In China, 10 per cent of all retail transactions are now online, and there are still many small corner-store-like bricks-and-mortar retailers. Chinese online retailer Alibaba has been estimated to be as large as the top 100 bricks-and-mortar retailers in China and holds around 80 per cent of the e-commerce market in that country. Entering the online retail space thus presents an opportunity for Australia firms. There is a reported interest in Australia products and services in China, because of their authenticity and traceability. As one Australia exporter noted, 'The Chinese consumer wants to know what they are buying is genuine and hasn't been counterfeited in any way'. Issues for Australia exports are meeting the scale of demand and having a near perfect logistic network. Already products such as infant baby formula, abalone products, kiwifruit juice and honey are becoming popular imports from Australia.

1. What kind of research do you think needs to be done by Australia exporters in this case in order to enter the market in China?

2. Who should commission the research? The Australia government? Exporters? Provide a justification.

3. Are there any potential cultural and technological issues involved in this research study?