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TABLE OF CONTENTS
ARKETING AND OPERATIONS OVERVIEW
Over the last decade or so, the internet has infused a new lease of life into international
trading, making it a robust driver for the global economy. The advent of online trading led to
the creation of the “сross
border model”, allowing sellers from various countries to sell
products to retail customers on a virtually world-wide basis without establishing or
incorporating a business in the relevant sales destination. Nowadays, China is the biggest
market of online trading and real testing ground for the latest е
Nevertheless technical barriers and high entrance requirements
limit access to the Chinese
online market for small and mid-sized manufacturers
(SMEs) from countries located in
Central , Southern &Eastern Europe (CEE/SEE) .
At the same time Chinese customers switch their focus from luxury goods to quality
medium-price products made from natural raw materials.
Leveraging the Cross-Border E-Commerce ...
This executive summary sets out a brief summary of the obstacles faced by SME
manufacturers when attempting to enter the Chinese market, and how BeautiQ ‘s platform
will provide solutions.
Technical barriers and high entrance requirements
limit access to the Chinese online
market for small and mid-sized manufacturers
(SMEs) from countries located in Central ,
Southern &Eastern Europe (CEE/SEE) . At the same time Chinese customers switch their
focus from luxury goods to quality medium-price products made from natural raw materials.
operation allows the consolidation & the sale of a wide range of medium-priced
goods from CEE/SEE countries via Chinese marketplaces, namely JD Worldwide and Tmall
and provides a much needed business service to EU manufacturers.
the original focus will be the Chinese market place. Then BeautiQ will develop
First 12 months
multi brand store on JD Worldwide with X-border model;
Starting 2nd year
add consulting and business services .
Marketing strategies: B2C
marketing approach will take advantage of the well developed
marketing tools available on the JD platform, search engines (Baidu), brand awareness and
trustworthy image of the brands in social media (WeChat, Weibo) in China.
strategy will include online and offline PR, organization and participation in focused
events, SEO and SEM.
Why did BeautiQ select the cross border online trading model?
The core business of BeautiQ applies the cross-border model of online trading and leverages
off the infrastructure of huge online marketplaces. Cross border trading is currently a
widely-used model throughout the world and is supported by the government of China. The
policies of China's Tariff Free Zone (TFZ) create numerous opportunities for BeautiQ:
Even though market growth is beginning to plateau, it is doing so at around 17% annually, -
an impressive growth rate recognised throughout the world. Meanwhile, the number of
Chinese end users engaging in cross-border transactions has also grown steadly over the last
B2C users are growing faster compared to the overall cross-border market. Although there
is a slight decrease in growth as the number of cross-border buyers catches up with the
overall number of e-commerce users, the figures remain startlingly impressive
A fragmented market
The iiMedia report below reveals the surprisingly fragmented nature of the cross-border e-
commerce market in China.
While the traditional e-commerce market is heavily dominated by Alibaba (with about 60-
70% market share), cross-border e-commerce is much more fragmented with no market-
player enjoying more than 25% of the total market share. Surprisingly, although Tmall and
JD are significant market participants, they by no means dominate the cross-border space
making it a perfect space for BeautiQ, with its unique approach and product target and
Why do Chinese consumers prefer cross-border purchases?
Better product quality is the main incentive for Chinese customers to buy cross-border. A
favorable quality-price ratio, guaranteed authenticity, and more buying options are other
Consequently, Japan, Germany, Korea, France and U.S are the top destinations for cross-
border purchases, with Japan being a clear leader. Products from Southern and Eastern
Europe meet all these needs of the Chinese customers.
How do Chinese cross-border buyers purchase their goods?
Among the Chinese cross-border buyers, the frequency of purchase is surprisingly high with
65% of users purchasing cross-border at least once a month. 11.6% of these buyers make a
purchase more than once a week. 66.2% of these orders range from 300 to 1,000 RMB (or
47 -148 USD
based on the average 12 month’s excha
’s position within the
regional e-commerce infrastructure
BeautiQ is a Bulgarian company founded by a team of professionals specialising in the field
of logistics, and distance and online trading, having many years of experience in the Russian,
Ukrainian and European markets.
BeautiQ is looking to develop operational solutions covering all aspects of marketing,
fulfillment, delivery and customer service. The goal is to make products from CEE/SEE
available to the Chinese market via online channels.
BeautiQ integrates the latest technology and makes them affordable for the small pro...
The idea of creating an operating company to promote goods produced by small companies from Eastern Europe to the markets of Southeast Asia.
April - May 2016
Trips to the region (Central and Eastern Europe), getting to know the producers
May - October 2016
Marketing research, preparation and signing of contracts with cosmetics manufacturers
September - December 2016
Search for Chinese partners, discussion on working conditions, receipt of offers and tariffs
January - April 2017
Preparation of a test model
Decision to attract investment using the ICO model
September - December 2017
Preparation of documentation
February 2018 – March 2018
March 2018 – April 2018
Preparation for work in the test mode
Planned sales test
May 2018 – June 2018
Planned launch of sales of goods in the category of cosmetics
June 2019 -August 2019
Launch of promotion of business services and consulting in Central and Eastern Europe