It’s the time of the year again, no, I am not referring to Christmas or Halloween. It’s Singles Day or 11.11 Day, founded in China 1993 and popularise by Alibaba. The first Singles Day celebrated by Alibaba is on 2009, this year’s celebration marks the 10^th year.

How much did consumer spend on 2018 Singles Day?

Total delivery order received by major e-commerce was 1.35 billion as reported by China Economic Net. A combined Gross Merchandise Value of top 2 China e-commerce giants, Alibaba and JD.com, is USD 53.8 billion. USD 30.8 from Alibaba and USD 23 billion from JD.com.

Lazada, a Southeast Asia e-commerce company owned by Alibaba, reported a total of 1.2 million orders within the first hour of Singles Day and high participation rate in Lazada 11.11 Super Show event with over 5 million viewers from Malaysia and Thailand.

What can we learn from consumer trend on 2018 Singles Day?

There is a notable trend of Chinese consumer preferring quality over price. JD.com CMO Lei Xu said, “…[there are] growing numbers of consumers who are willing to pay more for branded and imported goods.”

ParcelHero’s Head of Consumer Research, David Jinks MILT, says the move upmarket amongst Chinese consumers was noticeable: “For the first time Apple’s iPhones were the top-selling mobiles on Singles’ Day, beating bargain Chinese rivals such as Huawei and Xiaomi.”

The Chinese are buying international products. Alibaba reported, over 40% of consumers bought from international brands with 237 brands topped RMB100 million (USD 14.42 million) in GMV.

High demand of goods from countries like Japan, the US, South Korea, Australia and Germany.

Popular brands are leading international brands like Apple, Dyson, Kindle, Estée Lauder, L’Oréal, Nestle, Gap, Nike and Adidas. Other popular brands from UK are Burberry woollen scarf and Jaguar-Land Rover.

Social interaction and engagement is important. As reported by Lazada, 50 millions vouchers were through popular games, 5 millions viewers and 50 thousand fans joined the Lazada 11.11 Super Show in Malaysia and Thailand.

For example, Alibaba “See Now, Buy Now” event allows live audience and viewers to buy products they see on the fashion catwalk in real time using their smartphones. To create even more interactivity between brands and participants, viewers were able to vote for their favorite look with a new feature called “Play Now”.

With such hustle and bustle, does your postal administration has any exciting news to share with us about Singles Day 2018? Please drop us an email at .

Commentary by Maverick Chung

Sources:

http://en.ce.cn/Business/topnews/201811/12/t20181112_30758876.shtml

https://techcrunch.com/2018/11/12/jd-singles-day/

https://tamebay.com/2018/11/alibaba-singles-day-aims-global.html?utm_source=bm23&utm_medium=email&utm_term=Alibaba+Singles+Day+aims+to+go+global&utm_content=Posts+from+Tamebay+for+13/11/2018&utm_campaign=TB+-+Newsletter+-+2018&_bta_tid=20494019505476388982569550036554553135967557438005457489006447709839264079255541446109574003677988575829

https://tamebay.com/2018/11/alibaba-celebrates-the-first-decade-of-its-global-shopping-festival.html?utm_source=bm23&utm_medium=email&utm_term=Alibaba+celebrates+the+first+decade+of+its+Global+Shopping+Festival&utm_content=Posts+from+Tamebay+for+12/11/2018&utm_campaign=TB+-+Newsletter+-+2018&_bta_tid=20400879535476388982569550065476072739324930528954454278667280895419347987193015547689899383321863576149

https://postandparcel.info/98911/news/uk-brands-benefit-from-alibabas-singles-day/?utm_source=Triangle+Management+Services&utm_campaign=0016e66652-P%26P_Daily&utm_medium=email&utm_term=0_21ab6af013-0016e66652-76846113

https://www.lazada.com/sites/default/files/press-releases/Lazada_11_11_Shopping_Festival_registers_record_breaking_performance.pdf

Image source:

https://www.alizila.com/by-the-numbers-2018-11-11-global-shopping-festival/

ParcelX aims to create a cross-border parcel delivery ecosystem where anyone or service provider can trust and participate through revolutionary blockchain technology, called Blue Ocean market with blockchain technology.

