is the development of Cross-border electric power industry really squeezed less and less?

Abstract: "Editor's note" from the hidden to the surface, never be paid attention to get a lot of attention, China's cross-border electricity dealers out of a gradually bright road. However, with the increase in the industry and the influx of more players, blue ocean slowly into the Red Sea, the problem is increasingly

"Editor's note" from the hidden to the surface, has never been paid attention to receive a lot of attention, China's cross-border electricity dealers out of a gradually bright road. But as the industry heats up and more players pour in, blue ocean slowly into the Red Sea, the problem is more and more in front of the eyes: Postal packet weaknesses highlighted, the development model was questioned, localized into a hot potato, the rise and fall of large players have caused the industry's panic, especially the rise of fast selling seems to bring a lot of pressure on the industry. So, is the development space of the cross-border electric business really squeezed less and less?

As one of the first batch of Cross-border distributors of retail export players, long network following the development of the industry has evolved continuously, has a more profound understanding of their own, but also the whole industry's development dilemma and the way forward have their own understanding and expectations. A few days ago, billion power network on the Cross-border power of several hot issues with the joint founder of the network, Vice President Kun a dialogue.

Kun, founder and vice president of Tai Lung Network

Billion power network: We are advocating cross-border electricity dealers "localization", build overseas warehouses, set up local branches, push local language websites, and local retailers to cooperate, do you think localization is the key to penetrate the market?

Tai Long network kun: To do cross-border electrical business has been mainly small packet exports, no problem on the postman, but the small packet exports have no after-sale service. From the enterprise point of view, can not provide after-sales service is difficult to establish a brand, whether the product brand or channel brand is difficult. "Localization" can from the sales aspect is to give the customer the better service and the experience, for example overseas storehouse may let the customer receive the goods quicker, may provide the return, the replacement, the service and so on, may also use the local personnel to communicate with the customer.

Whether it is a platform or a self-employed, it is difficult to do manual service, and it is difficult to build a brand through pure network. The localization of pre-sales services to promote sales, after-sales service to improve customer awareness, increase the number of users, that is, increase the user's increment also ensure that the same time, not only to pull in the customer, but also to keep the customer.

To do "localization" depends mainly on a company's own development of the demand, to see his desired development time and whether to pay attention to factors such as turning heads. For example, the requirement of the wedding dress is not high, but the daily necessities, electronic products are very important to the attention of the same, localization of the significance is relatively large. But from the whole industry, want to make business bigger, localization is a process, just put China's goods, cheap sell out, not the long-term development of the road.

Billion power network: Tai Lung Network has established a branch in Russia, is taking the localization of the route, at present, has not achieved the desired effect?

Big Dragon Net Kun: Our localization work is much better than expected. The most obvious performance is the marketing efficiency is higher, the Russian branch company and the customer in the language communication is many, the internal communication is also very smooth. Head office only Control KPI, the rest by the branch within the distribution, operation.

Billion Power network: the third party platform and the two types of trans-boundary electrical business model, you prefer what kind?

Tai Long network kun: For manufacturers, self-consumer is conducive to brand building, Third-party platform for rapid access to the market, both models can be done, there is no need to choose. From the perspective of the cross-border operators, it is difficult to say whether the two models are good or bad, both modes are widespread, there are many successful cases, choose which mode depends on the team's own ability and existing resources.

I personally feel that there is no mode of good or bad, there is no development prospects, first not advanced. For example, Ali's model is the third party platform, the plate to do the biggest, but the profit is not the best, far less than many do vertical web site profit margins high. Therefore, choose which mode is to look at the company's pursuit of profit or scale, but also depends on what kind of resources you have, what you are good at.

Tai Lung network now has self also has an open platform, but the mode is not the most important, service, sales we all do, the purpose is to solve how to let businesses sell things out of the question.

Billion power network: Tai Lung network in doing an open platform, Orchid Pavilion set potential is also doing an open platform, you feel that the transformation of the open platform is the best way to do on a large scale?

Tai Long Network kun: conversion rate effect on the site is very important, if the site has 10,000 traffic a day, it is sure to want to use these flows to form as many orders as possible. The more the number of products, the more favorable for customers to choose their favorite products, the final purchase, that is, a large number of products to improve the conversion rate of traffic. However, the number of products that an enterprise integrates is limited, so the ability to integrate commodities is certainly not as good as the platform.

The opening from the self to the platform is almost any electric business enterprise will naturally choose the road, because the more products, the higher the flow conversion rate, increase the number of products, improve conversion rate to form scale.

Billion power network: Many industry players are responding to the rise of fast-selling to their own caused a great deal of pressure, rapid sales through the growing, not only grabbed the market share, but also changed the original industry pattern. What do you think?

Big Dragon Net Kun: Many do the cross border electricity trader's colleague to think that the fast sell the pressure which creates to oneself is actually an illusion. More and more businesses are pouring into the industry, including manufacturers and large distributors, to put pressure on the blue sea into the Red Sea, rather than the pressure of fast-selling. It is not the pressure of the emergence or accession of one enterprise or platform, but the impact of the increasing number of people doing it.

The whole of China's foreign trade exports more than 20,000 billion under the plate, the strength of a company is also limited. Taobao in the domestic market occupies more than 75% of the share, its changes may have a great impact on the industry, but in the Cross-border electricity market, Ali's share is still very small, not enough to affect the entire industry.

At present, the development of most cross-border electricity dealers is problematic. Postal parcel of the logistics way there are fatal problems, usually is not in the other countries tax, impact on the other country's tax and manufacturing, but also occupy the postal resources. In the long run is bound to be resisted by the other countries, the recent Russian restrictions on cross-border Internet purchases reflect this problem. The real cross-border electricity dealers should be through the Internet to improve the efficiency of traditional foreign trade exports, small parcels are always doing little.

Billion power network: In the next few years, how much more space will there be for the Cross-border electricity business?

Tai Lung Network kun: At present, in 2.3 trillion of foreign trade export business, the public data show that cross-border electricity business exports about 300 million or 400 million of the size, but not necessarily, because there are many places not to be counted. Over the next five years, cross-border electrical business exports may account for 60% to 70% of the entire foreign trade export industry, with a large market and great potential.

Billion power network: Cross-border electrical Business export industry is facing the bottleneck and dilemma is what? Where do you want to get a breakthrough?

Tai Lung Network kun: For the entire industry, the first or the postal packet problem. Postal packets are being opposed by more and more countries, most notably in emerging markets such as Brazil and Russia. The second is service-related issues. Consumer demand for services more and more high, no localization can not fall, low return, poor marketing, lower profit margins, in addition to low prices and no other core competitiveness.

But we all know that in order to achieve long-term development, the key is the competition of products and services. How to form a high level of competition, build a brand, rather than price competition, this is the whole industry needs to think about the problem, but also the biggest bottleneck.