LUC De Munck: European electrical Business Logistics

"Billion Power network" November 23 ~ 24th, by the Ministry of Commerce E-commerce and Information Technology Division, Chengdu Municipal People's government and the Sichuan provincial business office support, billion power network hosted the seventh annual China Online retail conference, the world's top five international Postal Service Belgium international Postal Bpost, managing director Luc De Munck shared the status of E-commerce in Europe and the logistics difficulties that China's foreign trade dealers need to overcome.

The following is a transcript of the speech by Luc De Munck, general manager of Belgian international Postal Service:

LUC demunk: Thank you! Now we go into this section will discuss the logistics, and I will brief you about who we are. We know that the Belgian postal Service is a Belgian state-owned and CVC Capital partner or Belgian postal Service, which is a co-operative relationship between the half government and the semi private sector, and sometimes we are also considered to be private institutions, which, in financial terms, can be said to be a private sector, We can also fully develop our financing expertise in Europe and Belgium, including logistics services for logistics and retailing. Our focus is mainly on reliability and quality assurance, we provide services is very reliable, and quality is guaranteed. No matter which season, which month our quality is consistent, and we are ranked in the quality of the top five of the logistics enterprises in Europe, so our quality is recognized by experts all over the world.

I am the general manager of the Belgian post, our focus is on customer service in Belgium, abroad and in Europe, we work with companies like Amazon to provide strong logistics support, we are also very focused on U.S. and Canadian Customer logistics services, we also in Washington, Chicago and Toronto, the West Coast also has a branch, Support local business development over there. There are also branches in Singapore and Beijing, China. We have over 600 employees in 11 countries around the world, Daily turnover of 204 million euros, the annual mail processing volume of 340 million pieces, we Belgium post International is a subsidiary of the Belgian postal Service, we can see our EU headquarters and our operations center in a building, Belgium is a small country, can direct access to the airport, to ensure turnaround time, four hours to reach the main European economies, and in All the places in Europe can be reached within 24 hours. We can take a look at our major entry points into and out of Europe and our best export turnover point, through our convenient connection, we can cover the entire European, Asian and American markets.

Why do we come to China? As we all know, China's economy has grown very rapidly over the past 30 years, now in years time to become the most developed market, and China became the world's second largest economy, through the four icons can be seen, online shopping market now, in China is still mainly by a small number of electric operators.

Let's take a look at the 2011 business and B2B,B2B accounted for about 23% of the 77%,B2C, there are several other subdivisions do not repeat, we found that China's electricity dealers are seeking to open up new markets, so for Europe, Our Belgian international Postal Service handles 254 million parcels to Europe each year, 243 million parcels to the United States, and we have the ability to help Chinese power suppliers to open up business in Europe and other markets. As you can see, the global market in 2012, the total income of the manufacturers of 825 billion euros, Europe is the second largest market, you can see the North American market accounted for 14%, the European market accounted for 18%, the Asian region in the past years growth to 36%, So Europe is now the largest market with 290 billion euros, followed by 270 billion euros in North America, and Asia is rapidly becoming the third largest market, occupying 215 billion market share. However, while some markets are falling and the European market is growing, it can be seen in Africa or in the Middle East, and in some places even less.

Take a look at the huge business opportunities of Cross-border E-commerce, where 23% of Europeans buy foreign products online, compared with 18% in the US, meaning that 18% of Americans buy overseas products online. In Europe, most like Germany, Britain, these Europeans, are willing to buy online products, especially from China. We see that in the United States during the 2008-2010, online purchases of overseas goods increased by 20%, and most of the purchase of products from China, so in Europe, in the United States, we notice that there is such a huge market for Chinese power suppliers.

I believe you have done market research and research, and also done a good job of the electrical business, I congratulate. This is a 25-year-old person, she said, "I feel very good from the Chinese website, and provide me with very unique household items, I am very happy to buy things on this website." However, when my order took more than 3 weeks, sent by a courier yuan to my home, everything changed, in the final receipt of goods, I had to pay 50% extra duties, taxes and fees, I will never again on this site to buy things. "It's a statement on Facebook and you know that Facebook has a very large audience in Europe, and Word-of-mouth communication power is very huge, if on Twitter and Facebook said so, the impact on China's electricity business is disastrous, so here I want to say is, if you want to sell things to customers, you must have a transparent price and delivery time, Including taxes and fees, so that customers have a good feeling.

This is the end consumer online Cross-border shopping is the main concern, one is to transport one is delivery, different colors represent different shares, Red representative 26% is due to fraud or identity caused by concern. The top gray represents 22% of their concerns about freight. The blue part is an extra charge, they are very concerned, this accounted for 10%, because they are online after the purchase price may only be the price of the goods, but they are very concerned about the ship to my home, I will not pay the tariff VAT and so on. If you want to do logistics, if you want to increase the compliance rate of orders, be sure to pay attention to European customers on the above issues of concern.

