New model of regional vertical e-commerce and new rise of foreign trade

(Foreword: Recently, "2008 Small and medium-sized Enterprises big clinics Shenzhen Station activity" in Shenzhen Convention and Exhibition Center grandly holds. The event is divided into "a key step in the listing-small and medium enterprises and investment funds docking" and "China's small and medium-sized Enterprises E-commerce, Network marketing and venture capital Summit Forum" two parts. Yi Guo Net Guo Jianwu participated in this event and delivered keynote speeches. The following is a statement from the scene, and share my views on the development of E-commerce.

Dear friends, Good afternoon! It is a great honor to have the opportunity to discuss E-commerce and SME business opportunities and new opportunities with you today. Ten years ago, I have run thousands of factories, and also managed the famous group of companies, four years ago I started a business, engaged in international trade, domestic and foreign two run. Two years ago, I was like many friends, full of dreams, a plunge into the internet, become E-commerce brand operators, but now I feel the Internet water is very deep, because of this experience, I have a great deal of e-commerce and export trade of the great cold have feelings. Today I would like to take this opportunity to discuss how small and medium foreign trade enterprises to use a new business-to-business E-commerce platform to open up overseas markets, out of business difficulties.

Because of the time, I'm just talking about the potential of a business-to-business platform, the rapid development and optimism of the Consumer-to-consumer and the Business-to-consumer and the other, and I'm not going to say it, because this conference asked me to tell you how to get out. Today, I focus on two aspects to explore, our enterprises have encountered what problems, how can we solve. To study good foreign trade-oriented business-to-business, E-commerce platform must carefully study our small and medium-sized enterprises, recently in many media and different occasions, we are all concerned about the current small and medium enterprises operating difficulties. including in Jiangsu and Zhejiang, in Ningbo, formerly in the forefront of reform and opening-up, nearly one-third of the enterprises have a business dilemma, including the relocation of enterprises, including all aspects of business difficulties. As China's economic growth story of the most conducive to the business enterprise has 30% to the edge, have to let people worry. So what causes such a business predicament?

First, the rise in the price of raw materials and energy directly leads to higher costs for enterprises. Second, the appreciation of the renminbi led to a weakening of export competitiveness. Third, the adjustment of financial policy led to the increase of cash flow. I think that's because there's no report on it. I feel that the tightening of funds directly will lead to the next year or two enterprises in the expansion of production and product restructuring, there is no capital, money is equivalent to the blood of enterprises, so there is no capital, it is estimated that the next year or two may be more difficult. The new labor law and the rising CPI have led to an increase in human costs. The adjustment of export drawback policy reduces the competitiveness of enterprises. Six, the information slice is flat, seven, because of the price environment, because of the abrupt change of global financial pattern, cause export to have certain restriction.

Many SMEs see this is an uncontrollable factor, but in fact, including now China formerly known as the world's largest factory, according to the current situation of development, now China should simply rely on simple low value-added, cost and scale to win the era will end. Enterprises will be the product and market structure adjustment, to high value-added products and industries to transfer, in the process of transfer, generally speaking, usually have two options:

The first is to adjust the product structure. Through technological innovation, strengthen management to reduce costs, transfer production base to low-cost areas to enhance competitiveness. But I know very well for small and medium-sized enterprises, innovation and product structure adjustment is difficult, no funds, no information, no talent, in a short time you want to make a breakthrough is very hard.

The second way, is to choose the emerging international market, through new channels, such as foreign trade business-to-business platform, actively open up the market, a short time to get orders, solve the problem of cash flow, solve the problem of enterprise operation, this is what can be done before. Very grateful to the domestic counterparts, predecessors of the business-to-business industry, now more and more small and medium-sized enterprises to accept and use.

