DHgate.com may be listed in Hong Kong. What is the prospect of B2B cross-border e-commerce?

Recently, some media broke the news that the B2B cross-border e-commerce platform DHgate may be listed in Hong Kong in the near future. The company's founder and CEO Wang Shutong also clarified in September 2020 that the company will go public in the next 1-3 years.

Perhaps, the listing plan that Dunhuang.com has been planning for 9 years will really be successfully completed against the backdrop of the rapid development of the cross-border e-commerce industry!

Selected as one of the “Deloitte High-Tech Fast 50” in Asia Pacific in the fourth year of its establishment

Founded in Beijing in August 2004, DHgate.com is one of the earliest Chinese platforms involved in cross-border e-commerce and based on B2B. The platform is committed to building an online Silk Road for Chinese SMEs, helping them realize their dream of "buying and selling globally" through simpler, safer and more efficient online transactions.

In 2008, DHgate.com was selected as one of the "Deloitte High-Tech Fast 50" in the Asia-Pacific region and ranked 7th.

As of June 30, 2020, the number of registered sellers on Dunhuang.com worldwide has reached 31 million, covering 224 countries and regions, connecting 2 million domestic suppliers and 21 million online buyers, and supporting 8 languages ​​including English, Russian, and Spanish .

(Dunhuang.com official website)

In addition, Dunhuang.com has as many as 32 million product categories , covering electronic products, clothing, health and beauty products. It is considered by the industry to be China's largest B2B digital trading platform and the number one e-commerce website in Asia Pacific and the sixth in the world in terms of online foreign trade transaction volume.

Therefore, the market share and corporate strength of Dunhuang.com should not be underestimated. In addition to Dunhuang.com, the domestic cross-border e-commerce B2B platforms that are currently well-known to everyone include Alibaba International Station, Made-in-China.com, Global Sources Foreign Trade Network, and Dajian Cloud Warehouse. Amazon's Enterprise Purchase is also a commercial procurement site for corporate and institutional buyers of this e-commerce platform.

China's cross-border export B2B e-commerce scale will reach 11.2 trillion yuan in 2025

The outbreak of the epidemic in 2020 has accelerated the development trend of online and e-commerce in global procurement, and the huge potential of B2B cross-border e-commerce has also been accelerated.

According to data released by Amazon on March 15, the sales of its B2B platform Amazon Business reached 25 billion US dollars in 2020, and the gross merchandise volume (GMV) increased 25 times in 5 years. Therefore, online commercial procurement by "institutional and corporate users" may actually be the fastest growing side in cross-border export e-commerce.

Another organization predicts that the global online B2B market will reach $12 trillion in 2021 and grow to $21 trillion by 2027. With the improvement and development of the current independent station ecosystem, B2B cross-border e-commerce is actually a market with more room for imagination than that for C-end consumers.

At the same time, domestic B2B e-commerce platforms have also ushered in a period of rapid development.

According to the "China's New Cross-border Export B2B E-commerce Industry Research Report" released by iResearch Consulting on March 1 this year , cross-border e-commerce has become a strong growth point for foreign trade, and B2B is the main body of cross-border e-commerce. In 2019, B2B accounted for 74.1% of the scale of China's cross-border e-commerce. In the future, the dominant position of B2B will continue to strengthen.

( Image source: iResearch, Tencent )

In the next five years, due to the changes in consumer behavior caused by the epidemic, the support of national policies for cross-border e-commerce B2B, the online and information-based development of all aspects of transactions, and the fragmented development trend of B-side transactions , the online penetration rate of B2B transactions is expected to increase significantly ↓

( Image source: iResearch, Tencent )

It can also be predicted that from 2020 to 2025, the compound growth rate of China's cross-border export B2B market size will reach 28.3%, and the scale of China's cross-border export B2B will reach 11.2 trillion yuan in 2025.

However, B2B also has some disadvantages compared to B2C. Consumer purchasing behavior under the B2B model is more complex and will be affected by environmental, group and individual factors. There are also problems such as information lag and opacity. From this aspect, cross-border B2C is more efficient, but B2B can undoubtedly create a larger sales scale.

In summary, as mentioned above, with the increase in the number of independent sites and the support of many other factors, there is still more room for imagination in the future development of B2B, and it will continue to maintain its dominant position in the scale of cross-border e-commerce.

Dunhuang Network