Consumer Capital Grp Inc (CCGN)

Consumer Capital Group Inc was incorporated in Delaware on April 25, 2008. The Company is mainly engaged in two different businesses: e-commerce services and meat distribution. It operates an online retail platform in China at www.ccmus.com through Arki (Beijing) E-Commerce Technology Corp., its wholly owned subsidiary, and an online retail platform at www.ccgusa.com in the United States. The Company operates its meat distribution business through Beijing Beitun Trading Co., Ltd., its 51% owned subsidiary. In addition to e-commerce services and meat distribution, the company has been working to develop a debit card business, through America Arki Fuxin Network Management Co. Ltd., its wholly owned subsidiary. The Company has two segments; E-commerce and Meat Distribution. Under E-commerce segment, its online retail platforms allow third-party merchants to sell their general merchandise products directly to consumers in China and the United States. It charges third-party merchants a service fee of approximately 5% of the total purchase price with respect to their general merchandise sold through its website. It also receives advertising fees from third-party merchants if they advertise products through its website. To incentivize its customers, the Company gives its member customers bonus points for each purchase, to be used for cash value in their next purchase. In 2013, it began to refocus its online retail platforms from selling general merchandise products to selling collections. As of December 31, 2013, through its China website the Company offers products from 530 merchants and from its U.S. website it offers products and services from 20 merchants. It also has over 32,000 members in China and over 510 members in the U.S. These members purchase products and services offered through its website. Its platform provides both merchants and members with complete financial, identity, authenticity, and delivery security. Its owns 51% majority interest in an operating subsidiary, Beijing Beitun Trading Co., Ltd. Beitun Trading, a PRC trade and distribution company, engages in the wholesale distribution of various food and meat products. Its customers consist of restaurants and food producers located throughout the PRC. It competes with TAOBAO.COM, DANGDANG.COM, PAIPAI.COM, EACHNET.COM, among others. Online commerce in China is subject to a number of laws and regulations.