China’s foreign trade companies can take advantage of the promotion of RCEP to continue to develop China’s current largest trade market. Below, with many years of experience in foreign trade services, Grande provides you with a comprehensive Southeast Asian market development strategy to help you quickly enter the Southeast Asian market and start a new trade journey. So, let’s learn about cross-border e-commerce in Southeast Asia. Market research.
1. Southeast Asia cross-border e-commerce market research.
1. Tariff reduction can reduce the operating costs of enterprises, especially some high-tariff goods. RCEP tariff reduction directly reduces the cost of imported raw materials and resources. The price of assembled and processed products has a greater advantage than other competitors, especially in popular categories such as bicycles, furniture, lamps, textiles and clothing. Under RCEP, cloth processed in China, wool from Australia, and garments made in Southeast Asia break through the restrictions of inter-regional tax policies, creating benefits for trade, and the products will be in an invincible position in the region.
2. The resolution of regional policy restrictions allows companies to gain more opportunities for in-depth supply chain resource integration. Today, Southeast Asian countries have different levels of foreign trade development and very different sales standards. These cannot achieve unified regional standards. RCEP was established to stipulate unified rules within the scope of the agreement to facilitate the integration of business commodity circulation, technical cooperation, talent and other aspects, while reducing the risks and uncertainties of international trade.
3. Simplification of customs procedures and trade facilitation. RCEP uses efficient customs management methods, such as pre-examination, pre-arrival processing, information technology application, etc., to simplify many aspects of cross-border logistics, including reducing or eliminating the risk of tariffs on postal parcels and reducing overseas warehousing construction costs, thus greatly It improves the efficiency and speed of cross-border logistics, improves consumers’ shopping experience, and promotes the prosperity and development of import and export trade-related industries. Therefore, port shipping and foreign trade companies may directly benefit.
2. Southeast Asian market characteristics.
1. In terms of product demand, Southeast Asia has a greater demand for basic industrial products and mechanical parts. Most of the product specifications and standards are early Japanese standards, and the quality requirements are not as strict as those in Europe and the United States. They will bargain appropriately, but the overall profit level is relatively high.
2. In terms of geographical location, the time difference between Southeast Asia and China is less than one hour, so communication is more convenient. In addition, some countries in Southeast Asia border China and have various transportation conditions, including ocean, air and land transportation. In addition, there are transportation links between Southeast Asia and my country, which facilitates travel.
3. In terms of business culture, there are many overseas Chinese in Southeast Asia, and the business environment is very similar to that in China. It is a “human society”, and “relationship” is still very important in business activities. The cultural backgrounds of both parties are similar, which can provide many opportunities to communicate with customers, and it is easier to establish trusting relationships.
3. Techniques for expanding the Southeast Asian market.
Looking at the distribution of goods traded between China and Thailand, hardware and mechanical and electrical products account for more than half of Thailand’s total imports from China. Base metals and products, chemical products, plastics and rubber are among the second, third and fourth major imported commodity categories. Therefore, these products can be the main focus of the enterprise. In addition, special attention needs to be paid to the account period issue in the Thai market. The account period in Thailand is not fixed and can be as long as 180 days, but three-month account periods are more common. Suppliers are reminded that for smaller customers, a copy of sight L/C or T/T sighted bill of lading is generally accepted. If you have been working with the customer for a long time, you can consider adjustments after the trust relationship is established.
The above introduction is the relevant knowledge of cross-border e-commerce market research in Southeast Asia. As the initiator of RCEP and China’s current largest trading partner, the importance of Southeast Asia to China’s foreign trade is unquestionable. Now, under more favorable trade rules, I believe that Chinese foreign trade companies can achieve new achievements in the Southeast Asian market better and faster!