XIN HWA TO EXPAND B2B ONLINE PUSH
Logistics services provider to leverage acquisition of Yiwugou Ecommerce to improve access in China
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.