This document introduces the principles of cross-border e-commerce to sell in China, as well as the notion of New Retail which is becoming a big trend now in Asia. Our company has developed new solutions and services mixing traditional retail and e-commerce principles to help foreign brands to enter Chinese market the most efficient way.

1. MEET JOHN DURASIM
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China New Retail
& e-commerce solution

2. A NEW CONCEPT
WE COMBINE E-COMMERCE AND RETAIL INTO A UNIQUE
SOLUTION TO EXPAND YOUR BUSINESS IN CHINA
Services presentation
October 2018

3. 3PAGE //
A n t o i n e R I O N D E T
F o u n d e r & C E O
After graduating from university, I moved to different countries, UK
(London), Canada (Toronto), France (Lyon) and Switzerland (Geneva)
and now lives in China since 2014. Here I had the chance to lead
and develop a newly founded French wine retail chain from 2015 to
2017.
My team and I managed to open15 wine shops across China within
18 months, and I soon found out that one of the key reason of this
success: the importance of having a local Chinese partner by your
side and the importance of “Guanxi”, the notion of personal
“network” in business, which is heavily rooted in traditional Chinese
business practices.
With such great field experience and achievement and with the rapid
rise of cross-border and domestic e-commerce due to the thirst of
Chinese consumer for authentic western brands, I realized how
challenging Chinese market could be for foreign brands, but also the
great potential of combining a traditional retail network and
e-commerce solution to bring trust and value to Chinese consumer
and the important of social media to be successful in this crowded
and difficult market.
Electronics engineering
Sales & Marketing
Wine certificate (WSET Level 3)
E D U C A T I O N
Looking for open-minded partners
Ensure client’s satisfaction
Must go to the gym more often
D U T I E S
35 years old French entrepreneur
with passion for wine, cooking
and foreign culture
Living in China since 2014

4. The products are sold in China to Chinese consumer, however the inventory is held
outside of China (in a foreign country, in Hong Kong or in Chinese Free Trade Zone)
and orders are shipped, custom cleared and delivered to end consumer through
specific cross-border channel.
#1: Direct sales model
Certain product category can be pre-registered with Chinese customs and thus, does
not require the use of an importer or an import license as long as they comply with
cross-border e-commerce regulations and requirements.
#2: No import license required
Cross-Border E-Commerce allows foreign merchants to operate in China remotely. All
aspects of a cross-border transaction cycle (promotion, sales platform, payment
gateway and currency exchange, shipping, customs clearance and last mile delivery)
are operated by local 3rd party as part of a complex chain and business operation can
be monitored online.
#3: Operated remotely
CONCEPT
F A B C O C H I N A
Cross-Border E-Commerce:
Concept

5. 5PAGE //
Region matters, China being a huge country, traditionally
cross-border sales were led by highly developed coastal
provinces such as Beijing, Shanghai, Jiangsu, Zhejiang and
Guangdong.
But with the rise of educated middle class in 2nd and 3rd tier
cities, as well as limited access to international brands in
these still-developing regions, lower tier cities and regions
offers a higher growth rate and more opportunities to
cross-border e-commerce merchants.
Cross-Border E-Commerce:
Chinese market
48.66%
33.72%
27.35%
25.64%
22.17%
12.91%
7.14%
0Guangdong
Shanghai
Beijing
Zhejiang
Guizhou
Gansu
Qinghai
Ningxia
Source: Azoya’s managed retail networks 2017, compared to 2016
Growth of cross-border e-commerce:

6. 6PAGE //
Females
Cross-border shoppers are
predominantly well-
educated and financially
independent females
seeking products not
available in China
Mobile shoppers
A smartphone is often the
first (if not the only) point of
access to Internet in China,
WeChat social media app
being the most used of all on
which Chinese spend a
significant amount of time
each day
25 to 34 Yo
Cross-Border E-Commerce
shoppers are in majority
around their 30’s, from
middle class and educated
74% 55% 64% 33%
20 – 30 USD
Top selling brand’s average
pricing in Q2 & Q3 2017,
but the demand for
premium to luxury products
from Chinese consumer is
increasing in general
Cross-Border E-Commerce:
Figures
Source: Azoya’s managed retail networks

