Arthur Yu: Okay. Thanks Sandrine. Charlie, let me maybe answer your question on the Tmall. So the trends you have seen is actually impacted by a major electronics brands outperforming in quarter three. So if we excluding the increase of this one single brand, our Tmall percentage has actually dropped a non-Tmall has increased by a single digit. So that’s the true reflection of what’s going on in the non-Tmall channel. And in addition, our omni-channel strategy is actually not ways of purpose to push the people from the Tmall to a non-Tmal channel. It’s actually to encourage people to go for the omni-channel, which has increased the stickiness and to a more value-added service from Baozun to the client. So by this quarter, we have 42% of our total brand partners through spoken to operate of omni-channel holder. So this is our current situation. Thank you.
Charlie Chen: Thank you.
Operator: Thank you. We will take our next question. Our next question comes from the line of Thomas Chong from Jefferies. Please go ahead. Your line is open.
Thomas Chong: Thanks, management for taking my question. I have two questions. My first question is, could management share some color about change of domestic versus international brands? And my second question is, could management share some updates about the cooperation with Cainiao and about expansion into Southeast Asia market? Thanks.
Arthur Yu: Okay. So Tracy, if you can take the first one, then I will take the second one.
Tracy Li: Sure. No problem. Hello, thanks for the question. I think in terms of the €“ to win in the consumer side, I think they are facing the same pressure no matters following our local brands, how to solve the short-term problem and how to invest in longer program to win . But for the online segments, we can see actually most of the players are still emphasizing the importancy of the online part because of the relatively for store performance in recent quarters. So right now, actually, we are working with our brand partners to come out with a 3-year plan to talk about how to connect with their consumers directly and then how to allocate their budgets smartly, I mean, cross-channel and also to reach the direct communication with the consumer.
And also from the €“ for the local brands part, we are €“ we are very likely to share. We have some break during the past few months to seek the collaboration opportunity in professional way areas like IT service, content marketing, an interactive marketing technology and the consumer customer service. I think in the longer run, the professional in specific areas still will be the win in the service market. Thank you.
Arthur Yu: Okay. Thank you, Tracy. In regarding to the Cainiao, we have continued our good progress in terms of catching the synergy. So as we mentioned in the past, we see the synergy coming from three areas. So, the first one is joint BD. So, where is the Cainiao and Alibaba ecosystem, we would be able to €“ I mean we are seeing some additional BD opportunity coming in from the ecosystem, so which is helping both Baozun logistics and also Baozun as whole to conduct new business. The second one, we see is actually to utilizing the scale and even structure of Cainiao. So, basically, in terms of the warehousing and in terms of the last-mile delivery Cainiao style has provided a very good kind of support for us to get more resource.
And finally, we see as the technology enhancement basically previously, is actually Baozun makes the investment into the technology on the logistics part. And now we can utilize the Cainiao network on the technology enhancement like RFID technology, which is giving us more efficiency when we operate in the warehouse. So, overall, we think we are in the good trend with our alliance with Cainiao. In terms of the Southeast Asia expansion, we are continuing to focus on building our own capability in that region. And also our approach is trying to replicate some best practices and take the learnings we have from operating the e-commerce in China. But also our approach in the Southeast Asia is to work closely with the brand to grow the e-commerce offering in that region.
So, while we have made more progress, we will come to report back to the market.
