Cross-border e-commerce has the advantages of openness, efficiency, convenience, and low entry barriers. It uses Internet technology to realize cross-border transactions of goods and services, breaks through the barriers of import licenses from various countries, and makes international trade move towards borderless trade. The driving force for the growth of China’s cross-border e-commerce will remain strong. Cross-border exports are the flattening of trade. OEM factories in the lower reaches of the global value chain and small and micro enterprises that are disadvantaged in trade have gathered, broadening the path to enter the international market, and focusing on brands. ization, localization, supply chain and other trends to accelerate the process of global operations; when local pilot policies and port procedures tend to be unified and improved, import and export cross-border e-commerce channels will be smoother, drive industry and employment development, and meet the needs of residents.
1. Globalization of consumption.
Economics emphasizes that demand determines the market. The emergence of cross-border e-commerce is related to the needs of the global public. Online shopping has become a global consumption habit. my country’s manufacturing capacity for traditional mid- to low-end consumer goods is very large and there is a serious oversupply. However, similar high-quality consumer goods are in short supply. Cross-border e-commerce provides a channel for this demand to flow overseas.
my country’s foreign trade policy has always been “rewarding exports and limiting imports”, focusing more on exports, which can drive investment, employment and GDP. In the new structure of economic growth driven by consumption, the import market will not be ignored, and imports and exports will be brought in, and China’s manufacturing industry will be forced to upgrade by introducing a large number of high-end products. The number of my country’s middle class will increase from 230 million to 630 million in the next 20 years. Historically, a large group of consumers has appeared. They are willing to buy high-quality and affordable goods and prefer the product value of international brands. Concerns about product quality and safety avoid choosing local brands.
Demand drives the market, and traditional foreign trade formats are declining. Order fragmentation, de-channelization, consumer demand for product types, and with the development of the Internet, commodity prices between countries have become more transparent. Through cross-border online shopping, consumers find that products purchased on foreign platforms are cheaper than those sold directly by overseas brands in China, even after shipping and tariffs are included. The platforms sell a full range of products and the quality of the products is generally high. The application of the Internet and the automation of transactions can enable companies to meet the needs of more diverse niche markets and customized products at lower costs.
For example, Amazon is carrying out translation work around the world, which means that maybe in a while, when consumers enter the Amazon website, they can see American, Japanese, and Korean Amazon through the ordinary search interface. s price. Then, the price strategy of global brands will be completely broken by such a translation work. The exchange rate differences between countries will be fully measured and compared on an Internet page, and consumers can compare products in the same language around the world. price. A simple translation job may bring fatal revolution to the industry in the future.
2. Industrial upgrading and transformation.
In the course of more than ten years of development, online merchants have gradually moved from the margins of society to the mainstream. The main body of online merchants has gradually transformed into mainstream manufacturers in mainstream industries. The ability of online merchants to create wealth has been continuously enhanced and Recognized by the public through various channels, companies and individuals doing business online have achieved extraordinary results. When the exchange rate, labor force, and environmental advantages are no longer available, China’s foreign trade will no longer be able to continue on the path of low quality and low price. At the same time, most cross-border e-commerce companies have not yet involved in brand building. If you make good products and sell good products through various channels, you will find that you don’t need to be a channel and just focus on upstream products and supply chain.
Export sellers push products to the global market based on online virtual shelves, directly obtain consumer demand, make more accurate decisions on their global supply chain strategies, and upgrade product design and manufacturing. At the same time, the ecological cooperation network of offline delivery logistics and after-sales service has achieved global layout along with cross-border business processes. The form of cross-border imports is more flexible and transparent. Under the influence of factors such as capital promotion, commodity quality, consumption concepts, and merchant promotions, it has a positive impact on the consumer economy in terms of creating job opportunities, improving business efficiency, benefiting consumers, and importing and exporting. The impact is also very significant.
