At the end of 2019, under the turbulence of the global consumer market, Chinese cross-border e-commerce companies are constantly reinventing themselves and thinking about how to save the energy that will erupt next year.

So, in the new wave of going to sea in 2020, will cross-border e-commerce encounter opportunities or challenges? Some people say that the ultimate destination for cross-border e-commerce is the brand. In this regard, many cross-border industry leaders have given their thoughts on the market, how brands survive, change, and seek new opportunities.
Grand View Capital Wei Haijun:

The entire global market, I think, is in a state of reshaping the consumption pattern, and new opportunities are occurring. Judging from the data, the entire global consumer market is actually in a state of stagnation, and growth is relatively weak. At the same time, from 2019, very subtle changes have occurred, and everyone no longer regards the European and American markets as the global commanding heights because some new opportunities have occurred globally. Among the changes, I think the power of global consumption will gradually move from west to east. This is a very big trend.

I use three dimensions to distinguish the global market:

First, markets with high ARPU values: such as North America, the Middle East, Japan, and South Korea. In such markets, consumers have a high ability to pay and their willingness to pay is also high. However, compared with Europe, America and the Middle East, Japan and South Korea need to be closed a bit. After the entrepreneur's money goes in, they must solve a problem that comes out. Of these three markets, the Middle East market is very sexy, but lacks long-term attention, and Grand View plans to start watching this regional market in 2020.

Second, the market is rapidly emerging from active consumer groups: users have a strong desire to consume, have high purchase frequencies but low purchasing power, including Indonesia, India, and Africa.

For example, India's domestic consumer goods companies are very strong, and the price of products is very low. There is no advantage in making low-end consumer goods. If you make high-end consumer goods, the customer unit price is too high and very problematic, so India is a market full of expectations and uncertainty in the future. . For Internet companies, there is a possibility of monopoly development in Africa. For consumer products companies, long-term roots in Africa may also have regional monopolies. This is a very interesting conclusion.

Third, the Chinese market: I deliberately put China in when I re-examined the world in 2018. We make investment and invest in Chinese companies. The representative company in 2018 is the headline today. More and more Chinese companies will become established in some overseas markets when they start a business directly, and some will do well in China, and they will definitely look for overseas growth.

Looking at the market from a global perspective, Chinese companies have their own unique advantages: multi-level consumption scenarios, advanced supply chains, and a culture of tolerance. More and more Chinese companies are choosing to go overseas. The main routes include electronics consumption, traditional consumer goods, new retail, and community e-commerce.
Brand shipping expert Li Lin:

In the future, the entire cross-border e-commerce company needs two core capabilities to succeed: product power and marketing power. As long as you have good product development capabilities or strong marketing capabilities, combining the two can be successful.

At present, the main types of domestic brands going abroad are divided into three types: domestic brands, domestic brands + foreign trade, and traditional manufacturing companies. And as a brand enterprise, the conditions to successfully go abroad include capital, team, R & D, supply chain and independence.

First, funding. Everyone is not short of money, but how much can your money be used in cross-border business, the company gives a profit cycle, or a loss, can you really use these funds? This is a question mark . Everyone has capital, but how much money can really be spent on cross-border business needs to be considered.

Second, the team. Most companies don't have a professional cross-border team. Some use the products in the current system, including marketing, purchasing, etc. to form a temporary team, and some recruit outside or one person, but not a complete e-commerce team. Therefore, how can domestic e-commerce be successful and which related organizations need to be cooperated with? When going overseas, it must also be equipped to ensure that this can be done.

Third, research and development capabilities. When you are facing an unfamiliar market or consumer products, whether your R & D ability can be reflected and whether you can develop products that consumers in the local market really want, this is a question mark. Even if the company has a strong R & D team, whether it can land in overseas markets needs to be considered.

Fourth, the supply chain. Domestic brands have no shortage of supply chain factories, but how these factories can effectively cooperate with the developed products to make large-scale goods in the process of cross-border e-commerce business promotion also needs to be considered.

In addition, the supply chain is actually fragmented in the brand system, and is fragmented in different departments or divisions. Therefore, it may be useful to turn the supply chain into a value chain and connect the relevant departments and organizations involved in the process from product to consumer and user final use to the value system, so that the cooperation of all departments will be improved. But this will not solve the fundamental problem. The most fundamental problem is independence, that is, this business can be independently accounted for, has its own financial indicators, has its own independent procurement and decision-making authority.

The brand growth path needs to be based on the product, accumulate users, and then consider the establishment of the brand. First, through the process of product sales and user contact to achieve the transfer of customer value; second, the user uses the product to accumulate users and word of mouth; finally, use various media marketing to promote the brand to increase public awareness.