After reading ParcelX white paper, I have gather two parts to the company:

1) Creating a 3rd generation logistic network model, ie.an intergrator systems using blockchain technology. This will connect shippers, logistics service providers, logistics integrators and consumers in a well-balanced ecosystem, based on trust guaranteed by blockchain and seamless interactions, saving time and money while ensuring optimal security, transparency and traceability.

2) Creating a Token economy within the logistic network model. ParcelX token, GPX, is essentially a cryptocurrency. This currency will be used as a form of exchange between the stakeholders within the ParcelX system and tradable in the exchange market. GPX is awarded for good performing stakeholders.

The interesting thing is how they valued cryptocurrency, GPX, by using money velocity formula. M*V=P*Q. Where P*Q is the Total Average Price of Gross Merchandise Volume. As of 9 November 2018, GPX is valued at 1 GPX = USD 0.18.

While blockchain technology maybe useful for transparency and traceability of the parcel delivery, my concern is how cheap the delivery cost would be when ParcelX progresses. As the GMV increases, the GPX intrinsic value will increase. In addition, ParcelX having an open market exchange system will expose the GPX to speculation and volatility which is not favourable for business.

To read and experience firsthand, go to below links.

White Paper: https://parcelx.io/whitepaper.html

Console demo: https://parcelx.io/demo/#/ecommerce/overview

Commentary by Maverick Chung

Source:

https://parcelx.io
https://postandparcel.info/98827/news/parcelx-to-naturally-eliminate-uncompetitive-service-providers/?utm_source=Triangle+Management+Services&utm_campaign=8bd78cef16-P%26P_Daily&utm_medium=email&utm_term=0_21ab6af013-8bd78cef16-76846113

Image Source:  https://parcelx.io/whitepaper.html

49 years ago, on October 9, World Post Day was declared! Today, countries worldwide celebrate this significant event. The purpose of World Post Day is to bring awareness to the Post’s role in the everyday lives of people and businesses, as well as its contribution to global social and economic development. This year’s theme is ‘The Post: Delivering good to the world’. We shall take a look below on how members celebrate World Post Day!

Celebrations at UPU

Director General of the UPU International Bureau, Bishar A. Hussein and Secretary-General of the United Nations, António Guterres, both gave a statement on World Post Day, emphasizing on the importance postal service and system that “deliver good” to the economy and society. They gave praises to postmen and postwomen for their daily dedication as a testament to the mission of the Universal Postal Union.

This year International Letter-Writing Competition theme was “Imagine you are a letter travelling through time. What message do you wish to convey to your readers?”. The winner is a 13-year-old girl from Cyprus, Chara Phoka. Her winning letter, “The letter of an Invisible Life”, boldly confronted issues such as conflict and migrant smuggling by telling the harrowing story of a letter’s journey from South Asia to Europe. You can read her letter here.(news.upu.int/outreach/letter-writing-competition/2018/gold-medal-winning-letter/)

UPU also awarded Integrated Index for Postal Development (2IPD) winners on World Post Day. 2IPD is a comparative index providing an overview of postal development around the world, using UPU’s unparalleled collection of postal big data to create a ranking of 173 countries. It benchmarks performance across four key dimensions: reliability, reach, relevance and resilience.

This year 2IPD winner is Switzerland. Regional top-scorers are, Poland (ranked 6th), Singapore (ranked 7th), Brazil (ranked 44th), Tunisia (ranked 49th) and Nigeria (ranked 51st), each received certificates for a standout performance in their respective regions.

Celebrations at Asia Pacific

As all UPU members celebrate World Postal Day around the world, Mongol Post celebrated World Postal Day by organizing events to promote new postal products and services to its customers.

E-post services and milestone step toward e-governance.

As a part of Digital Transformation of the post and collaboration with Government agencies Mongol post could open the very first "Digital Services Center" at remote administrative unit of Mongolia. Establishing "Digital Service Center" enables Mongol Post to deliver government services through on-line to remote area citizens. And not limited to e-government services also it will enhance postal connectivity between branches and private organizations to deliver their services digitally at very cost effective way through the post. Those Mongol Post believes it is the milestone step toward digitization and e-governance/e-post in Mongolia.

Actively participated in the ICT EXPO 2018 of Mongolia as introducing some services by Mongol Post such as acceptance & delivery of the international and domestic EMS, Direct mail marketing, Mail transportation and Logistics, POB service, Distribution and delivery of Driving License, Foreign passport, Citizen Identification Card, Debit and Credit Card, and others. The of opening ceremony of the One stop joint service in the rural area was also one part of the introduction of Mongol Post through “Live”.