3. Globalization of cross-border operations.
Cross-border e-commerce is in line with the action directions of national strategies such as “Internet +, Free Trade Zones, One Road and One Belt, and AIIB”, and relies on the Internet as an effective “borderless” communication, cooperation and transaction The platform has established a wider relaxed environment and international stage for China’s manufacturing and export trade, boosting China’s globalization process. The changes in business models, products and market structures brought about by the Internet have created new opportunities and transformations in international trade. However, under the new model, cross-border e-commerce still faces many obstacles to growth, such as immature customs clearance and tax reporting systems, poor logistics experience throughout the entire process, insecure after-sales services and returns, and unstable supply chains.
At the same time, consumers can communicate directly with merchants around the world, participate in international trade, and obtain more diversified products and services to achieve global consumption. But online transactions are easy, product delivery is difficult, and full service is even harder. The three core elements involved in cross-border e-commerce, namely products, operations, and channels, all require enterprises to operate more globally and locally. Overseas direct procurement and overseas warehouse exports are all based on being closer to consumers. Cross-border e-commerce is the channel and future of the global consumer market: consumer demand has huge potential, and the increased awareness of overseas products and overseas brands is not only a welfare for consumers, but also an opportunity for corporate brand building and global operations, and has a positive impact on It is of great benefit to the country’s international balance of payments, maintenance of exchange rate and economic stability.
4. Capital drives the market.
E-commerce giants have elevated the international sector related to cross-border e-commerce to a strategic position and set up overseas or global locations: start-up companies have stepped up their financing efforts to prepare for war, while front-line companies are still scrambling to raise funds for expansion. , has risen rapidly; overseas e-commerce companies are testing the domestic market and using the advantages of international brands to try to get a share of the pie; logistics and supply chain service providers have given full play to their own industry advantages, constantly smoothing processes, and escorting the development of the industry. With the support of capital, “players” from all walks of life have met their opponents. The big guys and the younger guys have to explore from scratch in the face of emerging markets. Competition and symbiosis, jointly cultivate the market, and march towards the boundless future.
Regional government support policies are being introduced more frequently. Obstacles such as payment, logistics, customs declaration and inspection faced by cross-border e-commerce are gradually being eliminated. Domestic and foreign demand is increasing, and the market is entering an accelerated channel. In the cross-border online transaction and service ecology, platform providers occupy a core position and have a huge influence on the entire ecosystem. Various platform-based service providers are also favored by capital. They are very efficient in transactions. and smooth implementation play an important role. Continuous service quality improvement and operation optimization will increase the stickiness of the platform for buyers and sellers, the industrial ecology will be more complete, and all links will develop collaboratively.
5. The reddish blue sea.
The world is a blue ocean, and China is always a red ocean. The blue ocean market in the early days of cross-border e-commerce allowed many people to make a pot of gold in it. No matter how good the blue ocean is, it cannot withstand the number of ships. There are many Chinese people, e-commerce companies, foreign trade companies, and cross-border e-commerce companies. There are also many businesses, and it is no longer as easy as it was in the past. Industry reshuffles are always happening, and some fields have turned into red oceans. On today’s Taobao, everyone can open a store, but not everyone can sell things. There are several oligarchs in each category. Big brands get most of the traffic, and small brands or personalized brands with personal characteristics or Special brands occupy a niche, and small grocery sellers are dying. It can be said that it is easy to open a store, and there is no need to talk about other things.
Cross-border e-commerce has been so popular that “business must talk about cross-border”. From policies to markets, from merchants to consumers, from e-commerce giants to startups, everyone wants to enter the field of cross-border e-commerce. Make a difference. However, the most popular cross-border e-commerce is about to become a besieged city. Import transactions have been reduced to almost the same as domestic e-commerce; some export products that are hot-selling and have large profit margins are sold by many cross-border merchants, and even within the industry A vicious price war has emerged; before the import pilot cities were liberalized, bonded warehouses were often in a state of liquidation. After a large number of comprehensive pilot areas are liberalized, numerous bonded warehouses and supply chain service companies will emerge in various places, and the bonded logistics service market will tends to be dull.
E-commerce is ultimately retail. Regardless of supply chain capabilities, the foundation of retail lies in controlling the combination of goods, which requires sales genes and operational skills. Online e-commerce seems to have a light model, but It has high requirements for IT capabilities, supply chain resources, marketing methods, etc.