Industrials Author:Xuewei Liu Editor:Yiran Xing Jul 11, 2023 05:08 PM (GMT+8)

B2B cross-border logistics has seen recent changes as foreign commerce digitization picks up speed, and the greater use of online services to satisfy the more urgent, discrete cross-border logistics needs has grown to be a prominent aspect.

Finance

GoLucky(Chinese:喜运达), headquartered in Hangzhou, announced on July 7, 2023, the completion of an A1 round of financing of over CNY 10 million(USD 13.82 million), this round of investment is led by Soul Capital(Chinese:心资本) and Global Logistic Properties (Chinese:普洛斯), and followed by veteran shareholders, Profound Capital(Chinese:深涧资本). His funds are mainly used to start research and development of supply chain systems, build an Asian Internet of Things network, and expand overseas markets.

GoLucky was established in June 2022 with a focus on supporting Chinese cross-border e-commerce sellers that needed help preparing their inventory. GoLucky offers these sellers more effective warehouse-to-warehouse all-link international trunk lines and foreign warehouse fulfillment services. GoLucky has established branch offices in Shenzhen, Malaysia, and Singapore, and has warehouses with supporting services in four locations along China's southeast coast (Shenzhen, Xiamen, Yiwu, and Guangzhou), as well as in Thailand, the Philippines, Indonesia, Malaysia, and other regions, according to the company's official website.

Unlike conventional international logistics firms, GoLucky prioritizes reducing the time required for cross-border stocking vendors to transfer their goods, and will load and export containers whether or not they are full. To reduce the amount of time that products are stored in the warehouse, GoLucky prioritize shipping firms with direct flights and excellent punctuality rates when selecting a warehouse. GoLucky prioritizes customs clearance in the country of destination through collaboration with regional head customs clearance firms, and quickly completes container dismantling and delivery through a regional high-quality fleet so that the goods can reach the customer's designated warehouse faster.

Shortening the seller's preparation cycle can increase the seller's annualized turnover and ROI (return on investment), as well as GoLucky's current monthly business income. GoLucky is the first company in Southeast Asia to implement the "shipping time limit" service in the industry. The monthly business revenue for GoLucky is currently increasing at a pace of more than 30% monthly. Additionally, GoLucky's self-research digital logistics supply chain system is dedicated to developing intelligent, visual logistics and lowering the seller qualification bar for cross-border logistics, enabling the prediction of delivery times for cross-border logistics like China Express.

With the rising demand for cross-border trade in emerging market nations in Southeast Asia, China's cross-border e-commerce has been growing quickly in recent years. According to a report by Google and Temasek, in 2022, cross-border e-commerce in Southeast Asia could reach USD 131 billion, with a compound annual growth rate of 16%, and 60% of the items coming from China. According to thorough calculations, Chinese cross-border e-commerce sellers are using international trunk lines from warehouse to warehouse and overseas warehouse business market space up to USD 11.8 billion to prepare goods for Southeast Asia, and the entire Belt and Road emerging markets are experiencing a demand for cross-border logistics market space of more than USD 200 billion.

Two components make up the primary international business of GoLucky. The first is the worldwide trunk line network connecting warehouses to warehouses, which is also the company's present core operation. With advantages in terms of cost, scale, and timeliness, GoLucky has established reasonably mature, effective, and stable transportation networks in the Philippines, Thailand, and Malaysia. In the coming year or two, the company intends to extend its trunk line network from Southeast Asia to other rising market nations while also extending its commercial routes in Indonesia.

The global network of warehouses makes up the second component. GoLucky built its international network of warehouses in the Philippines, Malaysia, and Thailand in succession, with warehousing areas up to tens of thousands of square meters. Here, they arranged for a professional team of warehousing experts to manage the warehouse locally and create a local team. As a result, they currently have a significant advantage over the local service providers given the use of the business's resources. The number of GoLucky's international warehouses is currently limited, but there are plans to vigorously increase its overseas warehouse business.

Soul Capital partner Yan Chen Liu stated: "We are very concerned about and optimistic about the business opportunities brought about by the globalization of Chinese brands. However, cross-border logistics services are far from being as simple, affordable, and dependable as domestic express delivery, which is both a pain point and an opportunity for cross-border sellers, overseas buyers, or brands to go overseas." In the end, cross-border logistics services are necessary for high-quality goods, and good service cannot be separated from a complex operation. Technology and intelligence are the tools used to lower costs and boost productivity.

In this field, China's representative companies include Jet International Logistics Co., Ltd.(Chinese:极兔国际物流有限公司) and Cainiao Network Technology Co., Ltd.(Chinese:菜鸟网络科技有限公司), etc. Internationally, Germany's DHL and the U.S.'s UPS are quite powerful.