[October 18, 2016]

ModusLink Launches Full Service E-Commerce Solution to Help Brands Take Advantage of the Growing Chinese Online Market

ModusLink Corporation, a wholly owned subsidiary of ModusLink Global Solutions Inc. (NASDAQ: MLNK), a global, omni-channel technology and fulfillment provider, today announced the launch of its new full service e-Commerce solution, aimed at helping top brands enter China and take advantage of one of the fastest growing markets in the world with more than 300 million active online buyers.

E-Commerce in China has seen amazing growth over the past few years. In fact, according to research firm iResearch and China's state news agency Xinhua, e-Commerce sales grew 21.2 percent in China last year to 16.2 trillion yuan - and are expected to reach 38 trillion yuan ($5.7 trillion) by 2020.

China's consumers desire foreign products to purchase, especially because of the high percentage of local products that are suspected to be knock-off or counterfeit products. This is especially true concerning safety issues around food products and items in the skin care, cosmetics, supplements, organics and vitamin industries. In addition, Chinese consumers are increasingly turning to foreign brands not only because it allows them to express their individual tastes and display their wealth, but also because foreign products are perceived as being of higher quality.

ModusLink's China-focused e-Commerce solution offers companies everything they need to enter the Chinese market in a strategic, timely and cost-effective manner, with a program built on recognition, trust and communication.

With ModusLink's assistance, companies can quickly and easily be set up with a ready-to-use store on Tmall.com, China's largest online marketplace. Tmail.com is owned by retail giant Alibaba and is responsible for more than 50 percent of all Chinese B2C sales. ModusLink's China-focused e-Commerce solution helps companies bring their products to China and sell them on the specific Tmall platform that makes the most sense for their brand:

• Tmall Domestic: This approachhelps companies that already have a legal entity in China get their brands up and running on Tmall.com. ModusLink handles all aspects of launching and maintaining an e-Commerce site for customers of any size and industry.
• Tmall Global: By working with ModusLink, companies can quickly and easily get set up on Tmall Global, an extension of Tmall.com that provides western merchants with a channel to sell authentic goods and enhance their brand identity in Mainland China. Tmall Global allows businesses which are not registered in China and that do not have a legal entity there to take advantage of the country's massive demand for foreign products.

China's annual "Singles' Day" - taking place on November 11^th each year as a day to celebrate being single - has become a national shopping day similar to Black Friday (News - Alert) in the United States. Revenues have grown from around $100 million in 2009 to $9.3 billion in 2014 - and last year it surpassed Black Friday, as Alibaba itself sold some $14.3 billion of goods that day alone.

The key features of ModusLink's China-focused e-Commerce solution include:

• Fast Market Entry - ModusLink offers companies one managed, end-to-end e-Commerce solution, setting them up to operate on Tmall. It includes the development and application of a flagship store, shop management, online marketing, campaign execution and content management on China's largest marketplace, with local payment processing through Alipay.
• Development of Your Own B2C Customer Base - Companies can utilize ModusLink's expertise to serve and sell directly to Chinese consumers, immediately being able to access China's 300 million plus online shoppers. ModusLink enables brands to sell to Chinese consumers without going through any resellers or distributors.
• Reduction of Logistic Complexity - The combination of ModusLink's integrated global supply chain, domestic fulfillment, order management, delivery and returns management solutions can help companies reduce the complexity of their logistics operations. ModusLink's solutions can easily be customized to client needs, growing and expanding as they do.
• Advantages of a Local Entity - ModusLink's agent tax/VAT (value-added tax) structures enable non-domicile companies to transact locally with their customers. ModusLink can be the merchant of record and importer of record for brands who want to sell directly to businesses or consumers.
• Strong, Localized Customer Service - In addition, ModusLink's local customer service capabilities help companies build a strong connection with their new Chinese customer base. The company's customer engagement and support services span several touch-points, including web, mobile, chat (Ali Wang Wang), phone, email and social media. In addition, Chinese consumers show a high propensity to engage with merchants prior to buying, meaning you need a wide-range of customer service options and availability. ModusLink supports pre and post sales inquiries for its customers from 9am until 10pm local time, in Simplified Chinese.

Upcoming Chinese E-Commerce Webinar

ModusLink will be hosting a webinar on October 19, 2016 at 1:00 pm ET, exploring the opportunities and challenges of selling into the Chinese e-Commerce market. In this webinar, Bram Barendregt will share advice, examples and best practices with attendees on how best to succeed in China, helping them better understand the market and how they could take advantage of it. For more information and to sign up, please visit the following link: https://pgi.webcasts.com/starthere.jsp?ei=1120496.

About ModusLink

ModusLink Corporation, a wholly owned subsidiary of ModusLink Global Solutions Inc. (NASDAQ: MLNK), is a global, omni-channel technology and fulfillment provider that gives clients real-time visibility into their end-to-end supply and demand chain operations, with expertise and facilities worldwide to manage forward and reverse logistics. The company's operations are supported by more than 20 sites across North America, Europe and the Asia/Pacific region. For more information, please visit www.moduslink.com and www.valueunchained.com, the blog for supply chain professionals.

ModusLink, ModusLink Global Solutions, and the ModusLink Logo are trademarks of ModusLink Corporation. All other company names and product names may be trademarks of their respective owners.

View source version on businesswire.com: http://www.businesswire.com/news/home/20161018005215/en/

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