connecting sa businesses to chinese international...

CONNECTING SA BUSINESSES

TO CHINESE INTERNATIONAL

STUDENTSDECEMBER 2017

CONNECTING SOUTH AUSTRALIAN BUSINESSES TO CHINESE INTERNATIONAL STUDENTS | 2

PurposeThe aim of this discussion paper is threefold. First and foremost, we want more South Australian businesses to recognise the value of Chinese international students to the South Australian economy. Second, we want to demonstrate that South Australian businesses can grow by connecting with these students. Finally, we want to show how South Australian businesses can connect with students, for the benefit of the students, the business, and the broader South Australian economy. We also propose two specific actions to support these aims.

AcknowledgementsThis paper summarises the key findings of two years of research and consultation, undertaken by the Education Committee of the Australia China Business Council (South Australia) (ACBC SA). Committee members are Peter Tsokas (Chair), Mobo Gao, David Powell, Bob Shepherd and Geoff Upton.

The Committee thanks our partner StudyAdelaide, whose research and engagement with South Australia’s existing international student community helped us to understand what makes students decide to study here, and what the State can do to improve their experience and their opportunities for advancement. The research does not canvas the breadth of South Australia’s international education offerings, nor the broader, less tangible cross-cultural benefits South Australia derives from a vibrant and engaged Chinese international student body.

We also extend our appreciation to the people and businesses featured in our case studies, who provided valuable insights.

ACBC SA builds stronger business relationships between South Australia and China. We host and support over thirty events and initiatives each year, seeking to bring members the best market intelligence and business education opportunities, and to connect members with potential collaborators and trading partners linked to the fast-growing China market. We work closely with governments, regional and industry bodies, and the SME sector to support the South Australian Government’s China Engagement Strategy, and to help businesses to enter the China market in a structured and supported way.

SummaryChinese international students are an immense asset to South Australia. International education is our State’s second largest export, worth $1.5 billion and supporting over 7,500 jobs. 43 percent of South Australia’s international students are from China, hitting well above the national average of 29 percent. Full year enrolments for 2017 are expected to reach more than 15,000 students.

To grow our economic relationship with China, we must also grow our State’s capability and resources in engaging with China. The potential flow on benefits of these students to trade, investment, tourism, construction, agribusiness and real estate are huge, but are significantly under-valued and under-utilised by the business community.

In this paper, we describe cases where Chinese students have used their language and cultural competencies, their knowledge and their networks to achieve incredible outcomes for their South Australian employers. These cases are not common enough – and not for lack of talent from the students. Some businesses have told us that they don’t know where to start with employing a student intern or graduate – and they are the few that already recognise the opportunity.

What Chinese education consumers want is changing. It’s broader than just the degree. It’s about having an enriching experience, and it’s about advancement – advancement in knowledge, capability, status, and job prospects. Our businesses must do more to support our education providers to match these consumer needs.

To the extent that South Australian education providers do have a differentiated proposition – including that we offer a world class education, in a more affordable, safer, quieter and easier place to live than other markets – this proposition is vulnerable. Consumers are increasingly prioritising experience and advancement from their international education investment.

There needs to be a stronger and more tangible connection between students and industry if we are to realise the full – and so far, largely untapped – flow-on benefits of Chinese international students to our business community and our State’s economy.

To support this, ACBC proposes to work with StudyAdelaide, education providers, local government and industry to pursue three specific actions that will improve advancement opportunities for Chinese international students.


MigrationOverseas migration is our largest source of population growth,

and 80-90% of eligible graduates apply for permanent

residency.

EducationInternational

education is SA’s fourth largest export, worth

$1.5B and 7,500+ jobs. 43% of those students

are from China.

The opportunity for businessChinese students are an immense asset to South Australia

15,000+ CHINESE

STUDENTS

ConsumptionOver half of each

student’s export value is the goods and

services consumed during their studies –

almost $500M in total.

Tourism64% of Chinese

alumni return to SA as tourists within 5 years, bringing in $70M/year.

Visits from parents contribute another

$6M/year.

ExportsAs the case studies in this report attest,

students bring a wealth of knowledge and skills to help our businesses

export to China.

Property15% of Chinese

students in Australia buy property,

with a median price of $700K.


