orld class e-commerce infrastructure. Even before the Covid-19 pandemic, China was placing huge emphasis on the growth of their digital economy and this only accelerated in 2020. China’s online retail sales increased by approximately 12 per cent last year, despite the period of lockdown earlier in the year, and the latest forecasts suggest we will see further advances. Much of this growth is now being fuelled by the implementation of new technology on a massive scale, including live streaming, LED and holographic display technology, autonomous vehicle technologies, augmented reality and the integration of the social ranking system into the algorithms that influence consumer behaviour. At the same time, China’s government has made strong commitments to building world-class digital infrastructure, including the large-scale rollout and adoption of China’s 5G network, major “big data” development initiatives and new cybersecurity laws and regulations. This will place China at the leading edge of e-commerce and digital marketing, a fact that is now widely acknowledged around the world. In addition to these developments, China’s economy is recovering quickly from the global pandemic with projected GDP growth of 8.2 per cent in 2021 and domestic consumption set to double in the next 10 years. According to a new report by Morgan Stanley, “by 2030, China’s private consumption is set to reach US$12.7 trillion, about the same amount that American consumers currently spend, and is up from the forecast three years ago of US$9.7 trillion, and the US$5.6 trillion Chinese consumers spent in 2019. Spurring this expected growth are: greater government emphasis on policies to support the domestic Chinese economy, increases in household income, further growth of urban areas, and changes in technology and demographic shifts.”  While some Australian primary products (e.g. coal, barley, beef and wine) have suffered in recent times due to Australia–China trade tensions and other political factors, many brand owners are enjoying huge success in e-commerce. On Alibaba’s “Singles Day” (November 11, 2020), Australia was ranked number four of the top 10 list of countries selling to China with over $1 billion total sales for Australian brands across all platforms, with vitamins, baby formula and A2 milk proving to be particularly popular. This included some well-known Australian brands (e.g. Blackmores Vitamins, Bubs baby formula and A2 milk) but also some new entrants who had done their research and invested heavily in their local branding and marketing. According to Alibaba, the product categories that attract the most attention from Chinese online consumers are: ● beauty ● personal care ● fashion ● pets ● home, mother and infant ● food ● health supplements. Australian product and brand owners in the above categories now need to develop a digital marketing strategy to tap into the strong consumer demand for Australian based “clean and green” products, which will only increase in the years ahead for those who have the courage to take the plunge now. Here are some do’s and don’ts for anyone thinking about getting started: 1. Accept that China is a very different market to the one you’re used to It’s easy to get sucked into the idea that Chinese platforms and apps (e.g. WeChat, Taobao, Weibo, Little Red Book) are basically the same as their western equivalents. The reality is very different and you need to take your time to fully understand the dynamics of the market, consumer preferences and behaviour, and the role of influencers, social media and search engines. 2. Research the right market China’s e-commerce landscape is multilayered and multifaceted and it’s easy to access data that will tell you anything you want to believe! Be careful to research the success or otherwise of your foreign competitors (who generally charge premium prices for lower volumes) rather than make comparisons with local brands (low prices and high volumes) on local platforms (which may not be accessible to foreign brands), which will give you a false picture. 3. Budget for payback over three years or more For your brand to get noticed in a noisy, crowded and fast-changing market like China you will need to make a significant investment upfront. Expect to lose money in Year 1, hopefully break even in Year 2 and then you can hope to make a profit in Year 3, or later. While this seems logical and obvious for any long-term business plan, it’s surprising how reluctant brand owners can be to invest money into a China venture and allow time for the profits to flow. 4. Localise your marketing, branding and product packaging It goes without saying that you’re going to need to translate all of your marketing and packaging materials into Chinese and work through your fulfilment and logistical challenges from the start. This will include drop-shipping a sufficient supply of your product to China to be warehoused prior to any sales or marketing activity.  5. Be passionate about doing business in China From my experience, the businesses that succeed in China are those run by leaders who are genuinely passionate about the China opportunity. It’s not just about spending the money and taking a “let’s try and see how it goes” approach, which may work in other markets. Your commitment, attitude and enthusiasm (or lack of) will shine through, irrespective of how much money you spend or how many resources you throw at it. Many entrepreneurs have enjoyed great success in China with very small budgets but a huge emotional stake in the outcome. The future of China’s retail market is all about e-commerce. Online consumers in China are already spoilt for choice in terms of platforms, products and same-day delivery, and new innovations are being launched literally every day. Isn’t it time for you to start or expand your China business?