Accumulate and make progress, sprint to the Beijing Stock Exchange - Jiangxi's new talents with low-key work and high-profile ambitions are on the rise

Produced by: China Cross-Trade Fair, Seller’s Home

Author: Olivia, Shengyuan

Editor: Olivia

Since the Beijing Stock Exchange officially opened on November 15, 2021, its IPO company declaration and review progress have attracted market attention.

Up to now, the number of companies that have successfully passed the meeting on the Beijing Stock Exchange has exceeded 100, but no cross-border e-commerce has yet appeared.However, a company headquartered in Jiangxi has officially sounded the charge.

'We plan to enter the Beijing Stock Exchange in 2023',Ao Ling, general manager of Ruertai’s e-commerce department, told [Sellers Home].

Jiangxi Ruitai E-commerce Company Gate

It is understood that Ruertai was officially publicly issued on the New Third Board on November 16, 2016.Soon after it was listed, it began to test the cross-border e-commerce business.After several years of accumulation, we have continued to expand cross-borderThe scale of e-commerce is planned to enter the Beijing Stock Exchange in 2023.

Judging from the national reputation of the cross-border e-commerce industry, Jiangxi is undoubtedly low-key.How did Riel Tai, who had a long life, 'quietly transform and then surprise everyone'?

Outside our field of vision, what exciting stories and new strengths does Jiangxi’s cross-border e-commerce have?

01

Low profile like Jiangxi

It also caused capital to go crazy

Uninformed people may regard Jiangxi as a 'barren land' in the cross-border e-commerce industry.Little did they know that just two years ago, this seemingly 'barren' land also had 'crazy flowers' blooming.This has attracted a large number of cross-border e-commerce companies to rush to establish themselves and become involved everywhere.

According to incomplete statistics, during 2020-2021, there was a 'grand occasion' in Nanchang when 200-300 cross-border e-commerce companies opened their doors for business at the same time.

And all this will start from the explosion of the cross-border e-commerce industry in 2020.Guangdong enterprises have begun to increase investment in Nanchang cross-border e-commerce.

That year, the number of college graduates in Jiangxi Province reached 317,000. As the capital of Jiangxi Province, Nanchang accounted for more than half of the number of college graduates in Jiangxi Province.

Due to considerations of the thickness of the talent bench and labor costs, there have been deep recruitments since 2020.Companies in Shenzhen and Guangzhou 'go north' to set up investment sites in central cities such as Changsha and Wuhan.Unsurprisingly, Nanchang has become the focus of these capitals.

Jiangxi Zhongji Group (Ruertai parent company) factory area

2-3 supervisors, 20-30 people, the team does not need to be too big, it only needs to know how to operate and distribute goods, and be willing to work overtime.'Rather than investing in a company, it is better to say that it is investing in an operations department'.

Overnight, Jiangxi's cross-border e-commerce industry became lively, but what followed was severe industry pain.

'It used to be high and low-end, but later the goods were wrong or not shipped at all. By the second half of 2020, this situation will become more obvious.'

Later, even though the company had a relatively complete management process, it could not stop some people in the team of hundreds of people from insisting on being clever and taking advantage of loopholes.

According to Ao Ling’s recollection, the entire industry was in an extremely unstable state at that time, and a large number of violations sprung up.Not to mention the vicious competition among enterprises, the mentality of employees has also begun to become extremely impetuous.This also brought a lot of trouble to the Riel Tai team itself.

02

You and I are both chess players

How to resolve internal games?

The second half of 2020 is also a watershed for Ruertai’s independent station business.

On the one hand, under the background of market demand, the value of senior operators is rising; the attractive recruitment conditions of 'high base salary and high commission' also attract a large number of job seekers;Not to mention that poaching happens from time to time in the industry.Even Rualtai, whose cross-border business was at its peak at that time, was not spared.

Considering that young people now have many ideas, the plan proposed by Ruertai is not to try to retain them by improving their salary, but to help them analyze the situation as much as possible and leave the choice in their own hands.

