China Post E-Commerce (Holdings), a Hong Kong-based company formerly known as Intcera High Tech Group, has increased plans to establish its online operations on the mainland with support from the state-run postal service provider and strategic investor, China Post. Chairman Joseph Lau Chi-yuen said the firm had been granted exclusive rights to use the direct mailing database of about 130 million Guangdong province residents for its direct marketing and e-commerce services. The Guangdong Postal Bureau, a subsidiary of China Post, owns 4.56 per cent of the Growth Enterprise Market-listed e-commerce firm. China Post E-Commerce aims to provide online marketing services to Hong Kong and foreign businesses looking to expand into the mainland. Using Guangdong Postal's database, the company can help customers target market segments and other business opportunities in the province. It can also help send the relevant brochures or product catalogues to targeted households. Mr Lau said the firm had launched its system on Guangdong Postal's internet shopping portal, allowing clients to sell their products online and through the provincial post office network. 'We have an imported goods page on Guangdong Postal's online shopping site. We will also send out direct marketing materials to relevant residential households to boost sales,' he said. The firm has also installed liquid-crystal display monitors in 1,500 post offices to support customers' online marketing initiatives. The membership fee for the marketing programme starts at HK$38,000 for three months and services include the production and delivery of direct marketing materials to at least 8,000 households and a promotional video to be shown on the post office monitorss. Members can also put at least 15 products for sale on the e-commerce platform. The firm provides a toll-free customer hotline for corporate clients and the Guangdong post offices help collect orders. However, it does not manage their product inventory. Mr Lau said: 'We notify members about orders from Guangdong, but they need to get their products ready to deliver to China Post's warehouse in Hong Kong. China Post then delivers the products to their customers.' He said the direct marketing unit had managed to break even since starting operations two months ago. At present, it has 24 corporate customers, including Jebsen Group, which sells wine, and Super Star Seafood Restaurant, which sells mooncakes through the network. The company, which has also teamed up with the Hong Kong Productivity Council to conduct seminars promoting its online trading platform, has a target of sending a million direct marketing materials per month by next year. Internet commerce has been one of the fastest-growing sectors on the mainland. Alibaba Group's online retail site Taobao.com, for example, has recorded 100 billion yuan (HK$113.4 billion) in annual transaction volume, has more than 100 million registered users and more than 30,000 merchant users. But the lack of a regulatory framework has led to online platforms becoming channels for fake goods.