China Material Handling Cooperation

PlatformFind reliable business and technology

partners in China

China’s material handling industry is entering in a new phase

New opportunities open for business in China

as well as …

… partnership with Chinese companies

The China Material Handling Cooperation Platform gives you

access to these opportunities

The China MH Platform

Create a bridge between Chinese and Western material handling industries

Develop opportunities for business and cooperation in the field of

advanced material handling

The China MH Platform

China MH Companies

European MH

Companies

China Government and Business Associations

European Governments and Business Associations

China Material Handling Platform

The China MH Platform

Stay in touch with evolution of Chinese

MH industry

Sharing of information

Seminars and conferences

Delegations and Site Visits

Get access to MH projects and programs

Be introduced to programs

Meet with programs players

Launch and drive new programs

Get access to clients and industry partners

Direct business

Distribution Partners

Technology, Industrial or Business Partners

MH Platform Community

MH Platform Projects and Programs

Introduction & Business Assistance

China’s Material Handling Industry Evolution

Embryonic Phase

Startup Phase

Development Phase

High SpeedPhase

Before 2000 2001-2008 2009-2013 Now

China trends for material handling

Online Commerce Growth

Rapid Urbanization

Mass personalization

Sustainability

Opportunities in China MH industry Market demand sets new requirement that Chinese

manufacturers do not master. For example: Focus on unit load

High-speed mini-load technologies Multi-shuttle High–speed sorters

Automation All goods-to-person automation pick systems Fast and efficient pick and pack systems

Energy efficiency solutions Energy efficient equipment Optimization systems Monitoring systems

Interested . . . ?

We send you:

• Market information

• Invite to seminars

• Invite to delegations

Sign Up to theMH Platform Community

Contact us for Business

Assistance

Contact us for a Joint Project or

Program

Interested in knowing latest developments of

China MH industry?

We assist you in:

• Meeting right people

• Set your strategy

• Implement your strategy

Interested in accessing China MH industry

business opportunities ?

We work with business associations & agencies from governments to:

• Promote programs

• Develop programs

Interested in developing a joint program with

Chinese organization ?

Sign Up to theMH Platform Community

Contact us

China Material Handling Cooperation

PlatformFind reliable business and technology

partners in China

China MH IndustryEvolution and Opportunities

Chinese material handling industry evolved a lot over the last

30 years . . .

China’s MH Industry Evolution

Embryonic Phase

Startup Phase

Development Phase

High SpeedPhase

Before 2000 2001-2008 2009-2013 Now

Embryonic Stage

Before 2000

Market demand: Very small demand

No large scale applications.

Local Industry: A few small racking manufacturers

A few forklift suppliers

Government: No active involvement and no guideline or policy

Start up Stage

2001-2008

Market demand: China growth drives demand for warehouse and material handling

equipment. Mainly racking and forklift. Tobacco industry starts with automation.

Industry: Increasing number of companies enter MH industry.

Some emerging brands for racking, pallets and forklifts.

A few large Western system integrator enter the market

Government: Publication of “Instructions about Speeding up Development of

Modern Logistic Industry in China” in 2001

Development Stage

2009-2013

Market demand: Combined pressure from high growth and increasing labor/land costs push

Chinese companies to improve warehouse and material handling systems.

Big market growth: e.g. sales of forklifts in 2013 ten times larger then in 2003.

Industry: Chinese companies in the field of racking, conveyors, pallets . . . grow very

quickly.

AS/RS become the main automated MH systems in China and China sees strong local players (SI).

Government: Issuance of “Planning of Revitalization and Adjustment of Logistic

Industry” in 2009 and many detailed policies for development of logistic information, construction of logistic zone, training program of logistic talents and others were enacted.

High Speed Development

2014 - Market demand:

New business model such as eCommerce lead to increased demand for efficient and automated MH system.

Industry: Market trends are driving a high speed development of the industy. At the same time, market demand and government focus drive push to

higher level of automation and innovation in MH. Current Chinese MH industry cannot meet new market demand (e.g.

pallet focus instead of unit load).

Government: New China leadership called for adjustment and transformation of

Chinese economy with focus on quality and efficiency. Shift from leverage of large population, heavy investment and energy

consumption toward efficiency and technology innovation.

Western companies can offer the advanced equipment and

solutions which the Chinese market now require.

