There are all kinds of life in the cross-border circle. Some companies are going bankrupt, some are selling their brand accounts, and some are making huge profits, doubling their net profits, and embarking on the road of capitalization. This is in line with the saying "In an industry with fierce competition and too many people and too little meat, survival of the fittest is inevitable." The era of wild growth of cross-border e-commerce will eventually become a thing of the past. Faced with the broad prospects of the cross-border e-commerce market, only companies that focus on long-term development and steady growth can become the mainstay of the cross-border circle.
This cross-border e-commerce company is suspected of running away due to hundreds of thousands of yuan in debt
Recently, a piece of news has been trending in the cross-border circle.
An operator said that he wanted to go to the company to work overtime on the weekend, but when he got there, he found that the company's door was locked and the company had closed down. On the company's door, there was a very conspicuous notice, which showed that the company had been in arrears of property and rent for 7 months, and negotiations had failed many times. The current arrears had reached more than 400,000 yuan, but the company's legal representative could not be contacted, so the company had to detain the company's property, but employees were allowed to take away personal belongings.
The editor learned that the company is located in Futian and currently operates on eBay, Amazon and Wish platforms. Recently, the company was sued by a US law firm due to infringement of Amazon products. In addition to the arrears from suppliers and logistics companies, the company's capital chain has been greatly affected. The operator said that there are still one or two months of salary that have not been paid, and the boss has been unable to be contacted. It is speculated that the boss may have gone to raise money.
Some companies have capital chain problems, and some sellers feel that cross-border e-commerce is too difficult and are selling their stores at low prices to actively "slim down". Industry insiders revealed that a top seller who has been deeply involved in the main category for many years sold his brand account, and the acquisition price was as high as 50 million , which is far more than the company's annual income.
The change in the industry structure has a great impact on cross-border e-commerce companies. According to incomplete statistics, nearly 1,000 cross-border e-commerce companies went bankrupt in Shenzhen in 2022. In early April, there were only more than 6,200 companies in Shenzhen that were still in existence when searching for "cross-border e-commerce" on Tianyancha, but as early as the New Year, the results showed that there were more than 7,100. In other words, in just three months, nearly 1,000 cross-border e-commerce companies went bankrupt. On Qichacha, the editor searched the same content again and screened the status of the companies, and the data obtained was 6,002.
In addition, in the "2021 China Cross-border E-commerce "Death" List" released by the China Internet Network Information Center , as many as 12 Chinese cross-border e-commerce companies "died" in 2021 due to bankruptcy, closure and other reasons , including the e-commerce platforms we are familiar with, Global Easybuy and VOVA; service providers Haitao Tianxia and Easystart, etc.
Obviously, with the "charm of making a fortune every day", the cross-border circle has attracted a large number of friends in recent years, and many people have made a fortune from it. However, this has also intensified the fierce competition in the industry. With a series of factors such as the epidemic and soaring logistics prices, the sellers' original familiar strategies have failed. With profits not enough to cover expenses and even huge losses, some companies can only choose to exit in a low-key manner.
Just like the midlife crisis that people encounter, the industry is also like this, but we should look at the exit of enterprises dialectically. The industry reshuffle screens out high-quality sellers, and the slowdown in seller growth is conducive to sellers settling down, reorganizing the team, deepening product development, and researching new trends. As the saying goes, the fittest survive, and the cross-border circle is also practicing this truth.
"Intensive cultivation" has become the mainstream, and the cross-border e-commerce market has great potential
The era of wild growth of cross-border e-commerce will eventually pass, and only companies that pursue long-term development will become mainstream.
In the future, only companies that focus on products, R&D, innovation, and strengthen channel layout and marketing capabilities can stay in the cross-border circle. For example, Anker Innovations, a well-known 3C seller, had an operating income of 12.574 billion yuan in 2021, and R&D investment accounted for 6.19%, or 778 million yuan ; Giant Star Technology's operating income in 2021 reached 10.92 billion yuan, and R&D income was 310 million yuan; SHEIN's valuation exceeded 100 billion US dollars, and a strong supply chain ensures the high speed of new product launches; Home Furnishings Seller Zhiou achieved an operating income of 3.2 billion yuan in the first half of 2021, and a wide range of categories became its revenue-increasing weapon...
Although these big sellers have different business models and product categories, they still have similarities: they focus on research and development and are gradually increasing their investment in research and development; they focus on diversified brands and multi-channel sales layout.
Big sales are still at their peak, but small sales have been shut down due to multiple reasons.
Many people are confused: "Under such circumstances, can we still do cross-border e-commerce in 2022?" The answer is a definite yes. In 2021, the import and export transaction volume of China's cross-border e-commerce was 1.98 trillion yuan, of which exports were 1.44 trillion yuan, an increase of 24.5%. China's export cross-border e-commerce is in a state of growth.
Qichacha data shows that there are 32,000 cross-border e-commerce related companies in China, and the number of registrations has been increasing year by year over the past three years. In the first three quarters of 2021, a total of 7,943 cross-border e-commerce related companies were registered, with an average growth rate of 90.6% over two years.
In terms of the e-commerce market, the United States is still a market where Chinese cross-border e-commerce exports have been deeply cultivated. In 2021, the scale of US e-commerce will exceed US$469.2 billion, which is still growing compared to US$431.6 billion in 2020. In addition, Southeast Asia, the fastest growing region in the world for e-commerce , is still a hot spot for sellers. With 150 million active e-commerce users and a scale of US$120 billion, Southeast Asia still has 8-10 times of room for improvement compared to a penetration rate of less than 5%.
In terms of platforms, Amazon is still the mainstream, with more than 470,000 sellers joining Amazon in 2021 ; Walmart also attracted about 8,000 sellers in 2021; other platforms such as eBay, Facebook, TikTok, etc. have also become another choice for many sellers to make money.
In addition, as the epidemic and platform policies become stricter, some sellers have a stronger sense of crisis, and they prefer to build their own websites, which reduces their dependence on third-party platforms while giving them greater independence and a higher voice. With the influx of manufacturers, brand owners and other sellers into cross-border independent websites, it is estimated that the number of independent websites in China has reached about 200,000.
Among the hot-selling categories, shoes and clothing, bedding and other household items, consumer electronics, and health and beauty products are at the top of Amazon's rankings and are very popular among overseas consumers.
For sellers, it is not that they cannot do cross-border business, but that they need to do it with their heart. Cross-border e-commerce is a sunrise industry in its development stage. It will go through hardships, but it will not stagnate or be defeated. In the future, cross-border e-commerce will allow more compliant, legal, brand-oriented and meticulously cultivated enterprises and products to go abroad. Shenzhen Cross-border e-commerce Shutdown |
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