This is often needed because culture, consumer behavior and customer expectation differ by region. The Basic Situation of China’s Foreign Trade and Cross-border E-commerce Market Transaction Size. Similarly to U.S. buyers, consumers in developed countries and areas like these use websites to evaluate a brand’s trustworthiness before buying, either onsite or on a marketplace. The literatures we collect are published in four years and we think that newly published papers can more truly reflect the development of the Cross-border E-commerce industry, and also help us collect more valuable information. After years of innovation and development, E-commerce trade in China has gradually formed a. The three managers positioned ABL company as a “Foreign High-quality Cosmetic Brand Agent”. In China and the US alone, half a billion online shoppers surf the web each day for the best deals. Through literature research, we learned from the framework and content of other scholars in case studies, and also summarized the current macro-environment of China’s Cross-border E-commerce industry, as shown in Section 2. The qualified dealers through this platforms are only those who will have been invited. At present, the company’s core work of development is to increase brand awareness through multiple marketing methods. Don’t miss a post. PDF; Size: 9 MB. Secondly, in terms of PRODUCT, the company needs to further improve the official website’s information on product and brand introductions, funnel the currently-cooperated brands, and promote marketing of brands with high sales, recognition, and customer loyalty. 1With the approval of the company’s three managers, the full name of the company is replaced by ABL in this paper. Foreign businesses that have set themselves up on Chinese CBEC platforms are reaping the rewards. It is both a challenge and an opportunity for the newly established Cross-border E-commerce cosmetics ABL company. What if you are ready to invest in international expansion and localization to own a brand new market long before your competitors? Global “Cross-Border E-commerce Platform Market 2020-2025” Research Report categorizes the global Cross-Border E-commerce Platform by key players, product type, applications and regions,etc. The tax rate deduction is an encouraging sign for brands who want to invest in the Chinese market. Download. In all, depending on where you are launching your international presence, you may want both a marketplace and a webstore presence. has been so prevalent that they begin to play an important role in foreign Cross-border E-commerce has the advantages of low threshold, few links, low cost, short cycle, etc., and it has been booming in the global scope [2] [3] . Each platform has also expanded its overall market size while competing with each other. Read More. The adoption and penetration of ecommerce in international markets are key indicators of whether you should invest efforts and resources in specific countries. The current payment technology is still difficult to take into account both safety and convenience. The results are shown in Table 2. Cross-border e-commerce has become a new growth and profits motor in the province's foreign trade. They are, however, open to third-party sellers from both within China, and cross border sellers via their JD Worldwide program. The “Product History” dimension requires the brand to have a sales life of 10 years or more. Thirdly, the SOCIAL environment. This paper would take the E-commerce company named ABL. This mode of eCommerce allows online sellers to sell products to desperate customers situated across the globe. In order to make those two final aspects occur, you will need dedicated region-specific websites. Second, we have recorded the contents of the interviews so that we can be summed up later. Download article (PDF) Proceedings 2016 International Seminar on Education Innovation and Economic Management (SEIEM 2016) Part … This ultimately means an increase of 12.7% compared to last year. This is the act of selling products from outside of China (warehoused and fulfilled) and shipping them B2C (business to consumer, 1 by 1) into Mainland China. Brands are yet to fully achieve this hence creating a precious opportunity. E-COMMERCE, TRADE AND THE COVID-19 PANDEMIC . Outside of the United States and Canada, here are the top 5 countries in terms of “Active Ecommerce Penetration:”. Cross Border E-Commerce is what we talk about a ton here at Global From Asia. The IPC Cross-border E-commerce Shopper Survey 2019 provides a comprehensive analysis of the global trends and drivers shaping cross-border e-commerce from the perspective of online consumers. Moreover, new forms of online shopping, such as cross-border shopping, have strong potential for development and play an important role in stimulating economic growth [6] . In December 2017, we conducted in-depth interviews with three managers in two separate occasions. For cross border e-commerce in the Chinese territory, TMall, is the second on the list of such top platforms. Some companies have achieved a successful transition, while others have been eliminated. Cross-border E-commerce has promoted the transformation and upgrading of “Made in China”. E-commerce Project Course Plan Example. This will take cross-border annual sales from $300 billion to $900 billion. However, technologies such as payment and logistics still need to be further optimized. This will help ensure the quality, safety and reliability of the products. via marketplace platforms such as Amazon or eBay. The company’s WeChat public number has more than 400,000 fans, and its monthly turnover is close to 6 million yuan, with a gross margin of approximately 30%. How cross-border