ICBC Mall Cross-Borader E-Commercepubliccontent.sinpro.cz/PublicFiles/2018/03/12/ICBC...2018/03/12 · Public E-commerce platform, developing cross-border B2C E-commerce business.

ICBC Mall Cross-Borader E-Commerce

March 2018

Page 1

Table of Contents

Background

Solutions of ICBC

Strenths of ICBC-Mall

Page 2

Admission to ICBC-Mall

Trends of Foreign Trade between Czech and China

Source: Czech Statastical Office

Turnover Exports Imports Balance

USD mill.index

17/16USD mill.

index

17/16USD mill.

index

17/16USD mill.

T o t a l 342,426 112.0 180,433 110.9 161,994 113.2 18,439

EU countries 28 257,484 110.9 151,010 111.0 106,474 110.9 44,536

Germany 100,951 111.5 59,261 112.5 41,690 110.2 17,571

China 22,802 116.4 2,414 126.0 20,388 115.4 -17,973

Poland 23,422 105.3 10,904 110.8 12,519 100.8 -1,614

Slovakia 21,788 104.6 13,973 103.0 7,815 107.5 6,158

In 2017, Czech total import and export volume reached 342.4 billion U.S. dollars. An increase of more than 12% over 2016. In 2017 China has become the 3rd largest trading partner for the Czech Republic.

Trends of Foreign Trade between Czech and China

Czech trade with China has been developed unevenly with a larger deficit.

Czech exports to China have been increasing in recent years, especially in 2017, an increase of more than 20%

Czech exports to China still have a lot of potential for growth

Czech Export to China 2017

Czech Export 2017

Ranking Country CZK mill. %Index 17/16

1 Germany 1,380,277 32.8 107.3

2 Slovakia 324,926 7.7 98.1

3 Poland 253,977 6.0 110.8

4 France 215,058 5.1 104.6

5 United Kingdom 209,410 5.0 100.6

17 China 56,243 1.3 120.0

- Sub-total 2,439,892 58 -

- Others 1,762,599 42 -

- Total 4,202,492 100 106

Data Source: Czech Statistical Office

Czech Import from China 2017

Czech Import 2017

Ranking

Country CZK mill. %index

17/16

1 Germany 970,601 25.7 105.0

2 China 472,841 12.5 109.5

3 Poland 291,306 7.7 100.8

4 Slovakia 181,934 4.8 102.4

5 Italy 158,042 4.2 105.0

- Sub-total 2,074,724 55.0 -

- Others 1,694,851 45.0 -

Data Source: Czech Statistical Office

Advantages and Disavantages

Advantages

China is a huge market based on its China's large population.

China's network and mobile infrastructure has developed rapidly and Chinese people used to shopping online.

Czech exports to China have great potential for development.

The quality of Czech products is very good.

Disavantages

Many Czech exporters have no branches in China and are exported to China through Chinese importers.

Czech manufacturers are not familiar with Chinese regulations and people's spending habits.

Chinese companies and individual consumers are not familiar with Czech products.

Challenges for Czech Exporters

How to deal with the customs and inspections?

How and what to ship to China?

Logistics in China?How to sell products?

How to collect payments?

...

How to find a distributor?

ICBC Mall Cross-border E-commerce

Solution of ICBC

We have a solution for you!

Development of E-Commerce in China

In 2017, the total retail sales of e-commerce in China amounted to 7.18 trillion yuan (about 1.149 trillion U.S. dollars)

A 32% increase over the 5.43 trillion yuan in 2016

China became the first e-commerce market to break the 1 trillion dollar retail sales.

Source: Ministry of Commerce of China 0

1

2

3

4

5

6

7

8

2014 2015 2016 2017115

120

125

130

135

140

145

E-commerce Sales of ChinaCNY trill.

Development of E-Commerce in China

Not only sales but also growth rate, China is substantially ahead of the world's second largest e-commerce market - the United States.

According to Internet Retailer estimates, in 2017 the US e-commerce market increased by about 15% to 455 billion U.S. dollars.

China's Ministry of Commerce said cross-border e-commerce will be one of the major growth drivers for the e-commerce market in 2017 in China.

Source: Ministry of Commerce of China, US Department of Commerce and Internet Retailer

USD bill.

