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    Saicheng provides effective solutions of international logistics for your brands
2017/12/11  Clicks:56  
Qantas inflight magazine has posted their report on the company’s magazine as follows:
Jeremy Hunt, a director at Health More, is among the business executives in Australia who recognised the growing opportunities in China. Health More builds tailored marketing campaigns for Australian and New Zealand brands – including Natio, Lucas’ Papaw, Blackmores and Nu-Lax – on Chinese eCommerce hubs and ensures swift distribution to customers via Australia Post and Sai Cheng Logistics International.
During the 2006 Commonwealth Games in Melbourne, Hunt said the industry noticed high sales of health supplements to Chinese customers. “They were selling Australian products via Alibaba’s platform Taobao,” says Hunt. In 2012, he went to China to investigate business opportunities. “We looked at registering some products and realised it was a challenging process so, instead, we developed a strategy to empower daigou, who onsell to buyers and consumers in China, to promote and sell Australian products.” That led to the creation of Health More, which today represents more than 140 Australian and New Zealand brands, selling them via cross-border eCommerce into China.
Health More has a step-by-step process to create awareness for an Australian brand wanting to break into the Chinese market, beginning with targeting individual daigou traders, pharmacies and gift stores in Australia. As word of mouth spreads, Key Opinion Leader Taobao stores are added, then brands move onto Australia Post’s powerful flagship stores on Tmall Global and JD Global, branching out to their own stores on more platforms as business grows. Delivery that guarantees the authenticity of these premium products is critical.
“Australia Post’s credibility quite simply makes a product worth more,” says Hunt. “Daigou and customers in China know the famous red ‘P’ is Australian, a trusted brand and the most secure way to receive a parcel.” That red ‘P’ logo is the face, while the Australia Post-China Post joint venture Sai Cheng is the finely tuned body helping to drive eCommerce growth. “We recently trialled a promotion on an Australia Post flagship store on Red Book, and we did 16,000 parcels through Sai Cheng in two days,” says Hunt.
Health More freights pallets from Australian manufacturers to Sai Cheng warehouses across China and also ships in bulk directly to Australian-based daigou. “All of the stock Health More moves in an average month would equate to more than 1.5 million individual parcels,” says Hunt. A single brand can move as many as 20,000 individual units in one week through Sai Cheng warehouses and out to customers in China. The company’s integration with the key online platforms makes it astonishingly efficient. “For example, if someone jumps onto Tmall Global and purchases a Natiomoisturiser, it generates an order in the Alibaba warehouse system, which will then link into the Sai Cheng warehouse system and will be picked and packed at whichever of Sai Cheng’s 14 warehouses is closest to the customer’s location,” explains Hunt.
“Demand is fast and we really need solutions like those we’re getting from Sai Cheng, Australia Post and Alibaba to make it all work,” says Hunt. He has a hot tip for 2018: vitamins for dogs and cats. “We’re working with a Melbourne company called PetVet and we’ve sold out – even they can’t believe it. We’ve positioned it as a Swisse or Blackmores for your pet… it’s inexpensive and benefitting both owners and animals as they both seem healthy and happy!”
Global logistics
Steven Foo, Director and Head of Asia Business Development for Australia Post, outlines the strategy for Sai Cheng Logistics International.
How big is Sai Cheng?
We have 14 warehouses across eight cities, with close to 60,000 square metres of space. In the beginning we were mostly looking at Australia- China trade but the vision is to be a leading international logistics company. Our scope includes warehousing, fulfilment, air and sea freight, eCommerce, custom clearance and IT services, supply-chain consultancy and bespoke services for our customers. We are a tier-one air freight agency and today we’re the key air freight carrier for China Post, with block-space agreements from China to countries including the USA, Russia, Europe and other parts of Asia.
How does Sai Cheng work in eCommerce?
Six of our bonded warehouses are specifically for cross-border eCommerce, primarily serving inbound goods for China. Two of those warehouses in Hangzhou are exclusively for Alibaba and that facility alone covers 8000 square metres. Phoenix, our state-of-the-art warehouse-management system, enables us to provide our customers with a real-time view of their inventory.
How do you help eCommerce importers?
Cross-border eCommerce is relatively new and it’s growing so fast that the government looks at it very seriously. Regulations are continuously being adjusted and there can be confusion for importers from Australia to China. Because we’re on the ground in China and have our joint venture with China Post, we are well placed to know when changes come through and to understand them so that we can help our customers to navigate them.
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