SEKO Logistics invests in new Hong Kong e-commerce facility
10 / 08 / 2016
SEKO Logistics has added further warehousing and fulfilment capacity in Hong Kong as part of its effort to develop an ‘e-commerce gateway’ for retail and high-tech customers targeting China’s booming online consumer market.
The global logistics services provider’s most recent investment in Hong Kong has seen it open a new 50,000 square foot warehouse on the border with Shenzhen. The facility is located just 45 minutes’ drive from Hong Kong International Airport, as well as 30 minutes from the Port of Hong Kong.
The facility features 10 dock doors to handle a steady flow of collections and deliveries, and is the workplace of approximately 50 staff.
It incorporates a clean room for high-end fashion products and a pick-and-pack area. Made out of converted sea containers, the building now serves 20 SEKO customers, both global brands and leading businesses in the Asia Pacific region, according to the SEKO.
SEKO confirms that it has the option to double the size of its facility should volumes increase significantly.
James Gagne, chief operating officer, ASPAC, commented: “Our investment in Hong Kong is being driven by significant ecommerce growth. We are in a strategically important location close to the main port and airport and, most importantly, within easy access of the mainland.”
He explained: “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.
“We are giving our customers a total supply chain solution, including best-in-class, customisable technology to manage and grow their businesses to 4.3bn potential new customers.
“We can also demonstrate how we are helping companies to access this market quickly and simply because of the infrastructure we have put in place.”
SEKO notes that, as well as the China market, Hong Kong also acts as a gateway for online retailers selling products into other parts of Asia, including Japan, Malaysia, Singapore and Thailand.
According to Gagne, focusing on the B2B (business to business) market and establishing visibility of their inventory and shipments is the way SEKO is primarily seeking to help its customers active in the region.
“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 ecommerce 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,” Gagne said.
“In doing so, they will have the ability to scale out and integrate their ecommerce sites with their enterprise resource planning — a key component to successfully implementing a new retail logistics operation in Asia-Pacific,” he considers.
This latest facility adds to other recent SEKO investment in Hong Kong. In November last year, SEKO opened a 50,000 square foot e-commerce warehouse in the Special Administrative Region to provide order fulfilment services, as well as same-day and next-day deliveries, in the city.
SEKO Logistics currently has more than 120 offices in 40 countries around the world.
Towards the end of July, Tony Matthews joined SEKO Logistics as its head of omni channel logistics in order to help grow SEKO’s business for e-commerce clients by bringing together the company’s services for both direct to consumer and retail businesses.