Popular Industries of Chinese Cross-border E-commerce

Cross-border E-commerce popular

industries

Maternal & child

Cosmetics & Toiletry

Imported foods &

Health care products

Introduction of ICBC

• Largest bank in the world

• Excellent customer base

• Diversified business structure

• Strong innovation capabilities

• Market competitiveness


International Awards , Rankings and Ratings


Overseas Service


Table of Contents

Background

Solutions of ICBC



Introduction - E-commerce Platform

Jan 2014Apr 2014 Sep 2014 Jan 2015

Opened for business

Mobile phone client was put into operation

iPad client was put into operation

B2B mall opened

April 10Trading volume exceededRMB3 billion

End of DecemberTrading volume exceededRMB70 billionThe number of members reached12 million

In 2017Trading volume reached RMB1028.7 billion

Jul 2015

Cross-boarder mall openedFebruary 19

The number of members reached1 million


Market Position

Well-known Enterprises

Well-known Brands

Well-knownStores


ICBC

•Shopping platform for individual

customers

•Selling platform for companies

•Financing platform for both

enterprise and individual

customers

•Information platform for both

enterprise and individual customers

4 million

Enterprise

Customers

ICBC Mall

E-commerce

Platform

400 million

Individual

Customers

Payment

Collection

+

Financing

Platform

Payment

Collection

+

Financing

platform

Shopping

Platform Selling

Platform

Connect business with

consumers


►In July of 2015, the first country mall - Spain Mall established in the Platform.►Currently there are 22 cross-boarder country malls and 4 special zones malls, covering Asia, Europe, Africa, America and Oceania.►There are Spain, Italy, Gemany and Czech malls of Euopre.


1,340,000 B2C products

USD 157 billion transaction

volume

Nearly 100 million registered customers

USD 147 billion non-financial transaction

volume

*Note: Statistics by Dec 31, 2017

More than 20,000

Companies

On 16 June 2016 ICBC Czech Mall launched.

More than 10 merchants has entered in the Czech mall, the first country mall of middle east Europe.

Czech mall gathered well know brands such as Cerna hora beer, Brouczech, Musli etc.

In 2017 nearly 10,000 orders were closed in Czech mall.



Business Model

Public E-commerce

platform, developing

cross-border B2C E-

commerce business.

Czech Pavilion of

ICBC MALL is

marketing in Czech

and support Czech

producer or exporters only.

ICBC’ extensive

network in China

promotes and sells

products to Chinese

customers.

Cross-border E-commerce Import Model

Bonded Delivery Model

Store popular products in

bonded warehouse in

advance through big data

analysis.

The products will be

delivered to consumers

directly from the bonded

warehouse once customers

place their orders.

Import

model

Direct Delivery Model

Online retailers purchase

products overseas after

receiving orders

Shipment to the domestic

ports via Air or Sea.

Their Chinese agents arrange

a centralized custom

clearance and distribution of

products to customers

afterwards.

ICBC Mall's One Step Solution

Order ICBC Mall

PaymentICBC

Clearing System

Chinese

Electronic

Port

WarehouseLogistic

Companies

Customers in

China

Czech

Exporters

LogisticsOne-stop

Service Platform run by China

Cross-border E-commerce

Pilot Park

ICBC Mall's One Step Solution

Headquarter platform connection

Data of order; Payment, logistics

and exporters warehousing, and cross-border payment

Electronic port connection

Custom clearance, payment information filed with the Port

Warehouse system connection

Warehousing system and logistic

information filed with the Port, and

delivery information available to customers

Regulatory system connection

Payments declaration to CFECA

Chinese Foreign Exchange

Administration Bureau

ICBC E-Mall

International

Channel

PBoC

Chinese

Electronic Port

Park's

Warehouse

Logistic

Companies

Bonded delivery

Bonded delivery

Strengths: exempt tax in the bonded warehouse till customers place orders; the products will only be taxed once being left from the bonded area

Strengths: low international logistics costs; high customs clearance efficiency; timely response from after-sales service, good user experience .

Weakness: storage in the bonded warehouse, additional storage costs.

Weakness: stock pressure;A limited number of available products

The overseas merchandise is temporarily stored in the bonded warehouse, when the client places an order, the parcel is delivered to the consumer via domestic logistics as personal belongings.

Direct delivery

Direct delivery

Strengths: a wide range of products avaible; consumers can buy scarce, high quality global goods.

Strengths: overseas purchase; no stock pressure

Weakness: high logistics costs.

Weakness: long delivery time, affecting the customer experience

Direct delivery: Overseas goods will be delivered directly through international

shipping to domestic consumers in China.

Comparison of bonded delivery and direct delivery

High standardization

Low unitprice

Easy storage

High purchasefrequency

Characteristicsfor bonded

delivery

High personalization

High unitprice

Unwilling to preserve stock

Low purchasefrequency

Characteristicsfor directdelivery

Fast selling goods e.g. maternal and infant products, foods, etc.

Durable goods e.g. luxuries, clothing, etc.