7. 7PAGE //
Cross-Border E-Commerce offers great
opportunities to foreign brands to sell in
China.
However, merchants must comply with
Chinese regulation and cultural differences in
order to be successful on this highly
regulated and competitive market.
Restricted items: Official Cross-Border E-Commerce
customs clearance channels requires products to be
listed in a “Positive list” in order to be granted permission
for customs registration. While some products may not
be specifically on the list and could still be imported
through cross-border channel, some other items are
simply banned from entering China for health purpose
or to protect Chinese domestic market.
Declared value limit: Total value of each parcel cannot
exceed 2000 rmb (317 USD), while each Chinese citizen
can purchase a maximum of 20 000 rmb per year (3 170
USD) through cross-border e-commerce. This limits the
value of goods being sold in China through cross-border.
Cross-border channel isn’t officially suitable for Luxury
products and other high-value goods in order to benefit
the tax rebates and customs clearance process.
Cultural differences: China is a very large country with
34 provinces and special administrative or autonomous
regions, as well as 56 ethnic groups. There isn’t only one
market in China, but many with different consumer
behavior and expectation. Thus, not all products sold in
foreign domestic market will sell well everywhere in
China and merchant should carefully choose their
products along with their market entry strategy (which
region and consumer category they target).
Cross-Border E-Commerce:
Restrictions

8. FABCO China:
Our services
Corner Shop & pop-up stores deploying
dedicated corner shop within existing retails
with walk-in customers, our solution greatly
facilitate the acquisition of new consumers for
the brand while providing support to partners.
E-commerce as Chinese online purchase
accounts for almost 1/3 of total consumption,
our solution connects with multiple platforms
available for both domestic and cross-border.
24/7 online access with our client dashboard to
follow on your business activity (social media,
sales analytics, inventory, cash flow and sales
network agents monitoring). One single place to
supervise all aspects of your business activity in
China.
On-site consumer experience to bring even
more value to your clients. Using livestreaming
and Virtual Reality technologies, our simple
tools allow you to create a strong connection
and unique experience to Chinese consumers.
Retail corner shop & pop-up stores E-commerce
Cloud ERP On-site customer experience

9. 9PAGE //
UNIQUE
WELCOME TO
NEW RETAIL 2.0
Implementation of an O2O corner shop within existing
store (starting from 3 sqm)
32” TV screen with remotely controlled by WiFi to upload
new marketing content and hold live streaming sessions.
Keep control of your own distribution network in China and
provide remote training and updates to your local partners.
Centralized logistics facility, each partner only keeps a small
inventory of products on site for demonstration and testing.
Customizable solution to fit your brand’s image and adapt
to your product type and available space.
O2O Corner Shop:
Concept

10. FABCO China:
Legal services
Trademark certificates
Logo – English names – Chinese names
Your brand protected in China: our dedicated
legal team will provide you with all necessary
support to protect your brand in China and
prevent counter factors to use your name and
image for illicit goods.
Professional advices : our attorney-at-law will
provide valuable advices on the best way to
register your name and logo, by performing
legal searches and providing you with an
estimation of success rate for your legal
application, as well as guidance to solve
Intellectual Properties issues raised within
mainland China.
Monitor your brand to prevent future fraud:
once your brand registration is successfully
granted, our team will keep on monitoring
possible other applications and send you
warnings if a similar brand is being registered in
China that could harm your business.
Trademark registration and monitoring in China

11. FABCO China:
Omni-channel approach
E-commerce platforms As there are plenty of
options available in China, either for cross-
border or domestic e-channel, we support all
platforms available on the market.
Social marketing & social networks Key
Opinion Leaders (KOL) and other influencers
plays an important role in the purchase process
in China, as consumer is way more sensitive to
recommendations from relatives and
celebrities.
Combining retail and e-commerce sales
Some products may require a face-to-face
demonstration or testing prior purchase. Our
concept offers the possibility to sell on either or
both channels based on market requirements.

12. FABCO China:
Our digital service
Responsive design website with
hosting in China
Your website accessible in China: using
Chinese ICP domestic non-commercial Internet
license.
As the Great Fire Wall (GFW) prevents Chinese
netizen from reaching most of websites located
outside of the country, your content will be
hosted and available on Chinese servers.
Access to Chinese multimedia : your files can
be hosted and shared among Chinese local
multimedia platforms such as Youku (Chinese
youtube), Weibo (Chinese Twitter), WeChat
(Chinese Facebook) and Baidu Baike (Chinese
Wikipedia)…
Your brand available in local language: with
your brand and content available in Chinese
and hosted in China, this will ease access for
your partners and consumer to your brand
story and products locally as well as enhance
your SEO for online search.
Online presence in China

13. WeChat Official Account: engage with your
audience on their favorite social media.
Facebook-like app, WeChat includes a whole
ecosystem including payment technologies,
social media, e-commerce, point cards,
advertisement, in-app mini programs, coupons
management…
Weibo official account: Twitter-like Chinese
app, give your audience unlimited posts and
moments about your brand’s activities and
stories. One of the most popular way to attract
attention in China.
Targeted audience: age, gender, center of
interest, city, district or event building… WeChat
and Weibo offers an extremely precise targeting
tool for advertisement and promotion.
WeChat
Official Account
Weibo
Official Account
Chinese social network
FABCO China:
Our digital service

