Embed Size (px)
Citation preview
HSU’S GINSENGWill Hsu
Wisconsin International Trade ConferenceMilwaukee, WisconsinMay 9, 2018
Hsu’s Ginseng At A Glance
• Founded in 1974 by Paul & Sharon Hsu as a ginseng retailer
• Family- and minority-owned business headquartered in Wausau, WI
• Ginseng industry leader vertically-integrated from farm to retail
• On a multi-year plan to improve internal systems, infrastructure and technology
• Niche focus on emerging foreign and developed N American markets with affluent ethnic Chinese, Mandarin speakers and Chinese influencers
It started with a letter…
1972 1974 1976
1980 1995
400 employees globally, over 100 in N. America
Hsu’s Ginseng Enterprises, Inc.Hsu Ginseng Farm LLP
San Francisco Branch
Vancouver Branch
Los Angeles Branch
Houston Branch
Toronto Branch
New York Branch
Wisconsin Hsu’s (Nanjing) Zhangjiagang Free Trade
Zone Root to Health
Health Supplement Unlimited Ltd. (Taiwan)
Hsu’s Enterprises Ltd (Hong Kong)
Hsu’s Guangzhou Branch
Where We Are Today
Hsu’s FlywheelFarming/Sourcing
Processing/Packaging
Branding/Marketing
Sales/E-Commerce
Distribution/Delivery
Farming Information
Inventory Data
Customer Data
Sales & E-Com Data
Geographic Data
Hsu’s Ginseng Facts & Figures• USD $30 million in N American sales for most recent year
• 40% direct to consumer retail and e-commerce• 40% wholesale and distribution to 3rd party bricks & mortar stores• 20% export and food & beverage ingredient sales
• About 65 employees in NA with most located in Wisconsin• Global supply chain and local retail order fulfillment
Hsu Ginseng Farms Facts & Figures• Started with Paul’s first 160 acre ginseng farm in 1978• Consistently one of the top two largest ginseng farming
operations in the US with 1,000 acres of farmland• Harvests over 100,000 pounds of dried ginseng annually• Multiple farms spread
around the Wausau area• Uses virgin soil that has
never had ginseng crops• Employs 25 full-time and
25 seasonal full-time plus dailyhired day-laborer crews during peak seasonality
Recent www.hsuginseng.com Stats• 30K – 50K visitors monthly, conversion rate = 6%
• 11% conversion on desktop / 2% on mobile / 4% on tablet• 33% Direct / 29% Redirect / 23% Search / 8% Paid Search• Average session duration is 5 mins, Bounce Rate = 36%
• Average 250K page views per month, 32% in Chinese• Page views: 45% Mobile / 37% Desktop / 16% Tablet• Revenue stream: 73% Desktop / 16% Mobile / 10% Tablet
• Most users visit on Tuesdays/Wednesdays after 5PM CT• Email preferred customer database is 100K names
• Open rate of mass email is 12%, click through rate is 6%• Shipping an average of 150 packages per business day
Where We Were & Where We’re Going
1974 – 2011
• “Differentiated Product”• Only from Wisconsin• Only available from our
company, our website, or through our distributors
• Unique products and packaging configurations
• Luxury good for gift giving and special occasions
2017 and Beyond
• “Product Management”• Our brand story• Experiences, feelings and
emotions with buying direct from our farm
• Accessibility and usability of multiple online stores, channels and platforms
• Luxury good for all occasions and self-use
Where We Were & Where We’re Going
1974 – 2011
• Print Catalog• TV Advertising• Weekly Marketing Emails• Banner Ads
• Phone customer service on 1-800 line
• Self-service online via www.hsuginseng.com
2017 and Beyond
• Digital product catalogs • Online product demo and
video support• WeChat marketing,
groups and stores• Cellphone and VOIP
customer service• Live video streaming
sales for products online
Where We Were & Where We’re Going
1974 – 2011 2017 and Beyond
Where We Were & Where We’re Going
1974 – 2011 2017 and Beyond
The Future of Hsu’s and E-commerce• Technological shift and competition is swift
• US market is already behind as compared to the mobile readiness in China and Chinese consumer demands
• Mainland Chinese customers, tourists, students, visitors and immigrants are adopting US products and brands
• US products still viewed as high quality, worth the price
• Problem is now how to reach the consumer, using what media, on what platforms and logistical feasibility
Keys to Success• Management transition required and allowed for change
to happen from top-down and bottom-up
• Customers initially incentivized to change behavior and move online via promotions, discounts and frequency
• Invested time, people and money in new marketing, systems, technology and hardware to ease the pain
• Internal and external marketing focus shifted from products and sales to Product Management
The Future of Retail Today
Mistakes Made in the USA• Internal inventory and accounting systems needed to be
overhauled to meet dynamics of 24-hour e-commerce
• Online product sales around promotional periods are lumpy, staffing is steady and people want to work 9-5 M-F
• Network infrastructure and technology wasn’t upgraded to handle all the ancillary needs of e-commerce growth
• Data, network security, social media marketing and PCI compliance become full-time, round-the-clock jobs
Retail & E-Commerce Tomorrow• Seamless transactions that reduce consumer pain points,
• Omni-channel strategies that customize product and marketing to individuals – mass customization
• Transaction security and benefits of block-chain for high value or transactions that require product traceability
• It is not about selection (products) it’s about data (product management), don’t try to beat Amazon or Wal-Mart!
• How are you measuring success?
Will Hsu (許恩偉)• VP of Operations
Hsu’s Ginseng Ent., Inc.• Farmer & Partner
Hsu Ginseng Farms LLP• Owner
Hsu Global Distribution LLC
E-mail: [email protected]: @wphsuWeChat: willhsuginseng
Q & A
