Concern | Foreign Trade Small Orders Combined With B2C, Why The Business Is Booming?

A category of phenomenon in China's foreign trade field is currently attracting attention both inside and outside the industry. Pinduoduo in September 2022 launched more than cross-border as the earliest full implementation of the full hosting mode of cross-border e-commerce platform, quickly let some of the loss of traditional foreign trade large orders of factories to regain vitality in the cross-border B2C business to achieve the performance of foreign trade orders and profits of the double high, which makes a number of other well-known cross-border e-commerce platforms to follow up, imitation of the full hosting and semi-trusted model. Not coincidentally, a few days ago, a foreign trade factory in China, the person in charge of frankly, "basically the future purely rely on customers to do procurement to follow the single foreign trade company will be more difficult to get by. In addition to traditional procurement, now some trading companies in Zhejiang free to customers to follow the single, do not charge commission, other foreign trade enterprises by their 'consolidation' is a matter of time. Foreign trade companies still need to walk on multiple legs, arrange a few people out to do C-end, through the end consumer market, profits directly up, counting losses, inventory, logistics and transport, promotion, profits are still better." Both examples point to the trend of miniaturisation and fragmentation of foreign trade orders, as well as the innovative value-added potential of foreign trade B2C relative to foreign trade B2B.

Foreign trade order miniaturisation, fragmentation trend in our country is not a new topic, as early as ten years ago or even longer before it was taken out for discussion. However, the ecology of the foreign trade industry when discussing this topic in different years and at different stages has continued to change significantly, and the relevant discussions in different years have brought out meaningful new issues. In terms of the new issues and new revelations of the moment, there are some such key points that deserve attention.

The large-order foreign trade approach of winning with thin margins and large volumes is further shrinking, and foreign trade factories are breaking out through innovation and groping. At present, the innovation of factories combining with new-generation cross-border e-commerce platforms to face end-consumers directly is feasible. Foreign trade orders become smaller, become more fragmented does make part of the foreign trade factories into confusion and dilemma, transformation and innovation is imminent, which also inspired a part of the foreign trade factories actively from the B2B to the B2C direction of transformation. However, the high threshold of traditional cross-border platforms, traffic, operation, compliance and other costs rise, resulting in the short board of profit compression has also hindered this transformation of foreign trade factories. It so happens that at this stage, cross-border e-commerce platforms such as DuoDuo cross-border launched the full hosting model, that is, merchants only need to send goods to the platform's domestic transit warehouse, and the rest of the logistics, promotion, investment flow and other aspects of the DuoDuo cross-border platform is fully responsible for. This greatly reduces the operating costs of traditional factories in cross-border e-commerce platforms, and also breaks the high cost of these factories to face the majority of C-end consumers need to bear obstacles, so that some traditional factories in the DuoDuo cross-border platform orders have exploded, not only do not have to worry about the backlog of inventory, but also to their own production capacity outside the capacity of other factories to borrow to meet market demand.

From a global perspective, the potential of foreign trade B2C is not limited to this piece of business itself, but also lies in the many possibilities it brings, many innovative spaces, huge value-added potential and a great broadening of thinking and horizons. Reviewing the course of China's foreign trade over the years, it is obvious that the development and innovation of B2C business is very active and fruitful. Typical example is: after the international financial crisis in 2008, the main market in Europe and the United States declined in purchasing power, the orders for purchasing goods from Chinese enterprises are more miniaturised than before, and the emergence of SMT in 2010 has precisely seized and adapted to this trend, and the platform has aggregated a lot of small and medium-sized foreign trade orders, which has made traditional foreign trade, which was once "either not done, or a big order", more and more popular. "The traditional foreign trade has more flexible options for many intermediate scale orders, achieving rapid development, and accelerating the transformation of foreign buyers from large B to small B, to the C end; in September 2022, Jinduoduo launched more and more cross-border with a full hosting model, so that more traditional factories only know how to produce the B2C business of foreign trade has taken off. Many traditional foreign trade enterprises and factories in this successful transformation process, learned the Internet operation skills, know how to deal with foreign end consumers, outside of the production of foreign trade high value-added links to participate in more also gain more, do not need huge sales volume can be profitable. These good changes, far beyond the level of "better business", in fact, the traditional factories and traditional foreign trade enterprises to open up a whole new world.