Compared with domestic e-commerce, changes are very fast, in fact, the foreign e-commerce market is very stable. Therefore, domestic brands can learn from good companies in the foreign local market first, then combine their own products to innovate, and finally implement and implement.

In fact, many Chinese companies have not yet taken the first step in going overseas. Enterprises need to have such awareness from the decision-making side.
Helena, President of Tophatter Greater China:

The Internet is moving towards mobile. According to statistics from the 2019 Mobile Economy Report, as of the end of 2018, there were 5.1 billion people worldwide using mobile services, accounting for 67% of the global population; by 2025, there will be about 700 million new mobile users worldwide. In addition, e-commerce is also moving towards mobile and fragmentation. 53% of network traffic comes from mobile devices, and mobile devices account for 44% of total e-commerce revenue. For example, Pinduoduo's ability to quickly capture the market is also closely related to the mobile wave.

And the growth trend of mobile shopping is very obvious in the United States. At present, more than half of Internet traffic has come from mobile terminals this year. From 2017 to 2021, the percentage of U.S. mobile e-commerce sales as a percentage of retail sales has increased year by year and is expected to reach 44.7% in 2019.

American consumers, like China, have very high demand for product value for money. It is a very three-dimensional and rich market, and the user hierarchy and user needs in this market are very different, even if it is a small mobile market. Or the aging market may cause a big explosion in the entire United States.

In the next 5 to 10 years, mobile social sinking in the market will not only become a new outlet in China, but will also become the next growth engine for American e-commerce. This is because the low-income group in the United States has a huge potential for sinking the market, and the main factors affecting the downgrade of consumption in the US market include the change in the proportion of high-, middle- and low-income classes, the low- and middle-income group accounting for 70% of the US consumer market, and the impact of the aging of the US population.

The brand meaning of the auction scene is to build a value proposition and improve user identity and deep shopping experience, and Tophatter's role in it is to build a bridge.
Liu Xuan, Vice President and Partner of Red Harp Operations:

In the process of going abroad, if a brand wants to break through the bottleneck, it needs to start from five aspects: brand strategy, sales strategy, brand awareness, marketing promotion, localized brand and product and service experience.

First, product strategy. The development of China's manufacturing industry is not lacking in innovation. What is missing is how to know the needs of users and how to truly understand the needs of these customers? We give customers a prediction model before the product is launched, so that the customer knows the product's demand in the market, which requires insight.

Second, sales strategy. Many Chinese sellers are concentrated in products that do not produce enough differentiation, and there is no innovative model. Even if they do a lot of operations, they will soon be copied. Therefore, after local brands succeed in the local market, the first thing to consider is what channels are available.

Third, brand awareness. Branding and marketing help everyone expand their needs. In North America and Europe, 79% of consumers said that they need to have a certain understanding of the brand, and they must feel the brand's care for consumers. What we need to consider at the beginning is how to continuously reach customers that were previously difficult to reach during the sales growth process, and how to find opportunities from brand customers, which requires local research.

Fourth, marketing promotion. Marketing promotion and promotion are two concepts. 57% of consumers think about what to buy before entering the sales scene, 98% of consumers will give priority to familiar brands when they buy, and the real battlefield has been advanced to sales. Outside the platform and offline stores.

Fifth, localized brand and product service experience. Many of the better domestic brands have considered product experience, service experience, pre-sale and after-sale experience. When Chinese brands go global, they will do a little worse in respecting the target consumer groups. This is also something that needs to be considered and resolved.

Products are the brand's priority. The channel layout and marketing outside the product, and the ecological experience built around the brand. These points are actually from the perspective of successful companies. They already have ideas on the first step into the market. Already.

How to define the survival bottom line of a brand going overseas, everyone can think about: whether it is possible to empower consumers outside the seller; whether it is able to empower brand marketing outside of effect marketing; outside of Chinese customer service, it is not necessary Can do some localized and more grounded customer service.

President of Lianlian International Pan Guodong:

In the next few years, the trend of "global buying and global selling" of cross-border e-commerce will inevitably develop in various countries and regions. According to the data of some customers, we have compared the performance of tens of thousands of cross-border e-commerce sellers in the global mainstream markets from 2018 to 2019, and found that GMV and orders have increased significantly, which shows that The growth rate of group sellers from 2018 to 2019 is very obvious and strong in each market.

In addition to the growth of the mainstream market, sellers of new platforms are growing more rapidly. According to a set of data, it is found that the number of Chinese active sellers selling goods to Southeast Asia has increased three times as much as the mainstream markets in Europe and the United States. This is the most obvious feature we found from the data this year. New brands still have great opportunities.

Today, the entire industry is more and more intelligently connected. Service providers must think about one thing. In the future, they must be online. Our sellers are already online. If they are not online, there will be problems. Whether they are online or not will determine the company's life and death.