Panorama analysis of the development of cross-border e-commerce on Dunhuang.com
Since its establishment, Dunhuang.com has experienced significant development and transformation and has become an important participant in China’s cross-border e-commerce. The following is a detailed analysis of the development characteristics and core highlights of Dunhuang Network.
Target market expansion
DHgate.com’s target market was initially focused on the United States, and later expanded to the global market. The United States’ huge purchasing power and mature online consumption habits make it the market of choice for many cross-border e-commerce companies. For example, “Lanting Jishi” also started from the US market. According to statistics from Dunhuang.com, as of 2014, the platform had more than 1.2 million suppliers, providing about 30 million types of consumer goods, and orders from the US market once accounted for 80% of the total orders. However, as the market evolved, DHgate’s US market share dropped to 51%, while the UK and Canadian consumption shares increased to 11.2% and 4.86% respectively.
Enrichment of product categories
Dunhuang.com has gradually developed from a single product category of consumer electronics and wedding dresses to almost covering more than 30 million products in all categories, reflecting that the rapid growth of its product categories is a sign of the maturity of the platform. Taking popular cross-border products such as mobile phone screens as an example, its sales increased by 65% in 2014 compared with 2013, showing the rapid development of DHgate in the Chinese market.
Focus on cross-border B2B market
A notable feature of Dunhuang.com in the field of cross-border e-commerce is its focus on the cross-border B2B market. Unlike many retail platforms that focus more on the B2C model, such as eBay and Alibaba’s AliExpress, DHgate is committed to helping Chinese suppliers develop overseas markets through cross-border small-value exports. This differentiated positioning stems from founder Wang Shutong’s deep understanding of e-commerce. She believes that China will become the core of global cross-border e-commerce in the future, and the cross-border B2B model can directly meet the sales needs of suppliers.
Multi-language and multi-market strategy
In 2015, DHgate.com’s core strategy is to implement multi-lingual globalization, especially in emerging markets, to further consolidate its market position. In terms of the mobile market, DHgate aims to achieve 10 to 20 times growth and has launched new mobile applications and e-commerce platforms to better meet customer needs.
Supply chain and logistics services
DHgate Network’s supply chain layout has also attracted considerable attention. In 2015, DHgate launched new services such as DHPAY, DHLINK and DHCREDI, and through docking with e-commerce collection platforms, it improved the quality and efficiency of logistics services and further enhanced user experience.
Taken together, the development characteristics of Dunhuang Network and its strategic implementation not only reflect the overall trend of cross-border e-commerce, but also demonstrate the wisdom of how to effectively increase market share in global competition. By continuing to deepen the B2B model, enrich product categories, and enhance mobile market and supply chain capabilities, DHgate.com will remain an important force in the cross-border e-commerce field in the future.