HongKongskyline

Seko Logistics Continues Investing in e-Commerce for China

Seko Logistics has added in total 100,000 square feet of warehousing and fulfillment capacity in Hong Kong where they’re striving to build an ‘e-commerce gateway’ for China’s expanding online consumer market. Seko’s latest investment in Hong Kong has seen the opening of a new 50,000 square foot warehouse on the border of Shenzhen in southeastern China, which links Hong Kong to mainland China. In November 2015, Seko also opened another 50,000 square foot, high security e-commerce warehouse to provide order fulfillment services as well as same-day and next-day deliveries in the city.

Hong Kong and China are among the three fastest-growing locations in Seko’s global network spanning more than 40 countries, but it’s the potential of the market that makes it so exciting.

James Gagne, Seko’s Chief Operating Officer, ASPAC said: “Our investment in Hong Kong is being driven by significant e-commerce growth. We are in a strategically important location close to the main port and airport and, most importantly, within easy access of the mainland. Hong Kong and China are among the three fastest-growing locations in Seko’s global network spanning more than 40 countries, but it’s the potential of the market that makes it so exciting.”

While omni-channel logistics can be extremely challenging for companies looking to build their presence in Asia, James Gagne says focusing on the B2B market first and then establishing visibility of their inventory and shipments is the way Seko is helping its customers. “To access this huge market of buyers, we believe companies should focus on establishing their brands through retail bricks-and-mortar stores and/or B2B channels to penetrate into the region prior to becoming involved with e-commerce and launching B2C initiatives. This makes their brands more familiar to local customers early on. In addition, companies will already have their items imported and stored at their factories, offices or stores so they are prepared in advance for online orders. Shortly after creating their own websites, companies can then consider plugging into local, online marketplace platforms.”

“As they grow, it is essential for companies to have as much visibility of their inventory as they have of their shipments, and are receiving real-time data and updates. Through this level of visibility, companies can remove the barriers to entry into new markets and have complete transparency of information concerning their costs, expansion, and inventory. In doing so, they will have the ability to scale out and integrate their e-commerce sites with their enterprise resource planning — a key component to successfully implementing a new retail logistics operation in Asia Pacific,” he commented.