Buying Office

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www.et2c.com

Photograhy by Gao / Designed by Anny Xiao

Introduction ET2C International is a British owned and managed Procurement Service Provider that is focused on adding value to our client’s Asian supply chains.

As globalisation has continued, outsource manufacturing has become an integral part of global business’s ability to operate in an increasingly competitive environment. At the same time the ability to manage vendors at source, develop relationships and understand their own drivers has become an integral part of a company’s procurement strategy. That is our focus.

Introduction

Whether you are already buying from China or Vietnam, using local agents in your home territory or going through a trading company, we believe that our flexible and tailored solutions can add value to your current procurement strategy delivering bottom line growth to your business.

Our Mission Our objective is to deliver long term sustainable value to our clients’ supply chains that creates cost and quality benefits to their purchase channels from China, Vietnam, Turkey and India(setting up an office within 2011). With a focus on service, we deliver tailor made solutions to our clients to provide an ‘at the source’ management capability.

▌ET2C

International Inc

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About Us ET2C International is a British owned and managed Procurement Service Provider that is focused on adding value to our client’s Asian supply chains.

The company started out in 2001 as a web based sourcing platform (hence the derivation of the current name; the original name was e-trade2china) to allow clients the opportunity to leverage off the Chinese supply base. Soon it was recognised that this omitted one of the key aspects of any supply chain; namely that of the development of relationships, especially where language, culture and time differences are present.

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We therefore moved away from simply a web based interaction with our clients to a more service focused model that ensured our clients were able to overcome the barriers to entry in Low Cost Country manufacturing bases. Retaining this focus on service, we have grown to a company of approximately 250 staff in our offices in Shanghai, Yiwu, Shenzhen, Vietnam, Hong Kong, London, New York and Istanbul. Our London, New York and Hong Kong offices are predominately client focused enabling a higher level of interaction with our customers, which is of particular importance in London and New York where there is a significant time difference.

Our client portfolio now includes publically quoted companies through to SMEs; retailers through to wholesalers; based in the US, UK, EU to Australia and New Zealand. Please contact us for references.

ET2C International Inc



Our Services We know that every client is different and we therefore look to understand each client’s requirements in order to best match our service. We can separate our services into two distinct business units; Buying Office & Trading Service. These business units provide different sourcing models so that we can ensure that our clients’ needs are met whatever sourcing strategy they may be looking to implement/have implemented.

Buying Office This model empowers clients to take control of their supply chain through utilising this independent third party procurement service. Flexible and tailored to the client, this service provides clients with immediate access from which to drive value through the supply chain. This solution has consistently driven bottom line growth to our clients, whilst also mitigating the need to have a business footprint in Asia and therefore eliminating the risk and costs of setting up on their own. In short, it leverages the benefits of a local presence and mitigates the risks.

Trading Service Leveraging off our experience in sourcing and knowledge of certain product categories, we take on a more active role in your supply chain by identifying vendors, managing them, providing quality assurance and dealing with the logistics as required.

▌ET2C

International Inc

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The Buying Office ET2C International Inc

Future State

Sourcing Expertise

ET2C International Inc Independent Agent

ET2C’s Buying Office model is an outsourced procurement service that offers the most flexible, cost-effective, low risk solution than any other service provider in the same category. Aimed at midmarket wholesalers and retailers with a need to manage their Asian procurement, we enable clients to control their supply chains at the source through this service. Put simply, clients can benefit from a fully operational procurement service established within 8 weeks. This service allows our clients to focus on a more transparent and value driven supply chain; whilst ET2C manages their procurement functions. This allows clients to focus on the primary purpose of the Buying Office; such as sourcing, merchandising, quality assurance, quality control, productionmonitoring andproduct development.

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In particular, the model is cross-jurisdictional allowing clients to operate a ‘hub & spoke’ model in different countries. With the onboarding of new offices all the time, it is possible to tailor your sourcing platform to your product needs, whichmay include using other export manufacturing bases. Where such a range of offices would often prove prohibitive or require to much support resource, our clients can utilize our resources and expertise already in place. Our Buying Office model enables clients to have greater control over their supply chains. Depending on the scale and organisational structure of a client, we tailor our solution to ensure that it is the right fit. The diagram opposite is an illustrative example of how we deliver an added value solution. ET2C International Inc



Client

Future State On the ground presence

Wholly Owned Foreign Entity – Chinese Entity Sourcing Expertise Support Functions, Independent Agent (HR, Finance, IT, Legal etc) Supplier Database (500Entity plus vendors) Wholly Owned Foreign – Chinese Entity Deal withFunctions, like for like(HR, retailFinance, clients IT, Legal etc) Support Flexible Suppliersolutions Database (500 plus vendors) Currently Cost Country solutions Deal with reviewing like for likeother retailLow clients Flexible solutions Currently reviewing other Low Cost Country solutions

Client Chinese staff completely aligned with company’s objectives Quality assurance feeds into Brand protection On the ground presence Risk Mitigation Chinese staff completely aligned with company’s objectives Flexibleassurance model should changes be required Quality feeds into Brand protection Risk Mitigation Flexible model should changes be required