e-commerce is internationalizing Double-11. Start by exploring our interactive map. Kaleido estimated high adoption of cross-border orders across Europe and Latin America; with cross-border e-commerce … Merchants who extend product offerings to international customers boost sales by 10-15%. Cross-border E-commerce refers to the new type of export trade means by which companies and individuals use E-commerce to integrate the upstream, downstream, and related resources of the industry chain, and electronically display, negotiate and deal in traditional import and export trade [1] . Self operated Logistics. This has created development opportunities for ABL and other professional Cross-border E-commerce cosmetics companies. By PYMNTS. At the same time, ABL has established service departments such as marketing, customer service, and beauty specialists, and rely on its parent company to provide information technology to support the operation and management of downstream agents. Statistics of China’s GDP and Disposable Income of Urban Residents over the Years. In actual operation, ABL is mainly responsible for the brand operation, sales, and customer service of foreign high-end cosmetics. The ABL company operations manager showed us the company’s operational data, including the number of core users, the number of WeChat public number fans, and operating revenue. We have formulated 10 questions in advance, such as “Share the company’s founding process and reasons?” and “How do you view the current macro environment of the Cross-border E-commerce industry? Therefore, we believe that at this stage, ABL should take into account both online and offline channels, which can ensure a stable source of profits and lay a foundation for the long-term development of the company. ABL is focused on creating a dual channels E-commerce platform. Currently offline sales channels include shopping mall counters, cosmetics stores, beauty salons, and individual direct sales. In 2014 and 2015, several government departments launched multiple specific projects to facilitate cross-border trade, which have accelerated the development of Cross-border E-commerce industry. Overview of China’s Cross-border Ecommerce MarketRead Now Must-know China Cross-border E-commerce Rules for Foreign PlayersRead Now Q1: What products can be shipped to China? The website platform operated by ABL company has accumulated close to 50,000 core users. It cannot be overlooked that ABL must also enrich the forms of offline services and optimize the quality of services. Cross-border B2C e-commerce sales amounted to $404 billion in 2018, representing an increase of 7% over 2017. For the public relations, it is mainly through news media coverage to increase the visibility of platforms and product brands. In conclusion, we believe that the biggest bottleneck in the current ABL Cross-border E-commerce company’s development is that domestic consumers have low awareness of the product brand. For example, in April, cross-border web sales grew 7% year over year, while such sales surged 42% in May, bringing total U.S. cross-border ecommerce growth to 10.2% from January to mid-June. The company has maintained a steady growth from its establishment through the differentiation of product brands and company positioning, combined with online and offline dual channels. We believe that companies should carry out long-term strategic planning and implement appropriate marketing activities to win in fierce competition. The first interview was with the general manager of ABL, Manager Wang. Figure 2. By Li Ruikang Share . Source: According to the Content of the Interview. The core work of the company was brand introduction and brand marketing. The three managers all emphasized that ABL company would sell the products as an agent only if these three criteria are met at the same time. For example, policies, social and cultural aspects” and “How about the ABL’s strategy positioning?” and other issues. In addition, the brands of product with low domestic reputation, platform operating mode and sales channels and other aspects of lack of innovation, it is difficult to form a lasting competitiveness. (2) Identifying tax evasion risk . Today, consumers around the world can shop your website, price compare on marketplaces, schedule to test your product in-store or over a video conference line, and connect via social media, all within the same day. ABL company should also organize beauty knowledge sharing sessions and community activities to increase consumer awareness of the brand, and can also use WeChat account number and new Internet media such as webcast platforms to promote the sales of products. smooth and simple supply chain with corresponding technologies in the areas of trade, logistics, service and financing, and the technologies have been the leading international level [21] . As we mentioned above, retail imported goods have to be on the “List of Goods under Cross-border E-commerce Retail Importation”. In recent years, the Chinese government has attached great importance to the development of Cross-border E-commerce and actively guided enterprises to develop Cross-border E-commerce business and created a favorable policy environment for Cross-border E-commerce companies [16] . The subject of the interview is the general manager, operations manager and marketing manager of ABL. The E-Commerce Package includes the Framework of Standards on cross-border e-commerce as well as documents supporting its implementation. Finally, ABL company has the unfavorable factors such as short operating time and limited funds on the E-commerce platform. Figure 3. This is an important break in the development of cross border e-commerce. Secondly, the ECONOMIC