Wangfujing Group, Beijing's Largest Retailer, Implements New Solution
BEIJING, Jan. 26 /PRNewswire-Asia/ -- eFuture Information Technology Inc. (Nasdaq: EFUT) ("eFuture"), a leading provider of software and services in China's retail and consumer goods industries, announced its collaboration with IBM (NYSE: IBM) to launch a Software-as-a-Service ("SaaS") solution for the retail distribution industry in China. The two companies have successfully completed the deployment of the solution at select Beijing Wangfujing Department Store Group ("Wangfujing Group") stores in Beijing, one of the largest retail groups in China.
This initiative has brought 2,000 of Wangfujing Group's suppliers onto the platform, allowing them to exchange business information, arrange payments online and access purchase orders, returns, payment status, inventory levels and analysis of sales data. When the system is fully operational throughout the Group's stores in 17 cities across China by the end of 2009, the Group will be able to share the supply chain information real time with approximately 20,000 suppliers.
"The ability to manage an efficient supply chain is a prerequisite for success in the retail industry," said Mr. Changxin Liu, Director of IT Department/Assistant to the President, Wangfujing Group. "Wangfujing Group now serves 10 million customers per day, and we believe the new supply chain system can enhance our Group's leadership in the China retail market."
China's retail market has been experiencing exponential growth in the last 20 years, and is forecasted to reach US$1.4 trillion by 2010 to become the world's second largest market. However, practices inherited from years
ago -- such as manual procurement, manual verification, paper-based statements and months-long settlement cycles -- can no longer meet the needs of the new era and the rapid evolution of the market.
In the new economy, retailers are challenged with the demands of managing inventories more closely, increasing supply chain efficiencies, increasing labor productivity and controlling costs. The new SaaS Solution addresses all of these needs, and provides an effective and scalable solution for retailers to manage change in a dynamic environment.
The IBM and eFuture SaaS Solution is delivered through the Web to the authorized suppliers of the retail businesses. With just an Internet-connected terminal, an authorized supplier can log onto the system with designated username and password to handle all their business transactions from order processing to settlement, and monitor the transactions. Meanwhile, retailers can also monitor the entire process including orders, delivery, inventory and payment real time and in a completely transparent and automated manner.
"SaaS is one of the fastest growing segments of the IT industry because it provides companies of all sizes with access to the latest, innovative supply chain solutions delivered remotely via a subscription model," said Mr. Adam Yan, eFuture's chairman and chief executive officer. "Our retail software and industry expertise has been taken to the next level following our partnership with IBM's cutting-edge technologies."
IBM and eFuture began their collaboration since 2005 to develop software for China's retail industry. IBM integrated its SaaS infrastructure platform, designed and developed by IBM China Research Lab, with eFuture's industry solutions. The end-to-end SaaS Solution, running on WebSphere Application Server and DB2 database, is based on IBM's advanced SOA technology. The solution covers supply chain execution, task tracking and performance measurement. IBM is also responsible for the post-launch operation and maintenance service.
The SaaS solution helps retailers and their suppliers better synchronize and share information and analyze business data. This will greatly improve the productivity, shorten the credit cycle, reduce risks and facilitate the growth of both demand and supply sides of the businesses. It can help retailers reduce their investment in IT systems, which in turn will help China's distribution sector combat the current financial crisis. In addition, the automated and IT-based settlement system expedites cash collection to provide suppliers with more working capital and investment opportunities.
"This particular solution represents China's first Software-as-a-Service application," said Mr. David Cheng, vice president, General Business, IBM Greater China Group. "We selected eFuture to collaborate on our retail SaaS solution because we believe eFuture has the expertise and best practices in supply chain management software that, with IBM's integrated infrastructure and platforms, will bring the greatest flexibility, competitive competence and return on investment for our customers."
About eFuture Information Technology Inc.
eFuture Information Technology Inc. (NASDAQ: EFUT) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front-end supply chain market, especially in the retail and fast moving consumer goods ("FMCG") industries. eFuture currently serves more than 1,000 clients, including 15 Fortune 500 companies, over 950 retailers and over 200 distributors operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has over 600 employees and 20 branch offices across China.
For more information about eFuture, please visit
http://www.e-future.com.cn/ .
About IBM
For more information on IBM's SaaS Business Partner program, visit:
http://www.ibm.com/isv/marketing/saas .
Fore more information about IBM retail solutions, visit: http://www.ibm.com/retail.
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects, " "anticipates, " "future, " "intends, " "plans, " "believes, " "estimates" and similar statements.
eFuture may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to first parties. Statements that are not historical facts, including statements about the company's beliefs and expectations, are forward-looking statements. Forward- looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: eFuture's anticipated growth strategies; eFuture's future business development, results of operations and financial condition; expected changes in the company's revenues and certain cost or expense items; eFuture's ability to attract customers and leverage its brand; trends and competition in the software industry; the company's ability to hire, train and retain qualified managerial and other employees; the company's ability to develop new software and pilot new business models at desirable locations in a timely and cost-effective manner; the expected growth of the Chinese economy and software market in the retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.
Further information regarding these and other risks is included in eFuture's annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of January 26, 2009, and the company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.
For investor and media inquiries please contact:
eFuture Information Technology Inc.
Tel: +86-10-5165-0998 ext. 8804
Email: ir@e-future.com.cn
Ogilvy Financial, Beijing
Andrew Keller
Tel: +86-10-8520-3112
Email: andrew.keller@ogilvy.com
IBM China
Xiao Yan Wang (Lillian), Communications
Tel: +86-10-6361-2992
Email: xiaoyanw@cn.ibm.com
