The emerging markets of the cross-border e-commerce industry have a growing room for improvement. Most of the global export cross-border e-commerce destination markets are the United States, the United Kingdom, Germany, Australia and Brazil, where the online shopping penetration rate is high, and the basic technical facilities and policy support are good.
Emerging markets such as Brazil and Russia are gradually emerging, and the demand for cross-border online shopping is growing rapidly. In recent years, the number of online shoppers in emerging market regions has increased sharply, providing a large demand space for cross-border e-commerce. In the future, as these markets continue to break through limitations, such as the popularization of Internet technology and the improvement of infrastructure, as well as the gradual optimization and improvement of cross-border payment, logistics, overseas warehouses, etc., and the continuous liberalization of policies, the demand from emerging markets will continue to grow.
In fact, although there are few competitors in emerging markets, their investment return cycle is still very long.
Tian Zhaobo, CEO of Haiyi Cross-border E-commerce Logistics Co., Ltd., pointed out that mainstream cross-border e-commerce companies focus on mainstream platforms with more traffic. If they want to enter emerging markets, the time to build the entire chain is still a bit longer.
“So many sellers who are planning to enter emerging markets are strategically minded. They hope to make some mid- to long-term investments, so they usually choose markets in countries with relatively stable politics and economy,” said Tian Zhaobo.
In addition, entering emerging markets requires occupying two high grounds.
(1) The bonus of brand going overseas. If the overcapacity of the supply chain leads to overcapacity of the entire industry, the traffic will actually be concentrated on a few high-quality products. In fact, global brands are scrambling to enter emerging markets, and building brands in emerging markets will definitely be a huge opportunity.
(2) The bonus of social traffic. Because emerging markets have a demographic dividend, a large number of young people under the age of 30 will support the widespread use of smartphones in emerging markets. In this environment, traffic centralization will become a major trend, and it is both an opportunity and a challenge for cross-border e-commerce companies to study how to conduct localized marketing on social networks.
The Middle East, North Africa and South Asia are all target markets with opportunities. In terms of trade access, the countries in these regions are not too strict on product standards.
In addition, the countries in these regions do not have strong manufacturing capabilities and must rely on imports. Moreover, a large number of people in these markets are exposed to the Internet every day, and there is a huge demand for new technology products and daily necessities. Therefore, this is a rare opportunity for China to enter these emerging markets.