WCA eCommerce Workshop 5: China cross-border e-commence market introduction and solutions

China - Cross-Border E-commence Market Introduction and Solutions

Present by: Mr. James Tsang-U-Speed

30th June – 2nd July 2017

1st ANNUAL CONFERENCE

HYATT REGENCY MIAMI

400 South East Second Avenue

Florida USA

CONTENTS

The China E-Commerce Market Overview of 2017

In-Bound E-Commerce Statues

Who are we?

Out-Bound E-Commerce Statues

The Domestics & Int’l Player in China

One Belt & One Road

Part I- The China E-Commerce Market Overview of 2017

Cross -Border E-commence statues from 2013-2016

Part I - Cross -Border E-commence statues from 2013-2016

In recent years, the China E-Commerce is growing

very fast and strong. It created the new sales turn

over record every year.

Currency : USD billion

Turn Over - Import VS Export

Year Import Export

VSTurn Over Turn Over

2012 31.3 232.5 7.4 :1

2013 46.9 279.0 5.8: 1

2014 82.3 405.0 4.9: 1

2015 174.2 535.5 3.1: 1

2016 323.3 810.0 2.5: 1

Import Cross-Border

transaction , 2012, 31.3

Import Cross-Border


Import Cross-Border


Import Cross-Border


Import Cross-Border


Export Cross-Border


Export Cross-Border

transaction , 2013, 279

Export Cross-Border

transaction , 2014, 405

Export Cross-Border


Export Cross-Border

transaction , 2016, 810Cross -Border Transaction Import VS Export

Import Cross-Border transaction Export Cross-Border transaction

The ongoing ‘Belt and Road’ was the development plan from China GOV on 2013. It will make future-oriented plans for

cooperation and push forward the construction of the routes on a new starting point.

In this economic corridor, trade between China and countries along the route reached US $1.12 trillion in 2014, accounting for a

quarter of our total trade in goods. Over the next decade, that number will double to US $2.5 trillion in 2016 and the B&R

benefit a lot to Cross Border E-Commerce.

Part Ⅰ- One Belt & One Road

The Chinese background Express companies has very good set up, network, well experience and knowledge in China.

They control the domestics E-Commerce delivery in China but weak in Int’l delivery.

The Global Int’l companies has the strong network and they are controlling the Int’l market in China.

Part I – The China Domestics & Int’l Players in China

China Local Player Global Int’l Player

In-Bound Market Statues

In-Bond Cross Border Future Development

Part Ⅱ- In-Bound E-Commerce Statues

In-Bond Cross-Boarder E-Commence Solutions

Affected by the policy, the in-bond E-

commerce imports in 2015 retail electricity

market ushered in the explosive growth and re-

fresh the sales turn over record last 6 years.

Part Ⅱ- In-Bond Market Statues

Currency: USD billion

Import Cross-Border transaction ,

2012, 31.3


2013, 47.9


2014, 82.2


2015, 174.2


2016, 323.3

Import Cross-Border transaction,

2017, 502.0

Import Cross-Border transaction,

2018, 773.6

20.10%

53% 60%

111.90%

85.6%55.30%

54.10%

7.40%

7.30% 8.60%

13.20%

19%

23.20%

27.90%

2012-2018 China import cross-border E-commence supplier transactions

Scale and growth rate

Import Cross-Border transaction Growth Rate proportion

Import Turn Over - % of Growth

Year USD / B %

2013 47.9 53.0%

2014 82.2 60.0%

2015 174.2 111.9%

2016 323.3 85.6%

2017e 502.0 55.3%

2018e 773.6 54.1%

Series1, Dress shoes

Bags , 33.48%, 34%

Series1, Health

products, 10.30%,

10%Series1,

Toy

stationery,

7.42%,

8%Series1, Mother and

baby, 6.45%, 7%Series1, Makeup,

4%, 4%

Series1, Wrist Watch,

2.25%, 2%

Series1, Electronic

product, 2.06%, 2%

Series1, Cleaning

care, 1.23%, 1%

Series1, others ,

32.18%, 32%

China Sea Amoy commodity distribution

Dress shoes Bags

Health products

Toy stationery

Mother and baby

Makeup

Wrist Watch

Electronic product

Cleaning care

others

Dress shoes bags

The Young generation ‘age of 25-30’ (39.7%) are the major buyer, the Dress, Shoes and Bags (33.48%) are the top 1 selling item

in In-Bond E-Commerce in China.

