SMIT agrees MOU to create O2O smart terminal business

By Natasha Spencer

- Last updated on GMT

SMIT agrees MOU to create O2O smart terminal business

Related tags Retailing Online shopping

Hong Kong-based SMIT Holdings has signed a memorandum of understanding (MOU) in round A financing to invest in Mainsweb Technology.

Smart online entry

SMIT, a leading security devices provider for broadcasting access and mobile point-of-sale (mPOS) payment systems in China, will now prepare to enter into the cross-border e-commerce O2O smart terminal business to understand and leverage overseas online shopping opportunities.

Based on this market research, The Group plans to develop an operation model to help retailers overcome growing competition from similar e-commerce stores in the cosmetics and personal care marketplaces.

"Capitalising on SMIT's advantages in the smart security POS field and the strategic cooperation with Mainsweb, the Group is able to further extend its business from the supply of hardware to the overseas online shopping market,”​ said Shuai Hongyu, President of SMIT.  

To date, Mainsweb has supported 200 recognisable overseas brands in the mother and infant, beauty and cosmetics and healthcare sectors, and others, to enter the Chinese marketplace.

“This shift enables the Group to realise its strategy for smart POS and O2O retail investment and its deployment in growing industries,”​ Hongyu added.

Overseas marketing

Mainsweb currently operates three businesses, including Linkeasyglobal, a cross-border e-commerce platform for logistics, clearance and foreign exchange settlement;, a cross-border e-commerce bonded B2B transaction platform; and Himiwi, a cross-border e-commerce O2O service platform.

The platform is targeted at overseas suppliers and small and medium-sized cross-border e-commerce operators in China.

The online site is designed to assist all aspects of distribution including the global supply chain, overseas warehouse, customs declaration and quarantine inspection, system technological development, integrated warehousing and distribution operation, bonded transaction, O2O distribution and smart terminal service.

SMIT and Mainsweb hope to give multiple benefits to their customers through supply chains and distribution operations and technology, by utilising the O2O business strategy.

Building retail in China

Together, the duo aims to directly introduce foreign branded consumer products into China through building a new cross-border e-commerce retail business model for operators, suppliers and warehouses to utilise.

In a recent press release, SMIT revealed that as cross-border retail import amount is expected to reach RMB 1.5 tn (€204.4 bn) in 2020, representing an annual growth of 43%, it hopes to appeal to brands looking to China’s retail imports and exports for growth.

Hongyu went on to emphasise the importance of maximising the opportunities available from the growing O2O trend: “Intense competition presented by online shopping to retailers, forging partnerships not only helps the retailers to secure new customers at lower costs, but more importantly, this unique operation model neither requires stocking inventory nor exerts pressure on cash flow.”

“At present, the O2O smart terminal business is still at the early stage of development but is expected to have highly promising prospects in the future,”​ Hongyu concluded.

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