XIN HWA TO EX­PAND B2B ON­LINE PUSH

Lo­gis­tics ser­vices provider to lever­age ac­qui­si­tion of Yi­wu­gou Ecom­merce to im­prove ac­cess in China

New Straits Times - - Business - KUALA LUMPUR

IN­TE­GRATED lo­gis­tics ser­vices provider Xin Hwa Hold­ings Bhd is look­ing to be­come a prom­i­nent busi­ness-to-busi­ness (B2B) e-com­merce player fol­low­ing its 50.01 per cent ac­qui­si­tion of Yi­wu­gou Ecom­merce Sdn Bhd (YESB) for RM500,000 cash.

YESB is prin­ci­pally in­volved in op­er­at­ing an e-com­merce plat­form and has en­tered into a co­op­er­a­tion agree­ment with Zhe­jiang Yi­wu­gou E-com­merce Co, al­low­ing YESB to use the “Yi­wu­gou” brand, prod­uct and sup­plier data­base of Yiwu Com­mod­ity Mar­ket on YESB’s e-com­merce plat­form in Malaysia.

“The co­op­er­a­tion agree­ment be­tween YESB and Zhe­jiang Yi­wu­gou E-com­merce Co, is for a pe­riod of 10 years ef­fec­tive from March 2,” said Xin Hwa.

Yi­wu­gou is the of­fi­cial Chi­nese web­site of Yiwu Com­mod­ity Mar­ket, re­port­edly the largest small com­mod­ity whole­sale mar­ket in the world.

Lo­cated in Yiwu, a city in the cen­tral Zhe­jiang prov­ince, Yiwu Com­mod­ity Mar­ket spans across 59 mil­lion sq ft of space, sep­a­rated into five districts. It ships more than 570,000 con­tain­ers a year world­wide to over 200 coun­tries.

“With the e-com­merce plat­form, Malaysians now have a lo­calised gate­way to the same of­fer­ings at Yiwu Com­mod­ity Mar­ket — more than 1.8 mil­lion prod­ucts by an ag­gre­gate of 75,000 sup­pli­ers — at their fin­ger­tips,” Xin Hwa added.

The plat­form pri­mar­ily op­er­ates as a B2B model, serv­ing a wide range of clien­tele rang­ing from small traders to large trad­ing houses or re­tail­ers.

In­di­vid­u­als can also make pur­chases from the plat­form due to the low min­i­mum or­der quan­tity for cer­tain prod­ucts.

The com­pany said the e-com­merce plat­form also of­fers sev­eral ad­van­tages specif­i­cally for Malaysia – free door-to-door de­liv­ery from China, all-in pric­ing in ring­git and lo­calised cus­tomer ser­vice sup­port in Malaysia.

“This is a ma­jor mile­stone for Xin Hwa. The ac­qui­si­tion of YESB opens up a whole new op­por­tu­nity, pro­vid­ing us the step­ping stone into the fast-grow­ing ecom­merce seg­ment,” said Xin Hwa man­ag­ing di­rec­tor Ng Aik Chuan.

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