I can boldly predict that business-to-business E-commerce platform will follow the traditional media, the company system, the agency after a new channel. But the small and medium-sized enterprises have to deal with the good is:

First, how to deal with the interests of E-commerce platform and the traditional platform balance. Because many enterprises have their own channels, or agency, or branch, a new system up, there must be a conflict of interest. These must be handled well, if not handled well, the existing channels will have a big impact, will not outweigh the gains. Second, we must choose which way to use according to the characteristics of the product and the stage of the enterprise, not all the products are suitable for the electronic commerce. Here, including the profitability of my products, including my choice of E-commerce and branch or combined with the agency, these must be considered, otherwise the vested interest is a shock. 3rd, how to play and train their own e-commerce talent, I said here E-commerce refers to Business-to-business, Consumer-to-consumer and business, I must have an e-commerce marketing talent. Four, how to maximize the use of Third-party electronic platform. We will hold a professional seminar, please experts to explain, interested can pay attention to how to balance the sales of e-commerce and the traditional distribution of benefits issues.

What's wrong with e-commerce?

90% of China's enterprises are small and medium-sized enterprises, while small and medium-sized enterprises using Third-party electronic platform for only 4%, a large number of small and medium-sized enterprises procurement, distribution still use the traditional model. Second, business-to-business business accounts for 7% of total business-to-business trade, 70% of which comes from international trade. Third, in the first quarter of 08, the total amount of business-to-business business reached 150 billion, but the chain has declined. Four, in 04, small and medium-sized enterprises into Third-party E-commerce platform costs accounted for only 7.9%, less than 8%. In other words, SMEs in fact, E-commerce, we have been here to say the future of E-commerce, how big, but in fact our small and medium-sized enterprises accept E-commerce is very small, very small investment, Less than 8%. In 07, SME Business-to-business E-commerce transactions amounted to 800 billion, accounting for the overall SME business-to-business turnover of 5.7%, which is very poor trading volume. In the above data, we can see the great contradictions.

One of the puzzles: why is it difficult for our small and medium-sized enterprises to see the new hope of foreign trade in E-commerce when they are confronted with such a huge business dilemma and export pressure, when international trade occupies nearly 70% of the total business-to-business transactions? So we should seriously analyze our small and medium-sized enterprises, analyze what they need the E-commerce platform, and can not simply say: they do not understand the Internet, and out of customer demand. In the field of E-commerce will say that SMEs, do not understand e-commerce, do not understand the Internet. But in fact, in the traditional industry SMEs, their understanding of E-commerce is completely different, how to solve this contradiction? It should be that E-commerce is tailor-made for small and medium-sized enterprises, rather than e-commerce to save our logic and procedures.

So based on ten years of experience in factory operations, customer understanding of E-commerce has three "do not": first, not just a corporate information base, a very large amount of data for small and medium-sized enterprises is far from enough, because the display of information, including Shangku, including all business opportunities, including the opportunity to obtain business information orders, It's a long way from a business deal. That is to say, an information platform can not meet the needs of small and medium platforms. Second, do not simply network marketing, today talked about the network marketing is small and medium enterprises, for the network marketing concerns, business can not only rely on the Internet to complete, must be online under the combination of line. Third, do not just place the service before the order. E-commerce platform is actually the order before the match, product display, etc., actually only to do the order before, did not do orders and orders, just do one-third of E-commerce. In this case, how can SMEs invest in huge funds, subversion of traditional channels and choose E-commerce?

Therefore, small and medium-sized enterprises, the biggest difficulty for foreign trade from the process of trading control, risk assessment and prevention, from SHANGPA, negotiations, logistics and so on, the famous certification is unable to do. So, to achieve the enterprise to go out, exactly what kind of foreign trade business-to-business platform, we think three key points are needed:

The first order is required. Orders for E-commerce is the hard truth, orders are the fundamental trade, is the core value of E-commerce. Only by network marketing to promote the popularity of the platform is far from enough. I'm going to tell you a specific case where we now have a client, in Phuket to do the mold, do very well, has been a business in the United States, these entrepreneurs are very simple, we talked about when it is very easy, you give me is the order, you give me the order, I give you the goods, you give me money. So orders are the core, orders are fundamental.