On the other hand, Ruertech itself has also begun the exploration and transformation of quality products.

Screenshot of Ruertai Company’s independent website

Faced with the sudden change of the company, those independent station operators who had already adapted to the simple and crude distribution model also felt difficult to adapt for a while.

'The company's shift of focus to a boutique model means that the scope of benefits that operators can quickly obtain in the short term is greatly reduced, so many operations are not able to accept it at the beginning.'

Realizing this,Ruertai immediately improved the company's supervision system instead of blindly pursuing responsibility.And inIn the following time, we will gradually guide operations to align with company goals.

'For example, the introduction of technological equipment to monitor illegal operations in the background in real time, including the use of similar front-end solutions, so that those with ideas dare not operate or cannot operate.'

Outdoor hammocks sold by Ruitai Independent Station

In Ao Ling’s view, 2020 is a big hurdle.To a large extent, it is also a game between the company and operations.

And he himself actively tried to ease the conflicts between the company and operations through various methods.In his own words, 'Let's talk.'

While communicating patiently, the company has also added various incentive policies such as bonuses and incentive packages to encourage employees to work harder, gain more, and achieve more results.A multi-pronged approach is used to mobilize the enthusiasm of operators.

With the concerted efforts of all the company's personnel, the independent website team of more than 100 people has achieved great results.Sales exceeded 100 million yuan in the first half of 2020, and will double in 2021.

03

The awakening of long-termism

There is a staged effort within the industry to 'bring order to chaos'

After experiencing the industry noise in 2020-2021,Jiangxi's cross-border e-commerce companies, including Ruertai, have begun a new journey.

'The vast majority of cross-border e-commerce companies in Jiangxi came from South China and more or less inherited the genes of the South China school. In fact, this is equivalent to saying,An independent industry such as cross-border e-commerce in Jiangxi Province may be a microcosm of South China.'

Different from the 'product-heavy' operation model of the East China School, the operation model of the South China School is good at taking advantage of popular products to achieve performance in a short period of time, achieve explosive growth, and realize rapid monetization.In contrast, the risk of explosive goods is difficult to control. It rises and falls quickly, making it difficult to achieve sustainable development.

It is precisely after seeing this clearly, coupled with the lessons learned from previous industry turmoil, thatStarting from the second half of 2021, some cross-border e-commerce companies in Jiangxi have begun to seek transformation.

Puzzle building blocks sold by Ruertai Independent Station

On the other hand, with the 'ebb' of capital, the short dividend period has become a thing of the past for the industry.It was also from that time that the overall operating model of Jiangxi cross-border e-commerce enterprises began toGradually, there was a transition trend from the 'South China School' to the 'East China School'.

Looking back at Ruertai, as early as the end of 2020, the company had begun to adjust the development strategy of its cross-border e-commerce sector to a high-quality route.Among the voices of 'seizing the bonus period and hitting the hot products', Ruertai's decision almost seemed like an 'extraordinary'.

From 2019 to 2020, Ruertai’s independent station team, which specializes in the FB model, has achieved huge profits of hundreds of millions of yuan.

As for the company's sudden change of route and vigorous development of the business model of vertical websites and boutique websites,Ao Ling, who was the decision-maker at the time, said she had no regrets and was even glad that she had made the right decision.

Outdoor hammocks sold by Ruitai Independent Station

'Although explosive products make money, these short-term gains are only dividends brought by the industry's boom period.Once the trend is over, this type of quick profit-making method will no longer be sustainable.And only creating high-quality products and building brands is the way to achieve long-term development in the future.'

What impresses Ao Ling the most is 2021.

At that time, irregularities in the cross-border e-commerce industry intensified, causing Facebook and PayPal to conduct extremely strict reviews of the site group model. Since then, the development of the distribution model has become increasingly difficult.

