The New Demands, Challenges, and Opportunities of Asia Cross-Border Trade/E-Commerce SEKOLOGISTICS.COM SEKO GLOBAL PRESENTATION SEKO LOGISTICS 2016

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1 The New Demands, Challenges, and Opportunities of Asia Cross-Border Trade/E-Commerce

2 The best way to predict the future is to create it!

3 KEY MESSAGES Cross Border E-Com/Trade emerging - Omni-Channel Technology & Collaboration - KEY to Creating the Future of Cross-Border E-Commerce

4 Retail ecommerce Total Sales (Asia-Pacific)

5 Retail ecommerce Trend (China) Tremendous Opportunity and also Pitfalls for the unprepared Brands wishing to join the bandwagon will need to plan, consider and overcome many steps and barriers to entry: Front-End Brand and product strategy & market insight Own website vs marketplace platforms Digital marketing and social media channels Regulatory requirements and compliance Local 24/7 customer support Online transactions financial settlement Back-End Efficient and effective inbound logistics and order fulfillment

6 REGIONAL OMNI-CHANNEL TRENDS & DEVELOPMENT

7 Global Connected Commerce Report Commerce-Report-January-2016

8 M-COMMERCE TRENDS & DEVELOPMENT

9 5 Ways Consumers Connect to Stores With Mobile Shopping

10 LEVERAGING REGIONAL E-FULFILLMENT FACILITIES

11 WHERE TO SETUP YOUR REGIONAL E-FULFILLMENT HUB? Europe Common choices of hub: Germany, Netherlands, and UK Free access of goods to/from the 27 European Union markets Major gateways, good connectivity from worldwide Strong and costcompetitive last miles delivery carriers present in these locations to cover the region Netherlands U.K. Germany Hong Kong Asia Pacific The ideal hub would be Hong Kong Free-port, no duty nor VAT/GST for in/out goods Simple documentation requirements for imports and exports Center of Asia Pacific, good connectivity, can reach to various markets quickly Strong and costcompetitive parcel carriers present to cover SEKO s major omni-channel locations the region

12 Technology & Collaboration

13 Integrating Front & Back End Offers Brands comprehensive and advanced Front-End e-commerce management integrated with Back-End Logistics via bespoke system supported Warehousing and E-fulfilment, Cross-Border e-commerce, Last Mile Delivery and Intl Freight Management Value Proposition: Enabler Provide Brands in Asia, USA, Europe and elsewhere access to the fastest growing e-commerce market in the world Simplified process covering initial checklist leading to qualification and market research Go-to-market recommendation - digital marketing channels includes KOLs, WOM, Advertorials, WeChat moments, forum seeding etc Modular service options - outsource webstore operations, branded Chinese website, global payment gateways, order fulfillment etc Consultation and trusted partner from the initial e-commerce business venture life cycle Focus on what s Core Allow Companies to focus on their core business saving precious time and money Front-End, Back-End System and Integrated depending on requirements Single Interface and rapid execution Speed to Market and Front-End market penetration status updates

14 The OmniParcel System The purpose of OmniParcel is to enhance the customer experience through improved visibility and interaction with the customer delivery process. In-House Operations Management & Transport Management Platform Self-Developed Software Customized tracking portals with click-through advertising banners. Back-end controls given to retailers to self-manage. Presents to our retail customers that we are revenue generating partners. Smartphone application to allow for tracking across multiple retailers on a single platform with advertising and branded tracking screens customized by retailer

15 CASE STUDY FASHION RETAILER Background Sourcing from key fashion hubs No retail shop, all sales via own branded online shop Original model to ship orders directly from the origin countries via intl. courier As sales growing, the previous fulfillment model not working Changes made to Logistics and Fulfillment in 2015 Establish APAC Regional e-fulfillment hub - Hong Kong Sourcing: Goods consolidated and airfreight from origin countries to HK hub Sales orders: Shifting from couriers to direct line 3PL along select key market Customer Experience Per order logistics cost substantially reduced Centralized in Hong Kong hub easy to manage and can perform value-added services (e.g. Photography) Sales expansions to add Asia markets fulfill from same HK hub

16 CONCLUSIONS Omni-Channel will Transform the way businesses are managed, But this is not a Sudden Transformation When embarking on the Omni-Channel Journey, Companies must consider how their Customers would like to shop, and then commit to enhancing and personalizing the customer experience Given the diversity within the Region, it is KEY to understand the consumer journey and local preferences when defining the Omni-Channel approach. Includes integration of locally preferred payment mode/practice into the fulfillment model Expectations of Logistics Providers are growing; it goes beyond shipping costs Inventory costs, Integration of multiple payment options, IT Back-End Integration, Flexible Delivery Options, Call Centers/Web-Enabled Returns Regional E-fulfill Hub Grow Cross-Border sales globally while maintaining operational simplicity & inventory flex

17 Thank You!