MEET JOHN DURASIM · Cross-Border E-Commerce shoppers are in majority around their 30’s, from...
Transcript of MEET JOHN DURASIM · Cross-Border E-Commerce shoppers are in majority around their 30’s, from...
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China New Retail& e-commerce solution
A NEW CONCEPT
WE COMBINE E-COMMERCE AND RETAIL INTO A UNIQUE SOLUTION TO EXPAND YOUR BUSINESS IN CHINA
Services presentation
October 2018
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A n t o i n e R I O N D E TF o u n d e r & C E O
After graduating from university, I moved to different countries, UK
(London), Canada (Toronto), France (Lyon) and Switzerland (Geneva)
and now lives in China since 2014. Here I had the chance to lead
and develop a newly founded French wine retail chain from 2015 to
2017.
My team and I managed to open15 wine shops across China within
18 months, and I soon found out that one of the key reason of this
success: the importance of having a local Chinese partner by your
side and the importance of “Guanxi”, the notion of personal
“network” in business, which is heavily rooted in traditional Chinese
business practices.
With such great field experience and achievement and with the rapid
rise of cross-border and domestic e-commerce due to the thirst of
Chinese consumer for authentic western brands, I realized how
challenging Chinese market could be for foreign brands, but also the
great potential of combining a traditional retail network and
e-commerce solution to bring trust and value to Chinese consumer
and the important of social media to be successful in this crowded
and difficult market.
Electronics engineeringSales & Marketing
Wine certificate (WSET Level 3)
E D U C A T I O N
Looking for open-minded partnersEnsure client’s satisfaction
Must go to the gym more often
D U T I E S
35 years old French entrepreneur
with passion for wine, cooking
and foreign culture
Living in China since 2014
The products are sold in China to Chinese consumer, however the inventory is held outside of China (in a foreign country, in Hong Kong or in Chinese Free Trade Zone) and orders are shipped, custom cleared and delivered to end consumer through specific cross-border channel.
#1: Direct sales model
Certain product category can be pre-registered with Chinese customs and thus, does not require the use of an importer or an import license as long as they comply with cross-border e-commerce regulations and requirements.
#2: No import license required
Cross-Border E-Commerce allows foreign merchants to operate in China remotely. All aspects of a cross-border transaction cycle (promotion, sales platform, payment gateway and currency exchange, shipping, customs clearance and last mile delivery) are operated by local 3rd party as part of a complex chain and business operation can be monitored online.
#3: Operated remotely
CONCEPT
F A B C O C H I N A
Cross-Border E-Commerce:Concept
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Region matters, China being a huge country, traditionallycross-border sales were led by highly developed coastalprovinces such as Beijing, Shanghai, Jiangsu, Zhejiang andGuangdong.
But with the rise of educated middle class in 2nd and 3rd tiercities, as well as limited access to international brands inthese still-developing regions, lower tier cities and regionsoffers a higher growth rate and more opportunities tocross-border e-commerce merchants.
Cross-Border E-Commerce:Chinese market
48.66%
33.72%
27.35%
25.64%
22.17%
12.91%
7.14%
0Guangdong
Shanghai
Beijing
Zhejiang
Guizhou
Gansu
Qinghai
Ningxia
Source: Azoya’s managed retail networks 2017, compared to 2016
Growth of cross-border e-commerce:
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FemalesCross-border shoppers are
predominantly well-educated and financially
independent females seeking products not
available in China
Mobile shoppersA smartphone is often the
first (if not the only) point of access to Internet in China, WeChat social media app
being the most used of all on which Chinese spend a
significant amount of time each day
25 to 34 YoCross-Border E-Commerce
shoppers are in majority around their 30’s, from
middle class and educated
74% 55% 64% 33%
20 – 30 USDTop selling brand’s average pricing in Q2 & Q3 2017,
but the demand for premium to luxury products from Chinese consumer is
increasing in general
Cross-Border E-Commerce:Figures
Source: Azoya’s managed retail networks
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Cross-Border E-Commerce offers great opportunities to foreign brands to sell in China.
However, merchants must comply with Chinese regulation and cultural differences in order to be successful on this highly regulated and competitive market.
Restricted items: Official Cross-Border E-Commercecustoms clearance channels requires products to belisted in a “Positive list” in order to be granted permissionfor customs registration. While some products may notbe specifically on the list and could still be importedthrough cross-border channel, some other items aresimply banned from entering China for health purposeor to protect Chinese domestic market.
