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E-commerce pushes the world into a new trade era

by:VIPUTRANS     2020-08-01
   The outstanding performance of Chinese e-commerce companies under the epidemic has allowed the world's trading entities to find a new focus on restoring economic momentum. The practice of Chinese e-commerce companies such as JD.com is not only reflected in the huge value of the coordinated and efficient operation of supply chain, technology and logistics network, but also in the use of speed to empower all production factors, and the resulting 'multiplier effect' will be profound It will change the way and pattern of world trade and push the world into a new trade era.

   The 'counter-attack' of e-commerce under the epidemic has allowed the world's trading entities to find a new focus on restoring economic development and push the world into a new era of trade. However, although it has been unable to adapt to the needs of the new trade era, the traditional trade rules are still continuing. The industry expects that the practices of Chinese e-commerce companies such as JD.com can provide reference for other countries.

   '618' turns the world into a 'big bazaar'

June 14th is JD International’s monthly 'Import Day', and the ongoing '618' promotion has almost turned the world into a 'big bazaar', among which 30,000 new overseas products are debuting on JD.com. 618'.

   According to data from JD.com, on June 14, JD International's full-day turnover increased by more than 170% year-on-year. On that day, products from more than 27 countries, including Japan, the United Kingdom, and New Zealand, grew by more than 100% year-on-year. Among them, brands from popular countries such as the United Kingdom, Japan, New Zealand, and South Korea showed outstanding growth.

Judging from the sales of TOP10 items on June 14th, the 'economy of beauty' is very hot, 8 of the TOP10 products are occupied by beauty products; maternal and child products and electrical appliances from all over the world are also popular choices for Chinese people. New Zealand The imported a2 platinum version of infant formula 3 stage and Nintendo Switch Japanese version of the game console are among the TOP10 single products.

Judging from the data of all categories, bright spots of good performance have appeared in each category: the turnover of imported health and antioxidant products increased by 300% year-on-year, and the overall trend of sports products increased by 300% year-on-year. The total amount of imported health products sold on the same day was Covering 20 football fields, the oil sold by Wal-Mart’s overseas flagship store can be used for 3,000 cars for two years. The Bina’s propolis mouthwash sold that day can fill five standard swimming pools.

   The popularity of the Chinese market even attracted the attention of some ambassadors to China. On the evening of June 14th, New Zealand Ambassador to China Fu Enlai and Chilean Ambassador to China Luis Schmidt walked into the official live broadcast room of JD International to broadcast live broadcasts of famous brands of specialty products in their respective countries. Brought goods and attracted nearly 7 million viewers.

   Driven by consumption upgrades, Chinese consumers’ demand for imported goods has become more diversified and refined. In response to this trend, on November 22 last year, JD.com upgraded its large import business strategically, integrating cross-border products and general trade imports under JD.com, and officially launched the country’s first consumer platform that fully focuses on large import businesses-JD.com International, to create a reliable one-stop consumer platform for imported goods.

Different from the previous scenario where imported goods are distributed in various categories, JD International covers all imported goods on JD’s platform. As long as consumers enter JD’s international channel, they are equivalent to entering a hypermarket of imported goods. Almost all categories of imported goods such as fresh, luxury goods and daily necessities.

   It is reported that the new product business has always been an important part of JD International's strategic layout. Statistics show that in the first half of 2020, more than 600 overseas brands have released more than 3,000 new products on JD International.

   In order to help overseas brands better enter the Chinese market, JD International has provided multi-channel joint marketing tools in the station, and created a 'new plan' to build a 'fast lane' for overseas brands and high-quality products to enter the Chinese market.

   As of May 2020, the JD International Investment Team has introduced thousands of new brands, attracting more than 500 new stores, among which are Nutricia, Abbott, Mead Johnson, DHC, Nestle and other world-renowned brands. At the same time, JD International also attracted large department stores, chain groups, and online stores such as the famous Korean department store brand AK PLAZA, Japan's major drug cosmetics, and the German 3C shopping website Computer Universe.

   E-commerce becomes an important platform for overseas brands to enter China

   The key to boosting the growth of consumer demand in 2020 is still in China, and if you want to leverage the Chinese market, you will inevitably have to avoid e-commerce.

Affected by the new crown pneumonia epidemic, many international brands are currently experiencing 'stop work': in the United States, Apple announced the temporary closure of offline retail stores in all regions except Greater China; in Switzerland, the famous watch brand Rolex announced the closure of three domestic factories; In Italy, the luxury Kering Group announced the closure of 6 factories of its brand GUCCI and all stores in Italy; in France, Hermès decided to close all of its 42 factories, and Chanel also announced the suspension of production on March 18...

   Under the epidemic, luxury goods are undoubtedly one of the most severely affected industries. As the domestic epidemic begins to slow down, the Chinese market that is gradually recovering is naturally placed high expectations by major luxury goods companies.

   However, for top luxury brands that rely more on stores, it is obviously unrealistic to rapidly expand offline stores. In addition, unlike the structure of foreign luxury consumers, domestic luxury consumers are younger and have long been accustomed to socializing and shopping online. Therefore, choosing a platform with high-quality consumer groups and strong logistics capacity to support cooperation is undoubtedly a shortcut for international luxury brands to expand into the Chinese market.

