Cross Border Business Prospects Are Good, But How Can Small Businesses Survive In The Scrimmage?

Leaders of cross-border e-commerce segments are also accelerating to overseas to pool international resources. In the view of the industry, the focus of cross-border e-commerce competition is on the supply chain capability of overseas high-quality goods, but not every enterprise can get the favor of international brands.

The cross-border electricity supplier, which is already in full swing, will welcome another wave of policy.

In June, China and South Korea, Australia and China have signed the FTA, plus the previously imported cosmetics import tax reduction policy. Cross-border has become the hottest topic in the electricity supplier industry.

One consequence is that large and small businesses, traditional retailers and even clothing companies have begun to hype the concept of "cross-border electricity supplier".

An industry insider told reporters: "the original blue ocean has become the Red Sea in just half a year."

"Many cross-border electricity providers have not really established supply chain capabilities."

Industry experts believe that

China, Jingdong and a few leaders in the field of subdivision will speed up the development of suppliers' resources overseas.

Six months ago, the blue ocean was red.

At the beginning of this year, Ge Daoyuan, President of Amazon China, who first established cross-border electricity business strategy in the domestic electricity supplier industry, also confidently expressed: "cross-border electricity supplier is a new blue ocean."

Just half a year later, the blue ocean has been red.

Large platforms such as Tmall international, Jingdong, Amazon China and Suning do not need to mention that in the subdivision area, a large number of e-commerce platforms have emerged, such as Xiu Xiu network, NetEase koala and honey bud baby.

The traditional retail enterprises also regard cross-border electricity providers as a new growth opportunity. Guangzhou's local Canton, modern department stores, Chongqing's Chongqing department stores and so on all have their layout in the cross-border electricity supplier field.

It is not surprising that the above retail companies that are originally in flux or have advantages in the supply chain have entered the cross-border electricity supplier industry. However, a large number of listed companies have labled their labels on cross-border electricity providers, and it is difficult to remove the suspicion of speculation.

There are as many as 18 listed companies in the "concept of cross-border electricity supplier".

In addition to Suning and other retail enterprises, it also includes shoes and clothing enterprises represented by AOKANG international and Semir, and even the main commodity trading platform such as Liansheng Yi Bao and Rui Mao Tong.

There are still electricity providers and capital entering this field.

Originally, life was originally a fresh electricity supplier. Recently, it announced that it had entered the field of cross border maternal and infant products, and many other small businesses such as "Xiao Hong Shu" and "Hai Mi" had won the favor of capital.

"There is no doubt that there is overheating."

A large domestic electricity supplier insider said in an interview with reporters, "many imported goods are pitiful, some are purely purchasing platforms, and they dare to call themselves" cross-border electricity providers ".

Giants accelerate overseas enclosure

In the industry view, the focus of cross-border e-commerce competition is the supply chain capability of overseas high-quality goods, but not every enterprise can get the favor of international brands.

In June 29th, following the successive launch of the French Pavilion, the Korean Pavilion and the Japanese pavilion, the Australian Pavilion of Jingdong was also on the line.

On the same day, Amazon China also announced that it was fully open to the US Amazon. The 25 categories on the US Amazon gathered in Amazon China's "offshore outsourcing", and the number of goods has surged from 100 thousand to 3 million.

More American small and medium enterprises will be exported to China through Amazon China in the future.

Leaders of cross-border e-commerce segments are also accelerating to overseas to pool international resources.

At the beginning of June, Mou Qing, CEO, a senior vice president of overseas investment, went to Italy to convene a supplier conference.

Ji Wenhong said: "the reason is that more and more local businesses in Italy are interested in the online show network."

The NetEase koala, the main mother and baby beauty product, looks at South Korea.

Also in early June, NetEase CEO Ding Lei bought a team from koala sea and went to Korea to cooperate with nearly 10 cosmetic brands.

Unlike the above cross-border electricity suppliers, which directly establish overseas commodity supply chain, many small cross-border electricity providers have adopted the way of cooperation with traditional import trading companies, which has made many cross-border electricity providers do not show their due price advantage.

Ji Wenhong said: "eliminate intermediate links to ensure greater supply discounts."

More choice of sales mode self run

A noteworthy phenomenon is that the proportion of "self run" is gradually improving in the cross-border electricity supplier's sales mode. Compared with the earlier stage, it merely attracted the brand players to enter the platform. More and more cross-border e-commerce providers began to focus on purchasing cooperation directly with overseas brands.

Niu Yinghua, vice president of Amazon China, likened the massive purchase of 3 million overseas products to the surface of a nail, and compared the selected part of the 200 thousand imported imported parts to the "tip" of nails: "on the surface of the nails are overseas products of various colors, which consumers want to find everything, and the tip of nails is straight picking commodities, which is the most effective way to go deep into life."

Jingdong and NetEase have similar practices.

Whether in France or Australia, Jingdong has chosen a well-known red wine brand such as Ben Fu to cooperate directly in order to bypass the red wine trading company in China, and the number of Korean cosmetic brands directly co operating with NetEase is also close to 30.

In the field of luxury, which has always been closed in the supply chain, the development of cross-border electricity providers is also breaking the old concept of luxury brands.

Ji Wenhong, CEO of the show, said that unlike other overseas consumers, the show only works with well-known European and American companies to eliminate intermediate links to ensure greater supply discounts and price concessions.

Among them, there are more than 600 overseas business partners, with nearly 200 exclusive cooperation.

Even with international freight and tariffs, more than 80% of the goods are lower than Hongkong's retail price, and 65% of the goods are lower than the US and British retail prices.

"More and more brands are coming to talk about cooperation," he said.

Shuffling expectations under the policy of Dongfeng

Because of the deepening of cross-border e-commerce and overseas brand cooperation, retailers in China are feeling more and more price pressure.

At the beginning of this year, many luxury brands such as Chanel have begun to lower retail prices in China. Recently, many cosmetics brands such as Estee Lauder have begun to lower their retail prices.

In addition, retail prices are also decreasing in the areas of imported milk powder, paper diapers and so on.

This is just the beginning.

In the early June, our country reduced some of the clothing,

The import tariff rate of daily consumer goods, such as skin care products, diapers and so on, has fallen by an average of more than 50%.

In June, the FTA between China, South Korea and China has also been finalized.

This provides greater convenience for domestic retailers to import international commodities.

Although the relevant policies also have positive effects on traditional traders and cross-border electricity providers, the lower cost cross-border electricity providers get more cost advantages.

One side,

The rapid development is still striking the traditional import trade and overseas purchasing. On the other hand, the price competition between different cross-border e-commerce platforms is also constantly rising.

"The industry is ushering in a shuffle in the process of rapid development."

Experts from Guangdong Internet Commerce Association analyzed to reporters.

The forward-looking analysis report thinks that, generally speaking, the prospect of cross-border electricity supplier industry is good, but the entry threshold is also improving. Entrepreneurs and small business providers must think about how to survive in the scrimmage.