Cross-border e-commerce is a big opportunity in the future! I believe that many people still don't believe this sentence.

"The epidemic is so serious that many foreign trade factories have been killed. Do you want to die for cross-border e-commerce?" This is the first reaction of many laymen when they see this sentence.

In fact, the large number of foreign trade factories that died during the epidemic took a completely different path from cross-border e-commerce. Foreign trade factories mainly used toB business, selling their own products to foreign suppliers in large quantities, and costing inventory, logistics, customs clearance, etc. The requirements are very high. The epidemic has already killed a large number of foreign physical stores. To whom will a large number of imported goods from China be sold offline? The development of foreign trade factories is inevitable.

In the past few years, under the situation of low domestic labor costs, the people who rely on foreign trade factories can still make a lot of money. However, as the domestic labor and raw material costs continue to rise in recent years, the profits of foreign trade factories have been continuously compressed. Coupled with the impact of cross-border e-commerce and the impact of the epidemic, the economies of Europe and the United States have been declining. Traditional domestic foreign trade factories are overwhelmed and wailing. Many foreign trade factories are eager to transform into domestic e-commerce or cross-border e-commerce.

Cross-border e-commerce is mainly a toC model, directly facing consumers, asset-light operations start, and the threshold is very low, just like the domestic e-commerce platforms Taobao, Jingdong, and Pinduoduo. Under the epidemic, the "home economy" prevails at home and abroad, and the penetration of cross-border e-commerce in Europe, America and Southeast Asia has not decreased but increased. In other words, the epidemic has not only not affected the development of cross-border e-commerce, but promoted cross-border e-commerce. The share of foreign markets, whether it is import or export, cross-border e-commerce is showing a substantial growth pattern.

Earlier, even the newly emerging Internet giant ByteDance also reported that it will deploy cross-border e-commerce in 2021.

On December 9, according to LatePost report, Bytedance Global CEO Zhang Yiming mentioned in the internal goals that in 2021, three new businesses, namely cross-border e-commerce, To B (enterprise services) and LKP (office hardware package), will be focused Explore the direction.

Wherever the giants are playing, the news that ByteDance wants to deploy cross-border e-commerce has spread rapidly in the industry. Later, the byte jumped out to respond, and there was no internal letter. This message was not true.

But as the saying goes, there is no wind and no waves. ByteDance has done quite well in the globalization layout in recent years, especially TIKTOK has a huge influence overseas, has more than 800 million users, and has downloaded more than 2 billion times worldwide. Otherwise, "Chuan Jianguo" "There is no need to ban TIKTOK. Assuming that the byte beating is to be cross-border, it is also a unique advantage.

Regardless of whether ByteDance will really enter the cross-border e-commerce field, an epidemic has made it impossible to hide the "cake" of cross-border e-commerce!

1

Export growth rate>Import growth rate

The overall increase in the cross-border e-commerce market is significant

In fact, as early as 2014, the cross-border e-commerce market had already been surging, and a large amount of capital entered. Alibaba launched Tmall International, JD.com launched overseas purchases, and subsequent Suning.com, Jumei Youpin, Vipshop, and NetEase also entered the market. , Kicked off the “buy all over the world” for Chinese consumers. After a period of barbaric growth, due to its fragile business model and extremely low profit margins, capital was abandoned. In 2019, NetEase Koala was acquired by Ali for US$2 billion. Nowadays, mainstream international B2C cross-border e-commerce platforms mainly include AliExpress, Amazon, eBay, and Wish; domestic imported cross-border e-commerce platforms include Ocean Terminal, Tmall International, and Suning Yunshang Overseas Shopping.

In recent years, the Chinese government has further encouraged the development of cross-border e-commerce by proposing free trade zones and "One Belt and One Road" initiatives. These international policies have further encouraged the development of cross-border e-commerce. The country has continuously increased its support for cross-border e-commerce, and has successively introduced additional cross-border e-commerce. Commercial comprehensive pilot zone, exemption of taxes and fees for some exported goods and other policies.

At the same time, under the severe blow of the epidemic this year, China relied on its own strong internal circulation driving force to be the first to break through the epidemic blockade and achieve economic growth. This also allows domestic and foreign companies to see the huge potential of China's consumer market, and foreign companies are seeking to enter China for consumption. market. At the recent third CIIE, Danone, Nestlé, Abbott and many other multinational companies said that most of their new products will use cross-border e-commerce channels to enter the Chinese market.

During the epidemic, foreign physical stores have closed down one after another. This is an opportunity for Chinese cross-border e-commerce companies that have overseas warehouses to kill the Quartet. Tmall Global, Lazada, Shopee, and AliExpress have all ushered in multiple growths this year compared to the same period last year.

The general environment is friendly to the development of online e-commerce, and China's cross-border e-commerce imports have also increased significantly. For example, the turnover of imported goods during Double 11 on Tmall International, the top player, increased by 47.3% year-on-year.

From a macro perspective, according to customs statistics, in the first two quarters of this year, imports and exports of the customs cross-border e-commerce supervision platform increased by 26.2%, of which exports increased by 28.7% and imports increased by 24.4%. The growth rate of exports has exceeded that of imports.

