Capitalising on China’s cross-border e-commerce market
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Attendees of the dialogue on GMS Cross-border E-commerce Cooperation Platform held in Yunnan province, China earlier this month discussed how to develop cross-border e-commerce businesses of ASEAN countries. More than 100 representatives from e-commerce companies and associations from the Greater Mekong Subregion (GMS) comprising Cambodia, Laos, Myanmar, Thailand and Vietnam as well as Yunnan Province and Guangxi Zhuang Autonomous Region in China participated with this event. Ray Li, vice president of SF Express International Business Division, shared his insights as a representative from the logistics sector on the import opportunities for Chinese e-commerce companies at the event.
China’s “One Belt, One Road” initiative and Supply-Side Reform policy provides a driving force for the development of cross-border trade for ASEAN countries as well as for China itself, Ray Li said. Overseas shopping by Chinese consumers is growing at a rate of more than 50% annually, driving the rapid increase in sales of milk power made in Singapore, coffee made in Vietnam and latex products made in Thailand.
As how to best expand into the Chinese market, in the pilot stage of business, Ray Li suggested cross-border e-commerce suppliers use B2C direct mailing services with light assets, zero inventory, small quantities and multi batch models, in order to accelerate the stock cycle and sales.
SF Express is a Chinese express company known for its fast delivery and quality services and has a network coverage of 34 provinces and cities across China. The express service provider, which owns 51 all-cargo aircraft, is building an air logistics hub that will soon to be the first in Asia and the fourth in the world. In Southeast Asia, the company has set up service points in Singapore, Malaysia, Vietnam and Thailand with its own local service teams that can provide door-to-door international express services.
This event was co-hosted by the Ministry of Commerce of the People’s Republic of China Department of International Trade and Economic Affairs, the Department of Commerce of Yunnan Province, and the Asia-Pacific Model E-Port Network Operational Center. The event aims to strengthen the cooperation between and the development of GMS members in terms of cross-board e-commerce, through in-depth dialogues and communications.
Questions & Answers
Q.Which specific ASEAN countries were represented at the GMS cross-border e-commerce dialogue?
Which specific ASEAN countries were represented at the GMS cross-border e-commerce dialogue?
Representatives from Cambodia, Laos, Myanmar, Thailand, and Vietnam participated in the event. These nations, alongside Yunnan Province and Guangxi Zhuang Autonomous Region in China, form the Greater Mekong Subregion.
Q.What business strategy did Ray Li recommend for cross-border e-commerce suppliers entering the Chinese market?
What business strategy did Ray Li recommend for cross-border e-commerce suppliers entering the Chinese market?
Ray Li suggested using B2C direct mailing services with light assets, zero inventory, small quantities, and multi-batch models during the pilot stage. This approach aims to accelerate the stock cycle and sales effectively.
Q.What is SF Express's presence like in Southeast Asia, according to the article?
What is SF Express's presence like in Southeast Asia, according to the article?
SF Express has established service points in Singapore, Malaysia, Vietnam, and Thailand. They operate with their own local service teams, providing door-to-door international express services in these regions.
Q.Which Chinese government bodies co-hosted the cross-border e-commerce event in Yunnan?
Which Chinese government bodies co-hosted the cross-border e-commerce event in Yunnan?
The event was co-hosted by the Ministry of Commerce of the People’s Republic of China Department of International Trade and Economic Affairs and the Department of Commerce of Yunnan Province.