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E-Cargo offers services required to develop a marketing strategy, create a website, online store, launch their products and manage their inventories as orders are processed and fulfilled. They can provide support and distribution end to end in a market that many western business do not understand. For example Myer (who is a client of E Cargo) wish to start selling more products in China. They engaged E Cargo to help them set up their online stores in China, market and then distribute their products. For this service, E Cargo charges a fee for set up and will also earn a percentage on the total volume of goods sold. In terms of Tier 1 clients like Myer, E Cargo can earn revenues in excess of $1m per month. Source: E Cargo (Partners of CS Logistics, Ticks are E Cargo Clients also). E Cargo has been formed by John Lau, who is very well known wit h some of the World’s leading retailers through his other business CS Logistics. Mr Lau is responsible for founding and building the largest privately owned integrated logistics services provider and freight forwarder in China and Hong Kong. CS Logistics have over 6000 staff and operates in over 150 countries. Mr Lau then saw an opportunity in the market as many Western companies wanted to enter China, but did not have the expertise or technical knowhow to enter this foreign market. With his contacts and experience from CS Logistics, he has already attracted some particularly credible and reputable names into E Cargo. Rupert Myer of the Myer Family is just one of these and has invested $5m into the business as well as becoming a non-executive director. E-Cargo are currently looking at raising between $30-$40m and will be listing on the ASX on the 27 th of November. These funds will be used to expand their existing business, mostly in China to capitalise on this growing opportunity in the E-Commerce sector. E Cargo have already signed tier 1 clients including brands such as Myer, Esprit and Jeans West to name a few. While these are some big name clients, it is only the tip of the iceberg. For example, Esprit achieves over $EUR500m in online sales in Europe but only $15m in Asia… giv en the organic growth alone of Chinese E-Commerce it might not be long until sales in China begin to surpass their other online markets. Through Mr Lau’s CS Logistics business which services over 100 tier one companies, there will be no shortage of existing business contacts who potentially will be signing onto E cargo’s platform. An interesting comparable is when Ebay first launched, there was some amazing opportunities that arose. One business which was bought by Ebay in 2011 for $2.4 billion was GSI Commerce (Now Ebay Enterprise www.ebayenterprise.com ) which had a similar business model to E Cargo, helping companies to set up and distribute their products online. At the time, shopping online was new to many companies and very difficult to execute. Many businesses knew they should be online but weren’t sure how
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