www.goldstandardglobal.com
Size of the Prize The middle class is Twice the size of expected to grow to the US population 600 million by 2020 “If you miss the opportunity to sell to China, you will miss the future.” Jack Ma, Alibaba Founder • Populations : US 3.25 million, China 1.3 billion = 4X • Consumer consumption is showing a growth of approx. 9% per annum • China has more billionaires than US: China 819 billionaires versus the United States 585
Product Opportunity The Chinese consumers desire well regulated and authentic American brands especially for… Mom & Beauty Health Foods & Skin Care Jewelry/ Fashion Cosmetics Alcohol Baby Products Supplements Accessories
Risk is the Problem • For smaller to medium sized brands it is a risky business proposition to justify the costs of entering China’s e-commerce market without a known ROI. z • T-Mall and JD.com account for 80% of the Chinese e-commerce traffic, but are prohibitively expensive for smaller brands. Both sites prefer showcasing premiere brands’ flagship stores and require exorbitant, ongoing marketing expenditure.
Risk is the Problem • Further complicating this dilemma, brands must have a registered company in China, a Chinese bank account and product inventory in China. • CEO ALERT: Be Prepared for High Operating Costs.
Solution : B2C Cross Border E-commerce • Opportunity to sell online in China and ship from outside of China to the end consumer • No Chinese business license needed • No Chinese bank account needed • Personal purchase therefore does not need to meet all the testing requirements • Single package shipments from US warehouse or Free Trade Zone warehouse so taxes and duties are less.
Cross Border E-commerce Opportunity Chinese consumers may spend US $110 billion This is 12% of all Chinese e-commerce sales on external e-commerce websites . and is fast approaching US $200 billion. • In 2020, 1 out of 5 e-commerce dollars will be generated from Cross Border. • E-commerce, mobile devices and logistics now enable us to reach Tier 3 and 4 cities, for potential sales of US $90 billion.
Our D2C Roadmap is Straightforward Our Solution: • GSG leverages its proprietary Cross Border E-Commerce solution for Direct to Consumer (D2C) sales in China. • Chinese consumers are directed to our clients’ US websites where minimal additions make it "China friendly.” • Checkout payments are handled via popular Chinese mobile payment options.
Our D2C Roadmap is Executable Our Solution: • Inventory remains in US warehouses, NOT in Chinese warehouses. • Goods are seamlessly shipped directly to the Chinese consumer via our preferred freight forwarders with delivery in 10-15 business days. • This allows smaller and new-to-market brands to conduct market testing before they make the expensive up-front investment in a flagship store on T-Mall or JD.
Order Order Marketing Payment Payment Marketing Buyer Delivery Customer Brand e-commerce site Customs Brand Warehouse Parcel Parcel Logistics warehouse in China Logistics warehouse in U.S.A. PHASE ONE: Marketing to Chinese consumer in China and the USA. Ship from USA to China consumer.
Place Order Payment Marketing Delivery Customer Brand e-commerce site Customs Brand Warehouse Parcel Parcel Brand warehouse FTZ Logistics warehouse in U.S.A. PHASE TWO: We will hold fast-moving product in a warehouse in a Free Trade Zone FTZ.
Place Order Marketing Payment Brand e-commerce Delivery Customer site Customs Brand Site Brand in China Warehouse Parcel Parcel Brand warehouse FTZ Logistics warehouse in U.S.A. E-commerce now market place sites in China on PHASE THREE: T-mall and JD in addition to USA site for complete range.
The Marketing Plan Brands must pay attention to key elements such as: • Promote with KOL’S (Key Opinion Leader)/Influencers • Emphasize short video content • Launch live stream campaigns • Affiliate Networks - Publishers • Product reviews
Social Strategy Foreign brands MUST establish a presence on the two major social media platforms – WeChat and Weibo. Weibo: A microblogging site with 376 million monthly active users. WeChat: A multi-purpose messaging platform that exceeds one billion users.
Benefit To Your Brand GSG enables you to create an exceptional customer buying experience, resulting in increased: • Increased Site Visits • Increased Purchasing Frequency • Increased Average Order Value • Increased Loyalty Program Enrollment • Increased Likelihood to Recommend • Increased Brand Confidence
GSG is the Path for Entry We help our clients drive international sales by: • Leveraging our expertise • Strategic relationships • Targeted marketing programs • Cost-effective logistics We do so with: • Transparency • Authenticity • Expertise
Founder Avron Anstey is a seasoned Chinese e-commerce expert. He has assembled a highly skilled marketing and logistics team with decades of cumulative experience GSG has the proven ability, networks, and distribution channels to market brands in China. Chinese consumer technology constantly changes and far outpaces American consumer tech. Knowledge is power, and GSG stays current to utilize the best customer platforms. Email: avron.anstey@goldstandardglobal.com
THANK YOU www.goldstandardglobal.com
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