People's Daily: Cross-border e-commerce is growing rapidly

Since 2020, China's foreign trade import and export have continued to improve.According to customs statistics, China's cross-border e-commerce imports and exports in 2020 were 1.69 trillion yuan, an increase of 31.1%.Cross-border e-commerce is becoming an important force in stabilizing foreign trade. More than 10,000 traditional foreign trade companies have gone online to improve quality and efficiency. Cross-border e-commerce has become the first choice for enterprises to carry out international trade and the vanguard of innovative development of foreign trade.

'Made in China' demand rises

'Our cross-border e-commerce export volume reached 1.3 billion yuan in 2020, and is expected to reach 1.6 billion yuan in 2021.' The person in charge of an international trading company in Zhejiang said that the company began to enter the field of cross-border e-commerce in 2014 , started cross-border e-commerce exports in 2018, and has maintained a rapid growth of more than 50% in recent years.

This is just one example of the development of cross-border e-commerce companies in China.According to Li Kuiwen, spokesman of the General Administration of Customs and director of the Statistics and Analysis Department, as an emerging trade format, cross-border e-commerce import and export trade volume has shown signs of rising instead of falling during the epidemic prevention period.In 2020, China's cross-border e-commerce import and export scale reached 1.69 trillion yuan, a strong increase of 31.1%, of which exports were 1.12 trillion yuan, an increase of 40.1%, and all indicators reached new highs.

Currently, consumers around the world are actively or passively shifting their consumption behavior online, and cross-border e-commerce platforms have become an important channel for consumer purchasing.Affected by the epidemic, many overseas factories are in a state of semi-stop production. Overseas consumers' demand for 'Made in China' has increased. Electronic products, daily necessities, etc. are favored by overseas consumers.Customs data shows that China exported 2.51 trillion yuan of 'stay-at-home economy' products such as laptops in 2020, an increase of 8.5%.

Chinese sellers responded quickly to changes in overseas consumer demand, taking advantage of the maturity and completeness of the domestic manufacturing supply chain to flexibly adjust their products and achieve growth against the trend.'There is a factory next door to us, which used to produce household lamps. During the epidemic prevention period, they began to produce ultraviolet disinfection lamps, which were sold very well overseas.' said an LED manufacturer in Zhongshan City.

Yang Jun, head of Asia-Pacific seller development for Amazon's global store business, was deeply touched by this: 'During the epidemic prevention period, many sellers opened up many new business opportunities.' She pointed out that the home isolation caused by the epidemic has created new demands. Medical supplies, including Bluetooth headsets, webcams, height-adjustable tables, office chairs, etc., have seen significant growth in remote office categories.

'The epidemic has brought us great challenges.' The person in charge of a cross-border e-commerce company said that since the outbreak, the number of international flights has dropped sharply, and cross-border e-commerce companies have encountered problems such as slow logistics and distribution, rising costs, returns and exchanges, and Difficulties in customs clearance and other issues.

Under this circumstance, the country has introduced a series of favorable policies, which have given cross-border e-commerce platforms and merchants a 'boost in arms'.In 2020, China's 'Silk Road E-commerce' cooperation with 22 countries continued to deepen, and bilateral cooperation results accelerated; the State Council newly approved the establishment of 46 cross-border e-commerce comprehensive pilot zones, and the cross-border e-commerce comprehensive pilot zones expanded to 105 The General Administration of Customs has added '9710' and '9810' cross-border e-commerce B2B export trade methods to promote customs clearance facilitation.At present, cross-border e-commerce comprehensive pilot zones in many places are continuing to promote favorable policies and measures for cross-border payments, e-commerce platforms, logistics companies and other industrial chains.

The overseas warehouse model has become a new choice for many cross-border enterprises.'Logistics timeliness has jumped from 25 to 30 working days or even one and a half months to seven-day delivery, three-day delivery, and one-day delivery; different from other logistics channels, overseas warehouses help us save 20% of logistics costs; product damage While the rate has dropped, buyer service experience and store praise rates have skyrocketed. 'Roy, a seller of outdoor cycling products on Dunhuang.com, said that as of 2020, overseas warehouses accounted for 80% of the company's total volume, and the sales performance of products deployed in overseas warehouses increased by more than 3 times.

The epidemic has accelerated the new digital foreign trade trend, and technological innovation has empowered exports.For example, Alibaba International Station uses online exhibitions, audio and video negotiation and other modes, as well as intelligent translation, customs declaration, logistics, tax refund and other services to shorten the cross-border distance between buyers and sellers.'We not only need to solve the problem of merchants accurately obtaining orders, but also ensure the smooth flow of international transportation, cross-border payment and other links.' said Zhang Kuo, general manager of Alibaba International Station.

'Chinese products are not only high-quality and low-priced, but the product design is also excellent, and many technological products are easy to use.' An overseas consumer who often buys Chinese products praised.

With the continuous development of export cross-border e-commerce, more and more Chinese products are going overseas, and the needs of global consumers are also constantly escalating.After experiencing rapid growth, brutal growth, and production capacity adjustment, China's export cross-border e-commerce industry has ushered in a new stage of development with inventory improvement and stable operations.

Amazon recently released 'From New Business Formats to New Normal - 2020 China's Export Cross-Border E-Commerce Trend Report', which summarizes the five major trends in the development of China's export cross-border e-commerce: more diversified seller regions and types, accelerated global layout, and enhanced brand awareness. , product innovation is accelerated and responsiveness is upgraded.

'China's export cross-border e-commerce industry and sellers have experienced an evolution from 'barbaric growth' to 'intensive cultivation.' 'Normality'.' Dai Jianfei, Amazon's global vice president and head of Amazon's global store Asia-Pacific region, said that Chinese sellers must have a global vision and localized thinking when doing global business.

Dai Jianfei believes that on the one hand, diversified development can create a better development foundation for the future. In addition to developing mature markets such as the United States, Europe, and Japan, Chinese sellers can also further enter many emerging markets, such as Australia and Singapore; on the other hand, Chinese sellers can also develop into mature markets such as the United States, Europe, and Japan. On the other hand, Chinese sellers need to understand the needs of local consumers, use consumers as the starting point, and design differentiated products to better serve the needs of local consumers. They also need to understand the different trade regulations and products of each country. regulations to achieve healthier and more sustainable operations based on compliance.

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China's foreign trade industry was dominated by factories in the first 30 years, but in the past 10 years and in the future, it belongs to cross-border e-commerce.

Cross-border e-commerce has become the most powerful growth engine for China’s foreign trade exports!

However, the trend is becoming increasingly red ocean, with more entrants and higher resource thresholds and cognitive thresholds.

Newbies who want to join the game or cross-border veterans who have been in the industry for many years all want to know where cross-border e-commerce will be in the future?

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It is getting harder and harder to make money through the brick-and-mortar model, and the future of the distribution model is getting narrower and narrower.

Today, the entire industry is becoming more and more refined. Sellers with far-sighted vision have begun to refine and deepen their cultivation to make differences. But what if there is no factory cooperation?

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