Tmall HK was put into service in Feb, 2014; Amazon started its overseas online shopping platform in Nov, 2014; NTES unveiled Kaola.com in Jan, 2015…. Nowadays, cross-border e-commerce service market has become a new potential field for enterprises to compete for. But is there any connection between cross-border e-commerce and "Internet+"? Where is cross-border e-commerce heading?
"Internet+" is promoting the tendency of oversea shopping
With the nation's strategy of "Internet+", more and more mutually connected online areas are created, and internet governance policies in general are becoming more and more clear. Not a few insiders show that cross-border e-commerce is seeing a great opportunity for development in China.
Recently the Ministry of Commerce released the Action Plans on "Internet+ and Circulation", which mentioned that China should promote the development of cross-border e-commerce and expand it into the overseas market.
Zhang Yaowen, Senior partner of AIS (Analysys International Solution), thinks overseas shopping business is a way for "Internet+" to promote the integration of global supply chains. It is not only a competition of products, but also a competition of general commercial ability – convergence services, logistics and resource integration.
"Cross-border e-commerce recreates the original import and export trade chain," Zeng Bibo, the founder and CEO of Ymatou said, "it improves the goods circulation efficiency and reduces circulation costs through shortening the lengthy industry chain in traditional trade, and the Chinese customers will ultimately benefit from it ."
Cross-border e-commerce causes industry reform
According to the data from the Ministry of Commerce, the number of Chinese shoppers buying foreign brands is expected to be 35.6 million in 2018, with a yearly expenditure of about 1 trillion RMB.
Facing this huge market, many cross-border e-commerce platforms are changing the patterns of doing business and creating advantages for themselves. Some of these platforms not only guarantee the quality of their products, but also cut the prices by at least 30% compared to traditional oversea trading.
Ge Daoyuan, CEO of Amazon China, said, "e-commerce in China is in a period of fast development, and the awareness of consumers is getting more and more mature. They know exactly what they want and pay more attention to the quality of their products. They want to know whether the shops get goods through regular channels and sources, and how they can guarantee the quality of their products."
Zhang Lei, CEO of Kaola.com, believes the rise and development of cross-border e-commerce will deeply change people's ways of consumption.
Expectations of new Internet infrastructure emerging from e-commerce
Under the name of "Internet+", Chinese government is promoting the internet industry. A large number of traditional enterprises are transforming into internet businesses, creating many new online commercial activities.
Misconceptions about e-commerce appear because of the asymmetric information available in the traditional marketplace. There are many obstacles in physical space in the traditional retail business and distribution sectors, while the internet can just solve this by allowing customers to choose what they want instantly..
As for the the new types of Internet construction, Shan Ren, who holds a Masters in Economics and is now the chairman of Shan Ren Information Group, says the current online environment is quite mature., with new forms of commerce appearing and chalenging the entire idea of trading
"We have seen China is embracing e-commerce, which is not only an opportunity for any company but also a huge responsibility." Ge Daoyuan said, "we hope all sellers can make an effort to set up a formal market system, making Internet shopping the 'Online Silk Road'"