

$13 million. The United States (US) remained Australia’s number one destination

august/september 2016

// 30


wine

Australia’s top five export markets by value • US – up 8 per cent to $449 million. • Mainland China – up by 50 per cent to $419 million. • UK – steady at $369 million (The UK market continues to be our most significant market in volume terms but, because 80 per cent of wine is shipped in bulk, it ranks third in value) • Canada – up 7 per cent to $195 million • Hong Kong – up 11 per cent to $124 million.

‘Our finest wines contributed to almost half of the total value growth in the last 12 months’

Australian wine among the US trade, with a growing number of importers taking on more premium Australian brands. “There is still much work to do in increasing the awareness and availability of premium Australian wine in the US,” Mr Clark said. “To continue sustainable growth in our most valuable market requires

for wine by value and exports grew

a long-term approach and a focus

by 8 per cent to $449 million. The

on re-establishing relationships

trend towards Australia’s premium

and confidence in the category,

wines continued with exports

supported by significant, consistent

priced $10 and above per litre FOB

investment to drive the Australian

increasing by 16 per cent, reflecting

fine wine message.” • • •

the improving perception of

Don’t let your message get lost in translation … BizTechWrite can assist exporters with: • Language Translation • Export Business and Sales Marketing Plans • Technical & Business documentation (in any language) • Policy & Procedure documentation

We service clients Australia Wide 24/7 across all time zones // august/september 2016 •//0458 31 biztechwrite@gmail.com • www.biztechwrite.com.au 701 990


feature

Many Australian exporters spend much of the year travelling the globe. And for SMEs who are rarely in town, maintaining a traditional phone system can be a costly exercise.

HOLD THE PHONE Why

more exporters are discovering the benefits of a virtual system

T

he solution: Why not install a virtual phone system? Virtual PBX is a hosted phone system that can be used from any location. It has all the benefits of a highend traditional PBX (private branch exchange) phone system without the

need of any on-site equipment. It uses an internet connection to deliver phone calls

(also known as VOIP) instead of the copper landline network, and can provide from 2 to 30+ lines depending on your business requirements and internet connection type. Instead of having to purchase traditional PBX equipment that can cost thousands of dollars, the Virtual PBX call functionality is hosted in the cloud and managed through an online portal.

//

august/september 2016

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feature

'Virtual PBX is a lot more cost effective than traditional telephony'

What equipment do I need?

moves with you – just pack up the phones & plug then in

The simple plug-and-play

at the new location. No technicians needed. You can also

technology means you just need

keep existing phone numbers, regardless of which area

IP enabled phone handsets, and if

you move to – a very important consideration for business

you have more than a couple of staff

continuity.

then you’re likely to also need a POE

If your business expands to multiple offices, or you have staff working from home, they can all the connected into

switch.

the one Virtual PBX phone system with access to hunt

You also need an internet connection and modem. A typical

groups and extension dialling. Calls between offices on

ADSL2+ connection is enough to run

the same Virtual PBX system are also free – a big saving

up to eight phone lines, depending

for interstate offices!

on connection speed. For more lines, business-grade Ethernet is the

What are the costs involved? A hosted phone system like Virtual PBX is very cost

answer. A provider like MyNetFone

effective, especially when compared to a traditional

can supply both.

hardware PBX. With Virtual PBX the costs are: - Virtual PBX plan – from $60/month for 2 lines and 250

What are the main

included national calls

advantages? The advantages of a hosted phone

- Phone handsets – these are typically configured by

system are that it allows you to

the hosted phone system provider so you just need to

present your business professionally,

plug them in. MyNetFone offers handsets from trusted

provides rich call features and a self-

brands like Cisco, Yealink and Gigaset. Desktop phones

managed portal, all for a fraction of

start from $189.95 or cordless option is $149.95 - If you need more than a couple of phones, then a

the cost of a traditional PBX. Call features make it easier to handle calls, and create a

POE Switch is recommended, which consolidates messy cabling and makes setup even easier.

more streamlined experience for your customers. To help your business make a professional impression,

What should an exporter look for when choosing a

you can also add a 1300 number to your hosted phone system. This gives your business a national presence and makes it easy for customers to contact you for the cost of

service provider? You should look for an established network, service features and support.

a local call.

