HH Galaxy Teams up with Rakuten
In the past six years since its 2014 debut, HH Galaxy has evolved with the changing e-commerce market. It has progressively adjusted its logistics framework to better serve partners. And in 2019, the company drew on its deep-rooted logistics capacity to seal a partnership with Japan's Rakuten.
Walk into the bright, spacious office of HH Galaxy and it's hard to not be drawn in by the youthful spirit and creative energy of the teams working there.
Six years have passed since HH Galaxy was born, and in these few years the company has laid a solid foundation. Just last year, it made chalked up a new win with the negotiation of an exclusive partnership with Japan's Rakuten. It now expects overseas purchasing opportunities in Japan to power revenue performance even higher in the years ahead.
HH Galaxy was co-founded by Taiwan Hsin Lin Enterprise Co., Ltd . (THL) and HCT Logistics. In its early days, the company was the only agency in Taiwan focused on online sales. Over the years, it has helped customers expand online brand operations with its onestop service for warehousing, planning, brand integration, cash flow, and logistics support.
HH Galaxy's success over the past six years is nowhere more apparent than in the steady rise in order volume handled by the platform during this time.
Orders have tripled from just three years ago and are up more than tenfold since the company was founded six years ago.
" In the five -plus yearsthat HH Galaxy has been inbusiness, Taobao, Shoppee, andother platforms have enteredthe market in Taiwan. The B2Cbusiness is growing and our ordervolume is also increasing daily,"says HH Galaxy Logistics DirectorDerek Wang.
Processing the huge order flows from e-commerce requires formidable logistics capacity.
HH Galaxy's order volume not only has grown tenfold over the past six years, but order levels can surge by tenfold again during the Double 11 and the Lunar New Year holiday periods. Such volumes can no longer be handled with traditional singleorder fulfillment.
"We've been able to pull this off with a mix of software and flexible hardware," Derek says.
He further explains that, while a warehouse may be able to handle 300 orders at a time with traditional shipping methods, batch order processing is the only way to handle 3,000 to 5,000 orders without creating a mess. It also requires both software and hardware upgrades.
"As the B2C field become more crowded we need to join software and hardware to flexibly reach our target of faster shipment." ～欣新網物流總監王銘弘 Derek
When Rakuten sought out a partner in Taiwan in 2019,HH Galaxy stood apart from the pack thanks to its continuous investment in upgrades and logistics improvements. Everything from order consolidation and batch processing to warehouse management and pickup procedures, has been significantly optimized over the past six years. These strengths ultimately helped the company secure the role of Rakuten's exclusive fulfillment agent in Taiwan.
In the past, many Taiwanese placed orders through Rakuten's Japanese website and had the items shipped to Taiwan. Rakuten consequently collected a wealth of data. "They know what Taiwanese buy at Rakuten Japan," says HH Galaxy General Manager Vince Huang.
From its trove of data, Rakuten saw the demand for direct shipments to Taiwan consumers and realized this was a huge business opportunity. It promptly set out to find a partner in Taiwan to improve the shopping experience f o r Taiwanese shoppers.
The Rakuten Japan Flagship Store on the Japanese e-tailer's Taiwan website is one of the products of the HH Galaxy- Rakuten partnership. In future, the two sides plan to bring the Flagship Store to more e-commerce platforms.
Rakuten's Flagship Store currently sells more than 500 items, with personal care, cosmetics, and daily necessities accounting for the bulk. These product areas have always been HH Galaxy's strong cards. "In fact, we have been partnering with Rakuten for some time on several Japanese brands, like Kao and Lion," notes GM Vince Huang.
HH Galaxy was able to quickly secure the partnership deal with Rakuten in large part to the company's solid order logistics processing ability and strong grasp of related products. The company has now formed a new team exclusively in charge of the Rakuten project. "We place tremendous value on the Rakuten project and are highly optimistic about its growth potential," Vince says of the road ahead.