Table of Contents

Background

Solutions of ICBC



Strength of ICBC Mall

• 2 hours after payments comfirmed*

Low Admission Fee Fast Payment Collection

• Security Deposit: EUR 5-8K

• Commission: 0.5%-1%

• Annual fee: free

• Free Promotion

* In the most optimum situation without fund precipitation

Financial advanges

International settlement

Cross-boarderRMB service

ForeignExchange

Guarantee

Trade finance

Payment enterprice

Foreign trade service provider

E-commerce platform

Personal and corporate cutomers

Channel Advantages

ICBC online channels

Provide online service and promotion for customers

Customer service

representative: 6,400

ICBC link

ICBC mobilTelephone

SMS

Web portalEmail of ICBC Mall

WeChat, Microblog

Channel Advantages

ICBC offline channels

Physical outlets: 17,000 outlets

ATM: 90,000 ATMs

Customer managers: nearly 80,000

Staff: 450,000 employees

Outlet is an important “position of promotion” of ICBC-Mall. Customer manager is the “narrator” of ICBC-Mall, provider of offline professional service and recommender of merchants to customers. ICBC-Mall advertisements have been broadcasted over 300,000 times on the LED screens of ICBC's outlets.

Fortune management centers: 268

VIP wealth management centers: 5,028

Wealth management outlets: 8,779

Financial convenience stores: 2,643

China

Channel Advantages

Non-ICBC online channels

Sina Headlines TodayNetEase

1. Cooperate with the precise advertising company to realize the accurate marketing of customers through DSP, DISCOVERY, OVT.

2. Precision advertising in Sina, Netease, today's headlines, MSN, Xinhua, People's Daily and other over one hundred medias .

Channel Advantages

Non-ICBC offline channels

Advertisements on offline media

CCTV, local TV stations, radio, TV, bus, subway and cinema

Bus stop sign Subway Airport Magazine

Marketing Sources Advange

Discounts every day, promotions every month

Diversified

promotions

1. Flash salesThe customers rush to purchase particular products at a super low price or discount within a prescribed timeframe.

3. Bonus points redemptionThe customers can pay for their purchase using their bonus points accumulated in ICBC to reduce purchase cost and increase sales volume.

5. Electronic couponsThe customers can pay for their purchase using the coupons sent by the platform or merchants to reduce purchase cost.

2. Cross-Border “featured” activitiesSpecialized for overseas brands

4. Special-offer of weekendsEvery weekend exclusive activities through mobile phone. Customers can buy products in a convenient and money-saving way.

Marketing Sources Advange

Funds advantage

Every year ICBC invests more than 100

million of RMB marketing funds to support

the business activites of the platform

merchants.

Operation advantage

One-on-one service, contract signing, store

opening and online operation are handled

by professionals to solve problems for the

merchants

Advertisement advantage

The homepage consists of five odules

namely channels, image carousel, quick

access, promotions and floors and offers

360 free advertisement spaces.

Table of Contents

Background

Solutions of ICBC



ICBC Mall Admission Criteria

Legal entity in Czech Republic1

Producer or authorized distributor2

Made in Czech or Product of Czech3

Capable to operate E-commerce platform in Chinese4

ICBC Mall Working Procedure

Admission Procedure

1.

Application document review

2.

Agreement and open account

3.

File product information to Customsand AQSIQ in China

4.

Set up online store in ICBC Mall

5.

Shipping, upload product info and design online store

6.

Start selling and fund settlement


1. Application

Application with documents of business registration, trade

mark registration, license, etc

Documents received and prelimited reviewed by ICBC

Prague Branch, and due diligence report submitted to ICBC

operation and management team in China

Operation team reviews application in 5 working days

2. Agreement and open account

Agreement signed (with ICBC Prague Branch) when


3. File customer information and products information

ICBC operation team files customer information and

products information with Customs and Inspection and

Quarantine departments in China

4. Setup online store admin user

Setup online store adminstrater and start renovate online

store


5. Online selling

Goods shipped to Chinese bonded wareshouse, then upload product information

online and start selling

6. Payment settlement

Payment transferred from ICBC China to exporters' settlement account in ICBC

Prague Branch

Contact Information

Contact Person: Yuxia Cheng, David Bures

T: +420 237 762 855, +420 237 762 807

E: [email protected], [email protected]

Industrial and Commercial Bank of China Limited, Prague Branch, odštěpný závod,

12F City Empiria, Na Strzi 1702/65, 140 00 Prague 4 - Nusle, Czech Republic,

www.icbc-cz.com

Thank you for your listening!

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ICBC Mall Cross-Borader E-Commerce