E-commerce trading floor will benefit perishable exporters
With global
food
consumption
expected
to increase 75% by 2050
– and at least 40% of the
demand coming from
China – Tigers has entered
the perishables sector
and continues to focus on
expanding its footprint
in this niche vertical, says
Paul Lawrence, managing
director of Tigers South
Africa.
With nearly 60 offices
globally and a growing
presence in Asia, Europe,
southern Africa and the
USA, the Hong Kongheadquartered
global
logistics group specialises
in bespoke end-to-end
supply chain solutions.
“From international
models it is clear there is a
gradual change in the trade
model for perishables,” says
Lawrence. “The move is
from a traditional supplierdistributor-
final consumer
model to a supplier-final
consumer model. Through
Tigers’ fiscal representation
at destination market on
behalf of the supplier,
there is now opportunity
for suppliers to cut out
distributors and approach
markets directly. This
increases profits for
suppliers significantly
and allows better product
management, branding and
marketing opportunities.”
With Tigers’ plan to
open its first e-commerce
trading f loor, allowing
products to provide the
tactile shopping experience
without the costly need
of stock on premises,
Lawrence says it is a model
that will undoubtedly
expand into the perishables
sector. “We have already
seen this expansion
through the model that
Tigers has in place with
international exporters
of rock lobsters into
specialised bonded tanks
at China’s Guangzhou
Baiyun Airport, allowing
specialised B2C fulfilment
nationwide of this
commodity.”
The Chinese preference
for live seafood has
created a new
demand in the
global supply
chain, as the Far
East becomes
the biggest
consumer market
for perishable
products in the
world.
According
to Paul
Huang,
Tigers China
MD, this
increase in
demand is
ongoing.
“The above
lobster
example
is one of
our biggest
customers.
They catch around 4000
tons of lobster each year.
Five to six years ago less
than 20% of their lobsters
were sold
to China,
whereas
today that
figure is
around 90%”.
Another
fast-growing
trend in
China is
the move
by local companies to
expand overseas. “Chinese
companies are purchasing
farms in countries across
the world and
then shipping the
perishables back to China,”
he said.
The perishable sector
has seen constant growth
for the past four years
especially in the aqua and
marine culture vertical,
according to Lawrence.
“The industry as a whole
has seen a growth of 7%
over the past four years and
with the increase in demand
for these products in foreign
markets, there does not
seem to be any sign of a
slowdown in this growth for
quite some time.”
INSERT & CAPTION
The Chinese
preference for live
seafood has created
a new demand in the
global supply chain.
– Paul Lawrence
