transcosmos Tie-up a Business and Capital Partnership with FineEX, China’s major E-Commerce Fulfillment and Logistics Company
Boosts the All-Inclusive one-stop E-Commerce Service for the Chinese Market
July 12, 2013
Shanghai transcosmos Marketing Service Co., Ltd.
transcosmos inc. (Headquarters: Tokyo, Japan; President and COO: Masataka Okuda; TSE First Section: 9715; hereafter, transcosmos) has acquired 20% of the shares through third-party allotment and has agreed to form a business and capital partnership with FineEX - Shanghai Heze Logistics Co., Ltd. (Headquarters: Shanghai, China; CEO: Li Pingyi; hereafter, FineEX) as an equity- method affiliate.
transcosmos signed a strategic partnership agreement with Taobao, the largest Chinese E-Commerce company, in 2009 and its Chinese subsidiary Shanghai transcosmos Marketing Service Co., Ltd. (Head Office: Shanghai, China; Chairman, CEO & President: Eijiro Yamashita; hereafter, transcosmos CC China), has been offering E-Commerce support services such as research & analysis, E-Commerce website development/management, web promotion, customer service, and order management to the Chinese Market. Following this business and capital partnership, E-Commerce fulfillment (warehouse operations such as storage for E-Commerce sales products, order picking and packaging/shipping) and delivery agent operations will be handled by a group company, which allows transcosmos to further enhance comprehensive one-stop E-Commerce service in the Chinese market. Along this partnership, one additional Board of Directors member from transcosmos is scheduled to be sent to China.
FineEX owns delivery centers with a total working area of 44,000 square meters in Shanghai, Guangzhou, Hangzhou, and Beijing and handles a series of E-Commerce fulfillment operations from storage of E-Commerce products in the warehouse, inspections, inventory management, order picking, packing, sticker labeling, order processing, shipping, delivery arrangements, to return processing. In addition, the unified management system for order processing and distribution, independently developed by FineEX, is connected to China’s major E-Commerce platforms, including China’s largest E-Commerce platform Taobao Tmall (Taobao Group’s B2C shopping mall), JD.com, Yihaodian, QQWangguo, etc., making it possible to connect to the corporate clients’ E-Commerce-related systems. Furthermore, the delivery service is provided for over 2,866 cities, towns, and counties (Chinese administrative units), which nearly covers the entire region where Chinese E-Commerce users reside. Currently, orders to fulfillment to delivery agent operations are carried out on an average of 40,000 transactions per day and 150,000 transactions per day during the peak business season.
Mr. Masataka Okuda, the President and COO of transcosmos has commented about this business and capital partnership as the following:
“I am extremely pleased that we were able to form a business and capital partnership with FineEX for our E-Commerce business expansion in China. transcosmos has already been offering comprehensive support/service for China’s E-Commerce market including research & analysis, E-Commerce website development & management, web promotion, customer service, order processing, etc., however through this partnership, by having a group company handle fulfillment, the range of our services have been further expanded. FineEX’s system responds to various major E-Commerce platforms in China, and its delivery centers and distribution network cover most of China. I believe that transcosmos CC China, our Chinese subsidiary, will be able to provide a comprehensive E-Commerce service to, needless to mention the Japanese customers, but to assist other global corporations from China, South Korea, Europe, and the Americas with their E-Commerce business development in China.”
CEO of FineEX, Li Pingyi commented as follows:
“China is an enormous new consumer market, and its E-Commerce market has had 40% growth every year. In such an environment, a business & capital partnership between FineEX and transcosmos is a meaningful milestone. Through this partnership, in cooperation with transcosmos, FineEX will be able to explore E-Commerce business and be able to cover the service systems of the E-Commerce supply chain in the Western, Japanese, Korean, and Chinese regions, which are currently the most robust E-Commerce consumer markets in the world. FineEX feels that the partnership with transcomos is the new opportunity for development and movement of E-Commerce, and through supply chain operations’ service systems, we would like to provide support for effective marketing and sales of the consumer products in the world’s most active E-Commerce markets. We believe that FineEX and transcosmos are just about to explore a new era.”
- Company Name:
- Shanghai Heze Logistics Co., Ltd. (Abbreviation: FineEX)
- CEO Li Pingyi
- Headquarters Location:
- No. 3, 588 Ji Wen Lu, Baoshan, Shanghai, China
- Number of Employees:
- Approximately 210
- Number of Sites:
- 4 (Shanghai, Guangzhou, Hangzhou, Beijing)
- Business Description:
- E-Commerce fulfillment business (E-Commerce product storage/warehousing, inspection, inventory management, order picking, packaging, labeling, order processing, shipping, delivery arrangement, return processing, etc.), delivery agent tasks, E-Commerce multi-platform consignment sales business
Left: Outside appearance of FineEX Middle: FineEX Shanghai Delivery Center
Right: Li Pingyi CEO (on the left) of FineEX and Mr. Koichi Iwami, Executive Vice President of transcosmos shaking hands with each other after signing the partnership agreement
China’s E-Commerce market exceeded ¥30 trillion in 2013 and currently continues growing at the rate of over 20%, with a projection of reaching ¥50 trillion in 2015. This amounts to 10% of the overall retail sales market, and it will be the largest scale in the world. (Source: “iResearch China E-Commerce industry guide TOP1000” by iResearch, May 2013) transcosmos will continue providing a total E-Commerce service in the Chinese market for not only Japanese and Chinese clients but also for Western and other Asian corporate clients, and at the same time, continue to accelerate its future global development as the “Global IT Partner” for its corporate clients.
- Services for the China Market
* transcosmos is a registered trade name or trademark of transcosmos inc. in Japan and other countries.
* Other company names and product or service names mentioned are registered trade names or trademarks of various other companies.
About transcosmos inc.
transcosmos launched operations in 1966. Since then it has combined superior “human resources” with the most up-to-date “technological” capabilities to enhance the competitive strength of its corporate clients by providing them with high value added and superior services. It provides overall IT outsourcing services such as Call Center Services, Business Process Outsourcing Services, and Digital Marketing Services either as standalone solution or as combined services to its corporate clients to optimize their marketing efficiencies, to expand sales and gain new customers in E-Commerce business, and to improve operational efficiency and reduce clients operational cost for back office and information system operations. Further, these services have been expanded beyond Japan, globally, centered in Asia. transcosmos aims to be the “Global IT Partner” of its corporate clients to provide them with high quality outsourcing services on a global scale.