Declared value limit: Total value of each parcel cannotexceed 2000 rmb (317 USD), while each Chinese citizencan purchase a maximum of 20 000 rmb per year (3 170USD) through cross-border e-commerce. This limits thevalue of goods being sold in China through cross-border.Cross-border channel isn’t officially suitable for Luxuryproducts and other high-value goods in order to benefitthe tax rebates and customs clearance process.
Cultural differences: China is a very large country with34 provinces and special administrative or autonomousregions, as well as 56 ethnic groups. There isn’t only onemarket in China, but many with different consumerbehavior and expectation. Thus, not all products sold inforeign domestic market will sell well everywhere inChina and merchant should carefully choose theirproducts along with their market entry strategy (whichregion and consumer category they target).
Cross-Border E-Commerce:Restrictions
FABCO China:Our services
Corner Shop & pop-up stores deployingdedicated corner shop within existing retailswith walk-in customers, our solution greatlyfacilitate the acquisition of new consumers forthe brand while providing support to partners.
E-commerce as Chinese online purchaseaccounts for almost 1/3 of total consumption,our solution connects with multiple platformsavailable for both domestic and cross-border.
24/7 online access with our client dashboard tofollow on your business activity (social media,sales analytics, inventory, cash flow and salesnetwork agents monitoring). One single place tosupervise all aspects of your business activity inChina.
On-site consumer experience to bring evenmore value to your clients. Using livestreamingand Virtual Reality technologies, our simpletools allow you to create a strong connectionand unique experience to Chinese consumers.
Retail corner shop & pop-up stores E-commerce
Cloud ERP On-site customer experience
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UNIQUE
WELCOME TONEW RETAIL 2.0
Implementation of an O2O corner shop within existing store (starting from 3 sqm)
32” TV screen with remotely controlled by WiFi to upload new marketing content and hold live streaming sessions.
Keep control of your own distribution network in China and provide remote training and updates to your local partners.
Centralized logistics facility, each partner only keeps a small inventory of products on site for demonstration and testing.
Customizable solution to fit your brand’s image and adapt to your product type and available space.
O2O Corner Shop:Concept
FABCO China:Legal services
Trademark certificatesLogo – English names – Chinese names
Your brand protected in China: our dedicatedlegal team will provide you with all necessarysupport to protect your brand in China andprevent counter factors to use your name andimage for illicit goods.
Professional advices : our attorney-at-law willprovide valuable advices on the best way toregister your name and logo, by performinglegal searches and providing you with anestimation of success rate for your legalapplication, as well as guidance to solveIntellectual Properties issues raised withinmainland China.
Monitor your brand to prevent future fraud:once your brand registration is successfullygranted, our team will keep on monitoringpossible other applications and send youwarnings if a similar brand is being registered inChina that could harm your business.
Trademark registration and monitoring in China
FABCO China:Omni-channel approach
E-commerce platforms As there are plenty ofoptions available in China, either for cross-border or domestic e-channel, we support allplatforms available on the market.
Social marketing & social networks KeyOpinion Leaders (KOL) and other influencersplays an important role in the purchase processin China, as consumer is way more sensitive torecommendations from relatives andcelebrities.
Combining retail and e-commerce salesSome products may require a face-to-facedemonstration or testing prior purchase. Ourconcept offers the possibility to sell on either orboth channels based on market requirements.
FABCO China:Our digital service
Responsive design website with hosting in China
Your website accessible in China: usingChinese ICP domestic non-commercial Internetlicense.
As the Great Fire Wall (GFW) prevents Chinesenetizen from reaching most of websites locatedoutside of the country, your content will behosted and available on Chinese servers.
Access to Chinese multimedia : your files canbe hosted and shared among Chinese localmultimedia platforms such as Youku (Chineseyoutube), Weibo (Chinese Twitter), WeChat(Chinese Facebook) and Baidu Baike (ChineseWikipedia)…
Your brand available in local language: withyour brand and content available in Chineseand hosted in China, this will ease access foryour partners and consumer to your brandstory and products locally as well as enhanceyour SEO for online search.
Online presence in China
WeChat Official Account: engage with youraudience on their favorite social media.Facebook-like app, WeChat includes a wholeecosystem including payment technologies,social media, e-commerce, point cards,advertisement, in-app mini programs, couponsmanagement…
Weibo official account: Twitter-like Chineseapp, give your audience unlimited posts andmoments about your brand’s activities andstories. One of the most popular way to attractattention in China.
Targeted audience: age, gender, center ofinterest, city, district or event building… WeChatand Weibo offers an extremely precise targetingtool for advertisement and promotion.
