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Cross-border e-commerce opens the golden age, logistics winners win the world

Back source: Industry News Time: 2020-08-26 14:58:12

This year, taking advantage of the explosion of cross-border e-commerce, in addition to expanding overseas business, many express delivery companies have begun to gain a foothold in the cross-border e-commerce market.

    In 2014, my country's express delivery business volume reached 14 billion pieces, a year-on-year increase of 52%, ranking first in the world. Recently, the Ministry of Commerce announced the 2014 e-commerce transaction volume, which was as high as 13 trillion yuan. Behind these figures, e-commerce and express delivery are accelerating the pace of mutual penetration. This year, taking advantage of the explosion of cross-border e-commerce, in addition to expanding overseas business, a number of express companies have begun to seize a place in the cross-border e-commerce market.

   Li Keqiang, Premier of the State Council, who just expressed his willingness to advertise for e-commerce and other emerging formats at the press conference of the National "Two Sessions", also served as the e-commerce "platform" at the State Council Executive Meeting held on April 1. Li Keqiang said that e-commerce has greatly reduced the cost of circulation, promoted the development of the real economy, and greatly promoted employment, which "has contributed to the vitality of the Chinese economy."

   On April 3, the Ministry of Commerce issued the "Key Points of E-commerce Work in 2015", including the promotion of cross-border e-commerce development and the acceleration of e-commerce legislation.

   The rapid development of cross-border e-commerce and the opening of the top-level design herald the arrival of the golden age of cross-border e-commerce. Cross-border e-commerce delivery has also become the next outlet for express companies. Chen Jialiang, senior vice president of FedEx and president of China, said that logistics companies play an important role in the process of cross-border trade e-commerce. China's e-commerce logistics market is also experiencing differentiated market divergence. With the rise of the middle class with considerable spending power but the most "critical", the middle-level market of e-commerce logistics is gradually taking shape.


  Cross-border e-commerce promotes logistics market segmentation

   Recently, the country's only comprehensive cross-border e-commerce pilot zone has officially settled in Hangzhou, and the General Office of the Ministry of Commerce has also issued the "Key Points of E-commerce Work in 2015" recently. Chen Jialiang pointed out that the rapid development of China's cross-border e-commerce is of great significance to promoting national economic development and international economic and trade exchanges.

   According to monitoring data from the China E-commerce Research Center, the total amount of cross-border e-commerce transactions in China in 2014 exceeded 4 trillion yuan. The Ministry of Commerce predicts that by 2016, China's cross-border e-commerce market will reach 6.5 trillion yuan, with an average annual growth rate of over 30%.

"The State Council issued the "Approval on the Approval of the Establishment of China (Hangzhou) Cross-border E-commerce Comprehensive Pilot Zone". From this, we can see the encouragement and support for cross-border e-commerce at the policy level." Chen Jialiang introduced, "FedEx as an international company Express companies attach great importance to the development of the cross-border e-commerce market and play an important role in their supply chain links."

In order to better understand the behaviors of global consumers in the field of cross-border e-commerce and the cross-border sales of small and medium-sized enterprises, FedEx commissioned Forrester Consulting to make a project entitled "Seizing Cross-border E-commerce Opportunities: China "How small e-commerce companies go global" survey research, the research results were announced in February 2015. The report shows that 26% of mainland Chinese respondents said that they spend more than US$1,000 per year, while the global average is US$300. In recent years, Chinese consumers have actively joined the shopping wave of "Black Friday" and Christmas Eve in the United States through the Internet, and they have also attracted worldwide attention.

"Chinese retailers have huge potential in online sales. Mainland China is the second largest online shopping market in the world, ranking third only after the United States and the United Kingdom. Online shopping orders in Mainland China are mainly from Hong Kong, China (68% from China China purchased), Brazil (63% purchased from China) and the United States (52% purchased from China)." Chen Jialiang said.

  In such a general environment, many people in the industry have expressed the statement that "cross-border e-commerce, those who get logistics get the world". So what opportunities will the rapid development of cross-border e-commerce bring to the express industry?

Chen Jialiang said that logistics companies play an important role in the process of cross-border trade e-commerce. With the rapid development of the cross-border e-commerce market, the cooperation between express companies as third-party logistics and e-commerce platforms and online business companies is getting closer, including information Handling, shipment management, service innovation, transportation network, customs clearance, human resources and many other aspects.

"Through the survey conducted by Forrester Consulting, we found that cross-border e-commerce companies improve their logistics service levels, which will greatly help them improve the shopping experience of consumption." Chen Jialiang said, "We found that transportation costs and delivery Time is the most concerned issue among mainland Chinese consumers in cross-border shopping. When most respondents choose to purchase overseas goods,'whether the website can provide their preferred delivery method' is very important to their decision to make online overseas shopping. important'."

