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Chinese star-ups boost businesses in Australia

Reporter: Li Sien, Xue Miao 丨 CCTV.com

08-25-2016 11:24 BJT

A Chinese start-up based in Australia is proving that success - is all a matter of timing. Logistics company E-W-E Group is riding a wave of Chinese demand, and growing faster than its founders could have imagined. Greg Navarro reports.

For most companies, owning a massive warehouse with stacks of empty shelves is reason for concern. For Sydney based E-W-E Group - which moved into this space just a few months ago - the concern isn’t how to fill empty shelves, but how to keep up with the demand.

“Year to year growth is over 100 percent since 2008 - now we reach nearly 425 million, $30 million starting fro $10,000 per year,” said co-founder of E-W-E Group Cody Wang.

Not bad for a start up that began in 2008 with one man - Sam Ming - and a van to deliver packages.

"After I arrived in Australia Ming said, I though I had to chose one industry to start up one business here. I already had a lot of friends in the logistics industry in China and I chose Australian Post as the first starting point to learn what the Australian logistics industry looked like," said Sam Ming, founder of E-W-E Group.

Since then, the Chinese start up has grown to compete with some of the major international logistics companies. Its courier service transports good to and from China.

“The difference between us and those companies is we understand the Chinese more, we understand China more, we know how to deal with the government, we know how to deal with customs and we know how to negotiate with the airlines,” Cody Wang said.

“At the moment, about 70% of all of the things in this warehouse that are headed to China are in some way connected to Australian health products,” said Greg Navarro.

That’s fuelled by an increasing Chinese appetite for Aussie products including healthcare supplements and baby formula.

"China wants to buy a safer product from anywhere in the world and that demand becomes more and more so we are on top of that,” Cody Wang said.

Chinese born Gordon Guo - who owns a Sydney based branding and digital company - says there are added obstacles to creating startups overseas.

“First of all there is a language barrier - because my industry is designing things branding things - you have to clearly pass ideas to your clients,” Gordon Guo said.

And there are cultural differences. But E-W-E Group co founder Cody Wang says Australia is attracting an increasing number of Chinese start ups.

Cody Wang said, “The economic environment and the political environment is helping those start ups to build up their dreams.”

Which is exactly what the E-W-E Group is experiencing - one package at a time.

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