In the first three quarters of 2020, China's import and export volume through the customs cross-border e-commerce management platform reached 187.39 billion yuan, a year-on-year increase of 52.8%, which has exceeded the entire year of 2019, an increase of 52.8%, which is much higher than the overall growth rate of foreign trade. Calculations show that the overall scale of China's cross-border e-commerce retail exports has exceeded 1 trillion yuan , and the global cross-border e-commerce transaction scale is expected to reach 12.7 trillion yuan in 2020, and it will continue to maintain rapid growth in the future.

Not long ago, the Black Friday Shopping Festival, the most famous commercial street in the United States, New York’s Fifth Avenue, also ushered in a very deserted "Black Friday", with sparsely populated offline people, and the epidemic forced most companies to move online. Thanks to this, the global sales of Amazon platform merchants, from Black Friday to Cyber Monday, totaled more than 4.8 billion U.S. dollars, a year-on-year increase of over 60%. Amazon's transaction volume has soared, which is also a huge growth opportunity for Chinese sellers stationed on Amazon.

From the overall data, we can also see that the import and export transactions of cross-border e-commerce during the epidemic in 2020 are rising against the trend, especially the growth momentum of export e-commerce . During the epidemic, my country's export cross-border e-commerce companies seized the opportunity and became an important force in exporting products abroad.

2

Export cross-border e-commerce companies usher in a dividend period

From the operating conditions of industry companies, we can also explore the cross-border e-commerce market. It is a spring for export cross-border e-commerce enterprises.

Aosen e-commerce mainly sells Chinese products to C-end customers through the official website Aosom or e-commerce platforms such as Amazon and eBay. On July 31, the semi-annual report of Aosen E-commerce, a listed company on the NEEQ, was quite impressive. In the first half of 2020, Aosen E-commerce’s operating income was 1.580 billion yuan, a year-on-year increase of 87.80%; net profit was 170 million yuan. A year-on-year increase of 493.13%.

Regarding the reasons for the growth, the semi-annual report of Aosen E-commerce is very crude and clear: Affected by the global new crown epidemic, the company's online orders have surged, and its operating performance has greatly improved.

This year, Anker (Anker Innovation), a 3C cross-border e-commerce exporter, and SheIn, a fast fashion product, also ushered in a huge performance explosion. On August 24, Anker was successfully listed on the Shenzhen Stock Exchange’s Growth Enterprise Market, and its current market value exceeds 70 billion. yuan. It is reported that SheIn announced at an internal meeting in June that sales have exceeded 40 billion yuan, which is expected to hit 100 billion yuan this year. Many people in the industry said that SheIn is currently preparing to go public, with an estimated market value of tens of billions of dollars.

In the past few years, during the period of barbaric growth in the cross-border e-commerce industry, giants were fighting each other, and the product homogeneity was severe. The industry was fiercely competitive; and cross-border e-commerce settled through overseas accounts, and the entire transaction front was stretched too long. It takes two to three months to enter the account of the merchant, which requires very high capital operation and turnover capabilities. In this severe situation, most small and medium-sized cross-border companies have been eliminated or squeezed out of the market, and the industry has also ushered in a cooling-off period.

With the progress and optimization of infrastructure and technology such as cross-border payment, e-commerce platform development, and cross-border logistics construction, small and medium-sized enterprises such as Aosen e-commerce, Anker, and SheIn can re-emerge and even go public in the field of cross-border e-commerce. Many Chinese brands once again see the dividends brought by cross-border e-commerce, which is a huge growth opportunity.

3

Policy blessing

Unprecedented market opportunity

In the field of cross-border e-commerce this year, the overall import and export policy has also ushered in more favorable conditions, which directly boosted cross-border e-commerce to the forefront.

The Standing Committee meeting of the Political Bureau of the CPC Central Committee held on May 14th, for the first time, put forward the concept of "accelerating the construction of a new development pattern with domestic and international cycles as the mainstay and mutual promotion of domestic and international cycles". With internal circulation as the core and at the same time stimulating external circulation and allowing more foreign brands to enter the country, this new development pattern is a strategic move to reshape my country’s new advantages in international cooperation and competition.

Subsequently, after eight years of long-distance running, the "Regional Comprehensive Economic Partnership Agreement" (RCEP) was finally reached, which is a boost for cross-border people.

In addition to India, the original 10+5 countries have formed the world's largest free trade zone. Simply put, RCEP is an upgraded version of the WTO in Asia, and China's international "circle of friends" is constantly growing. With the favorable RCEP policy and the gradual implementation, tariffs have been drastically reduced, and the efficiency of goods circulation has improved. The global economy led by China is on the rise, and it has also broadened the market territory of cross-border e-commerce.

The signing of RCEP will effectively promote the balance of China's foreign trade import and export development, because the epidemic cross-border e-commerce has also been exposed to the strong "spotlight" of boosting global economic growth, and has become an important part of the development pattern of China's domestic and international dual-cycle system. Now, the opportunity for cross-border e-commerce has really come!