Riding the wave of optimism spurred by Jack Ma and Alibaba, China’s e-commerce market growth rate has increased by 26.2% so far in 2017. E-commerce now represents 15.5% of total retail sales in the country. The e-commerce industry in China has generated ¥5.16 trillion in 2016, which represents twice the growth rate of the country’s whole retail economy.
On a recent trip to Hong Kong for RISE, I met up with Terry Chan, the Chairman of the Hong Kong E-Commerce Supply Chain Association to find out more about his insights on the Asian Dragon’s meteoric rise to digital glory.
D: Hi Terry, tell us a bit about your role and what that involves on a daily basis.
I have more than 20 years of e-Commerce supply chain experiences in marketplace and 3PL, an e-Commerce logistics entrepreneur, postal expert, columnist and speaker across Asia Pacific. An e-Commerce logistic advisor to key organizations such as, Hong Kong Trade Development Council (HKTDC), Asia Pacific Postal Union (APPU), Chartered Institute of Logistics and Transport (CILT), GS1, City University of Hong Kong…etc.
I am currently the Chairman of Hong Kong eCommerce Supply Chain Association, the first and only one non-profit organization in HK tailors for the professional leaders who are working in the e-Commerce industry and specialize in the supply chain management with aims to build a platform to share knowledge and experiences, and contribute to the e-Commerce supply chain development for Hong Kong Special Administrative Region (HKSAR). And, I am the General Manager, 3PL of a leading e-Commerce Marketplace in the South-East Asia.
Q: What is the biggest challenge that you’re currently facing and how are your team solving it?
The biggest challenge come from there perspectives, namely, regulations, mindset and operational. First of all, we have to figure out ways to shake the existing rule of the e-Commerce industry in order to create a favourable environment to grow the business. Secondly, we have to transform the mindset of the partners which are mostly come from the traditional enterprises of how to adapt and support the e-Commerce development. Lastly, to work with various 3PL to create the supply chain solutions in an innovative & cooperative way.
Q: What one trend in your industry has your attention and why?
Nowadays, we notified that there are three megatrends in the eCommerce market. The first megatrend is the crossborder e-Commerce development. The second megatrend is the evolution of retail ecosystem – worldwide products to worldwide consumers. The third megatrend is the innovation of cooperation of e-Commerce Supply Chain development.
Q: How has the industry changed since you first got involved in it?
There are three key parameters that drive the industry changes. The first parameter is real-time visibility, that consumers would like to know exactly where is the package anywhere and anytime. The second parameter is the customer experiences which not only focus on the last-mile delivery but also need to take into accounts of all the functions along the entire supply chain. The third parameter is the collaboration between different parties along the supply chain – that is what we heard about the Internet of Things (IoT) which try to link all the parties together via information technology.
Q: Give us a sneak peek into what you’ll be presenting at Seamless?
I will speak about how 3PL on-going innovation to support e-Commerce Supply Chain ecosystem. The trend of globalization of e-Commerce drives companies to focus on innovation & cooperation with aims to optimize their omni-channel business strategy. 3PL play an important role to actively support the growth of e-Commerce globalization by creating an unique platform and channel where knowledge, technology and data are linked with different parties along the supply chain ecosystem. The key questions we will focus are:
- What are the key questions & megatrends about e-Commerce in particular, in CN and SEA?
- What are the hype regarding organizations having an e-Commerce Supply Chain ecosystem, are the most organizations truly comprehend the concept?
- What are the definition and evolution about e-Commerce Supply Chain ecosystem?
- What are the critical elements that organizations need to focus on across the e-Commerce Supply Chain ecosystem?
- What role of 3PL have in supporting an organization evolve to have an innovative e-Commerce Supply Chain ecosystem?
- What are the differentiation, pain points and future trend of 3PL to conduct innovations for e-Commerce Supply Chain development?
- E-Commerce Supply Chain Optimization Model – Case Studies in CN and SEA
Q: Why are you excited to be participating in the conference?
The e-Commerce world is growing so rapidly that one need to stay focus on it, to grasp the most updated knowledge and experiences from the market. The conference provide a golden opportunity to gather the expert from the e-Commerce industry so that one can learn from their valuable expertise. SEA is widely believed to be one of the leading e-Commerce growth markets, and the conference will focus on the market intelligent of SEA. To this end, I am really excited to participate and contribute to the conference.
We look forward to Terry’s closing keynote presentation at Seamless Indonesia in Jakarta at the Pullman Central Park. To find out more about the very latest digital tech initiates in Asia, CLICK HERE to find out more.