Part Ⅱ- Statues: Major Commodities and Consumers

Series1, Under 18,

0.60%

Series1, 19-24 years

old, 15.70%


old , 39.70%


old , 25.30%


old, 10.90%


old , 6.80%

Series1, 51 years

old and above,

1.10%

The proportion of Sea Amoy in China of

2016

Part Ⅱ- Statues: Major E-commence Import Countries and Sales Platform

Top 5 Counties selling to China OF 2016

Ranking Country

No 1 USA

No 2 Germany

No 3 Japan

No 4 Korea

No 5 Australia & New Zealand

The Chinese Consumer is buying the goods through Cross-border

channel because of the product quality and the lower price.

Part Ⅱ - In-Bond Cross-Boarder E-Commence Solutions

Mode Category

After tax reform The limit of

tariff

exemptiontariffValue added

taxExcise tax

Direct mail (invoice to clear the Custom)

Shoes, bags, Digital, Mother

and Baby, Health products,

Daily Necessities

15.0% 0 0 $49.9 / parcel

Clothes & Accessories, textiles,

Household electrical appliances30.0% 0 0 $24.9 / parcel

Cosmetics 60.0% 0 0 $12.45 / parcel

B2C Bonded W.H (Receiver ID copy, Payment

confirmation and order

confirmation to clear the

Custom )

Shoes, bags, Digital, Mother

and Baby, Health products,

Daily Necessities

0 11.90% 0

Tariff free，Levy VAT

Clothes & Accessories, textiles,

Household electrical appliances0 11.90% 0

Cosmetics(Skin care &

Personal care)0 11.90% 0

Other cosmetics 0 11.90% 21.0%

* Every Chinese Cities have RMB20,000 (USD2,940) purchase budget per annual.

Part Ⅱ- In-Bond Cross Border Future Development

In-Bond Cross-border will demand the high

quality product

In-Bond Cross-border online shopping’s

consumers will be younger.

Set up overseas warehouses

Improve cross border logistics IT system

Self -support

Platform

Com

preh

ensiv

e

Vertical

The ‘key’ of success

Out-Bond Market Statues

Out-Bond Cross Border Future Development

Part Ⅲ- Out-Bound E-Commerce Statues

Cross-Border E-Commence Logistics Solutions

Since 2015, export cross-border with rapid

development of B2B, the current market

about 810.0 Billion and it keeps creating

the new record very year.

Part III - Out-Bond Market Statues

Currency: USD billion

Export Turn Over - % of Growth

Year USD / B %

2012 279.0 20.0%

2013 405.0 45.0%

2014 535.5 32.2%

2015 675.0 26.0%

2016 810.0 20.0%

Transaction

scale, 2011,

232.5

Transaction

scale, 2012,

279

Transaction

scale, 2013,

405

Transaction

scale, 2014,

535.5

Transaction

scale, 2015,

675

Transaction

scale, 2016,

810

The Out-Bond sales Turn Over from 2011-2016

2011 2012 2013 2014 2015 2016

Part III - Statues: Major E-commence Export Commodities and Countries

Series1,

3C Electronic product,

41.20%, 41%

Series1, Clothing , 11.80%,

12%Series1, Outdoor products,

8.10%, 8%

Series1, Heleath & Beauty,

7.90%, 8%

Series1, Jewelry, 6.20%,

6%

Series1, Home gardening ,

5.00%, 5%

Series1, shoes bags, 4.50%,

5%

Series1, mother & baby su

pplies, 3.90%, 4%

Series1, Auto parts, 3.50%,

5%

Series1, Lighting, 3.10%,

3%

Series1, safety monitoring,

2.30%, 2% Series1, other, 2.50%, 4%

3C Electronic product Clothing Outdoor products

Heleath & Beauty Jewelry Home gardening

shoes bags mother & baby supplies Auto parts

Lighting safety monitoring other

3C Electronic product

Series1, USA, 16.90%

Series1, EU, 15.50%

Series1, ASEAN,

11.30%

Series1, JAPAN, 6.80%

Series1, KOREA, 4.20%

Series1, RUSSIA, 2.70%

Series1, INDIA, 1.80%

Regional export structure of cross-border

electricity supplier in 2016 (USD 810 Billion)

