Hot on the heels of its move into Asia`s burgeoning e-commerce arena with its acquisition of e-systems integration specialist I Square Solutions, Dimension Data has won a multi-million dollar contract to build China`s first vertical industry trading portal.
In the initial phase of the contract - valued at US$1,3-million - Dimension Data will design and maintain the business-to-business (B2B) e-commerce portal for China`s household appliance industry on behalf of China Internet Capital (C-I-C).
The entire project is expected to realise about US$3,5-million in revenues for Dimension Data over the next year.
The portal, known as e-DAS (Electronic Domestic Appliance Service), is the first in a projected series of vertical trading networks (VTNs) which C-I-C - with Dimension Data as its strategic technology partner - plans to establish as B2B marketplaces for various industries within China.
The Dimension Data Group is also involved in similar B2B initiatives in other countries, including projects involving the motor industry in South Africa, the UK and the US.
In China, C-I-C was recently established with an initial multi-million dollar investment by Kelon, that country`s largest refrigerator and air-conditioner manufacturer, together with three international venture capital firms, as an active incubator and investment vehicle for B2B e-commerce developments in China.
The e-DAS project is also partially funded by Little Swan, the country`s largest producer of washing machines.
Both Kelon and Little Swan, which have combined annual revenues of more than US$1,75-billion, are committed to using e-DAS for purchasing from their 1 500 suppliers.
e-DAS users will pay a fee for all their e-procurement transactions and activities, bringing in projected revenues of US$238-million in its first year of operations, rising to US$700-million in three years. e-DAS is expected to be profitable from its second year of operation.
"VTNs are expected to play an increasingly important role in B2B e-commerce and this contract represents a major coup for Dimension Data," says Rob Taylor, MD of Dimension Data`s i-Commerce division.
"The reputation of Kelon and Little Swan goes well beyond the domestic appliance industry in China and we therefore expect e-DAS to be a highly influential example to other industries that wish to improve their procurement and trading process.
"This e-commerce success in the China market offers an excellent showcase of Dimension Data`s interactive commerce (i-Commerce) systems integration capabilities.
"Dimension Data`s role of technology partner for e-DAS and the anticipated follow-on VTN projects is strong evidence that the Group has the expertise and solutions to help customers with their strategic e-business transformation and keep pace with changing market needs and trends," Taylor concludes.
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Dimension Data Holdings Limited
Dimension Data Holdings Limited is a global network integration and e-business enabler operating in 36 countries on five continents. The Group`s service offerings range from network integration and management to the integration of technology channels and applications to enable business-to-business e-commerce. The Group has achieved a compound annual growth rate of 98% in turnover and 57% in headline earnings per share over the past five years.
Dimension Data i-Commerce Services
A division of Dimension Data Holdings, Dimension Data i-Commerce Services focuses on the transition of customer organisations into interactive commerce businesses. This is accomplished by assisting corporations to achieve multiple, integrated channels for customer and supplier interaction.