14. FABCO China:
E-Commerce solution
Choose from multiple platforms available, design
and creation of your own store branded under
your name and image.
Coupons management, group buying and flash
sales management.
Event management & O2O Marketing (special
on-site promotions for online purchase)
Chinese customer service provided
Integration with the most popular payment
solutions in China such as mobile Alipay and
WeChat Pay

15. FABCO China:
24/7 cloud ERP
Follow-up on your social network activity in China
English back end
Multi-channel sales overview
Inventory overview
Distribution network overview
Sales analytics and KPI monitoring

16. FABCO China:
Virtual Reality customer experience
Offer a virtual visit of your workshop, your region or product demonstration
Provides a unique customer experience
Remotely upload new content
Different options available based on your project
requirements (VR headset, mobile APP…)
Secured Wi-Fi connection

17. FABCO China:
Live streaming and advertisement
Remote control TV display equipment for in-store use
Delivered with customizable software to display promotional
movies, pictures and banners on a standard TV screen
Live streaming solution with forecasting from outside of China
Up to 300 screens at the same time
Secured Wi-Fi connection

18. 18PAGE //
In case of O2O corner shop deployment, we give Chines retailers and business owner
the opportunity to partner with an authentic foreign brand as their official sales
representative within their community.
Chinese consumer is guaranteed to purchase a genuine product from the brand itself
and with guaranteed quality.
Our concept allows foreign brands to keep control over their own distribution network
and strategy in mainland China, with the flexibility of e-commerce and the power of a
retail network
Our solution is entirely remotely operated, our local team handle daily operations on
your behalf on Chinese market and all data are stored onto local servers according to
the General Data Protection Regulation (Europe) and the Cyber Security Law (Chine).
We provide end-to-end solution to foreign brands in compliance with Chinese
regulation, through the integration of 3rd party services providers. All our partners are
leaders in their respective fields with years of experience in China.
For Chinese partners and consumers
For foreign brands:ADVANTAGE
WHAT DO
WE OFFER?

19. FABCO China:
Our partners

20. FABCO China:
Our customers
Fine food
France
Natural & Organic cosmetics
Australia
Food supplement
Peru
Winery group
Romania
Fashion
France

21. FABCO China:
Case study: ST JAMES
Online operation since 2016:
Available on 15 e-commerce platforms
including 1 flagship on Tmall and 1
flagship on JD.com, 1 dedicated e-
commerce website and 13 APP and
platforms such as WeiDian, YiTiao,
Ofashion, Secco, Little Red Book…
Services offered:
• Online services (website hosted in
China, social network and online
marketing)
• Importation, warehousing and
distribution within China
• E-commerce and retail sales.
• Customer service
Store in Suzhou city
Annual sales & forecast
(in thousand of items)

22. FABCO China:
Case study: VINARTE
Services offered:
• Online services (website hosted in
China, social network and online
marketing)
• Importation, warehousing and
distribution within China
• E-commerce and retail sales.
• O2O corner shop deployment within
mainland China.
• Trademark registration in China
Operations since July 2018:
Opening of 3 O2O corner shops and
forecast of 10 more by the end of
2018, domestic e-commerce
platform, VR solution and social
marketing campaign.
O2O corner shop
VR solution
China-based website
WeChat and Weibo Official AccountsE-commerce platform

23. 23PAGE //
FABCO China:
Target products
Well established brands and merchants in their domestic market, with products type falling within the following
categories have the highest chance of success through cross-border and domestic e-commerce and/or retail in China:
C O S M E T I C S M O T H E R & C H I L D
C L O T H I N G & F O O T W E A R H O U S E H O L D A R T I C L E S B A G S & S U I T C A S E
F O O D & H E A L T H C A R E

24. 24PAGE //
CONCLUSION:
OUR ADDED VALUE
An innovative solution with limited initial investment
but with a complete control over remote distribution
channel and marketing activities in China.
A win-win global solution for both Chinese partners
and foreign merchants or brands.
Flexible end-to-end solution with integration to
existing platform or other 3rd party service provider
FABCO China:
Cross-Border E-Commerce integrator
&
O2O concept store deployment

25. 25PAGE //
FABCO China
Unit D24, 3F Fulizhen building,
High-Tech Park, Nanshan district,
Shenzhen, Guangdong province,
China
www.fabco.asia
Antoine RIONDET
Founder & CEO
+86 137 3550 7074
antoine@fabco.asia
Welcome to join the Retail 2.0
Contact us:
Chris ZHANG
Sales & Marketing
+86 135 3776 2091
chris@fabco.asia
Follow us on WeChat