Renovation of Postal Offices around the Mongolia

All the post offices will be reconstructed as it is planned in frame of project “Rebranding”. Reconstructed the one of oldest post office to modern post office.

Opened the modern and VIP Post Office in the downtown of Capital city of Mongolia.

Philippine Postal Corporation (PHLPost) celebrated World Post Day by encouraging the students to write letters to their beloved teachers. Schools nationwide will take part in the nationwide “Salamat Po (Thank you) Teacher” raffle promo and competition.  The goal is to “effectively promote the value of gratitude to teachers who have done most, apart from their parents in shaping their future to become better persons in society.

The Malaysian Communications and Multimedia Commission (MCMC) and Pos Malaysia Berhad (Pos Malaysia) jointly organised the World Post Day 2018 celebration at MCMC headquarters. A stamp release featuring the image of a postman's life, both past and present, was launched by Communications and Multimedia minister Gobind Singh Deo, the stamp

Two initiatives spearheaded by Pos Malaysia in collaboration with MCMC, Philatelic Society of Malaysia (PSM) and Malaysian Digital Economy Corporation (MDEC) were announced. These are e-Philately and Pos Innovation & Technology Collaborative Hive (PITCH).

e-Philately is an application and website that aims to be a one-stop online philatelic centre for philatelists and stamp collectors who will be able to further enhance their stamp collection experience via virtual stamp marketplace, virtual gallery, auctions, and bidding sections.

Whereas, PITCH is an inaugural tech innovation contest in which participants comprising of industry players and technopreneuers nationwide are invited to participate to develop a workable and realistic digital solution concept to support the delivery network as well as elevate the logistics industry to support growth in e-commerce.

Post Fiji celebrates World Post Day by volunteering a total of 11 respective heads of departments and managers to participate in their EMS courier operation team. “Today, the managers experienced first-hand the execution of our door-to-door delivery service by taking on the role of delivery reps for the day. These managers got a chance to feel how our ground team operated on a daily basis,” Post Fiji head of Retail and Marketing Isaac Mow said.

India Post: Minister of State (independent charge) for Communications and Minister of State for Railways Government of India, Manoj Sinha gave a letter of statement on World Post Day. He reflects on the year gone by and to assess the difference India Post have been able to bring about in the lives of the people. This includes, launching India Post Payments Bank, extending the benefits of Postal Life Insurance to a larger segment of population, setting up 200 over Post Office Passport Seva Kendras (POPSKs). Lastly, he gives thanks to all India Post employees and assured of the Government support to India Post.

Pakistan Post celebrated World Post Day at the General Post Office. Postmaster Arshad Khan was the chief guest at the flag-hoisting ceremony held at the GPO and national anthem was sung. Officers and staff of the Pakistan Post, customers, students and others attended the ceremony. Arshad Khan gave a speech, praising Pakistan Post for “providing cost-effective and quality services to its customers”. After that, an exhibition of commemorative stamp was held and gifts were distributed among students.

Iran Post: Minister of Information and Communication Technology (ICT) Mohammad Javad Azari Jahromi announced on World Post Day that product development is the main strategy of Iran Post. This includes development of Iran Post distribution of magazines, handicraft and souvenirs of different regions of Iran.

In China, Hanshan District of Handan, north China's Hebei Province, teachers taught primary school students about stamps and postal knowledge through various activities, including hand drawn stamps, on World Post Day.

Singapore Philatelic Store @ GPO have released one datestamp design and 2 cachet designs. The 1st Anniversary of Philatelic Store @ GPO Datestamp will only be available at the Philatelic Store @ GPO. The World Post Day Cachet and 160 Years of Singapore's Postal Service Cachet will be available at both Philatelic Store @ GPO and also the Philatelic Counter @ Tanjong Pagar Post Office.

Thailand has released World Post Day 2018 Commemorative Stamp. It is available via ThaiStampShop.com.

Celebration at other regions

Emirates Post, the UAE’s national post service celebrated ‘World Post Day’ by partnering with Al Mahatta Museum to commemorate the first aircraft to land in Sharjah in 1932.