   It can be seen that, starting from customer needs, logistics is still a key link in cross-border e-commerce operations. The rapid development of cross-border e-commerce has brought new opportunities and challenges to China's express logistics industry.

"The logistics of cross-border e-commerce still has very high requirements for an express company in terms of information technology, customs clearance, package management, customer service, and transportation and operation capabilities. Only with these comprehensive capabilities can logistics companies in cross-border e-commerce Possess core competitiveness.” Chen Jialiang pointed out that especially cross-border products of different categories, or “oversea shopping” products, have different requirements for packages and transportation environments. For example, products such as health care and digital technology have different requirements for temperature control. The requirements for anti-vibration and anti-extrusion are higher, which requires the support of professional logistics suppliers with comprehensive strength.

"So in the era of e-commerce, we need a reliable transportation and supply chain company like FedEx. But I am also thinking about how we, as industry participants, can make the logistics industry achieve substantial and healthy development and build a comprehensive Three-dimensional modern logistics to meet the ever-evolving market and customer needs. I believe that logistics companies that relentlessly pursue precise, fast, professional and reliable service experience will gain favor and exert greater energy in the mid-to-high-end market segments. "Chen Jialiang said.

He further pointed out that China’s e-commerce logistics market is also undergoing differentiated market diversion: With the continuous "electric shock" of high-tech industries such as healthcare and life sciences, as well as the art and luxury goods industries, logistics services have become the e-commerce industry for enterprises. It is an important part of extending high-quality services in the link, and forming a high-end market for e-commerce logistics.

   At the same time, with the rise of the most "picky" middle class with considerable spending power, the middle-tier market for e-commerce logistics is gradually taking shape. Sacrificing service quality for low prices is not among their options. Instead, it is the pursuit of accurate delivery, quality service, and even the willingness to pay extra for high added value.


  Logistics partners help SMEs "go to sea"

   At present, China's giant express delivery companies have accelerated the layout of cross-border business. Chen Jialiang believes that when small and medium-sized enterprises develop e-commerce, they are most concerned about the flexibility of transportation, convenience and efficient return and exchange management in terms of logistics. "These are the areas that express companies need to pay attention to."

   For example, different industries have different shipping preferences. Some industries pay attention to speed, such as consumer electronics. "Due to the shortening of product lifecycles today, companies need to reduce the production cycle of their products, so that they can put their products on the market earlier than competitors." Chen Jialiang said, while other industries, such as low-cost clothing retail, are more concerned Competitive prices, so they need to control costs.

"E-commerce allows SMEs to enter the global market, but they also face more competition. SMEs need to find a logistics partner who can provide them with flexible transportation services." Chen Jialiang pointed out that selling a product or selling Delivery of goods to customers does not mean that a transaction is completed, because now customers are paying more and more attention to after-sales service of merchants. In order to win the competition, SMEs need to establish an effective return and exchange system as part of their global logistics strategy. “Having a good return and exchange process not only makes customers happy and willing to visit again, but also helps improve inventory management.”

   According to reports, for return management, FedEx launched the FedEx global return service last year, which is a transportation solution that simplifies the global return process. "For example, we provide an innovative return and exchange solution for a high-end e-commerce customer in China. If a buyer buys a designer dress worth 3,000 US dollars online, a few days later, when our courier is delivering this A high-value dress will wait for the customer to try it on. If the customer doesn’t like it, our courier can pick up the returned item on the spot."

   At the same time, FedEx has also established a Small Business Center, an online platform dedicated to providing relevant resources and information for small businesses. The content involves the specific requirements of different countries in terms of international transportation, laws and regulations, and instruments, and different value-added services. "With more than 40 years of professional experience accumulated in trade regulations, supply chain management, and logistics, we have been assisting small and medium enterprises to succeed in the global market through various means."

The management cost of cross-border logistics is very high. How can express companies gain advantages in price services and other aspects to become the preferred logistics company for Chinese consumers' “haitao”? Flexible and convenient logistics services."

  Chen Jialiang pointed out that "haitao" customers have different expectations for transportation services. Some hope that the goods can be delivered quickly and are willing to pay extra to get priority delivery; some are willing to wait for a period of time to obtain a more economical price; while others expect free shipping. Therefore, courier companies should meet the different timeliness and economic requirements of customers through different delivery services. For example, FedEx International Express allows customers to receive the goods before 10 am; international priority express service can be delivered to the designated location within 1-3 working days; customers with relatively low timeliness requirements have economical delivery options , You can choose FedEx International Economy Express service.

"Countries have different customs regulations and document requirements for import and export. Haitao users may not know well, so they need logistics providers to provide corresponding guidance and assistance. FedEx's accurate, fast, professional and reliable service experience allows us It can gain favor and exert greater energy in the mid-to-high-end market segments." Chen Jialiang said.