Hanson Lin arrived in Adelaide in 2005 to study a Bachelor of Commerce as an international student at Uni SA, along with his migrant family.

When he finished his degree, Hanson started working in his family’s property development company. He worked closely with the professional and construction teams engaged on their $60 million serviced apartment project, Vision on Morphett, contributing to its successful completion.

Now, Hanson is running the family business in Adelaide, with more large developments in the pipeline, including a 39-storey mixed-used complex currently under concept planning. Hanson also continues to develop shorter-term real estate projects each year, valued at between $6 million and $20 million each.

Hanson is a typical example of a Chinese international student from a reasonably well-off family. He arrived in Adelaide with little support, experience or connections, but used his entrepreneurial drive to build industry connections and make a significant contribution to our economy.

Hanson Lin, Managing Director at China Australia Property Development Group


Businesses already exporting, or looking to, don’t have to go to China to market test a new product or service. They can turn to the seriously under-utilised resource of Chinese students right here in Adelaide instead. These students possess a wealth of knowledge on what Chinese people want and need, on their preferences

for taste, branding and packaging, and about what marketing messages will appeal to Chinese consumers. What’s more, students can be employed by businesses to translate marketing materials and sell directly to their networks.

Hahndorf – 德国小镇 or ‘German Village’ – is by far the most popular destination for Chinese students in Adelaide. It’s close to the CBD, but the major drawcard is the iconic pork knuckle at Hahndorf Inn.

This travel tip was the first Jack Chen received from classmates when he arrived in 2012 to complete his economics degree. He became a regular customer. After graduating with a Bachelor, Jack stayed on to gain a Masters in Commerce, majoring in marketing.

In July 2016, a marketing role came up at Hahndorf Inn. Jack jumped at the chance to apply. Starting off as a casual, he was promoted to permanent full-time within three months in recognition of his marketing, social media and sales achievements.

In just over a year, subscribers on all Hahndorf Inn’s social media accounts have increased by over 200 percent. Sales to business buyers have increased by 59 percent. Hahndorf Inn secured a deal to become China Southern’s first affiliated partner in South Australia.

Earlier this year, in the biggest incentive tourism deal in South Australian history, 3,000 employees of Perfect China Company descended on Hahndorf over six days to get a taste of the signature crispy pork knuckle. To support the event, Jack collaborated with other China-tourism-ready businesses to create a Chinese map for visitors.

Jack says he is just one typical example of a South Australian graduate from China – responsible, hard-working, and appreciative of the opportunity to work in South Australia.

Students are the Chinese market, right here, on the ground

Jack Chen, Marketing Officer at Hahndorf Inn

6

Students develop a taste for our products and want more of them when they get home. Each student has a massive network behind them that reaches back into China – they act as ambassadors within their network for our products.

But more than that, Chinese students bring to our State a much-welcomed increase in knowledge of our largest trading partner, as well as valuable people-to-people links that can lead to business partnerships and gateways allowing penetration into the Chinese market.

A few years ago, Wines by Geoff Hardy recognised the China opportunity, and CEO Richard Dolan made two exploratory visits. But with little understanding of the market and the culture, he was not successful sales-wise. So he decided to employ Yuan Yuan – a recent Masters of Wine Business graduate from Adelaide University – for a short-term contract.

In just three months, Yuan responded to inbound enquiries, translated tasting notes and marketing materials, and generated enough leads to create a full-time position for herself as Export Manager. Wines by Geoff Hardy soon got their big break.

After some good sales, driven by Yuan’s excellent customer service, the company landed a deal with a trustworthy distributor.

The company’s total exports have expanded almost ten-fold in the last five years, with 81 percent growth in 2017 alone. The China market now accounts for 36 percent of their total revenue. They have also opened new markets in India, Finland, Sweden, UK, Hong Kong and Canada, with plans to expand into Peru, the Philippines, Indonesia and Taiwan.

In November 2017, Wines by Geoff Hardy was named Australian Exporter of the Year at the Optus My Business Awards. According to Richard, the award demonstrated that the benefits to business of recruiting international students “cannot be underestimated.”

