eCargo Holdings Limited (ASX:ECG) (‘eCargo’, ‘ECG’) confirms it has launched its’ JuJiaXuan Digital Wholesale Marketplace (‘JJX’) to connect Australian brands with Chinese retailers with launch partner, Fonterra.
“We launched the platform with the expectation of strong demand for JJX and are pleased to have Fonterra onboard as first partner. We value the longevity of the relationship with Fonterra having worked with their products over the past three years and look forward to providing additional value via JJX. ”
Fonterra Australia have extended their relationship with eCargo to promote their suite of products under the Australian Dairies brand on JJX under their existing distribution agreement.
This marks the first partnership agreement for JJX, connecting Fonterra’s Australian Dairies brand to 4,000 points-of-sale across mainland China and enhances the products currently available on JJX from Metcash Australia sourced through eCargo’s ownership of Metcash Export Services.
Key Highlights
- JJX launch confirmed with Fonterra as launch partner, starting with the Australian Dairies range available on the JJX platform (www.gojjx.com)
- Reflects a key milestone achieved as outlined in eCargo’s 2021 strategy
- Provides additional revenue stream for ECG with 10% commission charged per successful order
- JJX is backed by eCargo’s China team providing vetting processes for buyers and sellers and a comprehensive order tracking system
JJX is eCargo’s new Digital Wholesale Marketplace, enabling international brands and retailers to sell directly to Chinese Retailers, and for eCargo to manage the end-to-end sales process. It provides brands and retailers with immediate access to over 4,000 points-of-sale covering offline and online channels, while JJX manages payments, logistics, delivery, customs clearance and order tracking.
Commenting on the launch of JJX, CEO Lawrence Lun stated: “We launched the platform with the expectation of strong demand for JJX and are pleased to have Fonterra onboard as first partner. We value the longevity of the relationship with Fonterra having worked with their products over the past three years and look forward to providing additional value via JJX.
“JJX enables sellers to easily gain access to 4,000 point-of-sales online and offline, a notable opportunity for brand exposure given China’s highly fragmented market. In addition, it will enhance visibility and control over sales activities in China for suppliers and provide reliable shipment and delivery to local customers. Local buyers can browse and buy thousands of overseas products directly, without requiring an intermediary.”
By providing an all-in-one platform for brands to connect directly to Chinese consumers, JJX reduces the challenges often associated with selling in China such as high cost of entry, logistics and warehousing challenges, complicated intermediary business coordination, lack of visibility and trust.
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JJX addresses these challenges by providing access to the platform for free giving brands access to ECG’s 30+ years’ experience in global logistics and importation with a clear commission-based structure of 10% on successful orders. In addition, JJX provides a simple end-to-end process with clear visibility, backed by a robust brand vetting process by eCargo’s China team.