With a daily turnover of 4 billion, what can cross-border sellers find in Mingtong Beauty City?

How powerful was the Mingtong cosmetics market in the past? According to sellers, Mingtong was so powerful that it controlled the entire market price, and even the platform had to refer to Mingtong's prices when shipping.

From prosperity to desolation: 4 billion in turnover a day, 600 million in one day

In February and March of last year , a very special situation occurred: the Mingtong Cosmetics Market in Shenzhen suddenly became very popular, with the daily transaction volume reaching an extremely exaggerated 4 billion yuan.

The reason is that due to the impact of the epidemic last year, all kinds of overseas shopping agents could not continue to operate, but the market demand is still there, especially for China, which is a very large market. Therefore, all market demand was squeezed into Mingtong at once, and Mingtong became a distribution center for cosmetics. Cosmetics from all over the world would first be gathered in Mingtong, and then sold to all parts of the country through purchasing agents.

At that time, the main products circulating in the Mingtong Market were "parallel imports", that is, genuine products that had not paid taxes. Some unscrupulous merchants were attracted by the reputation of the Mingtong Cosmetics Market and stuffed fake products into it, so that some purchasing agents were unable to distinguish the real from the fake when picking up the goods.

The terrifying size and strong momentum of the Mingtong Cosmetics Market also attracted official attention. In January this year, the Shenzhen Customs Anti-Smuggling Bureau launched a concentrated crackdown operation and sealed off many businesses. The amount involved reached more than 600 million yuan, which became the "600 million incident" in the eyes of sellers.

Cross-border sellers enter the market: Targeting top suppliers in a bustling market

Selling parallel-imported products is certainly not advisable, but for cross-border sellers, even if they go through formal channels, Mingtong Cosmetics Market is a "holy land" that cannot be missed - this market has a very complete supply chain, which concentrates the country's best cosmetics suppliers, and these top supplier resources are what cross-border sellers need most.

Mingtong Beauty City's supply of goods is basically obtained from duty-free shops and discount stores in Japan, South Korea, Hong Kong and Hainan. At the beginning, some merchants with resources and strength organized purchasing teams overseas to buy goods in duty-free shops. Later, large companies joined in and invested tens of millions of funds to buy goods in batches. After reaching a certain scale, the duty-free group will also cooperate with these people to obtain goods.

In this way, suppliers can get 30%, 50% or even lower prices. Combined with many other benefits such as rebates, the prices obtained by several major companies are even lower than you can imagine.

If sellers can find suppliers at the top of the food chain to trade with, they can get the supply at a very competitive price and gain an advantage in the market. In contrast, it is much more difficult for sellers to directly go to the Chinese general agents of those big brands for authorization. After all, they also have to manage their own prices, and it is difficult for sellers to get the supply at a very low price.

After getting in touch with these top suppliers in Mingtong Cosmetics Market, sellers can directly get goods from the supply chain, receive goods from abroad, and still get a very competitive price after paying taxes and going through customs. Some international big-name products are " hard currency " in the market, and they don't have to worry about selling. As long as the quality is guaranteed, they can make a profit.

Today, the Mingtong Cosmetics Market is deserted, and the closure of a large number of stalls has also caused chaos in the prices of Mingtong cosmetics. However, its former prosperity still brought wealth and means of livelihood to many people.

The truly smart people not only seize the opportunity, but also learn to protect themselves and make money in a formal and legal way, so that they can get a share of the pie and still get out of it unscathed.

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