eCargo Selected by Woolworths for Digital Commerce Launch in China
This launch exemplifies ECG's unique positioning, and being able to build on a 25 year continuous relationship between Woolworths and Cargo Services Far East. Cargo Services Far East is a member of CS Logistics Holdings Limited, a significant investor in ECG.
ECG will build and manage Woolworths' storefront on Tmall, the largest B2C online marketplace in China today, will coordinate Woolworths' inventory, packing and distribution requirements, advise on brand entry strategy and undertake a wide-range of digital and social marketing activities for Woolworths.
Online retailing is rapidly gaining traction in China. According to the South China Morning Post in Hong Kong on December 17, 2015, "The Chinese mainland will account for over half of the global retail e-commerce market by 2018 as its growing middle class and broad use of smart mobile devices nationwide drive domestic consumption... New York-based research firm eMarketer yesterday predicted China's total retail e-commerce sales in 2018 would increase 133 per cent to US$1.568 trillion, up from an estimated US$672 billion this year."
ECG is strategically positioned as international brands continue to target the Chinese online market. Since its listing on the ASX in 2014, ECG has brought several high-profile brands into China, including Karen Millen, La Perla, Tom Tailor, Mammut, New Look and Jeanswest Australia.
Commenting, ECG Executive Chairman, Mr. John Lau, said: "We are very excited for eCargo to be partnering with Woolworths for food and groceries in their entry into China. We believe the food and groceries segment will experience huge growth in the coming years between Australia and China, as cross-border trade restrictions ease and the China Australia FTA takes effect."
ECG's Chief Executive Officer, Mr. Christopher Lau, said: "This is a significant milestone for eCargo in expanding into food and groceries. It is a testament to our team and our ability to work with a top supermarket chain in Australia. We are delighted to have this opportunity to connect China's consumers with more high-quality Australian food and grocery products."
"We are pleased that Woolworths have selected eCargo to work with them in their first foray into digital commerce in China and are very excited to take part on this journey with Woolworths. I am confident that we can contribute to grow Australian exports to China," he said.
About eCargo Holdings Ltd
eCargo Holdings Ltd (ASX:ECG) is a China-based eCommerce technology and specialist execution group of companies, with operating companies in China and Australia trading under the Amblique and eCargo brands, providing on-demand digital commerce technology development and related execution capabilities for retailers and fashion brands.
Amblique is a leading digital commerce consultancy providing retail strategy, eCommerce platform implementation and optimisation services in Australia and New Zealand. eCargo acts as a "one-stop" enabling partner for designer fashion, branded apparel and retail companies seeking to sell their products online in China, Australia and around the world by providing integrated online and offline technology and supply chain solutions.
ECG connects consumers with brands online and offline through the development and marketing of eCommerce platforms, brand site transactional platforms and major marketplace platforms in China such as Alibaba Group's Tmall, Tencent's WeChat and JD.com.
eCargo Holdings Ltd