Cross-border e-commerce boosts trade and SMEs
Chinese online retailers are stepping up efforts to expand their presence in overseas markets as part of a broader drive to diversify revenue sources and guard against the negative effects of the COVID-19 pandemic, officials said. industry experts.
They added that cross-border e-commerce is playing an increasingly important role in stabilizing China’s foreign trade and accelerating the digitalization push of small and medium-sized enterprises.
Online discounter Pinduoduo Inc recently announced plans to invest 10 billion yuan ($1.4 billion) to help Chinese manufacturing companies increase their global reach. In the first phase of the initiative, Pinduoduo will help 100 Chinese brands go overseas and support 10,000 manufacturers directly connected to overseas markets.
It will provide infrastructure services, including warehousing, cross-border logistics and after-sales services, as well as tailor-made courses for domestic manufacturers who will benefit from the long-term preferential policies of zero deposit and zero commission, it said. the society.
“We will learn from successful domestic experience and increase investment in scientific research and technology to better serve Chinese manufacturers’ overseas business operations,” said Chen Lei, chairman and CEO of Pinduoduo.
He pointed out that the company’s cross-border e-commerce business will not just repeat what others have already done, but rather strive to create its own unique value. Chen said on a conference call with investors in September that the company was exploring new business opportunities, including entering overseas markets.
Pinduoduo’s latest move coincides with the trend of Chinese suppliers selling their products worldwide through cross-border e-commerce platforms amid the COVID-19 pandemic which has severely affected international trade.
Last month, the Shanghai-based company launched its cross-border e-commerce platform named Temu targeting the US market, the company’s first overseas destination.
Products sold on Temu span a wide range of categories, including apparel, consumer electronics, jewelry, shoes, bags, cosmetics, baby products, and pet supplies. The platform will focus on US consumers who are inclined to buy profitable products. For example, most of the deals are daily necessities priced under $10.
“Chinese e-commerce platforms are accelerating their establishment in overseas markets to seek new sources of revenue as the growth of the domestic e-commerce industry slows down,” said Zhang Zhouping, senior analyst of business-to-business commerce and cross. -frontier activities at the Internet Economy Institute, a national consulting firm.
As a new channel for foreign trade, cross-border e-commerce has become a key avenue to mitigate the impact of the pandemic on foreign trade. It also plays a crucial role in encouraging traditional foreign trade enterprises to create new brands, Zhang said.
China will also introduce policies and measures to support the development of cross-border e-commerce and overseas warehouses, according to a notice issued by the Ministry of Commerce in September.
Chinese fast fashion online retailer Shein is expanding its facilities in the United States with plans to open two more distribution centers, which could help shorten delivery times to its customers by three to four days, the Wall quoted. Street Journal George Chiao, president of Shein’s US operations, as they say.
The company opened its first distribution center in Whitestone, Indiana, in April. The additional warehouses will significantly improve delivery efficiency, as it currently takes Shein customers 10-15 days to receive their orders, according to the report.
Known for its ultra-low prices and huge selection of fashionable clothes, Shein overtook Amazon in app downloads on U.S. mobile platforms for the first time in the second quarter, the data analytics firm said. Sensor Tower mobile apps.
“Cross-border e-commerce platforms have become an efficient and convenient way for traditional manufacturing companies to expand their presence overseas. They can help micro, small and medium enterprises open up new markets,” said Lyu Gang, a researcher at the State Council Development Research Center.