WCA eCommerce 1st Annual Conference - Workshop 5
Topic: China cross-border e-commence market introduction and solutions
Speaker: James Tsang
Managing Director
U - Speedex China
Falcon Invoice Discounting: Unlock Your Business Potential
WCA eCommerce Workshop 5: China cross-border e-commence market introduction and solutions
1. 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
2. CONTENTS
The China E-Commerce Market Overview of 2017
In-Bound E-Commerce Statues
Who are we?
Out-Bound E-Commerce Statues
3. 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
4. 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
VS
Turn 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
transaction , 2013, 47.9
Import Cross-Border
transaction , 2014, 82.2
Import Cross-Border
transaction , 2015, 174.2
Import Cross-Border
transaction , 2016, 323.3
Export Cross-Border
transaction , 2012, 232.5
Export Cross-Border
transaction , 2013, 279
Export Cross-Border
transaction , 2014, 405
Export Cross-Border
transaction , 2015, 535.5
Export Cross-Border
transaction , 2016, 810
Cross -Border Transaction Import VS Export
Import Cross-Border transaction Export Cross-Border transaction
5. 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
6. 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
7. In-Bound Market Statues
In-Bond Cross Border Future Development
Part Ⅱ- In-Bound E-Commerce Statues
In-Bond Cross-Boarder E-Commence Solutions
8. 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
Import Cross-Border transaction ,
2013, 47.9
Import Cross-Border transaction ,
2014, 82.2
Import Cross-Border transaction ,
2015, 174.2
Import Cross-Border transaction ,
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%
9. Series1, Dress shoes
Bags , 33.48%, 34%
Series1, Health
products, 10.30%,
10%Series1,
Toy
stationer
y,
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%
Series1, 25-30 years
old , 39.70%
Series1, 31-35 years
old , 25.30%
Series1, 36-40 years
old, 10.90%
Series1, 41-50 years
old , 6.80%
Series1, 51 years
old and above,
1.10%
The proportion of Sea Amoy in China of
2016
10. 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.
11. Part Ⅱ - In-Bond Cross-Boarder E-Commence Solutions
Mode Category
After tax reform The limit of
tariff
exemptiontariff
Value added
tax
Excise 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 appliances
30.0% 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 appliances
0 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.
12. 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
Comprehensive
Vertical
The ‘key’ of success
13. Out-Bond Market Statues
Out-Bond Cross Border Future Development
Part Ⅲ- Out-Bound E-Commerce Statues
Cross-Border E-Commence Logistics Solutions
14. 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
15. 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)
16. 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
17. 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
18. 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.
20. 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
21. 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
22. 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
23. Part Ⅳ - IT System
System Support Model
Complete Express logistics process control
management Provide telephone scheduling
To provide more than 1000 domestic network in
single check and support. Offer a packaged air
freight - process control management
1
Rich phone text function support
Support customer text query Courier information
Provide the express mail to send the abnormal
situation and delivery notice
Demo Account：
http://hi.neoman.cn/
Account： test Password : 1234
2
3
IETMS： Int’l Express Transportation Management System
24. Part Ⅳ - Q & A
Name: James Tsang
Title: General Manager
Email: james.tsang@u-speedex.com.hk
Name: Cherry Yang
Title: Trade Manager
Email: op.corp@u-speedex.com.hk
If you have any questions, please feel free to contact us anytime. It will
be our pleasure to assist you in China.
25. THANK YOU!
30th June – 2nd July 2017
1st ANNUAL CONFERENCE
HYATT REGENCY MIAMI
400 South East Second Avenue
Florida USA
