E-Commerce · Advantages of the solution: Similar form factor. No special training needed. Mobile...

E-Commerce:

The Make-or-Break for

Hong Kong’s Future

Trading/ Retail Businesses

China: The Anchor and Opportunity of

Hong Kong’s

e-Commerce/ e-Logistics

Businesses

China: Where the goods are made for the

Global Market!

Global Manufacturing Percentage: China #1

United States

Source: Development Research Center of the State Council of China 國務院發展研究中心

It is a much Different World:

World Merchandise Trade Volume

1980: USD 1.8 Trillion

The Center of Gravity is Moving to the East Source: Development Research Center of the State Council of China 國務院發展研究中心

World Commercial Service Trade Volume

Source: Development Research Center of the State Council of China 國務院發展研究中心

The Center of Gravity is Moving to the East

Category World Ranking

Sea Port Shipping Volume 1

Air Freight Volume 2

Railway Export Shipment Volume 1

River Flow Routes 1

Freeway Network Shipment Volume 1

Express Parcel Volume 1

Railway Shipment Volume 1

Freeway and Speed Train Mileage 1

China is rapidly on its way to the

Largest Transport and Logistics Country in the World

China : Largest logistics market in the world

USD Trillion

2015 Estimate: USD1.66 Trillion Source: Chinese Academy of Sciences

2014 World’s Logistics Performance Index (LPI) Ranking

Country/City Ranking Germany 1 UK 4 Singapore 5 USA 9 Switzerland 14 Hong Kong 15 Malaysia 26 China 28

Hong Kong Still Has Much Value to Add To China!

E-Commerce in China

Source: http://www.remarkety.com/global-ecommerce-sales-trends-and-statistics-2015

In 2015

There is No Reason Why Hong Kong Cannot

Win All of the Top eMarkets

Source: http://www.remarkety.com/global-ecommerce-sales-trends-and-statistics-2015

Top Four E-commerce Markets

USD 562 Bil USD 349 Bil USD 93.9 Bil USD 79.3 Bil

A Total of USD 1,080 Billion!

Source: FT

Wealth, Urbanization bring

about the need of E-Commerce

E-Commerce is driven by

1. Internet (to Internet+)

2. E-Logistics in particular

Express Delivery 快遞

(to Logistics 2.0)

3. IOT (Internet-of-Things)

Source: FT

Alibaba’s Gross Merchandise Volume from 2013 to 2015

(in billion yuan)

Source:

http://www.alibabag

roup.com/en/ir/pres

entations/pre15050

RMB 2274Bn, US$ 364Bn

70 per cent of China’s retail ecommerce (GMV)

8 per cent of total retail sales in China

Alibaba’s Annual Revenue from 2010 to 2015

(in million yuan)

US$ 12.2 Bn eBay: USD 17.9Bn Amazon: USD 88.99Bn

E-Logistics in China: Logistics 2.0

Materials &

Sub-assemblies

Manufac-

turing

E-Comm

Platform

Consumers

Express

Delivery

Materials &

Sub-assemblies

Manufac-

turing

E-Comm/

E-Logistics

Consumers

Materials &

Sub-assemblies

Manufac-

turing/

E-Comm

E-Warehouse/

Distribution

Consumers

Kilometer/

100 meter

Kilometer

2.0 ++

China’s Express Delivery Volume

Billion Units Percentage

Increase

Source: Chinese National Post

Volume doubles every 2 years!

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

More than 8,000 express enterprises with more than 20 major brand

names (Deloitte, 2013).

Annual 50 % Growth or more from 2010 to 2014 (State Post Bureau) due

to e-Commerce

Around a dozen of the largest delivery services partner with Alibaba’s

48 per cent-owned logistics affiliate Cainiao 菜鳥物流.

The sector’s market value hit Rmb204bn ($33bn) last year, up 42 per cent

from the previous year (Source: State Post Bureau)

Number of express delivery parcels last year reached 14bn.

It can reach over 30 Billion in 3 years!!!

E-Commerce Logistics in China

China Logistics

3 main Strategic Missions:

Logistics modernization

Integrate with the Global Logistics System

Modernize and Improve China Logistics System

Hong Kong Logistics in Response:

3 main Strategic Responses:

E-Logistics Technologies

Help China Integrate with the Global Logistics System

- Help China Merge Into The World

Merge Into The Grand China Logistics System

- Help Hong Kong Merge Into China

E-Commerce, E-Logistics in Hong Kong

HK Post – ec-ship

Benefits for E-commerce Merchants Choices of Courier Services Trackable Shipping Service

E-logistics Service Platforms

An online platform providing logistics solutions to

all e-Commerce companies

Intelligent

shipping

Complete

visibility

On demand

pick and pack

E-Logistics Models 30secs quick response

5mins car arrival

7 x 24hrs

Continuous Efforts to Support

E-commerce Activities

In Public Sector

Objective: Using e-lock device and control

platform for HK custom clearance.

Technology: E-lock, Interoperability, Hardware

control

Benefits: Help expedite HK customs clearance,

improve efficiency in monitoring, security and

customs interoperability

Intermodal Transshipment Facilitation Scheme using E-Lock Technologies

Over 80% Adoption!

E-Services Platforms stepped up effort to open Sme-Plug connectivity channels …

SMePlug Program

LSCM designed Software ‘Plug’ for SMEs to connect to major Logistics Service Platforms LogsCouncil/ THB provides a Jump-Start program to help adoption

One Small Step to Help SMEs, One Big Opportunity for SMEs to take on E-Logistics!

