Companies providing solutions to help establish an international business presence
For some time, buying habits have shifted away from physical retail to online shopping, and the COVID-19 crisis has accelerated this movement.
Data from the United Nations Conference on Trade and Development further sheds light on this trend. While global merchandise trade declined 9% last year, the share of e-commerce in global retailing increased from 14% to 17% from 2019 to 2020.
As the pandemic disrupted work and disrupted supply chains in many regions, China, as the first major economy to resume most of its production, quickly began to normalize its trade operations.
As a result, digital retailing is gaining momentum in the export of Chinese products abroad, where demands for easier and more secure access to diversified goods are increasing significantly.
To ride such a wave, AliExpress, the B2C site of the Alibaba Group, unveiled a big initiative, the G100 Global Selling Plan, to help local brands expand their business presence abroad.
The site, which connects sellers and buyers from over 200 economies, plans to grow 100 of what it calls “super brands” using insights into consumer data, sales channels and resources. brand. The company also aims to incubate some 10,000 emerging Chinese brands to gain a foothold in overseas markets.
AliExpress Chief Executive Officer Wang Mingqiang believes the time has come for Chinese suppliers to move beyond mere “manufacturing” to actually create brands, after the country’s top supply chains have collapsed. proven to be resilient enough to withstand storms such as the pandemic.
“For many Chinese companies, the best opportunity for educating consumers beyond the national territory has essentially arrived,” Wang said. “Those with real technological advantages and independent R&D capabilities that stay one step ahead will become the mainstay of cross-border retail exports. “
Wang identified two driving forces necessary to catapult Chinese online sellers to the forefront of global sales.
“On the one hand, the pandemic has considerably accelerated the penetration of electronic commerce in Western countries, facilitating access to foreign products. Second, as younger generations abroad, savvy about digital and social media, become the backbone of purchases, they are more likely to adopt brands and products. unheard of in their country of origin, ”he said.
AliExpress has defined two approaches to support the ambitions of companies abroad. For brands with strong supply chains and maintaining a fair level of brand awareness, AliExpress plans to devote more marketing resources and develop a country-specific strategy for brands to navigate a specific market.
At the same time, AliExpress will also provide local logistics support, including supply chain financing and after-sales services, so that companies can stay focused on R&D and marketing.
Ugreen, an electronics maker, got off to a rough start in expanding overseas. Although the category itself is rather standardized, sales data and customer insights are still needed so that the business can better navigate unfamiliar markets.
“For example, white phone chargers are normally popular in China. But would this color be widely accepted in Russia? general manager of international marketing.
The second pillar targets brands that are still in their infancy but have enormous growth potential. AliExpress offers a unique package for brands to expand abroad.
“After working with AliExpress for a trial period, we saw the gross margin increase by 20-30%,” said Zhu Huanyu, general manager of Insetlan, a household products supplier based in Shenzhen, Guangdong. “I think it’s essential to maximize brand value instead of just being labeled as an original equipment manufacturer.”
According to an eMarketer study, global e-commerce is expected to exceed $ 6 trillion by 2024, up from $ 3.91 trillion in 2020.