Chinese consumers opt for e-commerce platforms

Volumes from the
Far East into
South Africa
have decreased
considerably as manufacturing
in China has declined.
And while the Far East
remains one of the most
dynamic markets for South
African exporters and
importers, it is also extremely
volatile with
the rand/dollar
exchange rate
impacting costs.
Analysts say
while the slow
growth of the
South African
economy has
played a role, it
is more about
what they term
China’s new
normal.
According to
Martyn Davies,
managing
director of
emerging markets & Africa at
Deloitte, markets across Africa
and not only South Africa
need to adjust and come to
terms with China’s new growth
model.
“China has shifted from
resourceintensive
industries
to services –
and African
economies are
going to have
to adjust to
that,” he said.
China has
also seen a
real slowdown
in its growth
rate – and
while this is
still high when
compared to
most of the
world, it is still a slowdown.
This would continue to
impact on African countries
dependent on moving resources
to the East, said Davies,
making it clear that now more
than ever countries in Africa
needed to diversify their
economies.
There were some real
opportunities for South African
brands in the Chinese market,
said Paul Lawrence, managing
director of Tigers South Africa.
“One of the main trends we
have seen this year in the Far
East is the slow-down of highend
luxury goods purchases,
with Chinese consumers
looking to buy overseas brands
and commodities directly over
their cross border e-Commerce
platforms,” he explained.
“Having our own Tigers
e-commerce trading platform
in China we see as a major
advantage for South African
brands wanting to work their
way into this market. Creative
solutions and marketing
approaches will be the next
development in this market
as already we see Australian
companies investing serious
attention into direct consumer
supply. A clear example of
this is the focus on providing
a fresh milk supply to the
Chinese market that has always
been renowned for calcium
deficiencies and relied heavily
on the powdered milk trade.”
Lawrence, like Davies,
maintains that success in Far
Eastern markets requires
the ability to adapt
to a fast-changing
environment.
“New developments
and unique trade models
will assist in opening
up new opportunities and
markets for South African
exporters and suggests an
exciting year ahead for them,”
said Lawrence.
INSERT & CAPTION
Chinese consumers
are looking to buy
overseas brands and
commodities directly
over their crossborder
e-Commerce
platforms.
– Paul Lawrence