Digitalization Reshapes New Channels For Foreign Trade

- Mar 18, 2021-

"As of now, the number of inquiries on the company's online channels this month has increased by 2 times from the previous month, and the turnover has increased by 3 times."

On March 16, Fang Rong, director of the Foreign Trade Department of Beijing Zhongke Comrade Science and Technology Co., Ltd., faced the reporter with excitement. "The fastest order took less than 48 hours, and the online exposure rate of the single product increased by 30 times."

Comrade Zhongke is a professional electronic assembly equipment, semiconductor equipment, micro-assembly equipment and service provider, mainly engaged in the research and development, production and sales of surface mount technology (SMT) production equipment, semiconductor equipment, micro-assembly equipment and core accessories. SMT is one of the most popular technologies and processes in the electronic assembly industry, and is widely used in the manufacturing and research and development of electronic components. As a national high-tech enterprise, Comrade Zhongke and its subsidiaries have 165 related patents. In addition to domestic products and services, they also cover more than 20 countries and regions in Asia, Europe, and North America.

Fang Rong was also a little surprised by the explosive increase in online sales this year. In order to prove the authenticity of these data, she opened the backstage page of Alibaba International Station for reporters on the spot. "Comrade Zhongke has been cooperating with Alibaba International Station for 14 years. During this period, sales have always been growing steadily."

According to her, the company's offline sales channels in international trade have been greatly affected by the new crown pneumonia epidemic. "We used to participate in some offline exhibitions every year, but since last year, products have been sold online." In 2020, Comrade Zhongke's annual sales of products and services exceeded 40 million yuan, of which foreign trade accounted for more than 10 %.

In Fang Rong's view, compared with traditional foreign trade, due to the savings in travel expenses and time, online channels have fewer costs and higher returns. "Online, there is no human relationship, and customer relations become simple. As long as the product is good enough and the price is reasonable, there is no need to worry about no buyers. Through the background data, we can also better understand customer preferences. Online platforms can also Provide us with some necessary empowerment to help us conduct our business better."

Now, Fang Rong, who has more than 10 years of work experience, is full of novelty when it comes to the changes that online channels have brought to foreign trade sales. In order to make her products sell better, she has been exposed to some novel and interesting things since last year. Photography and videography have become essential skills at work, including lighting and radio, and she is already familiar with it. Because this can make the company's products sell better. "Live broadcast and VR factory exploration make customers feel as if they are on the scene, and they can really watch where they want to. Ask questions at any time, so that customers can feel more at ease."

Nowadays, cross-border e-commerce is constantly refreshing more and more practitioners like Fang Rong's understanding of the foreign trade industry. More and more foreign trade companies are also setting their sights on this new field.

In 2020, in the face of the global new crown pneumonia epidemic, China's foreign trade has reversed the trend and cross-border e-commerce has become the fastest-growing mode of trade, with a year-on-year increase of 40.1%.

The data provided by Alibaba International Station shows that in 2020, the actual transaction volume of the platform in terms of USD increased by 101% year-on-year, and the number of orders doubled year-on-year. In January of this year, on Alibaba International Station, China's merchandise exports increased by 177% year-on-year. In the first week of the "New Trade Festival" in March, the total number of transactions received increased by 171% year-on-year, the number of orders increased by 121% year-on-year, and the number of payment buyers more than doubled year-on-year. In just 4 hours, it surpassed the actual transaction volume on the first day of the "New Trade Festival" of the same period last year.

In addition to selling more products, the number of domestic and cross-border e-commerce business registrations is also increasing. According to the data provided by Qichacha, in the past five years, the annual registration volume of cross-border e-commerce-related companies in my country has continued to increase from 2,975 in 2016 to 5767 in 2020, an increase of 93.8%. In 2020, the year-on-year growth rate of domestic cross-border e-commerce related companies' annual registration volume will reach 61.8%, the largest increase in the past five years.

The data analyst of Qichacha told reporters that with the increasing degree of trade facilitation between my country and other countries, the development of logistics, supply chain finance, foreign trade comprehensive services and other fields have provided new momentum for foreign trade, and the world is affected by the new crown pneumonia epidemic. As a result, the demand for overseas orders in some industries has surged in a short period of time, which has promoted the huge growth of my country's cross-border e-commerce in 2020.

From a longer-term timeline, cross-border e-commerce may bring even greater changes to the foreign trade industry. On March 3, China International Economic Exchange Center released the "Digital New Foreign Trade Trend Development Report" based on China's foreign trade situation in 2020 and the development of cross-border e-commerce in the past 20 years. The "Report" stated that the rapid development of new digital foreign trade represented by cross-border e-commerce has become the focus of competition in the trade markets and rules of various countries. It is estimated that by 2035, 50% of China's import and export trade volume is expected to be expressed in the form of cross-border e-commerce.

The "Report" believes that digital new foreign trade has become the third stage of international trade for Chinese foreign trade businesses. At this stage, the full-link cross-border e-commerce platform is the core, connecting participants in the trade link, and forming a closed loop of cross-border B2B transactions from business opportunities to contract performance through a one-stop cross-border supply chain service system. Buyers and sellers can complete all transactions and service processes on the full-link cross-border trade platform.

"After more than 20 years of development, my country's digital new foreign trade has achieved a process of business improvement and scale expansion, and has become an important force supporting economic growth. The digital new foreign trade, with its cost reduction and efficiency enhancement, and its pulling effect on related industries, will be ' The "double cycle" provides a new path and new impetus, and effectively promotes the "six stability"." The "Report" said.

At the press conference of the State Council Information Office held on February 24, Minister of Commerce Wang Wentao stated that after the outbreak of the new crown pneumonia, new business formats and new models of foreign trade have played an important role. Cross-border e-commerce exports have shown double-digit rapid growth, indicating that these new business forms and new models have strong vitality.

"One day, digital new foreign trade represented by cross-border e-commerce can make the world easy to do business. And that day may come in the near future." Fang Rong said.