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End-User Marketing: A Yantian Story Shenzhen, China October 1?, 2011 Alan Au.

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Presentation on theme: "End-User Marketing: A Yantian Story Shenzhen, China October 1?, 2011 Alan Au."— Presentation transcript:

1 End-User Marketing: A Yantian Story Shenzhen, China October 1?, 2011 Alan Au

2 Contractual Relationship Traditional Model: We only work with those who have direct contract with us Terminal Carrier Contract Cargo Owner

3 How Idea was Cooked 1994: – Apr: Marketing and sales work to 20 global carriers began – July: 1 ship berthed at Yantian – Aug: All 20 global carriers gave us the same answer: “We can’t come to Yantian because our clients don’t want to come.” – Sept one Friday morning (typhoon 3) during a meeting: Mr NF Liu, Deputy GM 1 st said: “We should go after the cargo owners.”

4 From Idea to Actions End 1994: only 15,000 teu achieved. We either to find end-users or find a New Job Feb 1995: Chartered 3 buses to take End-Users to visit Yantian Beginning May 1995: Gave end-user to test-use Yantian by a feeder shuttle between Yantian and Hong Kong WalMart, Mattel, Hasbro, Toy’s R us were early users for their CY or Factory-Load containers 1995: Yantian just broke 100,000 teu mark

5 2 nd Level Action: Go to Headquarters 1996: – 1Q: End-Users Hong Kong head recommended us to go to USA to sell to Logistics Heads of their head-quarters – May: Travelled 10 cities in 2 weeks in USA with 30 kgs of materials – Summer 1996: Carriers began to ask info and quote of using Yantian Few carriers complained: Don’t touch my girlfriend

6 2 nd Level - 1997 Feb 1997: Assisted Toy’s R Us to move their consolidation warehouse to Yantian area. TRU drew Evergreen, Hyundai and Yang Ming Feb 1997: Senior Executives from WalMart, Bentonville first visited Yantian with OOCL Headquarter executives from Target, Sears, JC Penny, Ikea, B&Q, Carrefour, DHL, Kuehne & Negal etc visited YICT

7 Gaining the Momentum 1997: – Summer: Target, Sears etc began use of Yantian – Sept: Nike executive from Beaverton visited and Started CY movement Oct – Sept/Oct: 1 st Trip to Europe: – Dec: Nike decided to move their USA consolidation cargo (CFS) to Yantian – Adidas followed

8 Start-Up Actions Worked with vendors (factories) of End- Users – organized Vendors’ Meeting with Wal- Mart, Sear, Toy’s R Us, Nike and Adidas etc. Solve start-up problems of vendors: Customs Brought major vendors to meet with Customs Customs arrange factory visit by their own officer

9 Today Yantian Dominates USA market : 75%+ market share export cargo to USA. 90%+ market share to USA West Coast 60% market share to Europe

10 Carrier’s complaint: Don’t Touch My Girlfriend Terminal is part of Carrier’s service package to Cargo Owner. – Vessel Space – Price (ocean freight) – Equipment Availability – Export Terminal: Empty delivery, Export Box receiving (service to truck, barge & train etc) and Closing time etc – Import Terminal: Terminal congestion, terminal IT efficient, service to truck, barge & train etc.

11 Don’t Touch My Girlfriend Terminal is part of carrier’s family member. Terminal can make your girl friend love you more

12 Thank you!

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