Cloud-based trading & financing ecosystem for global ecommerce

Transcription

1 Cloud-based trading & financing ecosystem for global ecommerce specializing in China inbound and outbound trade for small online retailers and social commerce players

2 Our Motto MAKING BUY AND SELL EASY!

3 Global ecommerce industry is expected to continue double-digit growth to reach USD 2.5T by 2018 Cross border trade, small online retailers and social commerce players are key growth drivers Page 3 Remark: Above is 2013 data

4 Despite this growth, small online retailers face issues in product sourcing, trade finance and global logistics 1 Product sourcing How to access a wide variety of product categories and minimize inventory? 2 Trade financing How to finance receivables from marketplaces and obtain credits from suppliers? 3 Global logistics and warehousing How to shorten delivery lead time and arrange return logistics? Page 4

5 1 Product sourcing: How to access a wide variety of product categories and minimize inventory? Typical challenges Supplier selection difficult due to heterogeneity of products and fastchanging customer needs Customers Online retailers Product categories No volume for bulk discounts Upfront costs in inventory management and stockpiling Page 5

6 2 Trade financing: How to finance receivables from marketplaces and obtain credits from suppliers? Traditional Retailing Suppliers Online Retailing Suppliers Financing and credits Purchase on credit vs X Limited financing Fewer credits due to reduced volume X Banks Retailers Cash or credit cards settled within T+2 Banks Online Retailers Long accounts receivable lead time of 7 to 45 days X Customers Customers e-commerce Platforms Page 6

7 3 Cross-border logistics: How to shorten delivery lead time and arrange return logistics? Typical challenges Long shipping time (15+ days from China to Europe and North America; 30+ days to South America) No overseas facilities to shorten lead time Warehousing and return logistics vary Other challenges include courier selection and customs clearance Stock in China Page 7

8 Our Vision To create a cloud-based trading & financing ecosystem for global ecommerce specializing in China inbound and outbound trade for small online retailers and social commerce players Establish a drop shipping marketplace to connect suppliers, online retailers and end customers Provide alternative trade finance channel to online retailers through application of big data and proprietary algorithms Develop a China inbound and outbound cross border ecommerce fulfillment mechanism Page 8

9 A drop shipping marketplace connects suppliers, online retailers and end customers 3 Processes orders with suppliers 1 Find product and place order 2 Collect payment Drop shipping Suppliers Cloud-based platform Online retailers Customers 4 Direct shipping to customers ü ü Time saving Benefits to suppliers and online retailers Retailers avoid upfront costs on inventory management ü ü Guaranteed lowest drop ship price Stable marketing and outsourcing channels for wholesalers Page 9

10 Online lenders provide alternative finance to retailers through the use of big data and proprietary algorithms Shipping data Warehousing data Trade history Settlement records Drop shipping Suppliers Cloud-based platform Online retailers Customers Proprietary big data algorithms to assess creditworthiness Online retailers receive finances from online lenders Page 10 Online lenders

11 Developing a China inbound and outbound ecommerce fulfillment value chain facilitates cross-border trade Global network of warehouses for proximity to customers and efficient returns management Customized delivery and local customs clearance to minimize lead time Real-time big data analytics Page 11

12 APPENDIX

13 Benchmarking analysis (1 of 3) Companies Drop shipping marketplace Online lenders Warehousing & logistics providers Features Catalog of over 2 million products Customized API integrations with ecommerce platforms Lowest drop ship price guarantee Plug-in IT and management solutions Marketing support Drop Ship Automation Data Service with major integrated website platforms Catalog of over 1.5 million products All products data-feed available in one portal Page 13

14 Benchmarking analysis (2 of 3) Companies Drop shipping marketplace Online lenders Warehousing & logistics providers Features Small-online-business oriented 100% online automated application process with decision made in 7 minutes the shortest Customer retention rate of 80% World s largest online P2P marketplace connecting borrowers and investors Over USD7.6 billion of loan delivered Facilitate personal loans, business loans & financing elective medical procedures Small-business oriented Better Business Bureau A+ rating of customer service Over USD2 billion of loan delivered Page 14

15 Benchmarking analysis (3 of 3) Companies Drop shipping marketplace Online lenders Warehousing & logistics providers Features Global network of warehouses Intelligent optimization technology to optimize and automate shipments One station order, inventory and supply chain operations management Integrated platform with nearly all major shopping carts and marketplaces 100% automated cloudbased platform Mixing options available for major shipping providers 100% Cloud-based inventory management and stock control system Integrated with Quickbooks Centralized inventory tracking on multiple marketplaces Page 15

16 Cross-border trade has become an important driver to the growth in e-commerce, especially in Greater China China s cross-border e-commerce (USD) ,300B B Annualized growth rate ( ) +27.0% China s cross-border e-commerce +7.6% China s foreign trade Page 16

17 Small businesses account for 59% of the economic outputs, with small online retail merchants on the rise Over 100,000 online stores Over 2 million 3rd party sellers each Over 9 million online stores The rise of large marketplaces and the proliferation of social media platforms continue to boost the e-retailing industry Page 17