There are three advantages to success in foreign trade

Absrtact: Alibaba can not avoid tens of millions of businesses in foreign trade transactions in the profit is constantly depressed, as well as foreign retailers to cancel orders brought by large quantities of factory closures. and to the Orchid Pavilion set potential for the representative of foreign trade, but can let Chinese merchants direct foreign consumption of goods

Alibaba can not avoid tens of millions of businesses in foreign trade transactions in the profit is constantly depressed, as well as foreign retailers to cancel orders brought by large quantities of factory closures. And the Orchid Pavilion set potential for the representative of foreign trade, but can let Chinese merchants to direct the goods to foreign consumers.

See the typical representative of the foreign trade of the Orchid Pavilion set potential to raise funds to the U.S. listing, think of an article written before, "Third-party payments shoulder the responsibility of the internationalization of the renminbi," the efforts of the renminbi internationalization mentioned in the Orchid Pavilion set potential of China's foreign trade in addition to directly across foreign retailers docking terminal consumers, To make it easier for Chinese businessmen to go abroad to sell to the world, the internationalization of the renminbi is also a way of trying and trying. Before we analyze the Orchid Pavilion, we'll look at a few sets of public data:

Orchid Pavilion Prospectus publicly disclosed information: In 2008, 2009, 2010, 2011 and 2012 of net turnover of 6.25 million U.S. dollars, 26.05 million U.S. dollars, 58.69 million U.S. dollars, 116.2 million U.S. dollars and 200 million U.S. dollars, year-on-year growth rate of 316%, 125%, 98% and 72%. Net profit of 1.115 million USD in the fourth quarter of 2012 (last year fourth quarter only goods will net profits of 6.4 million US dollars)

The Orchid Pavilion is in control of the entire industrial chain from Chinese manufacturing plants to American consumers, including 6: A. China's factories; B. Exporters from China; C. foreign importers; D. Wholesalers in foreign countries; E. Foreign retailers; F. Foreign consumers. Alibaba only completes the link from B to C, and at best it only affects the link from a to D. The Orchid Pavilion set potential realizes all links from a to F. The real high profits are in the D to F.

Guo go to the disease finally find some managers have a strong learning ability, to manage those small factories, to help such factories to do cost accounting, long-term sustainable development strategy, improve management, production processes, become adapted to e-commerce needs of the factory. According to the traditional foreign trade way from design to consumer purchase may take 18 months, orchid Pavilion set potential only 3 months; traditional foreign trade may be a single to 100,000 pieces, the Orchid Pavilion set the potential of the next order only 3,000 pieces.

These sets of data are a boost to the confidence of foreign trade, and embody the advantages and values of China's foreign trade platform in three aspects:

On the one hand is to resist foreign trade risk confidence, in fact, the only innovation in China's foreign trade is Alibaba's business-to-business business, but this business model still only solves the problem of information flow, for foreign trade in the presence of foreign exchange, transaction payment costs, logistics and foreign consumers research and understanding of not too much accumulation, This makes China's foreign trade is still the economy of the troika, but can not withstand the above problems to the foreign trade risks, Chinese enterprises are still in helping foreign retailers to earn hard money in the processing of manufacturing state, Alibaba is still unable to avoid tens of millions of businesses in the process of trade in the profit is constantly depressed and faced with foreign retailers to withdraw or transfer orders brought about by large quantities of factory closures. And the Orchid Pavilion set potential for the representative of foreign trade can let Chinese merchants directly face foreign consumers, although payment tools and logistics are still using the United States enterprises, can grasp more and more foreign end consumers of transaction behavior data and foreign marketing platform technology and Means, As long as the conditions are ripe to replace the continuous internationalization of the Bank of China or the third party to pay the financial enterprises to provide payment tools, as well as the continuous development and gradually out of the country to provide Cross-border logistics services of Chinese enterprises, can quickly establish a complete industrial chain of foreign trade enterprise system. In order to foreign trade in Chinese manufacturers to trade in the process of business customers familiar with the growing number of consumers, as well as the grasp of foreign marketing tools and methods, so as to achieve the ability to resist foreign trade risks!

The second aspect is to enhance the profitability of Chinese businesses, because it is from the Orchid Pavilion set potential to achieve from a to f all links. Real high profits just in the D to F, and Orchid Pavilion set potential is to control this high profit link, on this basis, orchid Pavilion set potential profit is reasonable, in the profit platform to gain their own profitability increase business will not be exceptional, after all, as a platform, only businesses continue to get higher profits, The platform itself is likely to achieve a higher level of profitability.

The third aspect is that RMB internationalization strategy has been reflected in the foreign trade platform, as long as the platform is mature enough, foreign exchange can be directly in the platform. The original Taobao Amoy strategy has this important one, but unfortunately due to the lack of foreign trade experience and ability, resulting in the project did not achieve the desired effect in a tepid state. As a foreign trade representative of the Orchid Pavilion is found a more appropriate approach.

This time as a foreign trade representative of the Orchid Pavilion set potential financing, although not high, but as long as the opportunity to get listed, there will be the following positive impact: first, in the trust system of listed companies to attract more domestic large and medium-sized suppliers to participate in, and foreign trade as enterprises to go abroad to achieve internationalization of the important strategy means, In these foreign trade platform to invest more energy and resources, business and platform together in order to reduce foreign trade risk, improve profitability and the renminbi continues to internationalization efforts; the second is to attract foreign merchants through China's foreign trade platform to sell goods to Chinese consumers at lower prices, Faced with a strong consumption capacity of these foreign businessmen will also be in front of the transaction to promote the progress of China's manufacturing industry, payment and logistics development, based on these to further promote the internationalization of the renminbi forward development, it is possible to achieve a trading platform to form a new "currency market" situation!