Again, the way to pay, China's electricity dealers need to integrate the different payment solutions, Alipay can be seen as the dominant factor in China, but the European way of paying is very decentralized, with a wide range of payment options, including direct debit, online credit transfers and real-time bank transfers, electronic wallets, coins, Paper checks are delivered by courier, so you want to sell in Europe, you must cover all the customers he can accept the payment method, so the gray is the direct debit, the green is off-line credit transfer.

We know that the laws and regulations in Europe are changing, and we have discussed this in the opening ceremony yesterday, that is, the market is becoming more and more standard, if it is the electricity business, then they want to sell their products internationally, must conform to European and international laws and regulations. Laws and regulations are group purchase or freight goods to be determined according to the category of tariffs, the imposition of VAT on 27 countries, may be in Europe due to the regulation of laws and regulations caused by management delays or customs goods stranded, so if you want to sell in Europe or other parts of the world must pay attention to this point.

and the international electricity business, their sales exceed the legal threshold for direct sales, which means that the threshold of 100,000 euros is to have a legal representative in the country they sell, and if you have more than 100,000 euros in sales, then you have a local law firm representing you locally, which includes increased price transparency, Sellers want to disclose the total price of products and services and additional costs, if the online before the order to inform these costs and costs.

The period before the consumer cancels the sales contract is extended to 14 months, for China's electric dealers, they must determine their logistics strategy, whether you are for the whole of Asia or Europe, or for the whole world, or for the Americas, which involves different ways of logistics, including warehouse shipments or bonded warehouses, Or to have a foreign leasing warehouse, you must have a different marketing and logistics strategy.

Belgium international Limited can help China's electrical dealers in these areas to eliminate your obstacles and concerns, we are experts in logistics, we are the electrical business value chain focus on logistics, through this figure can be seen, we can through your suppliers to receive goods, and then guarantee, and to ensure that all these goods are intact to the next recipient, we are careful when dealing with the goods, and take care of the customer's concerns, taking into account the nature of the goods, and we have our own warehouses, have their own pickup trucks and freight personnel, but also to return goods, We can also take the correct way to deal with the return. We have a service called globalization services, which is different from other existing programs, and our international service is to provide 100% of the guarantee, the real cost to the shore, whether in the United States of Chicago or Detroit, or through these places to Europe , we all offer a price on the shore, and will not allow customers to pay tariffs or other value-added tax. So this is a globalization that we focus on, especially for the Chinese market, we know that China's market is very clear, China is vast, from the mainland one point to another point is hundreds of thousands of kilometers, so we are in China and some transit points in Europe have their own bonded warehouses, Can achieve a good customer experience. If you are selling in Europe, the Chinese product is now the Chinese manufacturing in Europe become more and more good quality word-of-mouth. So we're going to provide this experience to our customers. On your website, it can be said that through the freight of our Belgian international postal company, the quality products of China can meet the needs of customers.

This is our product globify, if you are interested to know about tariffs and tax policies, we can provide a quick solution.

Shipped from China to Europe is 7-8 days, we can transit through Brussels and London, the whole process can be traced back, from the delivery to the final destination has a product traceability, and we guarantee that there will be no increase in tariffs or other taxes, consumers from the beginning is very transparent price.

In this way, the end consumer can be more value-added, while the Chinese brand can also be sold to Europe. As you can see, our customers ' annual orders have increased a lot after using globify, some increased by 300%, and they say the shipments are very accurate, and they will cover the tariffs every time without adding new burdens to the customers.

Look at the handling of our complaints, this is another important area where we can help clients outside Europe deal with complaints from 27 countries within the EU, because customers in Spain may speak a little English and certainly not Chinese, so we have to make sure that they are given very practical language services, Make sure they have a very local feeling. Moreover, we believe that many retailers are already doing successful language support services.

In terms of return, we must ensure that under European legislation, we all have the right to exchange goods, which is for Belgian retailers and Chinese retailers, as long as you want to sell the goods to Europe must have such consideration, you must be prepared, some consumers to return the goods also through reverse logistics, This is very expensive, but we also have to understand that you need to know that such a return also needs to be free. can also see a number of footwear vendors, they can reduce the cost of return in a variety of ways to achieve a 0 cost of return and replacement services, this practice is also very good. At the same time, we also have some return by the way of payment, this is also a choice. In short, we have to have a European distribution department to carry out the exchange of goods. And we have to make sure that the return process is retrospective, in Europe, there are a lot of fraud, if some people say that I have returned the product, in fact, there is no return, so before and consumer experience in dealing with such unpleasant experiences, and some consumers have returned after the completion of the bad, How to deal with this dispute is also very important, we hope to be able to pay more attention to this in the future operation, if the product has been broken, who should bear the responsibility? What we want to confirm is these links.

Finally, I would like to sum up we talk a lot of questions today, Europe is a very big, very vast, but also very interesting market, and the Europeans are willing to buy a lot of goods from China, we must make payment and website design Well, there is to make the customer experience well. Another is logistics, we need to find some effective logistics Cheng, only in order to expand their business overseas, only through this method, we can do a good job, we are very confident that the Belgian post to help you expand overseas, the huge market of China to expand overseas, So do not copy Chinese practices overseas, be sure to have a creative combination of local conditions to operate, thank you for listening!