Foreign trade electric business breaking ice soon to recognize the market as the main attack

"Billion Power network news" If not China's overall brand in foreign influence, individual brands difficult to grow up.

The term "made in China" has been heard for many years, and in overseas markets it has become a large factory, a raw material producer and a primary processing market. And when e-commerce in the domestic rise, has not developed to mature, high level, developed traditional manufacturing, has had to start to do circulation, and even with the electricity business to become hot, foreign trade began from the traditional large single container trade, tend to small single, broken single. China's foreign trade is quietly fission with the electric business.

But the phenomenon of China's foreign trade market in recent years is tepid, some years ago in the business of the people by the industry dubbed "stuffy sound made a big fortune", and when a lot of large domestic enterprises and electric dealers come in to try, have to often "niche market, do not seek great development" And so on excuses to conceal oneself to this market unfamiliar and the failure attempt.

The reason is actually very simple, the manufacturing industry is not familiar with the foreign trade, and China has no brand, there is no way to talk about the outbreak. Do not understand the traditional foreign trade, electrical business, do not familiar with the foreign trade environment. and the traditional foreign trade enterprises to do electricity, and seems to be more than the domestic traditional enterprises to do the electricity quotient and magnified the difficulty.

Now China, until now has not formed its own external brand image, but simply "Made in China." Therefore, China's more foreign trade dealers are only in the primary circulation, almost only channel mode exists.

Dunhuang Nets, orchid Pavilion set potential, Milan network, Tai Long network. Everyone just put some domestic "price advantage" of products sold abroad. Such a circulation, and did not form much value, only price, no service, only channels, no brand. So China's foreign trade, small foreign trade has been a very abnormal development.

Even these representative of the foreign trade, the entire supply chain is very primitive. There are few overseas warehouses and only one in the oversized market where individual sales account for more than half. This allows almost all overseas customers after several weeks to get the product, due to dissatisfaction and the cost of return is very large. Many people are still questioning the integrity of Chinese companies, and many complain that they can't find a suitable payment channel to buy things on Chinese websites, and some even have been told to pay extra fees when they receive orders.

A series of miscellaneous and trivial issues in China's foreign trade to hinder the development of the first big step, so the rise of China's foreign trade dealers need to recognize these problems, and completely clear the obstacles.

European and American markets are different from China

Data show that 23% of Europeans now buy foreign products online, 18% of Americans buy foreign products online, and Germany, Britain and the United States are particularly willing to buy products from China online. During the 2008-2010, spending on online purchases of overseas goods increased by 20%, and most of the purchases came from China. Therefore, in Europe and the United States, there is already a huge market for Chinese electric dealers to dig.

In the face of such a market, China's domestic big business also began to stir, where the guests, Beijing and east have to enter overseas behavior. But these can be easily to the domestic electric business industry, big power companies, in the test water overseas, the instant become lame. The most important reason, the foreign trade market is different from domestic, China's electric business enterprises simply out of the inevitable will lead to acclimatized.

First of all, China's electricity market from the start is about 5-10 years after the overseas market time. This creates a series of asymmetries.

China's electricity market from the end of the 90 's the U.S. business Network, Alibaba, Dangdang began, mainly to Business-to-business, the main company, the 2003 Taobao representative of the Consumer-to-consumer began to grow up, 2007, such as Beijing-east independent fast rising. But in the meantime, Amazon, ebay and ebay have been through years of initial exploration in Europe and the US, and as early as 2000, almost all the traditional companies, including Wal-Mart, began to enter the electronics business.

Secondly, the development of China's electricity dealers and overseas electric operators is inconsistent. At present, the European and American Electric Power business has entered the stable development period of 10% to 20% each year, and China's online retail growth last year is still staggering 130%. The rapid development also exposes the robin of China's market and its barbaric growth stage. All the online retailers are crazy about taking money, doing scale, playing price wars. A small number of in the back-end supply chain under the large cost of the client and occasionally the explosion of speculation on the surface of the land and other news. Money, scale, low prices, these words long occupied the mainstream voice of the electric business. No one to really steadfast brand, even the Chinese online retail own brand good representative of all the goods, is also a lot of people alleged "equivalent to wholesalers." So when foreign consumers start to serve, China's electricity dealers are still fighting for some price and money.