China trends for material handling

Online Commerce Growth

Rapid Urbanization

Mass personalization

Sustainability

Online Commerce Growth

China is the Nr 2 e-commerce market in the world

Annual growth rate of 120 % since 2003 (source: McKinsey & Co)

Peaks of 350 million parcel deliveries within a few days in special shopping periods

1987

2014

Rapid Urbanization

In 2025, China will have:

15cities

of more than

25 millionpeople

23cities

of more than

5 millionpeople

22cities

of more than

10 millionpeople

Sustainability

China is committed to decreasing CO2 emission intensity (Ton Carbon/GDP unit) by 40%-45% from 2005 to 2020

Government policies and incentives on MH industry are favorable for green and energy-saving material handling equipment: MH equipment must be designed as light as possible MH systems must be designed as simply as possible MH technologies must be intelligent and have smart energy

consumption control

MH industry pushed to develop standard methods of including sustainable development into business plans and operating strategies

Mass Personalization

Intense competition in retail leads to strong personalization: Number of customized products growing fast in China

Personalized services growing as well

Chinese customers able to get products delivered at any time they want, wherever they want, any way they want

MH systems must support many different order channels, distribution channels and delivery methods, e.g.: Order by phones, tablet or PC

Order in traditional retail outlet

Pick up at retail outlet

Delivery at home with long lead time

Delivery next-day or same day

Purchase of one to two single items at the time

New Market Demands

Multi-channel solution

Greener Logistics

Manage smaller orders

High density solution

Online Commerce Growth

Mass personalization

Sustainability

Rapid Urbanization

New Market Demands

Solutions for unit load handlingHigh-speed mini-load technologies

Multi-shuttle

High–speed sorters

New Market Demands

Material Handling Automation Goods-to-person automation

pick systems

Fast and efficient pick & pack systems

New Market Demands

Energy efficiency solutionsEnergy efficient equipment

Optimization systems

Monitoring systems

China Material Handling Cooperation

Platform

gives you access to these opportunities in China

Platform’s Objectives

Create a bridge between Chinese and Western material handling industries

Develop opportunities for business and cooperation in the field of

advanced material handling

Platform Activity Scope

Joint Seminars for communication about MH technology

Delegations to visit on site or exhibitions

Provide one-stop services for Western MH companies who wants to enter Chinese markets

Provide one-stop services for Chinese MH companies who want to get new technology and solution from outside China

Platform’s Structure

China MH Companies

European MH

Companies

China Government and Business Associations

European Governments and Business Associations

China Material Handling Platform

Partners driving the Platform

Material Handling Business

Associations

SpecializedConsultants

Trade Media & Conference Organizers

Government Organizations

Partners driving the Platform

Material Handling Business

Associations

SpecializedConsultants

Trade Media & Conference Organizers

Government Organizations

How organizations use the platform?

China MH and Logistics Companies

European MH and Logistics

Companies

China Logistic Technology

Platform

Investigate market demand and define requirement for new technology solution

Inquire the platform to identify proper partners and proper ways of cooperation

Describe products and technologies they want to promote and develop in China

Discuss cooperation with Chinese companies

Platform promotion in magazines and websites

Seminars & conferences

Collection of requests from MH companies

How each partner drives the platform?

Trade Media ConsultantsGovernment and

Business Associations

• Provide official support to the platform

• Organize joint seminars or visit of delegations

• Motivate MH companies to join and use the platform

Find Western potential partner for China MH Co

Provide professional service and advices

Platform promotion to Western organizations

Several Approaches

Focus on getting specific products or modules into

the market

Delivery Agreement,Procurement Agreement,Distribution Agreement,Integration Agreement,OEM and Rebranding.

Focus on technology or know-how transfer

Transfer of Technology Agreement,

License Agreement.

Focus on creating new partnership with Chinese

Strategic Cooperation,Joint Venture,

M&A.