   In fact, SF Express, YTO, and Yunda have all launched cross-border e-commerce platforms in a low-key manner so far. Does FedEx have any plans in this regard?

   Chen Jialiang said that FedEx is very aware of its positioning as an express transportation company, committed to providing transportation solutions, as well as accurate, fast, and reliable customer experience, so there is no plan to establish an e-commerce website.

"The online shopping market is now very large and has different market segments. FedEx needs to focus on developing and providing services. From the current situation, customers prefer to use FedEx for high-value products such as healthcare and digital technology. Because these products have different requirements for packages and transportation environments, they have higher requirements for temperature control, shock resistance, and extrusion resistance. These high standards can give full play to the advantages of FedEx." Chen Jialiang said, "I think in electronics In the business age, a reliable transportation and supply chain company is needed. Through a huge global transportation network, both business owners and consumers can participate in the e-commerce process, thereby creating economic prosperity."


   Is it reliable for express companies to do cross-border e-commerce?

   In 2014, my country's express delivery business volume reached 14 billion pieces, a year-on-year increase of 52%, ranking first in the world. At the beginning of 2015, the domestic express giants that were unwilling to play the role of errands began to deploy cross-border e-commerce by taking advantage of the "outbreak" of cross-border e-commerce.

   After SF Express launched SF Express Online, Yunda Express also launched Youdiai, a cross-border e-commerce platform. Youdilove now has five categories of products including mother and baby, beauty and skin care, beverages, food, and personal care. The products are mainly divided into three shipping destinations: the United States, China, and South Korea.

Later, YTO Express also announced that its e-commerce platform "One City One Product" has officially launched its overseas direct purchase business. The first batch of imported products are German kitchen products, all imported from Germany and shipped from overseas as soon as 10 days. It reaches the consumers.

   Domestic express giants are confidently deploying cross-border e-commerce. One important reason is that logistics occupies a greater weight and value in the entire cross-border e-commerce operation. Restricted by factors such as customs duties, express company customs clearance capabilities, and local national culture, the importance of logistics in cross-border e-commerce operations is particularly significant.

  The reverse expansion of e-commerce by express delivery companies is not the original creation of SF Yunda, and there have been successful cases. For example, Taiwan's Black Cat TA-Q-BIN established an e-commerce online shopping mall earlier, dedicated to the development of local agricultural and fishery specialties, snacks, etc., with a complete distribution network.

   In the context of increasing costs year by year, the express delivery companies downstream of the supply chain are facing the dilemma of decreasing profits. According to industry association statistics, at present, nearly half of the 20 well-known domestic express brands are still in a state of guaranteed or slight loss, and the basic profit rate of the other half of profitable express companies is mostly only about 5%. Industry insiders joked that the domestic express market competition has entered the "50 cents era", that is, the profit per express shipment is less than 0.5 yuan.

In addition to the sales income of imported goods, compared with traditional logistics, cross-border e-commerce logistics takes small packages. If the process goes smoothly, the profit is relatively high. The profit of the same express shipment must be at least 10% higher. For those in a profit dilemma It is a huge temptation for express delivery companies.

  From delivery to sales, express companies lacking retail genes are still facing numerous challenges when doing cross-border e-commerce. Xie Wenbin, CEO of the cross-border e-commerce website Mitao, once said: "Logistics advantages cannot achieve all the constituent factors of a cross-border e-commerce. The platform structure, selection of products, and complete product categories are all important factors."

   There are two "ends" in cross-border e-commerce, namely front-end procurement and back-end sales. Logistics companies like SF Express have certain strategic considerations and advantages to do overseas e-commerce based on logistics advantages. However, it may encounter problems in product landing. SF Express has never experienced e-commerce issues such as product selection, category selection, category management, etc.

   Shentong Express and Tiantian Express provided failure cases to the doubters. Shentong Express once invested in the e-commerce platform "Imaiwangchao". Its model is similar to Yihaodian. However, due to lack of experience in product operation, it was closed less than two months after it went online. Tiantian Express’s e-commerce platform "Tiantian Special Sale Exchange" focuses on special products, and the variety of products available for purchase on the website is only in the single digits, which is hardly popular.

   Cross-border e-commerce has gradually upgraded from a niche market in the past to a mainstream market. As early as February 2014, Ali Tmall International went online, opening the curtain of giants competing for cross-border e-commerce. The international giant Amazon also launched an overseas e-commerce platform. Subsequently, local e-commerce companies such as JD.com, COFCO Womai.com, and Yihaodian have rushed for cross-border e-commerce. The express delivery giant "Legion" is facing a situation of close hand-to-hand combat with many traditional e-commerce companies.

   Another big challenge is that the international logistics industry is highly competitive, and domestic logistics companies are still immature in "going to sea".

   SF Express holds the top spot among domestic private courier companies and has the largest domestic courier fleet, with 38 all-cargo aircrafts, including 1