Wandering China

An East/West pulse of China's fourth rise from down under.

GST pushes Myer online to China [The Age]

GST pushes Myer online to China
Eli Greenblat
Source – The Age, published December 3, 2010

Myer is working on an international retailing website that will sell goods to Australian customers, shipping them from a warehouse in Shenzhen in southern China to avoid the GST and make Myer more competitive.

At a business lunch in Melbourne today, Myer chief executive Bernie Brookes said the company was working on the website, which would be up and running in February.

Mr Brookes said the company was creating the new site out of frustration over a lack of action from the federal government over GST-free shopping online.

Retailers, including Harvey Norman’s Gerry Harvey, have called for the current $1000 GST-free threshold to be lowered to curb shoppers buying online from overseas suppliers.

Mr Brookes revealed that he wrote to Treasurer Wayne Swan four weeks ago to raise the retail and tax issue with him but to date had not received a reply.

Myer is the biggest department store operator in Australia.

Mr Brookes said local retailers had to find a way to counter the competitive threat from overseas.

”If we can’t beat them, we’ll join them,” Mr Brookes said.

Myer’s Chinese-based website will source products from the company’s factory hub in Shenzhen and will use China Post and Australia Post for distribution.

Mr Brookes warned that if the Myer website proved successful, he believed other retailers such as Woolworths would follow and create their own sites, further eroding GST revenue for the government.

Last week, Harvey Norman executive chairman Gerry Harvey called on the federal government to scrap the GST-free threshold on goods bought from overseas for less than $1000.

The recent strength of the Australian dollar has encouraged a surge in online purchases, with Australians able to get more for their money than at time of weakness in the local currency.

And the latest move comes after shocking retail trade data released by the Australian Bureau of Statistics yesterday.

The figures showed retail trade had fallen 1.1 per cent in October – a much worse result than the 0.4 per cent rise that experts had expected.

Mr Brookes said that ultimately a shift by the retail sector to overseas online sites could cost jobs but, at this stage, the Myer-planned China website would only affect its warehouse and logistics operations. Job numbers would not be affected at this stage, he said.



Filed under: Australia, Chinese Model, Economics, International Relations, The Age, Trade

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 2,575 other followers

East/West headlines of Rising China

East/West headlines of Rising China

About Wandering China

Click to find out more about this project

Support //WC

Support Wandering China now - buy a Tee Shirt!

Be a champ - Support Wandering China - buy a Tee Shirt!

The East Wind Wave

China in images and infographics, by Wandering China

China in images and Infographics, by Wandering China

Wandering China: Facing west

Please click to access video

Travels in China's northwest and southwest

Wandering Taiwan

Wandering Taiwan: reflections of my travels in the democratic Republic of China

Wandering China, Resounding Deng Slideshow

Click here to view the Wandering China, Resounding Deng Slideshow

Slideshow reflection on Deng Xiaoping's UN General Assembly speech in 1974. Based on photos of my travels in China 2011.

East Asia Geographic Timelapse

Click here to view the East Asia Geographic Timelapse

A collaboration with my brother: Comparing East Asia's rural and urban landscapes through time-lapse photography.

Wandering Planets

Creative Commons License
Wandering China by Bob Tan is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.
Based on a work at Wanderingchina.org. Thank you for visiting //
web stats

Flag Counter

free counters
Online Marketing
Add blog to our directory.
%d bloggers like this: