FOM E-Commerce Service Introduction€¦ · Fung Omni Services (FOM) is an acquisition of Fireswirl...

FOM E-Commerce Service Introduction

Cross-border Partner to China Market

11 December 2019

2019 Tmall D11 Overview

of FOM

11 December 2019

China Cross-border eCommerce Volume

Source: i iMedia, CECRC

World eCommerce Revenue Forecast

11 December 2019 of FOM

China has the highest revenue in 2018 and will show the strongest growth by 2023.

Data Source: Statista

*Rest of other countries

World Retail e-Commerce Sales Growths


Retail e-commerce sales growth worldwide 2014-2021

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2014 2015 2016 2017 2018* 2019* 2020* 2021*

E-co

mm

erc

e s

ale

s gr

ow

th r

ate

**the figures with * l ight green color are estimated.


Retail E-commerce Sales CAGR Forecast in Selected Countries 2018-2022


19.90%

17.70%

13.70%

12.60%

12.00%

12.00%

11.40%

11.30%

10.70%

9.60%

9.10%

8.80%

8.50%

8.30%

7.90%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

India

Indonesia

South Africa

Mexico

Turkey

China

Argentina

Saudi Arabia

Brazil

Global

Spain

Australia

France

United States

Canada

Compound annual growth rate

Digital Market Outlook: retail e-commerce sales CAGR in selected markets 2018-2022


LF OMS(Order Management System)

LF WMS(Warehouse Management System)

LF TMS(Transportation Management System)

China DCJapan DCKorea DC

India DCHong Kong DCSingapore DC

Philippines DCMalaysia DCTaiwan DC

Indonesia DCThailand DCVietnam DC

Strategic & Marketplace

Optimized LogisticsNetwork

HONG KONG

SINGAPORE

11 December 2019

HK is a hub for major eCommerce Platforms in China & SEA

X

I n t r o d u c t i o n o f L F F u n g O m n i S e r v i c e s

FOM provides technologies and operation services to brands and executes their omni-channel commerce strategy

Fung Omni Services (FOM) is an acquisition of FireswirlTechnologies Inc’s e-commerce team and technologyby the Fung Group (Li & Fung). The acquisition wascompleted as of April, 2015.

The team has served a number of major internationalclients with their Tmall store or their branded onlinestore in China. These brands include Toys R Us, HugoBoss, Dyson, BMW, etc. before the acquisition.

As a subsidiary of the Fung Group, FOM complies tohigh standard of corporate governance and servicequality. FOM differentiates itself from its local Chinacompetitors in terms of its overall business integrityand its appreciation of its clients’brand value.

X

F O M C l i e n t s H i g h l i g h t s

Fashion Sports LifestyleChildren wearBags & Accessories WeChat & Brand site

11 December 2019

General Service Overview

Images/Graphics

Appendix

11 December 2019

China Cross-Border Trade Model (for Reference)

OverseasInventory

ChinaConsumers

eCom Tax (9.1%)*

HS Code pre-entered on platform

China CustomsB2C Import

7 days – 14 days

OverseasInventory

ChinaConsumers

eCom Tax (9.1%)*

HS Code pre-entered on platform

6 days – 12 days

Hong KongInventory

No Tax

Hong Kong CustomsB2B Import


1A. Direct Cross-border From Origin

1B. Cross-border Through Hong Kong Other Asian Markets(e.g. Korea, Japan, Malaysia, Singapore)

* Subject to product categories.

11 December 2019

China Cross-Border Trade Model (for Reference)

OverseasInventory

ChinaConsumers

eCom Tax (9.1%)*HS Code pre-entered on platform


2 days – 7 days

OverseasInventory

ChinaConsumers

VAT (13%) + Tariff + Sales Tax

Full CIQ CertificationChinese Product Name

1 days – 5 days

ChinaInventory

China CustomsB2B Import

2. Cross-border Through BLP

3. China Domestic

China BLPInventory

No Tax

CIQ RegistrationChinese Product Name

China CustomsB2B Import at BLP

China Domestic sales. No additional tax.

* Subject to product categories.

What are the benefits for Merchants?What is TOF ?

