In the KFC Model the merchant can put the product in KKS overseas warehouses. This is relatively an easier model to test new products in the market. The merchant will take responsibility to deliver the products into the KFC warehouse where from all aspects of delivery will be handled by KKS. Hence businesses which have low brand awareness but intent to test China market could use this model.
Here the brands can ship their fast moving products into China. This is the most cost effective way of selling imported goods. The customer experience is also better due to faster last mile delivery. However, it does not make sense to put high number of non-moving SKUs in bonded warehouse especially when there is a a problem of products reaching expiry. Hence this model is mostly suitable for top sellers.