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Cross-border e-commerce in China: how it’s done? Part 2 - 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 service 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 form the Central European warehouse in Germany of Brandhouse  (“9610”)

This model, in China referred to as cross-border “9610”, is suitable for:

  • products Chinese consumers not necessarily need within 1-2 days after ordering
  • long-tail products for which it is not always feasible to have permanent local stocks in China
  • introducing new products to the Chinese market and testing what sells well and what not
  • products for which brandowners prefer to leverage stocks for selling both in the European and Chinese market.

The storage of the products is in BrandHouse’s European warehouse in Flensburg (Germany). The brand owner and BrandHouse together develop a Go-to-Market Plan for China and determine the minimum stock level required in the Flensburg warehouse. The brand owner sends an initial batch of products to the European warehouse (iron stock) primarily by sea or railway, sometimes air. Once received, BrandHouse arranges for product receipt and registration. BrandHouse than starts activating the brand on multiple online sales channels in China. When an order is received from a sales channel, BrandHouse picks, packs and labels the products, and then sends them to a Beijing customs warehouse in China. In the Beijing customs warehouse BrandHouse takes care of product customs clearance and then uses local express for the last-mile delivery to the buyer or consumer in China. Driven by actual sales, stocks are replenished from the brand owner warehouse to the European BrandHouse warehouse. Order to delivery lead time is approximately 7-10 days.

 

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.