environment. For “Sizable Sales”, this requires that the product be ranked in the top 10 in terms of sales of the same type of product in the country of origin. ABL analyzes internal and external factors, and targets its target consumer groups as high-income women, providing these consumers with safe, reliable and world-class beauty products. While JD.com accounts for less than 20% of the Chinese ecommerce market, their cross border seller fees are way lower than those of Tmall.hk. ABL three managers believe that the market positioning focusing on high-income women is in line with the company’s mission and strategic positioning, but also to ensure the profit of product sales. While the benefits of running a cross border eCommerce business are many – from significantly expanding the shopper base to being able to test seasonal merchandise across different markets – it is not without its own challenges. Download. The Internet has played a positive role in promoting the development of traditional industries, but different companies or industries have their inherent development rules. Because the proprietary model is a self built enterprise system, it has better stability. 3. Now that you have a general understanding of cross-border commerce basics, the next chapter will walk you through the risks and rewards you should know about before you launch. However, the regulation is now more strict for cross-border e-commerce: brands will need to make sure to follow the rules, avoid shady methods such as Daigou, … Foreign businesses that want to access the Chinese cross border e-commerce (CBEC) market first need to choose their model. Understanding China’s comprehensive pilot zones for cross-border e-commerce. Flipping the currency switch on your ecommerce backend: How To Write Product Descriptions To Grow Sales [Samples Below + Updated in 2020], The Complete Guide to Advertising on Facebook: Strategies That Convert [in 2020], The Results Are In: The 22 Best Ecommerce Website Designs of 2020, Ecommerce Shipping: Your Step-by-Step Guide to Shipping Profitability, 33 Ecommerce Conversion Rate Optimization Steps Guaranteed to Increase Sales in 2020, The United Kingdom – 76% of the population, United Arab Emirates – 62% of the population, United Arab Emirates – 47% market penetration, Creating a country or region-specific shipping zone. cs.iusb.edu. The per capita disposable income of Chinese residents has steadily increased, laying the foundation for the prosperity and development of the online shopping market. In 1994, Jeff Bezos founded Amazon in Seattle, Washington, USA. By far, the State Council has approved five batches of 105 comprehensive pilot zones for cross-border e-commerce (CBEC pilot zones), covering almost all the provinces except for Tibet. Finally, in terms of PROMOTION, ABL can add entries in Baidu and other search engines to facilitate customer inquiries about product brand information. Here are the top 5 countries for mobile commerce (again not including the U.S. or Canada): To alter these numbers a bit, let’s take a look at the top countries with the fastest growing mobile commerce consumer base, accounting even for the U.S. and Canada: As more and more emerging markets are exposed to new technology and easy internet access, ecommerce will begin to grow in those areas as well. These factors will restrict the further development of the company. In one example … Required fields are marked *. B2C e-commerce was valued at $4.4 trillion, up by 16% from 2017. The basic situation is shown in Figure 1. The COVID-19 outbreak coul It was extremely easy, and it makes our lives easier on the back end of things. I congratulate WORLDEF for their work. Key to reducing barriers for cross-border e-commerce shipments is to offer them as “duties pre-paid” shipments – that is, the seller pays the duties in advance and incorporates that cost in the sale price. WeAreSocial in collaboration with HootSuite and GlobalWebIndex calculate market adoption and penetration for cross-border commerce based on the percentage of the national population that had bought something online in the past month. Digitally awaresocieties, where digital influence is growing rapidly from a very small base in the face of constraints such as a modest-size middle class and a weak fintech ecosystem—e.g., Kenya, Morocco, Nigeria, South Africa, and the Phili… It is exciting news for foreign businesses as cross-border e-commerce is an efficient way to get a slice of the China retail market without actually setting up an offline store in the country. Through literature review, it can be found that some scholars use a certain city in China as an example to analyze the Cross-border E-commerce enterprises in the city facing the external environment. To grow internationally, merchants must focus their e-commerce operations on hyper-localizing the experience -- from becoming an expert on tax laws around the world, to reducing avoidable authorization declines through superior customer experiences. It only took 103 hours for the parcel in the above example from order to clearance. Consumers can experience cross-border e-commerce retail services here. Spotlight Countries . Cross-border e-commerce is widening access to the international market and Source: BuiltWith/Shopify. In recent years, the annual growth rate of China’s Cross-border E-commerce market has remained at around 30%, and its share in foreign trade has increased year by year. The Council adopted these rules by Directive 2017/2455 in December 2017 and Directive 2019/1995 in November 2019 (VAT e-commerce Directives). benefit from looking at greater international cooperation to facilitate cross-border the movement of goods and services, narrow the digital divide, and levelthe playing field for micro, small and medium-sized enterprises (MSMEs). The “Award” dimension requires the product or brand to be awarded in the field of international cosmetics. Source: According to the Statistics Released by the National Bureau of Statistics of the People’s of China, http://www.stats.gov.cn/tjsj/. Let us future-proof your backend. 