2. Yintai Holding is a diversified industrial conglomerate
Commercial
Retail
Smart
logistics
Investment
and finance
Shanghai Weihan
Financial Leasing
Ubox
Yintai CRC Fund
Yunfeng Capital
Citic PE
Yintai Golf Club
Jixiang Building
Dongluo Island Sanya
China Acrobatic Troupe
China Smart Logistics
Network
Intime Retail
• Intime Department
Store
• Intime Shopping Mall
• Yintai.com
Yintai In
Beijing New Yansha
Wuhan Department
Store
Mineral
Resources
Property
Development
&
Management
Philanthropy
Yintai Foundation
Partners
• Ai You Foundation
• China Soong Ching-ling
Foundation
• Zhifu Foundation
• China TNC
• China Foundation for
Poverty Allevation
Yintai Resources
• Mineral Exploration
• Mineral Mining
Yintai Landmark
• Yintai Center
• Yintai City
• Yintai Universal City
Yintai Property
• Beijing Yintai Center
• Boutique Hotels
Metro Land
China Yintai Investment Co. Ltd. (hereafter Yintai
Group) is founded in 1997 as diversified
industrial investment group.
It owns several domestic and international listed
companies and over 100 wholly-owned
companies
Scope of our discussion
3. Intime Retail is a consumption solution provider with
online and traditional business areas
In March 2007
Intime Department Store (Group) Co., Ltd. (01833.HK) was
listed on the Hong Kong Stock Exchange
In March 2011
Intime was the first retail stock added to the constituents of
Morgan Stanley Capital International (MSCI) China Indices
under the MSCI Global standard indices
In March 2013
Intime Department Store (Group) Co., Ltd. Officially
renamed as Intime Retail (Group) Co. Ltd. And it was ranked
as on of 16 best positioned stocks and the leading
department store chain with dominant market share by
Morgan Stanley
On 31st March 2013
Intime Retail (Group) Co. Ltd. And Alibaba Group
announced that Alibaba will make HK$5.37 billion strategic
investment in Intime Retail
The two giants will integrate respective superior resources
with aiming to establishing a future commercial
infrastructure system focusing on online and offline
shopping.
29 Intime
Department Store
15 Intime
Shopping Mall
Yintai.com
Total GFA over 2,600,000 sqm
Self-owned Area: 57%
Leased Aare: 43%
www.yintai.com is a large B2C
e-commerce platform
focusing on the business of
lifestyle and fashion
4. Intime City comprehends 30+ high-end commercial complex,
the one in Beijing is already a national landmark
Office
buildings
Residents
Shopping
malls
Hotels Outdoor
Pedetrian
streets
View from Park Hyatt Beijing – Beijing Intime Center is the
China business center and worldwide tourist attraction for its
amazing view of the city
Each Intime City has superfice
from 100k-400k+ mq of total
commercial area, situated
mostly in tier 2 and 3 cities
with minimum area population
of 10 mln
5. Yintai’s ecommerce provide multiple e-channel
strategy including viral social tools
Mobile App Social MobileYintai.com Tmall Flagship I’M O2O
6. Our experience on Tmall and JD position us the best
ecommerce solution provider for international brands
Digital
marketing
Store
development
and
management
Logistics&Opera
tions
– Web Design
– Social media
– SEM SEO
– Store development
– Pricing
– Promo
– Assortment
– CRM
– International logistic and last mile
– Warehousing
– Order management and fulfillment
– Pick & pack
– Inventory management
E-commerce and multichannel strategy
– Go to market strategy
– Investment strategy
– Market analysis
– Negotiation
7. The next big ecommerce opportunity is cross border
and outbound spending
5 12
26.5
48.3
76.7
154.9
2009 2010 2011 2012 2013 2014E
Out-border online
transation (bln RMB) • Online overseas retail transaction
reached RMB 76.7 billion in 2013. The
growth rate is over 100% in 2014,
reaching RMB154.9 billion. By the end
of 2015 the figure will double.
• There are 2 types of outbound online
shopping transactions in China:
1. Users who order directly from the
eCommerce sites of overseas
brands;
2. Users who order from local
buyers/agents, who will then ship
the products to China, commonly
known as “daigou .
1. Parallel purchase
Source: 100EC, “2013 China online retail market insight report”, 2014.3
~380B RMB
~55%
~15%
~30%
Overall breakdown for Chinese
luxury goods spending 2014E
Overseas purchases
Daigou1 via friends and
relatives, Taobao
agencies and
professional agencies
Mainland China sales
8. 1. 2014 Notice No. 56 of the General Administration of Customs (on supervision of cross-border E-commerce trading of inbound and outbound goods and articles)
Source: http://english.customs.gov.cn; Intime analysis
Chinese
consumer
Overseas
product
B2B standard model – costly and time consuming
Translation of label
Registration of each
SKU at Chinese FDA
Imports Warehousing
Adjust formula to
Chinese regulation
and law
B2C NEW Personal Import Model
Direct salesOverseas
product
Chinese
consumer
China authorities issued a custom policy breakthrough deregulation in July 2014 called “PERSONAL IMPORT” model.
International manufacturers can finally sell their goods to Chinese consumers as they are marketed in the country of origin without the
need to adjust them to Chinese regulation, translate labels or register them.
The deregulation applies only to B2C transactions while B2B are still handled in the standard way.
The rational of the personal model is to allow Chinese consumers to have access to the much appreciated international goods which are
difficult to find in china.
Chinese Government bodies are encouraging the new
cross border ecommerce by enacting new regulations
9. Yintai is well positioned compare to the existing
incumbent competitors…
Purchase channel
Daigou Overseas B2C
Domestic brick-and-
mortar
Cross border
ecommerce
Intime Cross border
Price
Overseas retail price 100 100 100 100 100
Overseas tax 0~10 N/A N/A N/A N/A
Import duty2 N/A 0~35 ~35 10 10
Consumption tax N/A N/A ~15 N/A N/A
Import VAT N/A 0~20 ~25 N/A N/A
Price to consumers3 100~110 100~155 ~175 ~110 <1004
Conve-
nience
Order flexibility Low Moderate High Moderate High
Approximate time Moderate Moderate Short Short Short
Jewelry example
(Index)1
1): Jewelry import duty: ~20%-35% depending on specific product type if imported as goods, 10% if imported as personal goods (personal postal articles tax applied) in the case of cross-border e-commerce; overseas websites uses different customs clearance methods when
handling direct shipping to China: import duty and VAT applicable when imported as goods, personal postal articles tax applicable when shipped as personal item, or tax not claimed until customs require it, which therefore leads to a different tax range; consumption tax for
jewelry is 10%; 2): Price advantage varies across different categories due to different tariff; 3): Excluding shipping fees; 4): Self-owned bonded warehouse shipping
Sources: China customs; expert interviews, Imoda analysis
Fake risk, no
legal guarantees
10. ..and Yintai is the best prepared player for this
opportunity
Yintai Pre-Paid Gift
Card
We sell 4 bln RMB of
pre-paid cards each
year
Yintai Hangzhou
Bonded Warehouse
We are the only cross-border
ecommerce company with
self-managed bonded
warehousing for fashion and
luxury productsOffline to Online and
vice versa experience
We are the only Chinese retailer to have omnichannel
touchpoints, creating value for brands and giving
experience for consumers
Yintai Choice
Imported only products with daily visit of more than 10k
visitors; “the most successful supermarket in China for
premium products” – COOP (biggest Italian retailer)