Moreover, Europe and the United States electricity market is very dispersed, such as Amazon's pure electricity business in Europe and the United States online retail share of only a minority, more traditional retailers, brand dealers online channels. In China, these "brand dealers" do not have the "brand" value, no one running to find, also can not afford their own online retail mall. So these brands only use online retail channels to do distribution, or sell inventory, the online channel as their own sewer. As a result, a group of "price advantage" of the online channel business, but the impairment of a large number of independent brands. Therefore, in the eyes of foreign consumers, China's electricity dealers represent the discount market, Chinese products have no brand value.

In addition, the foreign market presents hundreds of SKUs, are the main niche products, by providing more services to attract customers. These mainstream consumers are more loyal to the brand, more purchasing power, they see, the electricity business is just another way of service. This service has penetrated 70%-80% of consumers. But so many people still did not let the Chinese foreign Trade electric dealer quickly grow up, because the Chinese foreign trade electricity dealer has no service to sell at all.

There is still room for the counter attack of foreign trade dealers

Facing the differences between Europe and America and the domestic market, China's foreign trade enterprises need to do a good job of the service, the supply chain thoroughly through and optimization.

The survey of overseas data agencies showed that 26% of the main concerns of end consumers ' online cross-border shopping were about fraud or identity-related issues, 22% on freight and 10% on additional costs.

This is closely related to the problems encountered by China's foreign trade dealers ' websites, and the prices they label on their websites are often just the prices of the goods themselves, which do not include such charges as tariffs or VAT. So, often when the order is mailed to the user, the user will be intimidated by these additional costs and reject and produce reverse logistics.

Therefore, China's foreign trade in commodity prices to be as transparent as possible, if only to mark the price of goods, it is necessary to create additional requirements of the user to pay the cost of the account clearly, or directly to include these taxes in the product price, its own foreign customers are not the most sensitive price.

In addition to price information, the inconvenience of payment methods are also greatly affecting the Chinese foreign trade business footsteps. Alipay still dominates in China, but Europe's payment methods are very fragmented, including direct debit, online credit transfers, real-time bank transfers, electronic wallets, Paypal, paper checks and delivery via courier. Therefore, to do the European and American market in China's electric business enterprises, must cover all customers can accept the payment method.

Another aspect worth pondering is the market environment. European and American laws and regulations in recent years are also changing, the market is more and more standardized, in Europe if the electric business enterprises want to sell their products in the international scope, must comply with European and international laws and regulations. such as group purchase or freight goods to be based on the category to determine tariffs, 27 countries to impose value-added tax and so on. In the event of a problem, it is likely that regulatory delays or customs goods will be delayed as a result of the regulation of European laws and regulations. For international electricity dealers, the sale exceeds the legal threshold for direct sales (for example, in many European countries, the annual limit of 100,000 euros in direct sales), there will be in the country of sale of a legal representative office.

In addition, for China's electric companies, whether to determine their own enterprise logistics strategy to life and death, for Asia, Europe or the global market, are involved in different areas of different logistics, the establishment of bonded warehouses or leasing warehouses in foreign countries should be clear. These measures will facilitate the return of goods, Europe and the United States market an important rule is that a large proportion of users will be returned to cross border orders of products, so will produce a large number of reverse logistics, very expensive, but in Europe online returns in the user's heart is the need for free services, enterprises should do. Therefore, for China's foreign trade, the need is only to do and minimize costs.

Luc Demunck, managing director of the global supply chain, Belgium's international postal Service, points out that successful overseas electric companies are always thinking "how to sell more and better things to customers" and "how to keep customers", while more Chinese power companies are thinking, "What do I have?" "How to sell me out." This also caused the Chinese electric dealers instead of sales, so the Chinese electric business enterprises need more like foreign enterprises, more from the consumer perspective to think.