Do they own their own infrastructure, or do they resell

Virtual PBX is a lot more cost-effective than traditional telephony – you can expect to save around 60% on your

other providers? If they are resellers, they have less

monthly bills. A hosted phone system means you can save

control over service quality and reliability. Secondly, what call features are included with the plan

on maintenance fees – since there’s no hardware PBX sitting in your office, there’s no need to call a technician

cost, and what features cost extra? Make sure to tally up

each time you need to make a change.

any additional costs like that, as it can quickly add up. Lastly, is the support team based locally or overseas? It’s

How can it help a business to grow?

important to pick a provider whose support arrangements

Virtual PBX is budget friendly enough for even small

you are comfortable with.

businesses. Starting from two lines, it can grow with your

For example, MyNetFone owns Australia’s largest

business to 30+ lines. As you add staff, simply upgrade

VoIP network with an excellent track record of service

your service plan to include more lines, order more

reliability, the company’s service plans include 15 call

handsets – and your new staff are ready to go.

features are no additional cost, and support is Australian –

As you outgrow your office and move, Virtual PBX easily

//

based in Sydney and Melbourne. • • •

august/september 2016

// 33


what's on

August 22

September 12-15 October 26

Exporting Opportunities in South Korea Food & Beverage Austrade Melbourne Level 3, 60 Collins St Melbourne VIC Ph: 13 28 78 Contact: ariel.yesberg@ austrade.gov.au www.austrade.gov.au

Fine Food Australia Melbourne Convention & Exhibition Centre Ph: 03 9261 4500 www.finefoodaustralia. com.au

Premier’s NSW Export Awards The Star Pyrmont, Sydney Ph: 02 8243 7400 www.exportaward. com.au

August 25 Exporting Opportunities in South Korea Food & Beverage Brisbane Executive Conference Room PIB 80 Ann St Brisbane QLD Ph: 13 28 78 Contact: ariel.yesberg@ austrade.gov.au www.austrade.gov.au

September 2 August 24 Exporting Opportunities in South Korea Food & Beverage NSW Dept of Premier & Cabinet Level 21, 52 Martin Place Sydney NSW Ph: 13 28 78 Contact: ariel.yesberg@ austrade.gov.au www.austrade.gov.au

Exporting to the Middle East Export House Level 2/22 Pitt Street Sydney, NSW 9am-12pm Ph: 02 8243 7400 www.eca.org.au/events

October 20 QLD Export Awards Brisbane Convention & Exhibition Centre Ph: 02 8243 7400 www.export.org.au

//

august/september 2016

// 34


what's on

September 1-2

September 7-9

Women Vendors Exhibition & Forum International Trade Centre Istanbul, Turkey Ph: 03 9648 3285 www.wigb.gov.au

Asiafruit Logistica

September 6

September 11-14

Asiafruit Congress Venue: Asia World Expo Where: Hong Kong International Airport, Lantau Hong Kong www. asiafruitcongress.com

Fiji Building & Construction Mission 2016 Nadi, Suva, Fiji Ph: 07 3364 7735 Contact: Adrian.weeks@ austrade.gov.au www.austrade.gov.au

Venue: Asia World Expo Where: Hong Kong International Airport, Lantau Hong Kong www.asiafruitlogistica. com

//

September 12-17 Austmine Mission to Mongolia Ulaanbaatar, Mongolia Ph: 02 9357 4660 Robert.trzebski@ austmine.com.au www.austrade.gov.au

September 26-28 MINExpo 2016 Las Vegas, USA Ph: 02 9299 4350 http://symposium.net. au/MINExpo

august/september 2016

October 13-16 Hong Kong Electronics Fair Hong Kong Convention & Exhibition Centre www.hktdc.com

October 16-20 SIAL World’s largest food innovation exhibition Paris Nord Villepinte Exhibition Centre www.sialparis.com

// 35


//

august/september 2016

// 36

Dynamic Export e-magazine Aug/Sept 2016  

Latest news for Australian exporters