The stage of full outbreak of overseas epidemic
Most domestic enterprises entered the stage of resuming work and production in March, but in April, the overseas epidemic broke out, and many countries such as Europe and the United States implemented stay-at-home orders and lockdown measures, and international flights were cancelled on a large scale, and Chinese sellers were in a dilemma of having goods but not being able to ship them out.
Overall revenue increase or decrease in April compared with the same period last year
Percentage of full-year revenue completed as of April 30
①More than 1/4 of sellers said that revenue may increase
In the survey of 451 sellers initiated by Hugo.com on May 14, 38% of sellers’ revenue increased against the trend, and 13% of sellers’ revenue decline was controlled within 10%. It can be seen that more than half of the sellers were actually not affected much.
Affected by the epidemic, the overall revenue of cross-border e-commerce companies is not optimistic. As of April 30, more than 73% of companies have completed revenues lower than 30% of the expected full-year revenue.
In the questionnaire survey initiated by Hugo.com on April 3rd, which was participated by 668 sellers, the results of the store’s operating goals this year show that the outbreak of the overseas epidemic has put considerable pressure on sellers to a certain extent. Maintaining stability and continuing to operate without loss is the current demand of sellers, but opportunities and challenges coexist, and more than 1/4 of sellers still say that there is a possibility of growth.
② Sales of home economy categories surge
Due to the spread of the epidemic, many countries such as Europe, the United States, and India have issued stay-at-home orders, and most companies have stopped working or employees have worked from home; schools have been closed, and students have learned online at home. A large number of people have formed a work and lifestyle with family space as the living radius, which has given rise to consumer demand in home scenarios.
Third-party data shows that the most potential demand categories under the “home economy” include: home office, indoor fitness, homemade meals, pet companionship, and home cleaning.
Data from retail analysis company Stackline show that in addition to anti-epidemic materials, the biggest rigid demand of Europeans during the lockdown is indoor exercise, home life and entertainment products. The demand for load training equipment, fitness accessories, and yoga equipment has risen sharply by 307%, and home office products such as computer monitors, mice, and office chairs have risen by 172%.
③ In April, 30% of sellers still sold epidemic prevention supplies
In a survey of 668 sellers initiated by Hugo.com on April 3, nearly 30% of sellers said they were selling masks, disposable gloves and other epidemic prevention supplies.
Hugo.com communicated with relevant persons in charge of several freight forwarding companies and learned that the charter business to Europe and the United States in March and April was the largest, and the cargo was mainly epidemic prevention supplies such as masks, gloves, and protective clothing.
According to data released by AliExpress in mid-April, the GMV of masks in the Spanish market increased by more than 400 times year-on-year; the GMV of masks in the German market increased by nearly 200 times; and the GMV of masks in the Polish market also increased by more than 120 times. At the same time, the GMV of American consumers buying masks on AliExpress jumped to the top of all countries, increasing by more than 280 times year-on-year, accounting for nearly a quarter of the overall GMV of the US market.
④ 50% of sellers will not recruit this year
In a questionnaire survey initiated by Hugo.com on April 3rd and participated by 668 sellers, regarding personnel changes, 50% of sellers clearly stated that they would not recruit again this year, and the existing staff was sufficient. 36% of sellers said that they needed to reduce staff and reduce expenses.
In a survey initiated by Hugo.com on May 14th and participated by 451 sellers, 58% of sellers said that they did not recruit new employees in April, and 32% of companies had less than 10 new employees in April. Only 5% of companies recruited more than 30 new employees in April. This shows that the outbreak of the epidemic in Europe and the United States has shrunk the export business to a certain extent. While suspending the expansion of the team to reduce labor costs, some sellers have chosen to optimize the team and recruit talents in this special period (for example, Anker Innovations launched the Entrepreneurship Program in June) to prepare for the peak season in the second half of the year.