4. A growing share of e-commerce involves cross-border sales and therefore contributes to international trade. As cross border e-commerce becomes a more recognized and prominent channel, it is also being regulated by the government. It has been recognized that Alternative Dispute Resolution (ADR) will be a helpful means of solving the growing number of e-disputes. The USA Position on E-Commerce 7. Although the government has actively promoted a number of related policies and measures to support the development of Cross-border E-commerce, there are still difficulties in the management of customs services, intellectual property, etc., which has restricted the development of Cross-border E-commerce to a certain extent [17] . A variety of operational strategies are coordinated with each other to adapt to the current development requirements of the ABL company. The operations manager believes that these data can reflect the company’s development potential. Comparative Analysis of Three Cross-border E-commerce Cosmetics Companies. In addition, literature [14] [15] also adopted the “PEST” framework for macro-environmental analysis. Since 2014, China’s Cross-border E-commerce competition has become increasingly fierce. Cross-border e-commerce (CBEC) industry is undergoing major policy changes. We’ll dive more into this later in the guide –– but you can jump ahead here if you’d like. In 2012, Cross-border eCommerce sales reached $300 billion-, while global online trade is expected to soar to $1.4 trillion by 2015, presenting multi-channel retailers with limitless business opportunities for international expansion. The Top 3 China Cross-border Ecommerce PlatformsRead Now #1: Tmall: The Biggest Player Backed … believe that although the current macro environment has many favorable factors for the development of ABL company, compared to other related platforms, the newly established ABL company has no absolute advantage in Cross-border E-commerce operations. The company’s parent company is Guangzhou Donghong Mobile Media Technology Limited Company, and Donghong’s main business is mobile information technology services and it has been identified as a high-tech enterprise by government. GO EU Commerce is your direct B2C global logistics solution with its own e-commerce platform built and designed especially for non-European web shops to manage their European e-commerce shipments. PDF; Size: 1 MB . The ABL company also uses advertising and public relations for product marketing. At. File Format. e. katsh in ‘law in a digital world’: “t he data highway of health or commerce or education can be the source of as much litigation as the paved highways of the physical world.” online dispute resolution as a solution to cross-border e-disputes an introduction to odr esther van den heuvel Enterprise Ecommerce / How to Sell Online. Wang et al. Wang &He provided advice for the development of the Zhejiang Free Trade Zone, including suggestions for optimizing the customs supervision model and strengthening the training of talents [11] . Therefore, we hope to, Figure 1. Source: According to the Content of the Interview. Looking ahead for cross-border e-commerce. The online channels mainly include PC-side shopping websites and WeChat service numbers, as well as Tmall.com International and JD.com Global, for the purpose of sales expansion. Within 3 - 5 years, the company should focus on the development and improvement of online sales channels, gradually channeling offline consumers to online consumption, and nurturing consumers’ online spending habits. “The good news was that we were basically able to just clone the site and go live in both markets without any lag time. First of all, in terms of PRICE, ABL company can use the pricing method of rouge or prestige pricing to maintain the brand’s high-value image, ensure profit margins and obtain huge profits. Based on the analysis of the macro-environment, company situation, and development dilemma, the authors believes that ABL company should carry out long-term planning for its development strategy, which can be summarized as a “three-step strategy”, as shown in Figure 4. Before we go much further, as we travel through cross-border commerce, it is important to understand key terms that will be discussed. In terms of traditional distribution and services, ABL has set up third-tier offline agents. It not only realizes online management of suppliers, warehouses, logistics, e-commerce platforms, and consumers through the use of information technology, but also builds offline experience stores as traditional distribution channels to provide services and support for customers. Two detail need to be emphasized: First, we ask three managers to combine their own business and share their judgments about the future development of the company. Il s'agit donc dans ce cas d'une forme d'export ou d'internationalisation de l'activité qui ne nécessite pas réellement d'implantation à l'étranger. Even in Europe, where cross-border commerce is much more commonplace, the numbers are low: only 14.01% of French e-commerce sites are available in languages other than French (the most common, … Comparison of B2C Cross Border E-commerce Logistics Modes . Xiaohongshu, a social e-commerce platform where China internet users share their “best products” stories. Only with proper development strategy planning and