Second, the need for international localization of the operation. Now most of our E-commerce platform put a lot of attention to domestic suppliers, how to push domestic suppliers abroad, in foreign markets, to enter its mainstream circle, due to cultural background, because of language, social resources, it is difficult to enter. So, I think this is an international local business, foreign by the ghost to help you push, the Russian market is going on, the Eastern European market is going on, in fact, far from that, so open up the international market, many things you often speak very tired, but people do not understand, that is, the market personalized things , the special overseas market is not the same, so our E-commerce platform must be operated and promoted by the local people, in order to enter the mainstream market overseas.

Third, the need for risk control. Because of the differences in market, language, culture and trust, the risk of international trade is very large, small and medium-sized enterprises if rely on their own experience and resources, talent, to control the international trade risk is very large. Therefore, in fact, the use of Third-party E-commerce platform is a very good way to defuse the risk.

Puzzle Two: Although many small and medium-sized enterprises also want to open up the international market, out of business dilemma, but they choose a Third-party service platform, it appears some contradictions.

First, they suffer from the traditional channels of high cost, but also want to get rid of intermediate links, using E-commerce platform to achieve their own market to do the purpose of their own buyers, feel the market, control, manipulate the market, their starting point is very right. But on the other hand, because of the lack of network and resources in the terminal market, I can not judge the authenticity of the buyers when they get orders through the Internet. They seem to be overwhelmed, get orders also do not know the wrong, the price of vague, how can I quote. Some people 30% of the profit, but you do not understand the market, it may be 10%. I'm telling you, Eastern European markets are higher than other market prices, so the risk of business fraud and trade will be another form of pressure because of the blurring of prices. I want to do it myself, but I can't control the risk. I think that the new model of regional E-commerce platform is to focus on a specific target market overseas, combined with the line under the integrated Business Services, more professional and more comprehensive to help SMEs open up overseas markets, the completion of export transactions. such as the fruit net, because of its targeted, will be quickly and effectively applied to the enterprise's export sector. Why do you say that? Because of the regional E-commerce platform, its diversity and its advantages are caused. Who can handle orders and risks, who will be able to win the favor of small and medium-sized enterprises, I say the order is not an order of information, because our orders from the acquisition of orders, to the identification, to processing, to control, so the real demand for SMEs is these, rather than get the opportunity to order, In fact, this is a risk control process.

Second, the difference. Most of the current E-commerce platform to achieve most of the stay in front of the transaction, so a buyer and seller-brokered electronic trading Hall is strictly only One-third E-commerce platform. We insist that business is to participate in the transaction, but also to the value chain of the transaction has our indispensable position, participation in the transaction is the demand of e-commerce for SMEs, can really help small and medium-sized enterprises.

Third, specialized and refined, localized operation. Regardless of the web site such as the Yi Fruit Network, localization of the operation, including a lot of world-renowned websites to China, why say acclimatized? Because the market is personalized, localization is very important, your understanding of the market, your understanding of the user directly determines your success or failure.

Four, the job. We insist that the electronics is only the way, the business is the fundamental. Foreign trade activities are complex and changeable, procurement, negotiation, exhibition, translation, logistics and so on, all the plight of small and medium-sized enterprises are destined to be diversified, due to lack of language skills, lack of operational experience, some do not good logistics. According to the needs of small and medium-sized enterprises to tailor their business services to trade, rather than small and medium-sized enterprises, an order can handle the global market.

Friends of the business community, facing more and more serious difficulties in the foreign trade of SMEs, we sincerely hope that the emergence of regional electronics, E-commerce can really bring new opportunities for small and medium-sized enterprises, I as a monograph on the Eastern European market operators, but also hope that through our efforts to help small and medium enterprises to get rid of market Rapid development of Eastern European markets. Finally, I would like to use my photos in the Black Sea to express my experience in the traditional industry and the Internet industry business, or a feeling, challenge themselves, the risk of a lot of good prospects. Thank you!