Kerry Logistics (OTC US: KRRYF) has entered a joint venture with E-Services Group (ESG) according to a Kerry press release. The joint venture, Kerry ESG, will increase e-commerce fulfillment in Hong Kong, mainland China and Taiwan, as well as the 10 members nations of the Association of Southeast Asian Nations (ASEAN). Those nations include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma) Philippines, Singapore, Thailand and Vietnam.
Kerry Logistics, based in Hong Kong, is a third-party logistics operator for international brands. According to Vietnam News, Kerry operates in 53 countries with 53 million square feet of logistics facilities. ESG, also based in Hong Kong, is an end-to-end e-commerce company that helps sellers enter foreign markets. It operates in more than 20 countries with more than 28,000 supply partners.
The joint venture will begin in March 2019 and will manage retail order fulfillment, inventory and returns. The joint venture will combine Kerry Logistics’ global supply chain infrastructure with ESG’s technology platform to provide retailers cost-efficient online solutions. The joint venture will focus on increasing cross-border retail sales in Asia. E-commerce is currently the largest retail sales platform in Asia with a market share of 13 percent according to Forbes.
"We are thrilled about the growth opportunities in global e-commerce,” said William Ma, group managing director at Kerry Logistics. “With Kerry ESG, we are creating a unique platform with total solutions from upstream marketing to downstream logistics that will capitalize on the booming international marketplace model to facilitate the exports for our international brand customers. Combining forces as industry leaders, Kerry Logistics and ESG are well-positioned to unlock the potential in the market with this new joint venture."
"Winning at e-commerce means getting every piece of the puzzle right, and fast, reliable fulfillment is a critical component of success,” said Alan Lim, founder and chief executive officer at ESG. “This partnership gives e-tailers access to an extensive distribution network to support e-commerce fulfillment in every market and with every online channel. With Kerry Logistics we have found a great partner, whose capabilities complement ours and whose culture and vision matches that of our team. I am excited about how we can grow this business together."