Hong Kong: Hub Globale per il Made in Italy

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1 Hong Kong: Hub Globale per il Made in Italy Logistics as a support to Made in Italy distribution Riccardo Fuochi Milano June

2 OMLOG Group Om Log Group, is a leading Italian supply Chain and 3PLWorldwide organization. EstablishedinHongKongin2004 Highly specialized in Fashion and Lifestyle E-Commerce Logistics Provider 2

3 OMLOG Group ITALY 1100 Staff Over 1,700,000 Sq.ft. w/h HONG KONG & CHINA 800 Staff Over 1,300,000 Sq.ft. w/h USA 50 Staff 300,000 Sq.ft. w/h Over 120 M units moved per year 3

4 The Market Luxury Goods in Asia Asian mania for luxury goods beginning in Japan in the 1980 s Asia becoming a luxury consumption hub and the world s biggest market driven by China Asia is the world s biggest market for luxury goods with average growth of 20% per year Asian luxury market driven by China where Chinese consumers account for 25% consumption of the world s luxury Popularization of International lifestyle luxury brands in Asia High expansion of foreign luxury brands in Asia 4

5 Supply China Impact Asia - China Asia: the largest and most populous continent Increased volume of Imports Governments implementing importing controls i.e., China CIQ for apparels (China Inspection and Quarantine Department) Distribution challenges in a continent with a developing logistics infrastructure Diversified and complex import/export regulations in the region 5

6 Omlog How we can help Defining a Logistics model that will sustain the growth in Asia and complying with the ever changing regulations Asia - China Fashion Logistics Retail and E-Commerce consultancy services Specialized and experienced Fashion Imports and Customs in the region with China CIQ certified operations Retail and E-Commerce Logistics Services Quality Control and Vendor Compliance Fashion VAS services - China Labeling In House IT systems WMS, China labeling, Import customs clearance Fashion Logistics DC s: Hong Kong, Shanghai, Beijing, Shenzhen and more than 40 pull-points in the main China cities with full distribution coverage 6

7 Why Hong Kong Asia s Logistic Hub Government incentives and promotion Favorable geographic location Simple import, re-export and transshipment procedures High standard Logistics Infrastructures Experienced warehouse logistics work force Excellent port and airport facilities High connectivity and IT infrastructure Best Location for InterAsia E- Commerce 7

8 Why Hong Kong Asia s Logistic Hub But.. Lack of Warehouse and suitable space Increasing labor cost High and growing rental costs New Logistics Infrastructures in China FTZ, FTP, Logistics parks 8

9 Hong Kong Asia s Logistic Hub 170 stores deliveries by day in Hong Kong 30 m. units distributed in China and Interasia 9

10 Asia E-Commerce Market Asia is extremely diverse economically and culturally Mature markets like Hong Kong, Japan and Korea China and India as huge developing markets Different legal challenges for online invoicing and online payment Distribution challenges with vast and spreadout countries Online Consumption transactions in Asia growth fuelled by mobile usage 10

11 China E-Commerce Market 513 millions: Internet users in China 145 millions: 2011 Online Consumers in China 329 millions: 2015 Online Consumers in China The Chinese buy online 4 times more than European 70% Almost 70% of potential consumers search for luxury brands online at least once a month Average number of purchases per month! 11

12 E-Commerce & Traditional Retail Real Estate in major Asian and Chinese cities is a real estate war driven by huge demand High rental costs Low availability of top locations E-commerce as a complement to the traditional retail channel Low cost entry level 12

13 Hong Kong E-Commerce Hub for Asia E-commerce Logistic Hub not only to fulfill orders in HK but also to Macau, Singapore, Taiwan and Asian cities with easy imports and re-export procedures Simple import, re-export and transshipment procedures Experienced workforce and excellent facilities Customer Service center Hub Highly skilled workforce in HK to set up Asian wide customer service centers to support e-commerce web sites Multi culture and multi-language with most of HK people also able to speak English and Mandarin High connectivity and IT infrastructure Local Government favorable policies and Intellectual Property control 13

14 OMLOG What we have done. Expansion of its presence from Hong Kong to China via acquisition of LifeStyle Logistics who is today present in the the regions of Shanghai, Beijing and Guangdong where 50% of the wealthiest of the populations reside. Continuous investment in its in-house Supply Chain Platform and warehousing infrastructure to supports end to end Logistics Strategic Alliances with internationally recognized e- commerce portals and gateways OMLOG sees the expansion of luxury retailing in Asia as a major opportunity to diversify and increase its revenue base in Hong Kong and China. 14

15 2-OMLOG.wmv omlog.mp4 15

16 Our Customers 16

17 Thank You 17

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