Commercial Focus Technical Focus Partnership Focus

One-stop shop assistance service

Market Research Market EntryCooperation Negotiations

Operations

• Market study

• Brand promotion in Chinese media

• Networking for potential partners or customers

• Consultancy for proper start up

• Identification and assistance to develop distributors or integrators

• Provide support for company set up

• Provides professional services to Chinese company:

• Negotiation

• Legal

• Financial

• Coordination

• Provides professional services to Chinese company:

• Financial

• Coordination

• Partner Mgmt

• Implementation

One-stop shop assistance service

Request & SearchPotential Partners

Introduction Cooperation Negotiations

Operations

• Analyses request

• Contacts foreign companies to explain opportunities and inquire about interest for cooperation

• Consolidate outcomes

Zero Upfront Fee

• Presents pre-selected potential partners to Chinese company

• Provides initial recommendation on next steps

Introduction Fee

• Provides professional services to Chinese company:

• Negotiation

• Legal

• Financial

• Coordination

Success Fee &Service Fees

• Provides professional services to Chinese company:

• Financial

• Coordination

• Partner Mgmt

• Implementation

Service Fees

China Green Storage and Distribution

Project

Overview of one of China’s new programs in Material Handling Industry

Overview China facing air pollution challenges but also committed to

reducing carbon intensity by 40-45% from 2005 to 2020.

Several large initiatives across the country, including one with focus on developing greener warehouses and distribution networks

Planning and construction of green warehouse building: site selection, design, use of natural light, eco-materials,

use of energy saving equipment (especially for cold storage warehouses and distribution).

Implementation of urban efficient distribution networks and use of eco-friendly vehicles.

How the program works? Three main axis:

Promotion by the Chinese Central Government. Policies for greener warehouses and distribution networks.

Deployment of a Certification Systems for Green Warehouse and Distribution for the users, with corresponding standards. (similar to star systems for green building). Certification leads to subsidies or low interest loans.

Deployment of a Certification Systems for Green Warehouse and Distribution Equipment and Technology for manufacturers. Certification leads to being listed in a “Eco-Product and Solution Recommendation Catalog”, as well as the right to affix a green logo.

Current priorities

Adoption of energy-saving technologies in warehouse buildings;

Use of energy-saving and fuel consumption reduction technologies in distribution vehicle fleets;

Identification and adoption of green material handling equipment.

Deployment of photo-voltaic systems on the roof of green warehouse;

Sign Up to theMH Platform Community

Interested ?Contact us here

China Green Storage and Distribution

Program

High Tech Industrial Park for Advanced Logistic

Equipment

Overview of one of China’s new programs in Material Handling Industry

Overview

The “High Tech Industrial Park for Advanced Logistic Equipment” is an industrial park dedicated on material handling and logistic technologies.

Located in Huzhou (close to Shanghai).

Several incentive programs to attract manufacturers and investors, incl.: tax exemption for the first five

years of profitable business;

special subsidies for companies setting up R&D in the park;

tax refund on personal income tax for employees with specific skills

Encouraged Focus in Park

The park encourages companies active in developing and producing equipment and solutions like:

Storage equipment,

Material Handling equipment,

Circulation processing equipment,

Container and containerized units and related equipment,

Sorting equipment,

Transport equipment,

Advanced software and information systems,

Connectivity and Internet of Things (IOT) systems.

Sign Up to theMH Platform Community

Contact us

High Tech Industrial Park for Advanced Logistic

Equipment

Interested in . . . ?

We send you:

• Market information

• Invite to seminars

• Invite to delegations

Sign Up to theMH Platform Community

Contact us for Business

Assistance

Contact us for a Joint Project or

Program

Interested in knowing latest developments of

China MH industry?

We assist you in:

• Meeting right people

• Set your strategy

• Implement your strategy

Interested in accessing China MH industry

business opportunities ?

We work with business associations & agencies from governments to:

• Promote programs

• Develop programs

Interested in developing a joint program with

Chinese organization ?

Sign Up to theMH Platform Community

Contact us

WHO WE ARE?

ChESS Profile We assist Chinese and European companies in developing their

business in Europe and China

Same Game ， Different Culture

Same Goal, Different Approach

 

www.chess-nv.com – www.vdp.be

ChESS Services

Product and Technology Sourcing

CorporateServices

Operational Assistance

Services

Merger & Acquisition

Strategic Business Partner

Transfer of Technology

Market Entry orMarket Acceleration

Business Setup

Operational Turnaround

Supplier/Partner Selection

Supplier/Partner Management

Access New Markets Improve Business Efficiency

Quality Management & Supplier Development

ChESS Management Team Created by 6 China experienced professionals and executives

100+ years cumulative China Europe business experience: Technology and product sourcing,

Technology partnerships,

Transfer of Technology (TOT),

Joint Venture,

M&A.