1. Hecny GroupBy Hecny Group @ 2015
Last-mile
Warehouse & Distribution Services
Your Business Partner in Trading Food & Wine in China

2. Hecny GroupHecny Group
To become your preferred business partner, ensuring your
successful trading of food & beverages in China
Mission Statement

3. Hecny GroupHecny Group
Currently most foreign brand food and
beverage products are bought through
middleman in China
There is no control by the foreign brands
and traders in the promotion and pricing
of their products, especially those with
smaller or no set up in China
Service Overview

4. Hecny GroupHecny Group
Warehouse
&
Distribution
eCommerce
& Digital
Marketing
Cash flow
management
Information
visibilityImport &
Customs / CIQ
Enables a more direct control over the
promotion, marketing and data collection of the
products; allows better market understandings
and makes better strategic decisions
Service Overview

5. Hecny GroupHecny Group
How our services will benefit you?
- Agility to respond to product trends and changes
- Flexibility and benefits of utilizing bonded facilities and
Free-Trade-Zones in China
- Truly one stop shop logistics, documentation and cash
flow management services
- Pipeline visibility and functional tools to assist you to
market your products in China online
- Increased brand awareness and customer experiences
Service Overview

6. Hecny GroupHecny Group
http://www.coimp.cn/document/uploadfile/2012-10/2012103110235596368.jpg
Ex work
€ 10 per bottle
+ Statutory
expenses
+ Freight
cost
+ Administrative
expenses
+ Warehouse
cost
+ CIQ & Customs
expenses
+ Distribution
cost
Total cost
¥ 240 (€ 35) +
Distributor’s profit
Retail price
¥ 550 (€ 80)
per bottle
=
Distributor’s profit
• JV or appointed distributor in China, pocket most of the profits
• No control over costs and retail price, and what to sell in China
• Lack of understanding to the Chinese consumers
• No information about changing trends, no way to promote the brands
and the culture of wine tasting
Current Practice & Costings - Wine

7. Hecny GroupHecny Group
http://www.coimp.cn/document/uploadfile/2012-10/2012103110235596368.jpg
• All costs are transparent and retail price could be reduced accordingly
• Opportunity to promote brand name direct and hugely expand market share
• Possibility to pocket larger profit if buying term could be changed to “DDP”
• Information about market trends and data available to Europe wine traders
Ex work
€ 10 per bottle +
Statutory
expenses +
Freightcost
+
Administrati
veexpenses
+
Warehouse
cost
+
CIQ&
Customs
expenses
+
Distribution
cost
=+
Distributor’s
profit
Total cost
¥ 280 (€ 40)
Retail price
¥ 400 (€ 58)
per bottle
Proposed Practice & Costings - Wine

8. Hecny GroupHecny Group
http://www.coimp.cn/document/uploadfile/2012-10/2012103110235596368.jpg
Order visibility with
real time information.
Track your order via
web & mobile device.
Sales information,
etc.
Tracking
Order processing and
approval with Europe
shipper, custom
clearance, CIQ, tax
payment. Receive
payment on behalf
overseas merchant
Outbound
Inbound custom
clearance and arrange
delivery into China hubs
(bonded or non-
bonded warehouse)
Inbound
Manage product’s
specification and
registration in WMS.
Products
Overseas
Suppliers
FTZ (Bonded)
Warehouse
POS
2nd, 3rd tier
cities hubs
China Customs &
CIQ Clearance
Direct Drop-off and FTZ to
normal hub transfer
Hecny’s
freight
Suppliers’
own freight
Import permit,
duties and tax
Non-bonded
Warehouse
Kitting, pick and pack,
re-labelling, and any
other value add
services. Inventory
management
Value Adding
Services
Operations Overview

9. Hecny GroupHecny Group
http://www.coimp.cn/document/uploadfile/2012-10/2012103110235596368.jpg
Primary Hubs
Hong Kong Shanghai
Shenzhen
Other Regional DCs
Beijing Chengdu
Guangzhou Qingdao
Xiamen
China Hubs for Wine

10. Hecny GroupHecny Group
http://www.coimp.cn/document/uploadfile/2012-10/2012103110235596368.jpg
Self and partner owned trading license for importation into China
– Frozen & pre-packed foodstuff
– Wine & other beverages
– Spinning goods
– Art ware
– Electronic products
– Furniture,
– Shoes & apparels,
– Watches & accessories, etc
Trading Licenses

11. Hecny GroupHecny Group
Order
return
Order
distribution
Online
Payment
Stock
Control
Online
Order
Placement
Warehouse
handling
Custom
Clearance
General
Cargo
Visibility
Seller
Importer /
Ultimate
Buyer
Warehouse /
Distribution
eCommerce Collaboration
A Supply Chain Solution for Wine Distribution
Delivery
Status
Order &
Payment
Product
Profile
Freight
Management
Warehouse
Management
eCommerce
Service
Order
Management
CIQ Customs
Customs
Status
eCommerce Collaboration

12. Hecny GroupHecny Group
• China’s focus is now internal domestic consumption
• China's government is ramping up the demand for
consumer products to improve quality of life
• Middle class is growing and expect to reach 400 million by 2020
• Further opening up its consumer market for foreign traders
• Import procedure and processes will further be simplified and more transparent
• Europe exporters and traders should start re-thinking and re-restructuring their
supply chain and distribution channels in order to have more control and direct
involvement in the Chinese consumer market
Changing the Paradigm

13. Hecny GroupHecny Group
Hecny Group is your partner and logistics integrator towards
your successful food and beverages trading in China
Thank You !!