Chinese-led growth on the cards for DJs
More than 700,000 UnionPay card users visited Australia last year, spending billions on goods and services.
China UnionPay chairman Su Ning said he expected the value of card transactions in Australia to double this year, reaching 4.6 billion yuan $770 million).
"The total value of UnionPay card transactions increased 45 per cent in the first four months of this year and we expect it to double at the end of the year," Mr Su said.
He said only 12 per cent of Australian businesses accepted UnionPay cards but expected that figure to increase to 40 per cent, now that the Commonwealth Bank had come on board.
Tourism Australia says Chinese visitors spent about $4.2 billion here last year, up 12 per cent on 2011 figures.
It is believed 10 per cent of David Jones' sales staff speak Mandarin and a significant portion of its luxury goods revenue comes from Chinese tourists. The retailer plans to hire more Mandarin-speaking staff to cater to the increasing number of Chinese shoppers.
Commonwealth Bank has signed an agreement to allow UnionPay users to access the bank's ATMs and merchants.
Ian Saines, a Commonwealth Bank executive, said the acceptance of UnionPay cards presented opportunities for retailers.
"Experience in other markets has shown ... accepting UnionPay does drive a noticeable increase in sales - that is why David Jones is so excited," he said.
Luxury British retailer Harrods registered a 40 per cent rise in sales to Chinese tourists in the first quarter of 2011, boosted by the installation of UnionPay terminals.
NAB launched an advertising campaign recently spruiking its partnership with UnionPay in an effort to cash in on its soon-to-end monopoly relationship with the Chinese company.
Frequently Asked Questions about this Article…
David Jones has started accepting China UnionPay cards to tap into growing Chinese tourist spending. The retailer already earns a significant portion of its luxury-goods revenue from Chinese visitors and plans to hire more Mandarin-speaking staff to better serve this cashed-up customer segment.
More than 700,000 UnionPay card users visited Australia last year, collectively spending billions on goods and services. Tourism Australia reported Chinese visitors spent about $4.2 billion in Australia last year, up 12% on 2011 figures.
China UnionPay chairman Su Ning said the total value of UnionPay card transactions in Australia rose 45% in the first four months of the year and he expects it to double by year-end, reaching about 4.6 billion yuan (roughly $770 million).
Only about 12% of Australian businesses accepted UnionPay cards at the time of the article, but UnionPay expects that figure could rise to around 40% now that the Commonwealth Bank has come on board.
Yes — industry experience suggests it does. Commonwealth Bank executives noted UnionPay acceptance can drive noticeable sales increases, and luxury retailer Harrods recorded a 40% rise in sales to Chinese tourists after installing UnionPay terminals.
The Commonwealth Bank signed an agreement to allow UnionPay users to access its ATMs and merchant network, a move UnionPay expects will help increase merchant acceptance and drive more card transactions in Australia.
About 10% of David Jones' sales staff reportedly speak Mandarin, and the retailer plans to hire additional Mandarin-speaking staff to better cater to the growing number of Chinese tourists and shoppers.
NAB launched an advertising campaign promoting its partnership with UnionPay to capitalise on the opportunity as its monopoly relationship with UnionPay was coming to an end, while other banks and merchants are moving to increase UnionPay acceptance.
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