Part III - Statues: Export Sales platform in China and Abroad

E-commence Cross-Border Platform in China Abroad Platform

Souq - Middle East (Amazon)

Lazada - Southeast Asia (Alibaba)

Newegg - U.S.A

Rakuten.com - Japan

Bestbuy - U.S.A

Tesco - U.K

乐天Play.com - Korea

La Redoute - France

MercadoLivre - Brazil

Trade Me - New Zealand

Ozon - Russia

Otto - Germany

Jumia - Africa

Gmarket - Korea

Sears - U.S.A

Part III - Cross-boarder E-Commence Solutions

There many Export E-Commerce Logistics solution in China. But, most of the China customers will go under the goods

value to avoid the TAX and VAT in destination.

Mode Operation Advantage Dis-advantage

Overseas DC / FBA Seller – Overseas DC - Buyer Improve logistic

efficiency & T/Time IT System

Third Party Logistics Seller – Des Agent –Buyer Very Competitive Non-Brand /Less Confident /

longer T/Time

Commercial Courier

Service Seller – CCS - Buyer Faster T/T High Cost

EMS/ POST Seller - EMS/POST - Buyer Competitive for below

2.0KG Long T/Time

Part III – Out-Bond Future Development

South America

Middle East

India

China

Africa

Russian

India

South Africa

Israel

Brazil

Australia

Australia

From the stock point of view, it is clear that Europe and America mainstream market is still the main force of the

industry; but from an incremental point of view, the development of emerging markets is much higher than

Europe and the United States.

U-Speed Service Scope

Part Ⅳ- Who are we?

Who are we?

Questions & Answers

Part Ⅳ - Who we are?

U-Speed was established in HK in 2015 and fully own by Unitex Group

(www.unitexlogistics.com) in China. Unitex Group have 12 Branches

office with 800 staffs working in China.

U-Speed is specialize on the E-Commerce & Express logistics

development in China. We provides a wide range of services for

customers and businesses worldwide. Through our mutual competition

and coordination management mode of operation, and meet the needs of

customers and the community, the customers become the most respected

and most reliable Int’l Express delivery companies.www.u-speedex.com.hk

http://www.unitexlogistics.com/

http://www.unitexlogistics.com/

Part Ⅳ - U-Speed Structure

Hong Kong - HQ

SHA - Corp office

Branch Office SHA Corp Team SZX Warehouse Hub

SHA Office

SZX Office

Yiwu Office

Product Designer

System & IT Team

Int’l C.S Team

OP Team

C.S Team

Part Ⅳ - U-Speed Service Scope

U-Speed has both In-Bond and Out-Bond E-commerce logistics service in China .

Out-Bond Service Scope:

FBA Service

China Warehouse

Own Courier Service to Israel

Master Contract with FedEx

In-Bond Service Scope:

BC Bonded Warehouse

Hong Kong Warehouse

Direct mail

Part Ⅳ - IT System

System Support Model

Complete Express logistics process controlmanagement Provide telephone schedulingTo provide more than 1000 domestic network insingle check and support. Offer a packaged airfreight - process control management

1

Rich phone text function supportSupport customer text query Courier informationProvide the express mail to send the abnormalsituation and delivery notice

Demo Account：http://hi.neoman.cn/Account： test Password : 1234

2

3

IETMS： Int’l Express Transportation Management System

http://hi.neoman.cn/

http://hi.neoman.cn/

Part Ⅳ - Q & A

Name: James Tsang

Title: General Manager

Email: [email protected]

Name: Cherry Yang

Title: Trade Manager

Email: [email protected]

If you have any questions, please feel free to contact us anytime. It will

be our pleasure to assist you in China.

THANK YOU!30th June – 2nd July 2017

1st ANNUAL CONFERENCE

HYATT REGENCY MIAMI

400 South East Second Avenue

Florida USA

Business

WCA eCommerce Workshop 5: China cross-border e-commence market introduction and solutions