BorderGuru, a wholly-owned subsidiary of the Hermes Group, has become the official contractual partner of China's Alibaba Group. With a gross merchandise value (GMV) of 452 bn USD and access to over 280 million customers, the Alibaba Group is currently the world's leading online retailer. Through its TMall Global shopping platform, Alibaba offers its Chinese customers popular international brands. On behalf of Cainiao, the logistics provider of the Chinese trading giant, BorderGuru GmbH is managing the whole logistics cross-border shipping process for European clients looking to sell on the booming Chinese market.
Through its TMall Global marketplace - explicitly targeting the private consumer - original goods from Europe, the US and elsewhere are sold to Chinese customers. At present, about 5,400 international brands from a total of 53 countries are being offered on TMall Global. "We are really proud to have become Alibaba's contractual partner - the number one in China’s and consequently in global web sales. And we truly appreciate the trust placed in us," says Martin Kreiter, responsible for e-commerce Business Development at Hermes and Managing Director of BorderGuru GmbH. Items imported from Germany include particularly pharmaceutical products, nutritional supplements, baby products and foods, as well as organically produced children's clothing and luxury items. "The label 'Made in Germany' is still a real sign of quality for many international customers," says Kreiter.
As part of the collaboration with Alibaba's affiliated logistics platform, Cainiao, BorderGuru provides the IT-assisted management of the whole logistics chain between Europe and China - from the pick up at the retailer's warehouse in Europe through to the transfer to the 'last mile' in China. James Zhao, Director of Global Import at Cainiao: "We are delighted to have secured the services of the experienced logistics specialist Hermes with its proven track record in retailing. In conjunction with its strong e-commerce base, BorderGuru for us is a logical partner we can trust with our continued expansion in Europe," explains James Zhao. The international transport, comprising all customs clearance formalities will be processed through Hermes. BorderGuru can rely on the growing logistics network of the Hermes Group. In China, Cainiao is then responsible for the import clearance and distribution to the Chinese end consumer.
The Alibaba concept and the expansion of its TMall platform is bearing fruit. TMall Global is still by far the easiest way for many Chinese customers to buy brand products from Europe at favourable prices. On Singles' Day in November, the biggest shopping event in the Chinese calendar, the Alibaba Group achieved a turnover of over 14.3 bn USD on one single day. Retailers from a variety of sectors are already using BorderGuru services and operate on TMall. Alongside this collaboration with Cainiao, BorderGuru offers further opportunities to tap the Chinese market. Retailers looking to expand globally can also sell to Chinese customers directly from their local webshop and have them delivered through BorderGuru.
"With its integrative services, BorderGuru is really optimising Hermes' existing portfolio in global e-commerce. The partnership between Alibaba, Cainiao and BorderGuru is now showing that we are on the right path with our e-commerce services and that we are helping satisfy growing demand," underscores Martin Kreiter. In future, clients will be offered more attractive market entry opportunities to tap potential e-commerce markets abroad. For more, visit: www.borderguru.com.