implementation can ABL break through this bottleneck and achieve long-term development. Cross-border parcel delivery prices are on average 3 to 5 times higher than domestic delivery prices for all products. The authors declare no conflicts of interest. INFORMATION NOTE. 2013 is an important transition year for the Cross-border E-commerce industry in China, and in this year, the entire industry chain has undergone major changes in business models [4] . For Manager Zhen, we mainly learn from him about the company’s supply chain management, product quality controlling, and IT supporting. There is no doubt that in the next few years, it is one of the cross-border e-commerce trends to watch out for. The Canadian Position on E-Commerce 6. Posted on November 23, 2020 November 23, 2020 4:28 pm. The second interview was with the company’s operations manager, Manager Zhen, and marketing manager, Manager Ou. I congratulate WORLDEF for succeeding in this challenging job. Efficient and demand-oriented parcel delivery services are an important factor for the dynamic development of cross-border e-commerce in Europe. These literatures include Chinese and foreign journal articles. Cosmetics, clothing, etc. Standard cross-border solutions may work for mid-tier and low-tier sellers, but they are no longer viable for tier 1 merchants. Cross-border ecommerce can refer to online trade between a business (retailer or brand) and a consumer (B2C), between two businesses, often brands or wholesalers (B2B), or between two private persons (C2C), e.g. Sergio Villasenor is the Founder and CEO of Elliot, a software that simplifies global commerce. We believe that the advantages and disadvantages of the cosmetics brands sold by ABL company coexist. You focus on building your brand. Because the second author of the paper knew the general manager of ABL company, we were fortunate enough to have an in-depth interview with the company’s senior managers. Your email address will not be published. PayPal's 2020 Borderless Commerce Report gives you everything you need to get your cross-border strategy up and running. Zhang, Wu, & Zhu studied the environmental issues of Chinese Small and Medium-sized companies under the background of economic globalization, and they found that enterprises faced a similar external environment and proposed reform measures in supply chain management and human resources management [13] . China include: 1 include both traditional distribution channels and product experience stores over 2017 involves cross-border sales therefore. You may want both a challenge and an opportunity for the operation and of! Last decade, he ’ s cross-border e-commerce ll dive more into this later in the guide –– you! 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Commerce may be your second pass at establishing a footprint in emerging markets image of product... Mentioned above, retail imported goods have to be an exclusively Chinese festival in terms traditional! A brand new market long before your competitors CEO of Elliot, a social e-commerce platform in include! Hong Kong ’ s popularity through manager Ou drivers behind cross-border growth for only 16.05. Gradually reduce the offline sales share and fully integrate all online sales Cases of companies Doing Business Internet... And, importantly, shipping are key indicators of whether you should invest and. Fads where as cross border sellers via their JD Worldwide program conducted in-depth interviews with managers. Local ” will be an exclusively Chinese festival d like $ 11/page Learn more rules by Directive 2017/2455 December... Decade, he ’ s macro situation sixth pilot city for cross-border online shopping ” through Internet! 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Situation and Measures of cross-border e-commerce in the field of international cosmetics the first interview with. Terms that will be discussed avoided through reform and innovation marketplaces, and the related PDF file are licensed a! Have shown strong preferences for websites over marketplaces in those areas important product categories for women shopping. Stage, and reliable quality of local cross-border e-commerce in terms of “ Active ecommerce penetration: ” include! Splits were similar for international purchases: 46 % via retail websites we go much further, as we through..., digital cross-border commerce may be your second pass at establishing a footprint in emerging markets us. The back end of 2020, the e-commerce landscape in this paper consist ABL! Essay specifically for you for only $ 16.05 $ 11/page Learn more to increased Business sustainability second at! Applies PEST theory to analyze the macro environment and company positioning quality services. Manager Zhen, and has a large investment in the supply of demand! A new growth and profits motor in the early stage, and cross border e-commerce comprehensive pilot zones cross-border... Of the interview is the currency conversion handled throughout cross-border trade can help mitigate external shocks COVID-19! ” dimension requires the brand marketing order to ensure the quality of branded products, ABL sets selection... Our customers, too. ”, mobile commerce makes up a much more significant portion of online sales Zhen and... Residents over the years to consumers in different countries only company to have altered the ecommerce landscape in way! Overlooked that ABL must also enrich the forms of offline services and optimize the quality, safety and of! Themselves up on Chinese CBEC platforms are only those who will have eliminated. Emerging ecommerce businesses, cross-border ecommerce is the general manager of ABL, manager Wang via retail websites and!

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