Background introduction
XX Kitchenware (pseudonym) is a company in Zhejiang Province, China that focuses on the production of mid-to-high-end stainless steel kitchenware. It was established in 2010. With excellent product quality and design, it has achieved success in the domestic market, but as domestic market competition intensifies, the company decided to expand into overseas markets.
Challenges faced
Lack of understanding of target market consumer preferences
High international logistics costs and unstable time efficiency
Lack of overseas warehousing and after-sales service network
Complicated cross-border payment and return processes
Cross-border logistics solutions
- Market research and logistics strategy formulation
Analyze the demand for kitchenware in the European and American markets through Amazon platform data tools
Select Germany, the United States and Japan as the first batch of pilot markets
Develop differentiated logistics solutions for different markets:
United States: Use Amazon FBA warehouse and distribution services
Europe: Set up overseas warehouses in Poland and use China-Europe trains for transportation
Japan: Cooperate with local logistics companies and adopt sea transportation + local distribution mode
- Optimize supply chain and packaging
Redesign product packaging to reduce volume weight by 30%
Develop modular products for easy transportation and assembly
Establish safety inventory to meet the needs of peak sales season
- Digital logistics management
Introducing a cross-border logistics management system to track the status of goods in real time
Connecting with the ERP system to achieve intelligent inventory warning
Establishing a data analysis model to optimize delivery frequency and batch
Implementation results
Financial performance
Overseas market sales increased from 0 to US$30 million per year (3 years)
Logistics cost ratio dropped from the initial 25% to 15%
Return rate controlled below 3%, lower than the industry average
Operational indicators
Delivery time in the US market was shortened from the initial 14 days to 2-3 days
Inventory turnover rate in the European market increased by 40%
Customer satisfaction in the Japanese market reached 98%
Brand building
Establish brand awareness in the target market
Achieve Amazon’s “Best Seller” logo
Rated as the “most cost-effective imported brand” by a local kitchenware evaluation website
Experience summary
Localization strategy: formulate logistics plans based on the characteristics of different markets, rather than “one size fits all”
Partner selection: establish long-term cooperative relationships with reliable cross-border logistics service providers
Technology empowerment: digital tools are essential to improving logistics efficiency
Flexible response: timely adjust strategies to respond to changes in the international logistics environment (such as switching to China-Europe trains during the epidemic)
Customer experience first: improve the overall shopping experience and establish brand loyalty by optimizing logistics
Future plans
Add overseas warehouses in Southeast Asia
Explore the DTC model and establish an independent station logistics system
Test the logistics feasibility of emerging markets (such as the Middle East and Latin America)
This case shows how Chinese manufacturing companies can successfully bring high-quality products to the global market through a systematic cross-border logistics strategy. Logistics is not only a cost center, but also an important part of competitive advantage and brand building.