The rapid ascent of the ubiquitous World Wide Web has completely transformed the way global trading takes place. Traditional international trading is quickly replaced by online trading platforms with greater efficiency and lower costs. Such current trends in E-commerce will continue to dominate the world of trading. More specifically, the rise of B2B franchises will shape the future of global on-line trading.
Major players in B2B platforms comprise names like Alibaba, Global Sources and Tradekey, just to name a few. These global leaders have led the initial market evolution of inter-business dealings. In essence, these current setups are really information technology entities whose business models are selling business connections and inquiries for revenue generation. The world of commerce is still far off from an integrated business trading platform and resource.
This is the first generation business model for the B2B prototype. Our vision for the future of a true B2B platform entails the following 4 processes; searching, filtering, negotiating, and finally purchasing. These processes are not new but reflect actual stages of the traditional model. In terms of time resource involved, they run approximately as follows: 10% for searching, 20% for filtering, 20% for negotiating and 50% for purchasing. In general, current B2B operations only target the first two processes; searching and filtering.
Richforth Limited is a company that embodies the true integration of the B2B enterprise. While current platforms like Alibaba encompass the first two stages, Richforth’s system integrates the entire trade process. The business model is a complete streamlining and linking of the four processes from searching all the way downstream to the final purchase.
Richforth started their e-commerce operations in 2007, focusing on providing services and small and medium sized orders globally using the World Wide Web as the main channel of marketing and distribution. The main target customers are those in the small bracket with single total order size less than USD10,000. Though small, the overall market for this segment amounts to USD 260 billion per year. (Calculations are detailed at the end of article) .
In particular, Richforth targets clients with the following characteristics:
1. Clients with small orders for each single product but would potentially purchase a range
of other products. The integrated purchasing platform that is provided by Richforth
allows such customers to efficiently process their small sized orders without costly long
drawn procurement procedures and doing due diligence on prospective suppliers at
physical locations like the Guangzhou Trade Fair.
2. Clients who may have uncertain trade flows and repeat business. The business model of
Richforth is a relatively risk free alternative for customers which have little prior
experience in doing business with Chinese or global firms. The flexibility afforded to
1
Calculation for market size is based on documents provided by the Ministry of Commerce,
People’s Republic of China. In 2008, total value of exports was USD1,428.55 billion with 26%
percent from private SMEs. Of this, SMEs with order size below USD10,0000 comprising 70%.
This sums to approximately USD14,285.5x26%x70%, or USD260 billion.
clients to start small in the procurement cycle with Richforth means that there is little
risk exposure to the prospective new customers.
3. Clients who are price sensitive. Richforth provides an alternative to global trading
businesses which are cost minimisers. Currently, these businesses engage an
intermediary firm, usually based in Hong Kong or Taiwan which then channels the orders
to China. Trading direct with Richforth and bypassing these middlemen can significantly
reduce trading costs and improve efficiency.
Centered strategically on China’s mid coastal region, Richforth has plenty of advantages bridging
the new world of B2B e-commerce and reliable traditional trading.
1. Experienced reputation and diversified product range. The company has 13 years of
global trading experience, starting with traditional commerce and evolving into a B2B
platform. It deals with more than 8,000 different products ranging from apparels, clocks,
bags, shoes to home decorations. It is virtually a one-stop shopping mall that caters to
small wholesale, retail and corporate clients.
2. Extensive supplier base. Connected to more than 247 factories and with strong
relationships with more than 1,000 others, Richforth boasts of an extensive supplier
infrastructure and resource platform for straight-through trading processing. This allows
the company to maximize customization and improve productivity and lower supply
chain bottlenecks.
3. Mass Market Niche. By focusing on small to medium trading enterprises, Richforth is
able to offer premium service for this market segment.
4. Integrated Trade Processing. The firm offers convenience and quality trade services
which integrates the entire trading procedure. Auto order filling, immediate reply and
confirmation, secure backup of customer profile and information are some of the
features that make Richforth successful. The end result is an easy and seamless trading
environment which is very cost effective for SMEs and entrepreneurs.
During the global crisis of 2008, the company generated revenues of USD3,500,000. This is
expected to rise to USD 10,000,000 in 2009 given the market recovery.
With its success and business model, Richforth aims to challenge the existing B2B e-commerce
marketplace. Focusing on its basic strengths and proven market niche, the firm will aim to be the
premier platform for cost effective and efficient straight-through trading on a diversified product
base for small to medium enterprises.
want to know more about Richforth ,Please load in our website at www.richforth.com
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