Cross-border e-commerce may become the key to the transformation of Enterprises as China's exports embrace new opportunities

The term "e-commerce" is not new to most Chinese people. Taobao, JINGdong and Suning are all large and well-known e-commerce platforms with high daily usage rate. But when it comes to cross-border e-commerce, few people are likely to understand the term. In fact, this is understandable. After all, cross-border e-commerce businesses are more oriented to merchants, so that they can set up shop in foreign countries to sell their products through e-commerce platforms. Among them, amazon, eBay, Aliexpress, Wish and other well-known platforms are the most mainstream.

At this time, friends who are familiar with international affairs may ask, in recent years, the trade war between China and the US continues to escalate, is there still a chance to become a cross-border e-commerce business? Has the market run out of dividends?

The trade war has prompted the transition from traditional trade to cross-border e-commerce, and now is still the best time to enter

According to the data in recent years, although the trade war did have some impact on traditional export trade, it did not have much impact on cross-border e-commerce industry, and even showed a positive trend. At present, the total registration volume of China's cross-border e-commerce has exceeded 100,000. In 2016, 2017 and 2018, the total retail export volume of China's cross-border e-commerce is about 500 billion yuan, 0.7 trillion yuan and 1 trillion yuan respectively. Even under the double impact of the epidemic and trade war this year, cross-border e-commerce exports have maintained a growth rate of more than 30 percent.

So, how cross-border e-commerce managed to maintain growth in such a difficult market environment?

On May 9, 2019, the US government announced that, effective May 10, 2019, the tariff rate on us $200 billion of listed goods imported from China will be raised from 10 percent to 25 percent. With the continuous escalation of the trade war, the United States added another batch of $300 billion list in the later period, and raised tariffs on a total of $500 billion list of goods, greatly increasing the pressure on traditional trade.

In order to reasonably avoid the impact of tariffs, cross-border e-commerce companies have adopted the strategy of dividing goods into parts in the transportation of goods, and continue to import goods into the United States in small batches and with multiple frequencies. The value of a single shipment should be controlled within the duty-free quota stipulated by the US authorities, and imported into the US through commercial express and customs.

The increase in tariffs is also facilitating the transformation of traditional trade into cross-border e-commerce. Why do you say that? The traditional trade exports to the United States, after a large number of tariffs, in order to ensure profits, retail prices are bound to rise, which makes the prices of goods far higher than those of competitors, and ultimately leads to a decline in the purchase rate. Therefore, traditional trading enterprises affected by tariff increase should either directly transform into cross-border e-commerce enterprises with overseas warehouse business model, or cooperate with existing cross-border e-commerce enterprises to make use of their advantages of overseas warehouse delivery to reasonably avoid tariffs.

Cross-border e-commerce may be the key to winning a trade war

Why is cross-border e-commerce the key to winning a trade war?

First, The Diligence of Chinese people is recognized as the first in the world, and the working efficiency is more than ten times that of foreign workers. Therefore, in the B2C and C2C channels of cross-border e-commerce platforms, Chinese sellers have occupied 40% and 60% market shares respectively in just ten years.

Second, although cross-border e-commerce platform and the domestic electric business platform at the same level in the technology and means, but the most developed, the most competitive and innovative ability of the strongest in the domestic e-commerce market, after years of fierce competition for domestic businesses and has a more rich experience, so when cross-border electricity transformation of domestic businesses, business ability is far higher than foreign practitioners.

Third, China has a number of professional cross-border e-commerce platform operators to support brands to go abroad, among which Haofang Group is one of the most mainstream organizations. Holdfast group have the perfect support programs, to the brand cross-border sea provides a supply chain, logistics, warehousing, electricity business operations, brand marketing and other business, a complete set of solutions, even if the brand of cross-border electricity business completely don't understand, holdfast group can also boost brand safe abroad, in order to solve all the trouble back at home.

To sum up, cross-border electricity for "Made in China" was established in the international marketing channel has brought great convenience, in the future, cross-border electricity business operations such as holdfast group will become the new formats for foreign trade development, in the context of the escalating trade war, it will play a more important stable countries export of foreign trade, the role of cross-border electricity will become the key to winning in a trade war with China.