Aussie exporters go online
A new online shopping mall called OzMall, developed in partnership between Austrade, Australia Post and Korea Post is proving a success, helping Australian small businesses export their goods to South Korea cheap and efficient.
According to Austrade , the new way of exporting online is helping a wide range of Australian small firms and is set for expansion into other countries starting with Japan, then London.
Getting the project off the ground in South Korea first was a strategic move and based on the fact Korean households are computer savvy with over 92% of them online.
This heavy internet usage also translates into Koreans purchasing goods and services over the internet. In 2006 internet retailing in Korea was worth over $12.4bn.
Driving forces behind the success of Korea's shopping malls are connectivity to the Internet, availability of quality products with competitive pricing, a secure internet environment and a low incident of credit card fraud, hassle free after sales, plus time savings.
Ozmall is linked to the Korea Post website and is operated and promoted in cooperation with Korea Post’s online shopping division, Kovix which had online shopping sales reach over $56m in 2006.
According to Austrade, its objective is to have 100 Australian suppliers online by the end of July.
OzMall is an opportunity to test the Korean market for lifestyle, souvenir and food products without translating packaging and labels. In some product categories this also allows exporters to avoid going through the Korean regulatory process.
OzMall shares the same look and feel to Kovix, the Korean website, which raises the credibility of the site for Korean consumers.
According to Australia Post, the launch of OzMall in Korea is a key part of the Australia Post strategy to grow its express courier international service.
OzMall allows Korean’s to purchase products online then Australia Post utilises its express courier international service to deliver them quickly, efficiently and cheaply.
During OzMall’s trial period they carried seven suppliers with 50 products ranging from health food supplements to cosmetic, skin care, aromatherapy and sheepskin products.
As sales were at an acceptable level, they progressed to the second stage of the project and went live.
Starting this month they are actively growing the business and inviting Australian suppliers to join them.
OzMall is the first successful online partnership. They will be looking to grow and expand this model in other Asian markets.
Austrade has worked in partnership with Australia Post since 2004 on a range of initiatives to help small and medium sized Australian businesses to export.
The partnership has produced innovative and forward thinking solutions to the challenges small firms face in conducting business internationally.
By working together with complementary service providers such as Australia Post, Austrade leverages the value and expertise of its international network and the capability of its partners to deliver benefits to Australian exporters.
4-Jun-2007