The cross-border electric-power quake, triggered by the downsizing of focal price, is still fermenting.

Summary: Cross-border electrical and commercial earthquakes, triggered by a job cut by focal price (Ang blazing), are still fermenting. Although subsequently the founder of the company Li Peiliang to refute the rumor, but the fact is that a large number of enterprises to the once known as the blue sea across the field of electrical business facing unprecedented fierce

The "Cross-border electrical shock", triggered by the downsizing of the focal price (ANG blazing Technology), is still being fermented. Although subsequently the Enterprise founder Li Peiliang came forward to "rumor", but the fact is that a large number of enterprises have been hailed as the "blue sea" across the field of cross-border electricity industry faced with unprecedented competition, and the price as a tool for the Low-cost grab single mode, but also seriously lower the entire industry's profit level.

Liu Zhiyong, a veteran of the cross-border electric business Circle and founder of the trade and industry, said that the high level of national policy concern, the exaggerated "profiteering" of cross-border electricity dealers, and the rapid addition of traditional and domestic electricity dealers led to a rise in human costs, which led to the external reasons for focal price layoffs, But the industry internal reason then the third party platform's excessive extrusion also urges the Cross-border electricity trader to carry on the initiative "thin Body". Liu Zhiyong predicts that the next two years will be a key period for cross-border power companies to shuffle, and will eventually form a similar pattern with the current domestic electricity quotient.

Rapid expansion

In late April, the online spread of 3C foreign trade manufacturers Shenzhen Ang Blazing Information Technology Co., Ltd. (Focal Price) is in the process of mass layoffs, and is looking for the overall sale. The "Encounter" of the Focal price has sparked an industry quake as a well-known electric dealer who has entered the Cross-border field earlier. On the one hand, the industry leader of the "tragic encounter", on the one hand, the data show that 2013 years in the forefront of foreign trade in the industry has slowed to a certain extent, while profits generally fell sharply. The cross-border electric business industry is about to shuffle the point of view also spread quickly.

In the background of pessimism gradually enveloped the entire industry, Focal Price founder Li Peiliang to clarify that the company is indeed downsizing, but "only the direction of the strategic adjustment, the future will focus on the 3C digital and other core categories, the company's business development is normal and stable, there is certainly no overall plan to sell the company." ”

So why is it causing a stir in the industry as a result of the formal business adjustment of focal price?

Liu Zhiyong Analysis, there may be a variety of reasons behind this, one is the private revenge of the staff members of the employees, that the company to reduce the process of relief work did not do a good job, and the other is a competitor; third, the individual media for the eyeball, the original normal enterprise adjustment into a sensational event.

However, regardless of the facts, focal price layoffs have indeed sparked an industry debate focused on the fierce competition in the Cross-border electricity business and the rapid decline in profits.

As the policy of the past two years has encouraged the development of cross-boundary electricity dealers, labels such as "Blue Sea" and "windfall profits" have been continuously raised on the heads of Cross-boundary electricity dealers, attracting a large influx of businessmen, including the traditional enterprises outside the circle and other domestic electric companies, so that the market is nearing saturation. Only in Shenzhen, because of electronic products have a unique source of advantages, not personal Soho and pop, the scale of the 3C-type Cross-border electricity companies will not be thousands. The homogeneity of the product was so severe that it eventually led to a frenzied price war, with the 3C Digital category, which was the first of the Focal prices.

Roggia, a well-known foreign trade website DX Executive Director, said that in the face of various problems in the Cross-border electric power industry, there have been many recent statements that have sung a decline in foreign trade. He believes that any industry has its development laws, spiral up very normal, no one can eat a lifetime, each relying on the Internet enterprises will continue to adjust their own, adapt to the trend of development, in the optimization adjustment to find their own position.

Woe to the price of comparison

In the interview, a number of interviewees said that the other important reason for the development difficulties of the foreign trade enterprise is the rapid expansion of fast selling. According to the data published by the fast sellers, compared with 2012, 2013 its overall PV growth is 700%, commodity trading and order volume growth of more than 600%. Growth rate far more than any one foreign trade company.

At the same time, the English-speaking country market has saturated, the foreign trade enterprises began to move to Russia, the Middle East, Brazil, Argentina and other emerging markets, fast-selling also relies on Alibaba's resource advantages to take the initiative to expand the speed of astonishing. Fast-selling is now Russia's top-ranked electric dealer website. In 2013, fast-selling trading in Argentina, Brazil and other land transactions increased by nearly 10 times times.

More frightening than the growth rate, is the fast-selling incentive platform for sellers to play a price war. It is rumored that the promotional activities on the platform for fast selling often require sellers to discount more than 50% of their products. Low prices also make foreign buyers become more and more astute, in a certain electric commerce website transaction, they often send to sell on the same commodity link to ask the merchant to reduce prices. Because of the impact of the price war, the most competitive 3C product gross profit has dropped sharply to less than 10%.

The competition is fierce and the profit is low, so that the foreign trade enterprises are generally caught in business dilemma. Accordingly, Liu Zhiyong even thought that "Focal price layoffs are wise". Cross-border electric business participants know that the industry's price war has been very fierce, with the domestic Taobao "no minimum, only lower" the same. As a result, the development of independent cross-border Web sites is bound to be affected. Before blindly pursue the scale and the sales, with "the person many strength big" the development pattern already can not adapt the industry current environment, especially in the third party platform's price war intensified situation, in addition the human cost rises, the layoff can say is the industry development an inevitable trend.

In the past two years, the Cross-border electricity dealers suddenly became hot, in fact, this "hot" is the spread of the cross-border electric business industry, "virtual high" results, this is the consensus of the industry.

Cross-border e-commerce refers to a kind of international business activity which belongs to different customs, deals through E-commerce platform, carries out payment settlement, and serves goods through Cross-border Logistics and completes the transaction. In recent years, as a new thing in the public, the cross-border electric power industry has also attached great importance to the national policy level, since 2013 has introduced a number of measures to support and scale the development of Cross-border electric business, and is also discussing more reasonable, more easily landing policy. Media attention is also rising speed, and continue to promote the industry's "good", and the Cross-border electric operators described as a "big money" of "heavy profits" industry, leading to a large number of entrepreneurial groups stationed. At this time, a very direct result appears: The human cost rises.

Entrepreneurial community is big, the demand for talent will intensify, and then appear everywhere "digging people" phenomenon. Cross-border electrical business talent in this hype, the value is invisible elevated. A market price may be worth only 3000 yuan position, in this "false" propaganda, the enterprise is constantly digging to dig, the final 10,000 yuan will not recruit people.

This phenomenon almost reproduced 2011 years or so the electric business industry's talent consumption situation.

The Foreign Trade consumer Independent website under the current third party platform's excessive extrusion, had to carry on "gathers", has limited funds and the limited resources to develop the most competitive product. On the other hand, the independent foreign trade to get rid of the price war, but also to take the initiative to differentiate, with the brand, quality to separate low price products.

Cross-border online retail Enterprises Orchid Pavilion set potential chairman and CEO Guo said that traditional foreign trade is to bring China's best products overseas, and in the field of cross-border electricity, this tradition has not been effectively inherited. "When we face the huge overseas consumer market, we just sell some of the best value for money overseas, but we don't sell them the best quality stuff in China," he said. ”

Guo to disease prediction, China's cross-border electricity dealers will usher in the shuffle period is a good time period, "shuffle, the industry will form more orderly competition." In the end there will be several big platforms emerging, and the largest one or two foreign trade companies may also become platforms. But after the third one, foreign trade will be difficult to transform into a platform, because the market does not need so many platforms. ”