Qatar Postal Services Company (Qatar Post) organized an open day for the general public and school students to mark the occasion of World Post Day, which is celebrated on October 9 every year.

Nigeria Postal Service (NIPOST), Owerri District held a sensitisation campaign in Owerri metropolis to enlighten the public on the post e-commerce services and their relevance to the society.

The Ministry of Posts in St. Kitts and Nevis has organized a month of activities to mark the international observance of World Post Day, which is celebrated annually on Oct.9. Notable events include a Customer Appreciation Day, Hike to Sofa Stone via Miliken Estate, St. Peters on Oct. 13; Staff Work Experience Exchange to Nevis on Oct. 15 to 19; Fun Day at Brimstone Hill Fortress National Park on Oct. 20; Staff Lunch on Oct. 27; and free Mail Box Sign-up on Oct. 31.

This wraps up World Post Day 2018 celebration!

Hope to hear from your postal administration what exciting celebration is installed for next year World Post Day 2019!

Article by Maverick Chung

Sources:

http://news.upu.int/no_cache/nd/upu-celebrates-postal-development-on-world-post-day-2/
http://news.upu.int/no_cache/nd/statement-by-bishar-a-hussein-director-general-of-the-upu-international-bureau-on-the-occasion-of-world-post-day-9-october-2018/
http://news.upu.int/no_cache/nd/statement-by-antonio-guterres-secretary-general-of-the-united-nations-on-the-occasion-of-world-post-day-9-october-2018/
http://news.upu.int/outreach/letter-writing-competition/2018/gold-medal-winning-letter/
https://www.phlpost.gov.ph/whats-happening.php?id=4039
http://www.thesundaily.my/news/2018/10/09/mcmc-pos-malaysia-holds-world-post-day-2018-celebration
https://www.fijitimes.com/post-fiji-observes-world-post-day/
https://www.indiapost.gov.in/VAS/Pages/News/nationalpostalweek2018.pdf
https://www.thenews.com.pk/print/379010-world-post-day-was-celebrated-at-gpo
https://www.tehrantimes.com/news/428351/Product-development-is-Post-Company-s-main-strategy-ICT-minister
http://www.xinhuanet.com/english/2018-10/09/c_137521567.htm
https://www.facebook.com/sgstampers.page/photos/a.141745369201836/1989441407765547/?type=3&theater
https://www.siamstamp.com/catalogue/index.php?id=1156
https://www.epg.gov.ae/portal/_en/newsdetail.xhtml?news=news1149
https://www.thepeninsulaqatar.com/article/10/10/2018/Qatar-Post-marks-World-Post-Day
https://www.vanguardngr.com/2018/10/world-post-day-nipost-owerri-holds-public-sensitisation-campaign/
https://sknis.kn/ministry-of-posts-in-st-kitts-nevis-celebrates-world-post-day-2018/

Image Source:
https://twitter.com/UPU_UN?lang=en
https://www.phlpost.gov.ph/whats-happening.php?id=3896
https://www.pos.com.my/about-us/
https://www.fijitimes.com/post-fiji-observes-world-post-day/
https://en.wikipedia.org/wiki/India_Post
http://www.pakpost.gov.pk/
http://techrasa.com/wp-content/uploads/2015/09/IranPostCover.png
https://pixabay.com/en/china-flag-map-country-nation-1020914/
https://www.facebook.com/sgstampers.page/photos/a.141745369201836/1989441407765547/?type=3&theater
https://www.siamstamp.com/catalogue/index.php?id=1156
https://www.epg.gov.ae/portal/_en/newsdetail.xhtml?news=news1149
https://www.facebook.com/qatarpost/
https://www.facebook.com/nipostng/
https://sknis.kn/ministry-of-posts-in-st-kitts-nevis-celebrates-world-post-day-2018/

US has imposed another round  of tariffs on China imports. This will affect $200 billion worth of goods from China. Office of the United States Trade Representative claim the measures are “as part of the United States’ continuing response to China’s theft of American intellectual property and forced transfer of American technology”.

While protectionist supports the tariffs, most economist view tariffs as “bad tax”. The impact could be far reaching and long term, as Jack Ma cautioned “China’s business and political leaders to prepare for the trade war with the U.S. to last 20 years” He added, “US-China trade war will wreck the AliBaba pledge to help create 1 million US jobs.”

What US consumers are buying from China?

