Vancouver's Fireswirl Technologies Inc. (TSX-Venture:FSW) announced last week that it had signed a deal with a subsidiary of privately held retailer Toys "R" Us to perform all technology needs for the company's e-commerce business in China.
Fireswirl also has contracts with other multinational companies, such as Motorola Solutions Inc. (NYSE:MOT), Logitech International SA (Nasdaq:LOGI) and Nokia Corp. (NYSE:NOK) to execute all of their technology and delivery needs related to e-commerce sales in China, Fireswirl's CFO Ji Yoon told Business in Vancouver April 20.
"We'll set up the website and handle all the back-end logistics and distribution for [Toys "R" Us,]" he said.
"Buyers won't go to www.ToysRUs.cn. They'll go to an Amazon.com or eBay equivalent in China called Taobao. From there, links will redirect to a website that we have developed and we maintain on behalf of Toys "R" Us China. When a person clicks and makes an order online, then all of those products are stored, housed and distributed by us."
Fireswirl will generate revenue based on a percentage of sales.
Fireswirl generated $15.1 million in sales in the nine months that ended September 30, 2011. Yoon said that the company's year-end financial statements would be released this week.
Fireswirl, he said, has about 280 employees, though only five are based in its Vancouver head office. The company's CEO, Tony Lau, visits Vancouver frequently but lives in Hong Kong.
Most workers are based in Beijing, Shanghai and Shenzhen.
"Labour costs was one of the initial drivers but if we want to capture and maximize growth from ecommerce, China is one of the biggest markets in the world. So, that's where we want to be and that's where we have boots on the ground," said Yoon.