Added value

Buying Office

Added value

Transparency across supplier base Buying Office Management support Transparency Reach across across China supplier base Management Local support support functions Reach across China Accountability Local Other support sourcingfunctions jurisdictions Accountability Other sourcing jurisdictions

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Current State

Client Office Shanghai

Client (illustrative only)

Large potential savings on purchases through vendors Client Office Shanghai managed at source Large potential savings on as purchases vendors Incremental benefits such support through functions, discounts, managed at negotiations, source competitive “cost of quality” etc Incremental benefits such as support functions, discounts, Transparent supply chain and streamlined purchasing competitive channels negotiations, “cost of quality” etc Transparent supply chainprovides and streamlined Contractual relationship flexibilitypurchasing of an exit channels strategy as well as protection going forward Contractual relationship provides flexibility of anidentified exit Opportunities for ‘source to shelf’ supply chain strategy wellpartners as protection going forward through as ET2C in China. Opportunities for ‘source to shelf’ supply chain identified through ET2C partners in China.

Current State Mid-market Retailer

Client (illustrative Current supply chainsonly) often include agents/intermediaries

Mid-market Retailer (supply chains predominately through No China Presence Current supply chains often include agents/intermediaries agents) No China (supply predominately through $50 millionPresence purchasing (70%chains from China) agents) Risk, time and expense of establishing own China entity $50 million purchasing (70% from China) identified Risk, time and expense of establishing own China When direct purchasing from Chinese vendors, no entity on identified ground presence to manage process When direct purchasing from Chinese vendors, no on ground presence to manage process

Sample Timeline Sample Timeline

Month : Month :

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Client Assessment conducted Buying Office transition Client Assessment conductedStaff visit to head operation Buying Office transition Staff visit to head operation

Buying Office Operational 8-12 weeks

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Buying Office Operational 8-12 weeks

▌ET2C

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International Inc

Trading Service

Through our trading division, we play a more engaged role within our client’s supply chains acting as contact point for all your sourcing needs. Using our sourcing expertise and knowledge within certain product categories, we will work with our clients to identify, manage and deliver high quality goods at the best price. We also look for manufacturers with the required ethical (e.g. ISO, ETI compliance and SA8000) and technical standards to ensure brand protection and maintain an ethically responsible supply chain. This particular offering is more relevant to companies that do not have the need or resource to manage vendors at the source but see value more in utilising our expertise to manage their Asian manufacturing base through one contact point. We work to provide a seamless service whilst mitigating the risk of Asian purchasing channels. We increase the level of communication, breaking down the language and cultural barriers that can so often result in miscommunication and problems when buying direct. In addition, we leverage off our vendor base and long term relationships that we have already developed to provide competitive pricing that a stand alone buyer may not necessarily be able to achieve.

▌ET2C

International Inc

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We have a wide range of expertise in both hard (durable) and soft (non-durable) goods including but not limited to the following product categories:

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1. Garments & Textiles 2. Glassware 3. Metal industrial components (forgings, castings, extrusions etc) 4. Plastic industrial components 5. Electronic components (LEDs, PCBs etc) 6. Fashion accessories and jewellery 7. Body Jewellery 8. Dress-up 9. Footwear 10. Promotional/Giftware 11. Non-for-sale goods, such as fixtures, fittings, racking etc

What we provide We manage the whole process from supplier identification through to shipment to the port of destination. We have experience at working with OEM products, have our own quality assurance team for vendor and product audits, have a logistics department, understand customs requirements and look across all our sourcing jurisidictions to best meet your needs. Our service gives clients with complete transparency across their supply chain, providing visibility on the suppliers, so that through us they can match capabilities with expectations

ET2C International Inc



Trading Service Case Study – Providing Complete Supply Chain Transparency

Fashion Ltd was sourcing from China but on an arm’s length basis and did not have the resource to establish their own Chinese entity. They had a ‘buy direct’ policy and were dealing with numerous Chinese vendors, mostly in the southern provinces. Although they often had issues communicating with their vendors, they were generally satisfied with the results and the pricing that they were obtaining. Having been introduced to ET2C through an affiliated company, they asked whether we could provide some quotations on like for like products to check their pricing and sourcing base. Within 48 hours ET2C had identified some alternative vendors for like for like products, conducted an initial quality assessment of the vendor and obtained samples to send the client taking the vendor that best matched the Fashion Ltd’s requirements. Having received and assessed the samples, Fashion Ltd noted that for the same product they were receiving, they were paying almost 30% more. On visiting the factory, it was discovered that the products that we had identified were being sent to Fashion Ltd’s incumbent supplier on a subcontracting basis. Fashion Ltd switched to ET2C and received substantial savings whilst also having a local presence through which to manage their vendors and mitigate further risks.

Please note that although based on an actual example, all names and details have been changed for the purpose of this illustration.

