1. Introduction to NetEase Kaola Overseas Shopping Platform
NetEase Kaola Overseas Shopping is a comprehensive e-commerce platform under NetEase that focuses on cross-border business. Its sales categories include maternal and child care, beauty and cosmetics, home life, nutrition and health care, global food, clothing and luggage, digital home appliances, etc. NetEase Kaola Overseas Shopping focuses on the concept of self-operated direct procurement. It has branches or offices in the United States, Germany, Italy, Japan, South Korea, and Australia. It directly purchases goods from the origin of the products, ensuring the quality of the goods while eliminating many intermediate links. The goods are directly shipped from the origin to China, and are stored in bonded warehouses under the supervision of customs and national inspection.
2. Introduction to the development of NetEase Kaola Overseas Shopping Platform
On January 9, 2015, NetEase’s self-operated cross-border e-commerce platform “NetEase Kaola Overseas Shopping” was launched for public testing. At the same time, NetEase announced that it had reached a strategic cooperation with Sinotrans Group Co., Ltd., and Sinotrans Group Co., Ltd. would provide logistics services for NetEase Kaola Overseas Shopping.
In June 2015, NetEase Kaola announced the establishment of a Japanese branch and announced official authorization cooperation with more than 20 first-line Korean brands such as LG, AHC, and DRMI.
In March 2016, Amazon Global Logistics (China) and NetEase Kaola officially signed a cooperation agreement to provide warehousing and operation services for NetEase Kaola through “Amazon Logistics +”.
In April 2017, NetEase Kaola successfully held the 2017 European Investment Promotion Conference in Frankfurt, Germany. Four well-known European companies, P+M, Eurocomfort Group, Hape, and Best1 MED, signed cooperation agreements with NetEase Kaola on the spot.
In June 2017, NetEase Kaola held the 2017 Australia and New Zealand Investment Promotion Conference in Sydney and signed strategic cooperation and authorization agreements with many well-known Australian brands such as Caprilac, Bio-Island, Bubs, and Life Space. NetEase Kaola has become the largest Chinese cross-border e-commerce platform for importing Australian goods in 2016.
3. Introduction to the NetEase Kaola platform model
NetEase Kaola adopts a pure self-operated B2C model, focusing on self-operated direct procurement. It has established a professional procurement team to go deep into the origin of the products and conduct strict audits on the qualifications of all suppliers, eliminating counterfeits from the source and further ensuring the safety of the goods. NetEase Kaola has reached strategic cooperation with hundreds of high-quality suppliers and first-line brands around the world.
The self-operated model dominated by NetEase Kaola has independent pricing power, and can adjust pricing strategies according to market environment and competition nodes by overall coordination of supply chain and warehousing, logistics, and operations. NetEase Kaola not only needs to reduce procurement costs and control pricing, but also control pricing by controlling profit margins, so as to not only respect the brand’s pricing strategy, but also pay more attention to Chinese consumers’ sensitivity and preferences for prices.
In terms of logistics selection, NetEase Kaola cooperates with Sinotrans, SF Express and others to use customized packaging boxes, allowing users to enjoy relatively standardized logistics services. NetEase Kaola has established a complete set of standards. Through cooperation with Sinotrans, it integrates overseas sources of goods, international transportation, customs inspection, bonded parks, domestic delivery and other links to open up the entire industry chain.
The payment method of NetEase Kaola currently supports Alipay and NetEase Pay (formerly NetEase Pay). NetEase Pay is a fast online payment platform launched by NetEase to facilitate users to conduct online transactions. NetEase Pay provides users with a variety of convenient online recharge, transaction management, online payment, account management, cash withdrawal and other services.