Against the backdrop of overall domestic consumption upgrades, the continuous expansion of market demand has also brought opportunities for cross-border trade. On the exporter side, due to the popularization of information technology, developed countries and regions such as Europe and the United States, and some developing countries have completed domestic Internet coverage. The maturity of third-party software and logistics supporting service systems has led to a continuous expansion of demand for online shopping. Traditional foreign trade companies have lagged behind the times, so Internet sales or e-commerce has become one of the main sales channels. Under the operation of a huge market, e-commerce is developing at an astonishing speed.
According to data recently released by the China E-Commerce Research Center, the transaction scale of China’s cross-border e-commerce market reached 8 trillion yuan in 2017, 9.1 trillion yuan in 2018, and 10 trillion yuan in 2019. It is expected that the transaction volume of my country’s cross-border e-commerce will reach 12 trillion yuan in 2020, with a three-year compound growth rate of 16% and a penetration rate of 37%. Cross-border e-commerce has ushered in market opportunities. In the future, with the continuous development of cross-border e-commerce in logistics and supply chains, the market prospects are broad.
Accenture Consulting and Alibaba Research Institute’s latest report predicts that in 2020, more than 900 million people in the world will shop across borders, and the largest market will be China. The demand of domestic consumers for imported consumer goods will be gradually released and tend to be stable in the next few years. Going out to expand overseas markets will become an important task for domestic e-commerce companies.
At present, some cross-border e-commerce companies have successfully expanded to the European, American and Latin American markets. With the goal of increasing the proportion of overseas revenue to 50%, Tmall launched “Globalization 2.0” on “Double 11” to lead merchants to go overseas collectively.
With the development of the national economy and the improvement of people’s living standards, the purchasing power of Chinese consumers is also constantly increasing. Now the main consumer groups in the market have gradually transitioned to the “post-80s” and “post-90s” groups. Their consumption concepts are relatively advanced and their demand for cross-border goods consumption is obvious, which not only drives the domestic market, but also drives the economic development of the whole world. In the future, the scale of users of cross-border online shopping in China will further expand.
Lattice Group was once the most promising cross-border e-commerce platform in the overseas market, but it has also encountered market development problems overseas in the past two years. The market size of the overseas market is increasing exponentially, and the competition among major e-commerce platforms is intensifying. If you are not careful, you will be kicked out of the local market.
The characteristic of LightInTheBox platform is to attract buyers to buy by selling low-priced products. Such competitive advantage is no longer obvious in the fierce market competition environment. Other e-commerce platforms are also launching low-priced products, which have taken away LightInTheBox’s original market share, causing serious loss of platform customers. LightInTheBox has encountered new challenges.