▌ET2C

International Inc

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The past couple of years have seen a dramatic change in the global economic landscape, which has had repercussions on global trade. There is still a great deal of uncertainty both within export manufacturing economies as well as in domestic markets. One of the main lessons learnt over that period was to ensure that your supply chain is robust and viable going forward. This is particularly important when sourcing from overseas. Having the ability to manage vendors at source will be key to not only mitigating your company’s risk but also in delivering additional cost savings. ET2C International is therefore well placed to meet your sourcing needs. We are continually striving to deliver added value solutions to our clients’ supply chains through our sourcing expertise as well as our knowledge of operating in China.

We look forward to hearing from you! ET2C Group

ET2C International Inc



ET2C Product Expertise Garment: This sector covers a wide range of garments for men, women, children and babies.. Industrial: This sector includes accessories, raw materials, component parts, industrial supplies, and more. Particularly in plastics, metals, glass, and electronics. Jewellery: The jewellery sector can produce any kind of jewellery but specializes in fashion jewellery/accessories, body jewellery, and costume jewellery. Giftware/Promotional items: This sector produces a vast array of products ranging from one-of-a-kind handmade items to mass-produced souvenir-type items. Include; Collectibles, costume and imitation jewellery, art and decorative products, paper and printing, home and garden articles and toys. Consumer Goods: The sector could produce all the consumer goods for daily life, including fast moving consumer goods and durable consumer goods. Footwear: This sector provides the latest European and the United States trends in footwear for the contemporary people who treasure chic styles. Customers enjoy the outstanding product design and quality.

▌ET2C

International Inc

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Garment

Industrial

Primary Focus:

Primary Focus:

Woven and Knitted

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Tops Pants Dress Skirt Shirt Jacket Coat Sportswear Uniform Underwear and others Garment Accessories (hats,gloves,scarves, pashmina,socks)

Jewellery

Primary Focus:

Primary Focus:

Steel and Plastic Components

Body Jewellery

Gifts and Crafts

Mechanical Parts Steel and Plastic Raw Material Hand and Power Tools

Stainless Steel Titanium Silicone Acrylic Pyrex Glass Belly Dangle

Electronic and PCB Consumer Electronics PCB/PCBA Computer Hardware

Chemical Chemical Raw Material

Hard Goods Home and Garden Products Outdoor Furniture BBQ Tools and Products Paint Products

Fashion Jewellery Alloy Silver Stainless Steel Beads

Costume Jewellery

Construction Materials of all types

OEM Manufacture: ET2C can work on any customers’ requirement

ET2C International Inc



Giftware/ Promotional Items

Primary Focus: Consumer Products

Wood Acrylic Crystal Metal Textile Plastics

Nappy Wipe Bib Sanitary Pads Toilet Paper Tissue

Packaging and Printing Gift Box (Corrugated/Non-Corrugated) Printing Catalogue Cosmetic Packing

Stationery Pen Notebook A4 Paper

Fashion Accessories

Consumer Goods

Footwear

Primary Focus: Shoes Boots Espadrilles Slippers Sandals Flip Flops Diving Shoes Safety Shoes

Beauty & Personal Care

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Lipstick Shower Smoothie Bubble Bath Body Butter Shampoo

Durable Consumer Products Cutlery Furniture

Belt Wig Handbag Non-Woven Bag OEM Manufacture: ET2C can work on any customers’ requirement

▌ET2C

International Inc

Contact Us

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ET2C International Ltd Unit 4, 26 Floor West Tower, Shun Tak Centre Central, Hong Kong Tel: (852) 3101 0700 Fax: (852) 3101 0789 Email: [email protected]

ET2C US Office 164 West 25th Street 11M, 11th Floor New York Tel: +1 (917) 464 3558 Email: [email protected]

ET2C Shanghai Office 23 Wangjiao Plaza,175 East Yan An Road, Shanghai 200002 Tel: +8621 5358 9600 Fax: +8621 6355 0010 +8621 6355 0030 Email: [email protected]

ET2C UK Office Crown House 72 Hammersmith Road Hammersmith London W14 8TH Tel: +44 020 7559 9700 Fax: +44 7815 042611 Email: [email protected]

ET2C Vietnam Office ROSANA TOWER Suite 3A02, 60 Nguyen Dinh Chieu str., ward Dakao, Dist. 1, Hochiminh City, Vietnam. Email: [email protected]

ET2C Yiwu China Office No. 12A08 Guomao Mansion, NO. 999 North Chouzhou Road Yiwu City, Zhejiang Province, China Tel: + 0086 579 85189731 Fax: + 0086 579 85189730 Email: [email protected]

For general enquiries: Email: [email protected] Email: [email protected] Email: [email protected] Email: [email protected]

ET2C Istanbul Turkey Office MiralayNazimbey Cd. Incebel Sk. No:7 34083 Kucukmustafapasa-Fatih,Istanbul,Turkey Tel: 0090 212 631 69 37 Fax: 0090 212 532 97 47 E: [email protected]

The office in India is opening soon within 2011

For more information on ET2C or up to date reports on Low Cost Country sourcing, please visit our resources section of our website at http://www.et2c.com/resources.html. ET2C International Inc



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