Aru Khan "This year is a great year for cross-border e-commerce." The cross-border e-commerce industry has shown a good situation this year. The relevant person in charge of the Youkeshu Group expresses such feelings. The company was established in 2010 and its positioning is the Internet. +Cross-border trade, one end of the cross-border export business is connected to many domestic small and medium-sized manufacturing suppliers, and the other end is consumers in more than 200 countries and regions around the world.
Under the influence of the global epidemic, import and export trade has been continuously impacted by domestic supply delays, foreign demand delays, and cancellation of foreign trade orders since the beginning of the year, and has been challenged as never before. With the effective control of the domestic epidemic, the return of economic and social activities and the support of relevant policies, China's foreign trade gradually recovered in the second and third quarters.
According to customs statistics, in the first 10 months, the total value of my country's import and export of goods was RMB 25.95 trillion, an increase of 1.1% over the same period last year. Among them, exports were 14.33 trillion yuan, an increase of 2.4%; imports were 11.62 trillion yuan, a decrease of 0.5%. In October, my country’s foreign trade imports and exports amounted to 2.84 trillion yuan, an increase of 4.6%. Among them, exports were 1.62 trillion yuan, an increase of 7.6%; imports were 1.22 trillion yuan, an increase of 0.9%.
In the recovery, cross-border e-commerce and enterprises in the industry chain have ushered in a development opportunity that cannot be missed.
Rise against the trend
The good situation of import and export trade can also be traced from the financial data of another company’s listed company. This is a payment technology company that provides payment + digital solutions as its main business. Its 2020 The interim report mentioned that the company's cross-border and international business maintained a growth of 46% in the first half of the year. "This year's rapid growth in cross-border business made us feel unexpected at first, but everything seems to be reasonable." Tang Wei, assistant president of Huifu Tianxia and chairman of Huifu International, found that the most important driver of revenue growth Power is cross-border e-commerce. "From the perspective of the overall transaction situation, the cross-border e-commerce sector has seen a significant increase in the number of customers and the number of products this year, especially export e-commerce, which has seen rapid growth this year. We believe that in this year's global epidemic, Chinese exporters have seized a rare opportunity and become an important force in exporting products to the world."
Most of Yakeshu’s suppliers are concentrated in the Pearl River Delta. In early March of this year, the factory basically resumed work and production. The demand for epidemic prevention materials on the platform increased sharply. Raincoats, rubber shoes...The factory responded quickly to supply, and the e-commerce platform was launched. These Chinese products were purchased by foreign consumers. As the shopping habits of consumers on the other side of e-commerce are increasingly shifting to online, the goods supplied from the Chinese manufacturing base are also tilted towards basic daily necessities, and household products consumption has become the core of overseas consumption.
"Online conversion in Europe and the United States is the fastest and the most active transactions." Shao, the person in charge of Youkeshu, the platform's backend uses big data to continuously capture transaction information and master hot and new products. The operation team on the front line of sales is extremely sensitive to the store operation team, and they will also feed back first-hand information to the back-end supply chain team to make products.
On the one hand, overseas demand has driven the increase in transaction volume and transaction scale of export-oriented cross-border e-commerce platforms. On the other hand, multinational companies have also increased their cross-border e-commerce channel layout in the Chinese market. At the recent third CIIE, many multinational companies, including Danone, Nestlé, Abbott, etc., stated that most of their new products will enter the Chinese market through cross-border e-commerce channels. “China encourages free trade zones and cross-border E-commerce and other new business forms and models. In the future, we plan to introduce more high-quality nutritional formulas from abroad to meet the growing needs of Chinese consumers, including some world-renowned special formula products," Mead Johnson Greater China CEO Rui Enda told reporters.
The contrarian rise of cross-border e-commerce platforms is also reflected in the statistics. According to customs statistics, in the first half of this year, the customs' cross-border e-commerce supervision platform imports and exports increased by 26.2%, of which exports increased by 28.7% and imports increased by 24.4%. "As a new type of trade, cross-border e-commerce has bucked the trend with its advantages in online transactions, contactless delivery, and short transaction chains, and has played an active role in responding to the impact of the epidemic for foreign trade companies." A spokesperson for the General Administration of Customs, Li Kuiwen, Director of the Statistical Analysis Department, once summarized it at a press conference of the State Council.