'Fortunately, starting from the end of 2020, we have strictly implemented the management process of the distribution model and vigorously developed boutique sites.This allows us to grow despite the downturn in the market environment in 2021 and achieve doubling of revenue.'

04

Thoughts after the passing of the storm

Jiangxi's 'resource hunger' among cross-border enterprises

After three years of unremitting persistence, Ruertai has figured out its own operation and development model, and also gained an additional layer of understanding and thinking about the overall environment of Jiangxi's cross-border e-commerce.

In their view,The reason why cross-border e-commerce in Jiangxi is still in its infancy is largely due to the constraints of supporting resources.

First of all, Jiangxi, which does not have a port advantage, has much higher logistics costs than other coastal cities. In addition, the manufacturing industry is scattered due to terrain factors, and there is a lack of industrial clusters and supply chain supporting facilities.All are not conducive to the development of cross-border e-commerce companies in Jiangxi.

Secondly, Jiangxi lacks industrial supporting facilities for cross-border e-commerce, especially service providers.These include various advertising agencies, logistics providers, website building platforms, talent training, finance, etc.

Ruertai Factory

'There are many links involved in carrying out cross-border business, and without good industrial supporting facilities,Sellers need to spend a lot of time integrating resources in the initial stage.This can easily cause local sellers in Jiangxi to miss the opportunity in the market from the beginning.' Ruitai is deeply touched by this.

At the beginning of 2021, after a whole year of hard work, Ruertai also began to worry about the expansion and integration of resources.At this moment, an invitation letter from the International Trade Fair relieved the anxiety a lot.

In March of the same year, Ruertai was invited to participate in the first cross-border trade fair held in Fuzhou, Fujian.

'Over thereinside,We have found many stable and high-quality suppliers, and efficiently and targetedly integrated the supply chain resources needed by the company today.At the same time, we have also contacted and cooperated with high-quality service providers such as Midoduo, Zongteng Group, Kongkongyunhui, and Shopline.'

After this trip, Ruertai has benefited a lot.'Support from these channels has helped the company optimize many processes and greatly improve operational efficiency',Ao Ling said that during the conference, she also met many fellow sellers. While gaining different perspectives on the industry, it also facilitated many exchanges and cooperation in the later period.

The first China Cross-Trade Fair in 2021

'Now the entire surrounding industrial facilities in Jiangxi, including service providers, have gradually increased',Ao Ling added to us.

In the second half of 2020, with the help of Ruertai, Yuntu Logistics came to Nanchang, set up its first site in Jiangxi Province, and gradually promoted its layout in Jiangxi; Midoduo was also invited to Jiangxi for inspection Exploring the road and looking for business opportunities for independent station promotion and cooperation.

By 2021, the number of logistics providers and advertising agencies in Jiangxi Province has increased significantly, and the ecological environment of the entire cross-border e-commerce industry has begun to become less difficult than it was many years ago.

The first China Cross-Trade Fair in 2021

However, although the ecological environment of Jiangxi’s cross-border e-commerce industry has been improving step by step in recent years,The two major obstacles of 'resources' and 'channels' are still the biggest obstacles for most local companies to embark on the road of cross-border transformation.

'We still hope to meet more high-quality partners.' Ruertai is also full of expectations for the arrival of the second cross-trade fair in 2022.

At the same time, more outstanding Jiangxi companies have signed up to participate in this year’s cross-trade fair.In addition to trading, I also have the desire to learn from experience and make friends.We look forward to everyone working together to jointly promote the development of Jiangxi’s cross-border e-commerce industry.

In order to deeply explore the new forces in the cross-border e-commerce upstream and downstream industries, share their entrepreneurial stories and future thinking, and find new certainty in the industry, [China Cross-border E-commerce Fair] joins hands with [Sellers Home] to launch 'Cross-Border Fair & New Forces' We will continue to update the series of reports in the future, hoping to help promote more frequent and in-depth exchanges and cooperation between industry belts, sellers, service providers and e-commerce platforms through the cross-trade fair and jointly participate in the grand event.