Students are an export channel we cannot ignore

Yuan Yuan, Export Manager at Wines by Geoff Hardy


The risks of inaction

Students have options, and will choose one with advancement opportunities. Just getting a degree from an Australian university is no longer enough. Families making the significant investment in an international education – typically upwards of $300,000 over four years – expect their child to come out of it on a fast track to a cracking career. They expect advancement in knowledge, capability, status, and job prospects.

Our ability as a State to provide these opportunities extends far beyond the lecture theatre walls. These opportunities come from positive attitudes of locals, from inclusive community and sporting groups, and from businesses that embrace these students and give them opportunities to contribute their valuable skills and knowledge.

Students’ experiences here filter back to home.As consumers expect more from their investment in international education, a failure to meet these expectations risks reputational damage for more than just the education provider.

Word of mouth is a double-edged sword – it could be a powerful asset or a damaging weapon. If students have a great experience in South Australia, and tangibly improve their advancement, they will build our capacity to attract more students, more tourists, and more trade and investment. If they have a bad experience, however, they could cause irreparable damage to our brand, with far-reaching impacts to our reputation as a tourism destination and a trustworthy trading partner.

There is growing commentary questioning the value of an Australian education, relative to other options to pursue their advancement. Australia currently attracts 12 percent of China’s international student market share, led only by the US and UK, but ranks only equal fifth on the charts of preferred international education destinations. One in five Chinese families nominated Australia as a preferred international education destination – a long way behind the leader, United States, with four in five.

South Australia has historically been in high demand for education because it is close to China, affordable, and home to world-class universities. Meanwhile, there has been an increase in high-class international education offerings in other nations, including in China, resulting in a highly competitive environment for international education.

Industry has a major role to play in positioning South Australia as a competitive international education destination, by embracing these students and offering mutually beneficial advancement opportunities.


In 2016, StudyAdelaide and ACBC SA partnered to conduct one-on-one, qualitative interviews in Mandarin with South Australia’s existing Chinese international student community. This research has helped us to understand what makes students decide to study here, and what the State can do to improve their experience and their opportunities for advancement.

Most students had never heard of Adelaide before researching education destinations, or upon recommendation by their study abroad agent, family or friends.

The biggest difficulties faced by students were coming to terms with the English language, and making local connections to integrate into their new life here.

The most resounding recommendation from these in-depth interviews was for the State to provide better careers support. Industry needs to be more effectively connected with international students, on an institutional level, and in a supported and structured manner. If this were our point of difference, it would represent a significant differential advantage.

The current Adelaide offering

Why students are choosing Adelaide now

Lifestyle good for studying Small Quiet Peaceful Slow-paced

Job prospects Under-developed city Good salaries Less competition from Chinese people

Affordable Low living costs Comparatively lower tuition fees

Permanent Residency Easier to obtain than in Sydney or Melbourne

Liveable Clean Scenic Convenient

Universities Specific degrees on offer Group of eight university

Student insights

“(My agency) said that Adelaide was a good place to find a job, a better chance to obtain Permanent

Residency, and there are a lot of opportunities

because Adelaide is still a developing city.”

“I chose Adelaide because there are

less Chinese people (than interstate) and

so more opportunities for my English. The

lifestyle is better too!”

“Adelaide wasn’t my first choice

but my parents made the decision based on

all the materials presented to them

by the agent.”


Chinese international education consumers increasingly expect a more enriching experience, as well as tangible advancement in knowledge, capability, status, and job prospects.

Our Chinese international students need more inter-cultural engagement opportunities and support, they need to be introduced to networks that can benefit their development and employment prospects, they need quality, structured work experience programs, and they need to be in the best possible position to find employment or start a business after they graduate.

The success of our international student industry is critical for our tourism growth, for property growth, and for growth of our food and wines industries. We must therefore focus our attention on improving our experience and advancement offerings for students.

OrientationChinese students are generally young and inexperienced travellers who are suddenly expected to be completely independent, with an English competency ranging from only low to moderate. The better-equipped students are when they arrive, the better their overall experience will to be. It is vital that the information given to Chinese students prior to arrival is accurate, and that the first impression and orientation upon entering Australia is on point. There is an opportunity for education, transport and accommodation service providers to contribute to this, including through development of foundation courses, homestay options, and improved in-language public transport information.