   On March 5th, the Belgian Royal Royal Brand Delvaux opened the world's first online flagship store on JD.com. As a world luxury leather goods brand with a history of 190 years, Marco Probst, the global CEO of Delvaux brand, said that Delvaux is extremely cautious about the first step of starting an online journey. 'JD is unique in that it can guarantee the authenticity of the products. It can provide high-end services as promised. We look forward to consolidating this high-quality partnership while exploring the Chinese e-commerce market.'

   Then, a wave of entrants emerged on JD.com. Internationally renowned brands such as Goossens, a jewelry workshop under the Chanel Group, Smythson, a leather goods brand for the British royal family, Benellid, a long-standing Italian motorcycle manufacturer, ONNURI, a South Korean company with 2,100 chain stores, and Nutricia, a medical nutrition brand from the Netherlands Landed on Jingdong and opened an official flagship store.

   Zhao Ping, director of the International Trade Research Department of the China Council for the Promotion of International Trade, said that under the constantly open and inclusive business environment, many overseas brands are eager to try the vast Chinese market, and e-commerce has become an important platform for overseas brands to enter the Chinese market. The e-commerce platform provides an efficient and low-risk channel for foreign brand owners. New products can enter the Chinese market through small-scale and high-frequency methods. At the same time, the e-commerce platform can also meet the individualized and diversified consumption needs of imported goods of domestic consumers by introducing foreign brands and categories on a large scale.

   For these international brands entering JD.com, what JD.com can bring is not just a high-quality online sales channel for the Chinese market.

Xu Lei, CEO of JD Retail Group, said: “Because of this epidemic, JD’s business model has made suppliers more aware of the importance of strengthening cooperation with JD. JD’s omni-channel construction will be faster than before, and at the same time. It has the active participation of suppliers.'

  E-commerce may reshape the world trade pattern

From the perspective of the industry, the impact of the new crown pneumonia epidemic on international trade is self-evident, but careful observation is not difficult to find that the 'counter-attack' of e-commerce under the epidemic has brought new light to international trade and brought new light to international trade. A new focus has been found to restore economic development.

   Thai Chinese Chamber of Commerce Chairman Lin Chuqin said that in this era of unprecedented interconnection of all things, the epidemic has restricted people's travel and cut off interconnection, but e-commerce platforms have played a huge role with their powerful logistics chains.

'In this epidemic, we have seen the great value of the coordinated and efficient operation of e-commerce and logistics companies such as JD.com and SF Express, such as excellent supply chain, technology and logistics network.' Lin Chuqin said, promoting e-commerce, especially cross-border e-commerce. The development of foreign trade is not only the general trend of traditional foreign trade transformation and upgrading, but also an inevitable move to actively respond to the epidemic and effectively hedge the downward pressure on foreign trade growth.

Ma Shuzhong, a professor at Zhejiang University, believes that global trade e-commerce will become normal after the epidemic. The reason is that trade e-commerce not only guarantees the virtualization of the transaction process, but also effectively reduces the frequency of offline contacts between the two parties. The scope of inclusiveness of transaction subjects allows small and medium-sized enterprises that cannot carry out activities relying on traditional trade models to participate in international trade with the help of digital platforms, making it possible to tide over the crisis smoothly.

   More importantly, in the context of economic integration and trade globalization, e-commerce has not only broken through the barriers between countries and enabled international trade to move towards borderless trade, but also triggered changes in world trade.

   Professor Wang Jian of the School of International Economics and Trade of the University of International Business and Economics believes that the development of traditional trade from a regional to a global one is mainly driven by the innovation of transportation vehicles and the revolution in communication technology. With the rapid development of Internet technology, world trade has changed in terms of commercial existence, enterprise management, and trade methods. The most obvious role of e-commerce platforms is to bring the distance between enterprises and consumers closer, because the more information about goods The more symmetrical, consumers can see products of various countries on the Internet, and companies can also learn about user preferences and other information feedback through the platform. 'This is hard to imagine in traditional general trade.'

Simply put, e-commerce is making the world smaller and the market bigger. It can always connect many scattered and very uneven markets in the world into a single big market, and allow everyone to enter this big market. Make transactions with each other.

In fact, driven by e-commerce, the globalization and virtualization of the international division of labor continue to increase, prompting the global market to optimize the allocation of resources with the support of information technology, and achieve Pareto improvement. This new change has caused international trade. The change in the pattern has promoted the transformation of international trade methods. The industrial products that originally dominated international trade have been replaced by information products.

   But this does not mean that there is a smooth road ahead of the new global trading system.

   A report by Accenture, a well-known international consulting agency, believes that although it has been unable to adapt to the needs of the new trade era, traditional trade rules are still continuing. In addition, a large number of fragmented and customized orders have been generated in cross-border trade, and their business path is very different from traditional 'container orders'. However, governments of various countries have not yet established a new regulatory model, and many rules such as related tax collection and management standards and technical standards have yet to be determined.

  Because of this, industry insiders said that the international community is now very concerned about the development of China's cross-border e-commerce, and hope that the incubation of practices and rules of JD.com can provide reference for other countries.
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