yintai - short vers
TRANSCRIPT
Yintai Holding is a diversified industrial conglomerate
Commercial Retail
Smart logistics
Investment and finance
Shanghai WeihanFinancial Leasing
Ubox Yintai CRC Fund Yunfeng Capital Citic PE Yintai Golf Club Jixiang Building Dongluo Island Sanya China Acrobatic Troupe
China Smart Logistics Network
Intime Retail• Intime Department
Store• Intime Shopping Mall• Yintai.com Yintai In Beijing New Yansha Wuhan Department
Store
Mineral Resources
Property Development & Management
Philanthropy
Yintai Foundation Partners• Ai You Foundation• China Soong Ching-ling
Foundation• Zhifu Foundation• China TNC• China Foundation for
Poverty Allevation
Yintai Resources• Mineral Exploration• Mineral Mining
Yintai Landmark• Yintai Center• Yintai City• Yintai Universal City Yintai Property• Beijing Yintai Center• Boutique Hotels Metro Land
China Yintai Investment Co. Ltd. (hereafter YintaiGroup) is founded in 1997 as diversified industrial investment group.It owns several domestic and international listed companies and over 100 wholly-owned companies
Scope of our discussion
Intime Retail is a consumption solution provider with online and traditional business areas
In March 2007Intime Department Store (Group) Co., Ltd. (01833.HK) was listed on the Hong Kong Stock Exchange
In March 2011Intime was the first retail stock added to the constituents of Morgan Stanley Capital International (MSCI) China Indices under the MSCI Global standard indices
In March 2013Intime Department Store (Group) Co., Ltd. Officially renamed as Intime Retail (Group) Co. Ltd. And it was ranked as on of 16 best positioned stocks and the leading department store chain with dominant market share by Morgan Stanley
On 31st March 2013Intime Retail (Group) Co. Ltd. And Alibaba Group announced that Alibaba will make HK$5.37 billion strategic investment in Intime RetailThe two giants will integrate respective superior resources with aiming to establishing a future commercial infrastructure system focusing on online and offline shopping.
29 IntimeDepartment Store
15 IntimeShopping Mall
Yintai.com
Total GFA over 2,600,000 sqm Self-owned Area: 57% Leased Aare: 43%
www.yintai.com is a large B2C e-commerce platform focusing on the business of lifestyle and fashion
Intime City comprehends 30+ high-end commercial complex, the one in Beijing is already a national landmark
Officebuildings
ResidentsShopping
malls
Hotels OutdoorPedetrian
streets
View from Park Hyatt Beijing – Beijing Intime Center is the China business center and worldwide tourist attraction for its amazing view of the city
Each Intime City has superficefrom 100k-400k+ mq of total commercial area, situated mostly in tier 2 and 3 cities with minimum area population of 10 mln
Yintai’s ecommerce provide multiple e-channel strategy including viral social tools
Mobile App Social MobileYintai.com Tmall Flagship I’M O2O
Our experience on Tmall and JD position us the best ecommerce solution provider for international brands
Digital marketing
Store development
and management
Logistics&Operations
– Web Design
– Social media
– SEM SEO
– Store development
– Pricing
– Promo
– Assortment
– CRM
– International logistic and last mile
– Warehousing
– Order management and fulfillment
– Pick & pack
– Inventory management
E-commerce and multichannel strategy
– Go to market strategy
– Investment strategy
– Market analysis
– Negotiation
The next big ecommerce opportunity is cross border and outbound spending
5 1226.5
48.3
76.7
154.9
2009 2010 2011 2012 2013 2014E
Out-border online transation (bln RMB) • Online overseas retail transaction
reached RMB 76.7 billion in 2013. The growth rate is over 100% in 2014, reaching RMB154.9 billion. By the end of 2015 the figure will double.
• There are 2 types of outbound online shopping transactions in China:
1. Users who order directly from the eCommerce sites of overseas brands;
2. Users who order from local buyers/agents, who will then ship the products to China, commonly known as “daigou .
1. Parallel purchaseSource: 100EC, “2013 China online retail market insight report”, 2014.3
~380B RMB
~55%
~15%
~30%
Overall breakdown for Chinese luxury goods spending 2014E
Overseas purchases
Daigou1 via friends and relatives, Taobaoagencies and professional agencies
Mainland China sales
1. 2014 Notice No. 56 of the General Administration of Customs (on supervision of cross-border E-commerce trading of inbound and outbound goods and articles)Source: http://english.customs.gov.cn; Intime analysis
Chinese consumer
Overseasproduct
B2B standard model – costly and time consuming
Translation of labelRegistration of each SKU at Chinese FDA
Imports WarehousingAdjust formula to
Chinese regulation and law
B2C NEW Personal Import Model
Direct salesOverseasproduct
Chinese consumer
China authorities issued a custom policy breakthrough deregulation in July 2014 called “PERSONAL IMPORT” model.
International manufacturers can finally sell their goods to Chinese consumers as they are marketed in the country of origin without theneed to adjust them to Chinese regulation, translate labels or register them.
The deregulation applies only to B2C transactions while B2B are still handled in the standard way.
The rational of the personal model is to allow Chinese consumers to have access to the much appreciated international goods which aredifficult to find in china.
Chinese Government bodies are encouraging the new cross border ecommerce by enacting new regulations
Yintai is well positioned compare to the existing incumbent competitors…
Purchase channel
Daigou Overseas B2CDomestic brick-and-mortar
Cross border ecommerce
Intime Cross border
Pri
ce
Overseas retail price 100 100 100 100 100
Overseas tax 0~10 N/A N/A N/A N/A
Import duty2 N/A 0~35 ~35 10 10
Consumption tax N/A N/A ~15 N/A N/A
Import VAT N/A 0~20 ~25 N/A N/A
Price to consumers3 100~110 100~155 ~175 ~110 <1004
Co
nve
-n
ien
ce Order flexibility Low Moderate High Moderate High
Approximate time Moderate Moderate Short Short Short
Jewelry example(Index)1
1): Jewelry import duty: ~20%-35% depending on specific product type if imported as goods, 10% if imported as personal goods (personal postal articles tax applied) in the case of cross-border e-commerce; overseas websites uses different customs clearance methods when handling direct shipping to China: import duty and VAT applicable when imported as goods, personal postal articles tax applicable when shipped as personal item, or tax not claimed until customs require it, which therefore leads to a different tax range; consumption tax for jewelry is 10%; 2): Price advantage varies across different categories due to different tariff; 3): Excluding shipping fees; 4): Self-owned bonded warehouse shippingSources: China customs; expert interviews, Imoda analysis
Fake risk, no legal guarantees
..and Yintai is the best prepared player for this opportunity
Yintai Pre-Paid Gift Card
We sell 4 bln RMB of pre-paid cards each year
Yintai Hangzhou Bonded Warehouse
We are the only cross-border ecommerce company with self-managed bonded warehousing for fashion and luxury productsOffline to Online and
vice versa experience
We are the only Chinese retailer to have omnichanneltouchpoints, creating value for brands and giving experience for consumers
Yintai Choice
Imported only products with daily visit of more than 10k visitors; “the most successful supermarket in China for premium products” – COOP (biggest Italian retailer)
