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.

by Azoya

August/September 2016, Tim Michael (Dynamic Export)

Without 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, including leading retail brands Amcal, Guardian, PharmaSave,

Chemist King and Discount Drug Stores.

In June, Amcal was the first of Sigma’s leading Australian brands to go live with a Chinese e-commerce site.

“Given the language and cultural barriers, we wouldn’t have been able to fullfill our Chinese expansion plans without a local partner,” said Mark Hooper, CEO of Sigma Pharmaceuticals.

“Azoya’s innovative e-commerce platform and expertise dispels our concerns over business expansion into a market we barely know.”

The Chinese version of the Amcal online store enables Chinese customers to choose from its range of products and place orders, which will be shipped from Australia.

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-and- mortar introduction and consulting & advisory.

At the same time Azoya remains invisible to Chinese customers. Instead, Chinese customers only know they are buying products and services directly from your company.

“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 buy directly from overseas retailers on Haituncun.

Mr Zhao and Alex Huang, Azoya co-founder and CEO, are both former telecom senior executives.

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 up a local business entity in China, hire local staff, open an office in China or find a trusted and reliable local partner.

“Azoya will significantly reduce the risks,” says Mr Zhao.

“By using Azoya, Sigma has been able to avoid any frustrations arising from traditional international expansion, such as setting up local business entity, confusion over government policies and market adaptation.”

Demand for high quality Australian products in China is currently strong, says Mr Zhao.

“We see great potential in the Australian market.”

Products such as pharmaceuticals, cosmetics, health foods, vitamins and supplements and baby products in particular are in high demand.

“Deterred by safety and quality issues with domestic products, particularly for healthcare and food supplements, Chinese consumers are increasingly looking to Australia to buy directly through cross-border e-commerce.”

Mr Zhao says larger companies offering well-known brands have more chance of success in the China e-commerce market.

“For smaller brands the cross- border 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 partner with larger companies to value add to their product offering.

Azoya is currently in talks witha number of large Australian department stores, supermarkets and retail chains to assist them in gaining access to the online China market.

More Australian companies should be targeting China’s e-commerce market, Mr Zhao says.

“They should be more aggressive – otherwise they are losing this market to overseas competitors.”

In the future Azoya hopes to offer Australian businesses access into other e-commerce markets including Japan, South Korea, the UK and Germany.

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