WeChatOfficial Account
WeiboOfficial Account
Chinese social networkFABCO China:Our digital service
FABCO China:E-Commerce solution
Choose from multiple platforms available, design and creation of your own store branded under your name and image.
Coupons management, group buying and flashsales management.
Event management & O2O Marketing (specialon-site promotions for online purchase)
Chinese customer service provided
Integration with the most popular payment solutions in China such as mobile Alipay and WeChat Pay
FABCO China:24/7 cloud ERP
Follow-up on your social network activity in China
English back end
Multi-channel sales overview
Inventory overview
Distribution network overview
Sales analytics and KPI monitoring
FABCO China:Virtual Reality customer experience
Offer a virtual visit of your workshop, your region or product demonstration
Provides a unique customer experience
Remotely upload new content
Different options available based on your projectrequirements (VR headset, mobile APP…)
Secured Wi-Fi connection
FABCO China:Live streaming and advertisement
Remote control TV display equipment for in-store use
Delivered with customizable software to display promotionalmovies, pictures and banners on a standard TV screen
Live streaming solution with forecasting from outside of China
Up to 300 screens at the same time
Secured Wi-Fi connection
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In case of O2O corner shop deployment, we give Chines retailers and business ownerthe opportunity to partner with an authentic foreign brand as their official salesrepresentative within their community.
Chinese consumer is guaranteed to purchase a genuine product from the brand itselfand with guaranteed quality.
Our concept allows foreign brands to keep control over their own distribution networkand strategy in mainland China, with the flexibility of e-commerce and the power of aretail network
Our solution is entirely remotely operated, our local team handle daily operations onyour behalf on Chinese market and all data are stored onto local servers according tothe General Data Protection Regulation (Europe) and the Cyber Security Law (Chine).
We provide end-to-end solution to foreign brands in compliance with Chineseregulation, through the integration of 3rd party services providers. All our partners areleaders in their respective fields with years of experience in China.
For Chinese partners and consumers
For foreign brands:ADVANTAGE
WHAT DO WE OFFER?
FABCO China:Our partners
FABCO China:Our customers
Fine foodFrance
Natural & Organic cosmeticsAustralia
Food supplementPeru
Winery groupRomania
FashionFrance
FABCO China:Case study: ST JAMES
Online operation since 2016:
Available on 15 e-commerce platforms
including 1 flagship on Tmall and 1
flagship on JD.com, 1 dedicated e-
commerce website and 13 APP and
platforms such as WeiDian, YiTiao,
Ofashion, Secco, Little Red Book…
Services offered:• Online services (website hosted in
China, social network and online marketing)
• Importation, warehousing and distribution within China
• E-commerce and retail sales.• Customer service
Store in Suzhou city
Annual sales & forecast(in thousand of items)
FABCO China:Case study: VINARTE
Services offered:• Online services (website hosted in
China, social network and online marketing)
• Importation, warehousing and distribution within China
• E-commerce and retail sales.• O2O corner shop deployment within
mainland China.• Trademark registration in China
Operations since July 2018:
Opening of 3 O2O corner shops and
forecast of 10 more by the end of
2018, domestic e-commerce
platform, VR solution and social
marketing campaign.
O2O corner shop
VR solution
China-based website
WeChat and Weibo Official AccountsE-commerce platform
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FABCO China:Target products
Well established brands and merchants in their domestic market, with products type falling within the following categories have the highest chance of success through cross-border and domestic e-commerce and/or retail in China:
C O S M E T I C S M O T H E R & C H I L D
C L O T H I N G & F O O T W E A R H O U S E H O L D A R T I C L E S B A G S & S U I T C A S E
F O O D & H E A L T H C A R E
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CONCLUSION:
OUR ADDED VALUE
An innovative solution with limited initial investmentbut with a complete control over remote distributionchannel and marketing activities in China.
A win-win global solution for both Chinese partnersand foreign merchants or brands.
Flexible end-to-end solution with integration toexisting platform or other 3rd party service provider
FABCO China:
Cross-Border E-Commerce integrator
&
O2O concept store deployment
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FABCO ChinaUnit D24, 3F Fulizhen building,
High-Tech Park, Nanshan district,
Shenzhen, Guangdong province,
China
www.fabco.asia
Antoine RIONDETFounder & CEO
+86 137 3550 7074
Welcome to join the Retail 2.0
Contact us:
Chris ZHANGSales & Marketing
+86 135 3776 2091
Follow us on WeChat