General

As a new form of international trade development, cross-border e-commerce in China has flourished in recent years. According to data recently disclosed by China Customs, in the past five years, China's cross-border e-commerce import and export volume has increased from 1 trillion yuan in 2018 to 2.11 trillion yuan in 2022. More and more "Made in China" have entered the international consumer goods market through cross-border e-commerce.

As many countries have gradually relaxed international travel restrictions, several industry insiders expressed in interviews with reporters that this year China's cross-border e-commerce "going to sea" development will usher in a new adjustment period, and how to better "go to sea" and "break through" in the new situation has become a common concern in the current industry.

What are the development trends of cross-border e-commerce?

Since the optimization and adjustment of epidemic prevention and control policies, China's trade and personnel exchanges with the world have entered the "fast lane". When talking about the new situation faced by China's cross-border e-commerce this year, Ruan Weixing, the founder of China's cross-border e-commerce fair, said that "globalization" is an important keyword.

He pointed out that since the outbreak of the epidemic, cross-border e-commerce has become a new highlight of China's international trade growth, and its importance has further increased. As China enters a new stage of epidemic prevention and control, more and more Chinese cross-border e-commerce will go abroad through exhibitions to select and purchase products in overseas markets, achieving the goal of "buying the world and selling the world.".

Due to the impact of the epidemic in the past three years, the global cross-border e-commerce ecosystem has also undergone profound changes. According to Deng Hai, the general manager of Fujian Miduo Network Technology Co., Ltd., "digitization" is another trend that deserves attention. Based on the development trend in recent years, he believes that the next stage of dividends for cross-border e-commerce may come from the efficiency and certainty brought by the full process digitization.

"In recent years, traditional foreign trade is undergoing transformation, and cross-border e-commerce is upgrading. Digitalization is not only a trend that enterprises need to comply with at present, but also a necessary 'weapon' for future development." Deng Hai pointed out that not only the government is promoting digital scenarios, the platform is strengthening digital empowerment, and service providers are experimenting with the application of digital technology. Frontline enterprises have shown strong interest in digital development.

"From the perspective of trends, digital technology driving will be a powerful starting point for the development of cross-border e-commerce in the future." Deng Hai pointed out that the so-called technology driving includes digital marketing, technology research and development, etc., and cross-border e-commerce can explore its own driving force through digital industry trends.

How to better "go to sea" and "break through"?

Under the new situation, China's cross-border e-commerce development has ushered in a new period of opportunity, but the next step of "going to sea" and "breaking through barriers" also faces new challenges.

First, the ability to resist risks needs to be improved. According to industry insiders, in the post epidemic era, cross-border e-commerce enterprises have moved from a competition focused on customer acquisition efficiency to a competition stage where "customer acquisition+transformation+delivery+operation" is an integrated efficiency optimization solution. In this regard, cross-border e-commerce needs to further "strengthen their muscles and bones", enhance their ability to combat uncertain risks, enhance the ability to operate international trade across the entire chain, and strive to achieve receipt of orders, delivery, and payment.

Secondly, product quality requirements have been improved. In Deng Hai's view, after years of reckless dividend period, China's cross-border e-commerce is gradually moving towards standardized development. In the past, cross-border e-commerce relied more on low-cost manufacturing products and Internet traffic to drive sales, but now the dividend on cross-border e-commerce Internet traffic is gradually receding, and the market has higher expectations for the R&D and technological content of China's cross-border e-commerce products.

Deng Hai said that in the past, the development model of OEM had once placed China's manufacturing industry at the bottom of the "smile curve" of low value-added. Now, through cross-border e-commerce, China's manufacturing industry has entered the left and right ends of the "smile curve". Chinese enterprises are beginning to enjoy more international division of labor and more profit distribution, while also having greater voice and pricing power.

Third, the new economic and trade rules require a high degree of mastery. Chen Danfeng, Chairman of Fujian Huiyuan Cultural Development Group Co., Ltd., pointed out that the entry into force of the Regional Comprehensive Economic Partnership Agreement (RCEP) has brought liberalization and facilitation of investment and trade to China's cross-border e-commerce, but it is also accompanied by new challenges. China's cross-border e-commerce needs to further establish a compliance awareness, improve the ability to utilize RCEP in compliance and at a high level, and better transform challenges into opportunities.

Currently, some cross-border e-commerce companies are facing pressure from increased logistics costs, as well as related issues such as compliance with international freight contracts. In response, Liu Bo, Chairman of Fanding International Group, suggested that in the future, China's cross-border e-commerce should also conduct preliminary research work in various aspects before "going to sea", and be familiar with the new local economic and trade regulations to reduce corresponding legal disputes. "If we do a good job in all aspects, we can win the trust of more international trade buyers and increase their procurement of Chinese goods."