In 2017, a total value of $500 billion was spent on Chinese goods, with electronics the highest. Cumulatively “Apparel, Electronics and Household goods ” make up 60% of the total consumption and it seems like it is on a growing trend.

Data from US Census Bureau

What China consumers are buying from US?

Conversely, Chinese consumers are spending way less in US goods at $120 billion. Industrial goods consumption is at 73%, while Produce ranked 2^nd. “Apparel, Electronic and Household” is less than 5% of consumption.

Data from US Census Bureau

Which Chinese Goods is affected by US tariffs?

An article from Business Insider  has provide us with a summary list of goods affected by US tariffs. Most of the affected goods are raw material, produce and industrial, however, there are goods that could be sold in ecommerce channel like “Man-made Textile”, “Fabrics”, “Head Gear”, “Glassware”, “Precious Stone and Pearls”, “Electronics”, “Clocks and Watches”, “Furniture, Bedding Mattress”. The official list of 5,745 goods can be found here.

Items include

Photographic goods: various types of photo plates; instant film; various types of film in rolls; various types of motion picture film.

Plastics: vinyl flooring and other plastic floor and wall coverings; sausage casings; bags; gloves including baseball gloves; rain jackets; machinery belts.

Raw hides and leather: animal skins including cow, buffalo, sheep, goats, reptile; various types of leather made from cow, buffalo, sheep, goats, reptile; leather trunks and suitcases; leather handbags; CD cases; gloves including ski, ice hockey, and typical use; belts; fur clothing, including artificial fur.

Wood: fuel wood; charcoal; various types of wood including oak, beech, maple, ash and cherry; moldings; rods; particleboard; various types of plywood; doors; corks and stoppers; wicker and bamboo baskets.

Paper: Newsprint; writing paper; vegetable parchment; carbon paper; self-adhesive paper; cigarette paper; envelopes; tablecloths; handkerchiefs; folders.

Silk

Wool or animal hair products: cashmere; yarns; tapestries and upholstery.

Cotton: fibers; thread; yarn; denim; satin.

Flax: yarn; fabrics

Man-made textiles: polypropylene; rayon; nylon; polyester

Other textile products, rope, twine: hammocks; fish nets; carpets;

Fabrics: corduroy; gauze; terry towel; lace; badges; embroidery

Headgear: caps; hairnets; wool hats; head bands.

Stone, plaster, cement, asbestos: stone for art; marble slabs; roofing slate; millstones; sandpaper; floor or wall tiles; cement bricks.

Glass and glassware: balls; rods; drawn or blown glass; float glass; tempered safety glass; mirrors; carboys, bottles, jars, pots, flasks, and other containers; microscope slides; woven fiberglass

Various metal products, tools, cutlery: industrial items made from lead, zinc, tin, and more; saw blades; bolt cutters; hammers; wrenches; crow bars.

Electronics: vacuum cleaners; hair clippers; spark plugs; generators; bicycle lights; electric amps; television cameras; various types of TVs; video projectors.

Vehicles and parts: axles; driving shafts; gear boxes; radiators.

Assorted items: buttons; stamps; paintings; collections of zoological, botanical, mineralogical, anatomical, historical, archaeological interest; antiques of an age exceeding one hundred years

Commentary by Maverick Chung

References:

https://www.census.gov/foreign-trade/statistics/country/index.html

https://www.businessinsider.sg/trump-china-trade-war-list-of-goods-tariffs-2018-9/

https://www.cmtradelaw.com/2018/09/ustr-publishes-notice-formalizing-10-tariffs-on-section-301-list-3-on-sept-24-cms-unofficial-list-of-the-affected-hts-codes-provided-here/

https://ustr.gov/sites/default/files/enforcement/301Investigations/Tariff%20List-09.17.18.pdf

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/september/ustr-finalizes-tariffs-200

https://www.economist.com/the-economist-explains/2018/07/31/why-tariffs-are-bad-taxes).

https://www.bloomberg.com/news/articles/2018-09-18/alibaba-s-jack-ma-warns-u-s-china-trade-war-could-last-20-years

https://www.businessinsider.sg/jack-ma-trump-china-tariff-trade-war-alibaba-us-jobs-plan-2018-9/?r=US&IR=T )

Image Source: https://commons.wikimedia.org/wiki/File:FlagUSA_FlagPRC_crash.svg