◼ TOF is a new cooperation model to help

overseas brands target an attractive middle

class consumer base and test the market for

sales potential in a low cost way

◼ TOF utilizes overseas warehouses for direct

fulfillment to consumers with inventory flexibility

and low logistic and storage costs for suppliers

◼ TOF applies a consignment model to optimize

assortment and facilitates easy exchange of

inventory in home country

100% access to Chinese consumers seeking overseas products

Flexible settlement options: weekly or monthly in home currency

Wholesale cost basis with no extra sales operational costs

Easy returns or exchanges of inventory in home country

Special Bonus for 1st batch of merchants

First come, first serve!

Low cost market entry for testing and assortment optimization

What is Tmall Overseas Fulfillment

Buyer

Selection

Tmall Store

Bulk shipping

HK

warehouse

Domesticdelivery

Consumer

◼ Tmall Buyer will assist you to

select best selling items;

◼ Merchant to ensure delivery of

goods to our warehouse in Los

Angeles

◼ Tmall Global is responsible for branding and marketing

on and off the platform

◼ Tmall Global will sell the products on its online store and

handle deliveries to end consumers

Sale

OrderPayment

Logistics

ElectronicClearance

Workflow of TOB:

11 December 2019

A Unique WeChat eStore Solution: Highlights

Fung Omni (FOM) is one of the few e-com service providers in Hong Kong that has a WeChat eStoretechnology fully integrated with China customs and complies with the new China e-commerce law enforced since Jan 1, 2019

• Full WeChat shopping experience

• Peer-to-peer referral and marketing features (via Mini-Program)

• ”Under-sunlight” shipping solution, pays 9.1% e-commerce tax

• System fully integrated with China customs

• Same day customs clearance

• Storage & pick-pack solution available

Pack stations in our B2C bonded warehouse in Shenzhen

System integrated with China customs

WeChat eStore

11 December 2019

WeChat eStore – Webstore

WeChat eStore Technology and Store Operations To Generate Sales Target Chinese Tourist Via “Retail + Celebrity”

Leading tourist / customers to follow brand’s WeChat OA, then conduct CRM to generate cross-border online sales

WeChat eStore Showcases

11 December 2019

11 December 2019

Mobile App To Monitor Your Business

FOM provides a proprietary FOMetrics Mobile App to our brand clients to check their store performance and various metrics ANYTIME, ANYWHERE. (Both English & Chinese interfaces are available)

Fung Omni Services – Differentiating Advantages

Fung Omni has rich experience as an eCommerce Trade Partner (TP) for leading brands and MultinationalCorporations. We provide high quality service as a TP with very strong marketing teams, digitalmerchandizing teams, operation teams, customer service teams and technology teams in order to achievetangible and accountable results for our clients and partners

EXPERIENCED TRADE PARTNER IN MULTI-NATIONAL BRANDS IN VARIOUS MARKETS

As part of the Li & Fung group, we have a world-class IT infrastructure that enables our customers to growtheir eCommerce business with confidence in scalability and security.

ROBUST & RELIABLE IT INFRASTRUCTURE

We provide regular management reports on data analytics, KPI reporting and competitive intelligence. Our360-degree approach of data analytics facilitates strategic decision making and effective store management.

DATA ANALYTICS ENABLING BUSINESS GROWTH

We provide online marketing strategies to drive traffic, unique visitors and conversion to our customer’sonline store. Regular review of Return of investment of marketing initiatives enable our customers tooptimize initiatives and maximize business results.

DEMAND GENERATION & MARKETING STRATEGY

A.I. TECHNOLOGIES FOR ECOMMERCE INSIGHTS & OPERATION EFFICIENCYOur Artificial Intelligence-supported customer service provides useful chat analysis such as out-of-stockanalysis and customer-sentiment analysis, which unlocks sales-rescuing opportunities and enables predictiveservice actions to enhance customer experience.

11 December 2019

11 December 2019

LF Logistics Asia Pacific Footprint

⚫ 12 countries

⚫ 46 cities

⚫ 235 Distribution centers

⚫ 16+ billion units handled

⚫ 4 million SKUs

⚫ 26 million sq ft DC space

⚫ 6,300 staff

⚫ Extensive network in ASEAN & China

⚫ LF Logistics is the last mile logistics provider and partner for Lazada

China

Taiwan

Pakistan

Thailand

Singapore

Philippines

Indonesia

Malaysia

Hong Kong

Korea

Dubai India

Sri Lanka

Bangladesh

Vietnam

Japan

Myanmar

11 December 2019

End-to-end eCommerce Solution

• FOM leverage the footprint of our logistics arm LF Logistics and provide Professional & One-stop Solution for international brands to expand in Greater China and Southeast Asia.

eCommerce Marketplaces

Online Operations

FOM & LFLSystems

OMS/ WMS Order Fulfillment Centre

Courier Management

Customers in China & SEA countries

• FOM OMS Order Management System (FOM OMS) is fully integrated with mainly eMarketplaces (Tmall, JD.com etc.) in China and Southeast Asia (Lazada, Shopee etc.) via direct sync order and inventory data

• FOM OMS fully-integrated with LF Logistics WMS (LFL WMS) via direct access to WMS Database

• FOM OMS provides Standard webservices API integration with external warehouse system

OMS

WMS

FOM Order Management System (OMS)

11 December 2019

11 December 2019

Multi-channel Support in China & SEA

eCommerce Trade Partner – Support Multi-Marketplace Business Model in China & Asia

Connectivity: Connected to multiple marketplaces in Asia (One inventory serving multiple channels through OMS)

Operation Service: Day-to-day e-commerce operation, product catalog management, customer service, digital marketing

Technologies: Data analytics, social media experience, CRM, ship-from-store and in-store pick-up (through OMS)

Marketplace Strategy

MARKETING &DESIGN

eSTOREOPERATIONS

Real-timeCustomerService

DeepDataAnalytics

SOCIAL

MEDIA

11 December 2019

eCommerce on WeChat

Wechat is the most popular Chinese communication and social app,

with 1 billion * monthly active users

Text Messaging Audio & Video Call

P2P Fund TransferRetail Payment

Travel and Hotel Booking

It is also one of the best social marketing and customer engagement tools for brands and

productsSharing Moments

11 December 2019

eCommerce on WeChat

Branding & Direct salesBuild your own Branded WeChat store within brand public Wechat account and sell directly to customers (minimizing platforms and platform marketing fees)

Customer Relationship ManagementBuild you own customer database, tailor made marketing according to customer profile & preferences, fully manage customer journey and leverage customer lifetime value

Capture market opportunities of Chinese consumers while saving eCommerce platform fees

01

02

03

11 December 2019

Customer Places Order

Shenzhen QHW bonded W/H pick &

pack (order cut off at 15:00 daily)

Customs Clearance(same day around 2-

3 hours)

SF Express Delivery (at

18:00)

SF Express Delivery

(Free tax & delivery)

Customer Receives Order

Guangdong Province 1-2 days

Other Provinces in China 3-5 days

WeChat B2C Logistics Flow: Customer Experience

11 December 2019

WeChat eStore – Webstore and/or Mini-Program

• FOM can operate a branded WeChat eStorethrough either our mini-program technology or our webstore technology

• Our store operations team manages the WeChat eStores with services including:

❖ Product upload

❖ Overall design

❖ Promotion campaigns

❖ Marketing activations

❖ Premium Sourcing

❖ Customer Service

• Our system is fully integrated with both China Customs and our LF Logistics bonded warehouse system in Qianhaiwan (QHW), Shenzhen which enables an end-to-end service to our clients

Membership

Account binding is mandatory for user to access these features.

Satisfaction?

Global Store

Locator

Online Platforms

Scan Package Get Loyalty Stamp

Customer Surveye.g. Return Reasons

Scan Receipt Get Reward

Centralized Digital Membership

Online + Offline Coupon

Order Inquiries

FOMWeChat Loyalty & CRM System

Customer ”Daily Sign-In”

Program

WeChat-centric Customer Engagement Activities

Brand’s

Retail

Locations

Including Chinese consumersbuying from the brand’s overseas

retail storesOur WeChat Engagement System integrates all customer data across different e-channels which the brand can truly own the customer information and relationship

⚫ Smart⚫ Strategic ⚫ Keeping Things Simple

Thank you!

Contact: Michelle Leung, Email: [email protected]

FOM E-Commerce Service Introduction€¦ · Fung Omni Services (FOM) is an acquisition of Fireswirl...

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