Today, the development of China’s cross-border e-commerce industry is in a rapid growth stage. The Ministry of Commerce has speculated on its future development based on the development trend in recent years. It is expected that the transaction scale of China’s cross-border e-commerce will reach 6.5 trillion yuan by 2016, occupying a more important position in my country’s import and export transactions.
Although this field is developing rapidly, there are still many imperfections in the specific operation of cross-border e-commerce. For example, as more and more small and medium-sized enterprises join the ranks of cross-border e-commerce, the internal competition in the industry continues to intensify; cross-border e-commerce companies are engaged in fierce market competition around prices, which compresses the profit space of enterprises, and the problem of imperfect service system is becoming increasingly prominent.
The reason for the above problems is that although domestic export-oriented enterprises have carried out reforms, they are mainly focused on sales measures. The operating entities have not optimized the marketing methods of the enterprises according to market demand, and it is difficult to highlight their own advantages. In order to improve this situation, enterprises should carry out brand building and creation, focus on reflecting their own uniqueness in the marketing process, maintain their advantageous position in the fierce competition, make scientific decisions, consider problems from the perspective of long-term development, and improve their own systematic construction.
Price advantage brought by independent brands
Through brand building and promotion, cross-border e-commerce enterprises can use their own brand effect to increase the selling price of goods, improve corporate profitability, and enhance the sustainability of development. Specifically, this can be achieved through the following three ways:
(1) Through the application of e-commerce platforms, cross-border e-commerce enterprises can save a lot of costs required for promotional activities, thereby reducing the price level when overseas customers purchase goods.
(2) During the sales process, the price of goods with brand effect will increase due to the increase in value content. Under normal circumstances, the price level of such products is 30% to 40% higher than that of ordinary similar goods, and the price of some goods is 40% to 50% higher, which can obtain greater profit margins.
(3) E-commerce platforms build a bridge between commodity operators and consumers. Without going through layers of middlemen, the capital consumption of the middle links can be saved, which increases the revenue of cross-border e-commerce enterprises themselves. At the same time, consumers can buy the company’s products at a lower price, forming traffic accumulation.
Moreover, one point worth noting is that compared with enterprises or original equipment manufacturers without their own independent brands, cross-border e-commerce with brand effects can achieve longer-term development.