The Itasca, Ill.-based third-party logistics provider has added a 50,000-square-foot warehouse on the border of Shenzhen in southeastern China, 30 minutes away from the Port of Hong Kong and 45 minutes from Hong Kong International Airport.
SEKO Logistics has opened a new warehouse and distribution center in Hong Kong as part of an ongoing effort to build an “e-commerce gateway” for high-tech customers targeting China’s online consumer market, the company said in a statement.
The Itasca, Ill.-based third-party logistics provider opened a 50,000-square-foot fulfillment center on the border of Shenzhen in southeastern China, 30 minutes away from the Port of Hong Kong and 45 minutes from Hong Kong International Airport.
The latest DC follows another 50,000-square-foot, high security e-commerce warehouse to provide order fulfillment services as well as same-day and next-day deliveries in the city.
Built from converted ocean containers, the new facility near Shenzhen features 10 dock doors, a clean room for high-end fashion products and a pick-and-pack area, and employs around 50 staff. The DC currently serves 20 SEKO customers, and the company also has the option to double the size of its facility as volumes increase.
“Our investment in Hong Kong is being driven by significant e-commerce growth. We are in a strategically important location close to the main port and airport and, most importantly, within easy access of the mainland,” SEKO’s Chief Operating Officer of Asia Pacific, James Gagne, said in a statement. “Hong Kong and China are among the three fastest-growing locations in SEKO’s global network spanning more than 40 countries but it’s the potential of the market that makes it so exciting.”
Gagne noted that omni-channel logistics can be “extremely challenging” for companies looking to build their presence in Asia, but SEKO is focusing on the business-to-business market first.
“To access this huge market of buyers, we believe companies should focus on establishing their brands through retail bricks-and-mortar stores and/or B2B channels to penetrate into the region prior to becoming involved with e-commerce and launching B2C initiatives,” he said. “This makes their brands more familiar to local customers early on. In addition, companies will already have their items imported and stored at their factories, offices or stores so they are prepared in advance for online orders. Shortly after creating their own websites, companies can then consider plugging into local, online marketplace platforms.
“As they grow, it is essential for companies to have as much visibility of their inventory as they have of their shipments, and are receiving real-time data and updates,” he added. “Through this level of visibility, companies can remove the barriers to entry into new markets and have complete transparency of information concerning their costs, expansion and inventory. In doing so, they will have the ability to scale out and integrate their e-commerce sites with their enterprise resource planning – a key component to successfully implementing a new retail logistics operation in Asia Pacific.”
SEKO Logistics opens new DC in Hong Kong
