Jenny Chan 陳詠欣
May 29, 2019

Dentsu launches cross-border unit to serve Japan and China

Dentsu China Xover Center (CXC for short, and pronounced 'C by C') will launch on 1 June.

L-R: Lu Guo, Ushopal founder and CEO; Tsuyoshi Suganami, Dentsu Media Greater China CEO.
L-R: Lu Guo, Ushopal founder and CEO; Tsuyoshi Suganami, Dentsu Media Greater China CEO.

Dentsu Inc in Tokyo will launch Dentsu China Xover Center, a new business unit that is meant to provide cross-border marketing solutions to Japan and China.

The framework is based upon Dentsu's judgement that Japan and China should not be perceived as two separate markets, but rather as hybrid markets that influence one another, according to the company.

Dentsu China Xover Center (Dentsu CXC for short) will comprise experts already working in Dentsu and its group companies, and will promote business support for clients in the four sectors displayed in the illustration below.

 

According to a press release, the first 'C' in its name stands for 'China' and the second of which represents several domains that also begin with the letter 'C': communication, commerce, content, creative and collaboration. 

The naming expresses Dentsu's intention to "produce achievements in these fields moving forward".

A strategic business alliance with Ushopal, a Shanghai-based online sales and brand consulting company, will be Dentsu's first step toward developing this lineup of services.

Ushopal focuses on cosmetics, skincare and supplements primarily targeting female customers and provides channel construction and product portfolio management services.

Behind this decision was current circumstances surrounding the new e-commerce law in China prescribing rules for resellers and affecting inbound visitor demand in Japan, stated Dentsu.
 
For companies that have traditionally depended on inbound demand, supplementing the drop-off with direct sales routes, such as cross-border e-commerce from Japan to China, is a pressing issue.

Specifically, Dentsu CXC said it will provide the following four services (the following points are taken verbatim from a release):

1. Consulting and support for brand building within the Chinese market:

  • Brand building that allows products to be recognized and selected as brands within the Chinese market, instead of relying on sales through binge shopping or sales in mass quantities.
  • Product portfolio strategy aimed at raising the profitability of all of a company's brands.

2. Development of online sales channels and a large variety of promotional services:

  • Expansion of sales channels through appropriate selection and utilization of the central online sales channels of famous e-commerce malls in China, such as flagship stores in Tmall and JD.
  • Proper management of a large variety of promotional activities conducted within Chinese online sales channels, which are increasing in diversity and complexity.

3. Sampling and other storefront promotional services linked to brick-and-mortar stores

  • With cross-border e-commerce, providing opportunities in China for customers to actually hold and try out products is quite difficult. To remedy this situation, Dentsu CXC will expand storefront promotion by utilizing Ushopal's several Bonnie & Clyde experience shops.

4. One-stop support for processes ranging from inventory estimation to product distribution (customs, warehouse storage, deliver, etc.):

  • Delivery within two to three days has become the norm in terms of physical e-commerce distribution within China. However, direct delivery from Japan to China through cross-border e-commerce has begun to fail to meet consumer needs in China as customs inspections become stricter. For this reason, Dentsu CXC will establish a framework that will succeed in shortening delivery times and reducing stress suffered during product distribution through the utilization of Ushopal's warehouses in China (bonded storage, etc.).
  • Dentsu CXC will prevent stockout, which is fatal in terms of online sales, through the use of Ushopal's original inventory estimation and management system.

 

Source:
Campaign China

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