NetworksWe need to build more people-to-people connections, and deeper intercultural and interpersonal relationships, to realise the depth of the opportunity from the dominant player in the Asian market. There is clear demand from Chinese students, too, for structured opportunities to connect with locals, so they can form friendships and tap into business and employment opportunities. There is a role for industry to play

in preparing for and actively seeking out such connections.

It goes without saying that support networks can also vastly improve the quality of life of Chinese students. Some students are facing their difficulties head-on by putting themselves out into the community, but others are less

confident and need more support to integrate with local society and prepare for their career post-graduation. There is an opportunity for local community, religious and sporting groups to better share their offerings with the substantial Chinese student population.

Offering a great experience and tangible advancement

“I don’t think I was as prepared compared to my classmates. I didn’t

understand the education system and programs on offer

that well. Also my language level was not good enough.”

“I volunteer for the Burnside City Council as a member of their

Youth Committee and one event I enjoyed being involved with

was the Battle of the Bands. The people there are friendly even

though I was scared my English wasn’t good enough.”

“I found it difficult to make friends with locals

so I started going to the pub and have since made four good, local

Aussie friends”

L-R: Keren Wu, Tianxiang Wei and Aaron Duff


EmploymentChinese students are disadvantaged from the get-go in finding a job in South Australia – whether due to a lack of the required English language capabilities or cultural capabilities, fewer local connections, visa restrictions, or unfamiliarity with the Australian job-finding process. Students have been exposed to even more disheartening situations, like local companies looking for graduating students as potential staff or interns, but expressly stating they want local students only.

To help them secure employment, students have suggested that South Australia could distribute information on suitable opportunities, offer more career services and professional development support from universities, and host tailored and cross-industry career fairs akin to those organised in China. Given that all three universities have a number of dedicated career services staff and programs, part of the solution may be improving how they are promoting to and servicing the needs of Chinese international students.

There is a huge opportunity here for industry to connect with universities to deliver curated, quality work experience against a structured program that delivers demonstrable skills and experience for the students, as well as the growth of local businesses. This opportunity should not be limited to private enterprise. Our 68 local councils undertake 170 different services suitable for work experience opportunities, including engineering, planning, finance, IT, marketing, and economic development. Local councils could be ideal environments for developing both career prospects and local connections for Chinese international students.

TourismWith many Chinese students not owning a car or having limited understanding of places to visit outside of Adelaide, coordinated regional day or weekend trips would not only increase their knowledge of and affinity for the State, but also grow South Australia’s brand within China through students sharing their unique experiences via the extremely influential channel of personal recommendation. Students have identified that such trips, organised for both international and domestic students, would also help them to cement person-to-person relationships with locals.

“A lot of us students don’t have a car and so weekends can be quite boring. I wish there were more excursions organised and

with local students too.”

To express your interest in joining this conversation, or to find out how we can help you, contact us today.

Level 15, 45 Pirie Street Adelaide SA 5000

+61 8 8210 1252

[email protected]

Our research uncovered a number of opportunities for universities and other education providers to improve their offering to Chinese international students. However, in this paper we focus on what South Australian businesses, governments and community organisations can do, beyond the university walls, to enrich the experiences and advancement opportunities for these students.

To differentiate the South Australian education offering, ACBC SA will work with StudyAdelaide, international education providers, the Local Government Association of South Australia, and industry stakeholders to:

1. Bring a more informed and engaged business community to the table.

To support a more rounded engagement between Chinese international students and South Australian businesses, governments and community organisations, ACBC SA will work to foster stakeholder engagement with international education providers, to raise awareness of the opportunities Chinese international students present, and to educate stakeholders on how best to connect with and work with these students.

2. Make it easier for businesses to manage work experience placements.

ACBC SA will work with industry and education providers to develop a structured, off the shelf work experience program for businesses to use with Chinese international students.

3. Develop a pilot program offering graduate internships in local government.

The City of Unley is willing to initiate a pilot graduate internship program that would give Chinese international students career development opportunities following graduation, in fields such as engineering, planning, finance, IT and marketing. Should the pilot prove successful, we would seek to expand the program throughout South Australia’s 68 local councils, in partnership with the Local Government Association of South Australia.

Proposal for action

This report is prepared solely for the internal use of the Australia China Business Council. It is not intended to and should not be used or relied upon by any person and we accept no duty of care to any other person or entity.

mailto:[email protected]

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