Brand names a stepping stone for e-commerce

Angelina Xu

angelinaxl7@gmail.com

An e-commerce business manager of Catalo, a health foods retailer that joined the Chow Tai Fook shopping center (CTFHOKO) in Qianhai this year, highlighted the power of brand names as a stepping stone for the company to break new ground on its e-commerce retail in Qianhai.

Qianhai has been successfully experimenting with a new form of cooperation between Shenzhen and Hong Kong in the modern service industry. Businesses operating in the area may qualify for a 15 percent tax reduction and expedited customs clearance process for freighted goods.

A customer checks a cosmetic product in CTFHOKO. Angelina Xu

“We used to focus on retail counters in supermarkets,” said Liang Ka-wai, Catalo’s assistant business development manager. “The way e-commerce works requires a different business model. We could reduce marketing and analysis in physical stores and shift the focus to put more effort online — advertising, keeping track of website traffic and so on.”

The Hong Kong-based firm, which traditionally focused on the retail sale of nutrition supplements and health-related products, including vitamins, minerals, herbs, diet and sports nutrition, joined CTFHOKO in March to experiment with e-commerce.

“Customers can now visit our physical store at CTFHOKO to consult nutritionists and have their desired products delivered to their homes straight from our warehouse, with a special tax rate,” said Zhang Yumei, business controller of the Catalo store at CTFHOKO.

(Edited by Stephanie Yang)