Peer competition often manifests itself in price, advertising, product introduction, after-sales service, etc., and its intensity is related to many factors. Generally speaking, the following situations are manifestations of intensified competition:
(1) The scope of competitors is wide;
(2) The market is maturing and product demand is growing slowly;
(3) Competitors attempt to promote sales by means such as price cuts;
(4) Competitors provide almost identical products or services, and the user conversion cost is very low;
(5) The exit barrier is high, that is, it is more costly to exit the competition than to continue to participate in the competition. For cross-border e-commerce, due to information transparency, the competitive environment is easy to deteriorate. Domestic Taobao and Pinduoduo have developed maturely, and peer competition can no longer be described as fierce, but has reached a tragic level. In 2020, the number of merchants on Alibaba International Station exceeded 200,000. The base number is not large, but the categories are relatively concentrated, and peer competition is also relatively fierce. It is particularly important to investigate peer competition. For the market you want to enter, you must at least analyze your competitors’ product strategies, market strategies, traffic strategies, keyword strategies, external link strategies, advertising strategies, etc. The backend data manager of Alibaba International Station will provide competitive data such as the top 10 peers, but because the intensity of peer competition has a great impact on the cost of market entry, it is recommended that cross-border e-commerce B2B merchants also conduct in-depth investigations through other channels.