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Cross-border e-commerce in China: how it’s done? Part 1 - BRANDHOUSE

BrandHouse is a cross-border parcel delivery business facilitating cross-border sales to China on behalf of FMCG brand owners that are already selling in China or want to enter the Chinese market for the first time. BrandHouse buys from a brand owner and then sells directly on various online B2B & B2C sales platforms, and services brands and platforms with enriched content, logistics, product clearance and activation marketing.

BrandHouse offers brand owners two cross-border models to enter the Chinese market:

  • Delivery from a Free Trade Zone (FTZ) warehouse of BrandHouse in China (“1210”)
  • Delivery from the Central European warehouse of BrandHouse in Germany (“9610”)

 

Delivery form a Free Trade Zone warehouse in China (”1210”)

The first model, in China referred to as cross-border “1210”, is specially meant for fast-moving products that need to be delivered fast to the Chinese consumers (1-3 days). To be able to comply to fast consumer delivery, the product storage is located close to the consumer in a Free Trade Zone (FTZ) warehouse in China. The brand owner and BrandHouse together develop a Go-to-Market Plan for China and determine the minimum stock level required in the FTZ warehouse. The brand owner sends an initial batch of products to the FTZ warehouse (iron stock) primarily by sea or railway, sometimes air. Once received, BrandHouse arranges for product registration and customer clearance. BrandHouse than starts activating the brand on multiple online sales channels. When an order is received from a sales channel, the products are picked, packed, labelled and shipped to the buyer or consumer in China.

Driven by actual sales, the stock is replenished from the brand owner warehouse outside China directly to the Free Trade Zone warehouse of BrandHouse. One quite a significant advantage of this cross-border e-commerce sales model is that it allows brand owners to offer next-day delivery.

 

If would like to learn more about the possibilities of cross-border e-commerce in China, feel free to contact us at info@brand.house.