Industry chain evolution
The development of cross-border e-commerce has also led to changes in the upstream and downstream ends of the industry chain, with opportunities and challenges coexisting. Upstream of Yikeshu's supply chain are small and medium-sized manufacturing companies in the Pearl River Delta. Although the increase in Yikeshu's trading volume has brought them certain guarantees, on the whole, these small and medium suppliers are still severely affected by the epidemic. "What I can feel is that due to the impact of the entire epidemic this year, the structure of our sales products has undergone great changes, which puts great demands on the anti-risk capabilities of small and medium-sized suppliers and their own internal strength. Our suppliers have changed. It is also very large. Those who are strong and quickly transformed can stay, but some who do not seize the opportunity may be eliminated in the impact," said the person in charge of Youkeshu.
The elimination of the supply chain is far more cruel than the competition of cross-border e-commerce platforms. The person in charge of You Keshu introduced that the new year of cross-border e-commerce has brought development opportunities to enterprises in the industry. "The structure of the cross-border e-commerce industry is very fragmented. Take cross-border e-commerce exports as an example. In the overall volume, even the top companies may share less than 1% of the market share. Statistics released last year. The scale of cross-border export business is nearly trillion, and there is still more room for growth in the future. Under such a scale, the increase of each of the existing cross-border e-commerce companies is not enough to cover the overall increase of the industry." Against the background of this industry, Youkeshu has reorganized its internal governance structure this year, and its business preparation and capital market have been deepened in a more compliant and reasonable direction, and more refined and market-oriented operations have been implemented.
Tang Wei's discovery is: "This year's rapid growth in the scale of transactions has made merchants' demand for capital turnover more urgent." He introduced that the capital turnover of traditional trade is inefficient and complicated. Take export e-commerce as an example. Domestic sellers sell products on overseas e-commerce platforms such as Amazon and Ebay. After receiving the payment, they have to settle the funds to the country, which often takes a "long and painful" process. First, the overseas collection, then the completion of remittance and cross-border settlement, and finally the payment of funds to upstream suppliers, these processes usually take two weeks or more to go down. "But under the epidemic this year, the sales scale of cross-border e-commerce has soared. It is unimaginable and unacceptable if funds are still transferred according to the traditional low-efficiency model. For payment companies, it is undoubtedly a rare opportunity. The faster the settlement of funds can be done, the more welcomed by merchants."
Tang Wei believes that in addition to the "faster" settlement turnover, merchants also hope to obtain more value-added services for payment companies. For example, many merchants need financing services. Huifu World through the docking with multiple banks and financial institutions, based on the transaction data of merchants, helps merchants obtain loans and credit more effectively, thereby further improving the settlement efficiency of the entire industry. "The peak sales season of Black Friday and Christmas is coming soon. The financial services we provide can help export merchants to expand their business more easily and seize more business opportunities." Tang Wei introduced.
It is reported that in August of this year, Huifu World released a new collection product "UPrimer" for cross-border e-commerce sellers. This product directly addresses the problems of long cross-border export e-commerce industry chain, multiple links, slow capital turnover, etc., as well as the demand for value-added services raised by merchants. It can achieve T+0 to complete cross-border fund settlement. This is a Great efficiency improvement. "
Under new demands, the infrastructure capabilities of payment companies are also accelerating upgrades. According to Tang Wei, in order to cater to the new trend, Huifu first strengthened the platform's carrying capacity, and took the lead in the industry to complete the deployment of the cloud native architecture, so that the overall daily peak transaction peak value exceeded 100 million transactions. Stability has also reached 99.995%; secondly, with the help of new technical means, the risk control capability has been strengthened and the risk loss rate has been reduced to 0.007 per 10,000. In addition, Huifu World has also greatly strengthened its digital service capabilities, providing merchants with more private domain traffic operation and marketing tools, so that traditional merchants can easily cross the "digital divide" and accelerate their "migration" to the digital age. .