Service Platforms responded by engineering to set up ‘SME Link’

Electronic Cheque (e-Cheque) to Support Faster Payment and

Provide Clearing for Multiple Currencies

Source:

http://www.threerunwaysystem.com/e

n/Growth/Economic_contribution.aspx

Hong Kong International Airport Supporting Airfreight & Express Mail on Passenger Flights by its RFID Auto-Baggage System Construction of 3rd Runway to increase Airfreight Capacity

Internet-Of-Things

Technology Trends for Smart Everything!

Source: Cisco

IoT Value Potential:

Source: McKinsey Global Institute

LSCM’s IOT Projects

Hybrid Reader for Airport Home Printed

Luggage Tags

Objective: low-cost hybrid reader for reading bar code

and RFID tags. It will be used for HKIA’s Home Printed

Luggage Tags service

Technology: LSCM low-cost readerchip, reader and

antenna design

Benefits: Help HKIA reduce passengers’ waiting time,

improve operational efficiency

Sensor-based Asset Management and Environment Monitoring

Relative

Humidity

Live Feed: Sensing Data from Grand Hall

Click to see Live Sensing Data

at Grand Hall

Live Feed: Sensing Data at HKSTP’s Hong Kong Museum of

History

Click to see Live Data

at Hong Kong Museum of History

Affordable Blind Cane reader with Navigation Apps serving

Visually Impairs

Advantages of the solution:

Similar form factor. No special training needed.

Mobile apps. provide audible information.

Affordable solution.

Passive tags (No battery) are used. (minimum

maintenance cost)

4 Public Housing

Estate trial sites

by Housing

Authority

2 Station trial

sites by HK

Railway

LSCM’s LBS (Location Based Services)

Projects

To Make Hong Kong to be the LBS

Technology Leader in the Region!

LSCM’s Enabling Technologies in LBS ( Location Base Services) /

RTLS (Real Time Location Service)

Outdoor

Positioning

Indoor

Navigation Outdoor

Surveying

Indoor

Regener

More Accurate

Infrastructure &

Mobile App

Personalized

Marketing &

Promotion

Shop/Booth Planning

& Visitors’ Path

Prediction

Tracking

Monitoring

Location

Analytics

Location-

Marketing

Beidou

Finger-

Active

Passive

Position

Sensor

Network

Cellular-

Position

Zigbee

Sensor

Network

Video/

Recog-

nition

Better Travelling

Experience &

Shopping Guidance

Track-and-trace

of Key Assets Resource Monitoring

with Predictive

Analytics

Integrated GPS/ Beidou/ Ground based

Augmentation Positioning Technologies

Objective: Combine GPS and Beidou

satellites to advance HK’s GIS infrastructure

Technology: Differential Global Navigation

Satellite System (DGNSS)

Benefits: Accuracy improvement for mobile

phones: from ~4.1m to ~0.4m

Mobile Phone GPS function

RTK (Survey-grade Equipment)

Accuracy

Mean (m) RMS (m)

4.1 4.5

Accuracy

Centimeter level

accuracy

Benchmark purpose

Accuracy

Mean (m) RMS (m)

0.4 1.8

10 min. Spent

7 min.

Objective: Location Analytics, decision support

for booth arrangement

Technology: Generate Heatmap by Femtocell &

Wifi signal processing

Benefits: A visualization of estimated density of

visitors/devices at different time

Indoor Location Analytics System for Exhibition

and Convention Industries

Visitors

Indoor Localization, Tracking and Navigation

Objective: Deployment of Location-Based

Services (LBS) to airport visitors and travelers

Technology: Wifi Fingerprinting, Map

matching, Inertial Measurement

Benefits: Deployment of Indoor localization on

common smartphones based on WiFi

infrastructure

Video-based Recognition and Analytics for

Resources Management

Objective: Enabling traveler's trolley bottleneck detection, prediction,

and improve availability

Technology: Video and sensor equipment, image analytics and sensor

devices, Machine Learning, Pattern recognition

Benefits: Timely information for requesting appropriate trolley

replenishment

Enough trolleys for the next 3 hours?

World-renowned

LBS (Location Based Services)

Experts Invited to Hong Kong

Why All These Efforts by LSCM?

Because We need to help the Industries to

upgrade their Technical Capabilities

Because Innovation & Technology is

the Only Way to succeed!

What’s Next?

Futuristic Warehouse

& Distribution Center?

Indoor

eration

Beidou

Finger-

Active

Passiv

e RFID

Positio

Sensor

Networ

Cellula

Positio

Zigbee

Sensor

Networ

Video/

Recog-

nition

Cloud/

Data Centers

Big Data

Analytics

Robotics/

Automation

E-Commerce E-Logistics

LBS IoT

System Overview

Summary

E-Commerce Is Changing Hong Kong’s Trading and Logistics’

landscape

China is a Huge Business Opportunity and yet Tough Challenge for

Hong Kong industrial sectors

Innovation & Technology is the Key-to-Success for Hong Kong

industries to thrive in e-Commerce

RFID, LBS, IOT, Robotics/Automation, Cloud Computing, Big Data

Analytics are All Important Areas for Industry to adopt and excel.

Technologically Hong Kong is Competitive in All These Areas!

Do it NOW, or be left behind

We Drive E-Commerce and E-Logistics Technologies!

Innovation & Technology Funds:

Platform Research Project, Collaboration Research Project (1:1),

Enterprise Support Scheme (1:1)

We Will Continue to Fight For Hong Kong,

Would You?

Thank You Very Much

E-Commerce · Advantages of the solution: Similar form factor. No special training needed. Mobile...

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