According to customs data, our cross-border electric operators export and import $5,77. 6 billion in the first quarter, an increase of 9. 6 per cent, well above the 5 per cent increase in the total value of merchandise trade imports and exports over the same period。
The rapid development of cross-border electric operators and the pioneering and leading role played by good head brands are essential. In the first quarter of this year, which cross-border brands performed well
It would be useful to take a look at china's cross-border merchandise impact list (first quarter of 2024), published jointly by economic news and swift technology. (attach next quarterly list)
The china cross-border merchandise impact list (first quarter of 2024) presents two intuitive figures: first, the shenzhen brand is well ahead of the rest of the cities, with its exclusive share of the mountain。
Second, whether searching for heat or natural flow from stand-alone stations, the ranking and data of shein in guangzhou continue to lead other brands。
The following is a reading of this list by chen yu, the founder of shenzhen shigei technology:
The shenzhen brand’s quantitative success in the consumer electronics sector reflects the strong competitiveness of china’s emerging industries, and the impressive performance of shein in the garment industry in guangzhou illustrates the potential of the classic industry。
The industrial structure of guangzhou is more representative of the vast majority of chinese cities than of tradition。
Shein and temu of the four small dragons at sea are both in guangzhou and, like the guangcheng, they help chinese produce to go to sea。
The difference is that the outreach is linked to the overseas b end, and they are directed to the overseas c-end consumer; the outreach is waiting for the customer to come, and they go to the consumer on their own initiative。
According to the 2024 mobile market report, published by the market analysis agency, data. Ai, shein was once again awarded the global shopping app download champion in 2023, with temu and amazon as second and third places。
It was also reported in the media that shein gmv was $29 billion in 2022, about $45 billion in 2023 and was expected to reach $80. 6 billion in 2025; temu gmv was about $18 billion in 2023 and the target was $60 billion in 2024。
In today's foreign trade situation, the development of the cross-border electrician sector in guangzhou has both learning implications for other cities and the real value of driving cross-border electrician + industrial transformation。
There's an opportunity for an industry in a city
Shein was born in nanjing, where she sold the wedding dress in the early stages and then moved to the women's dress category, the larger it becomes, and moved its headquarters to guangzhou in 2015。
The purpose of the move is clear: guangzhou has the best and most powerful garment chain。
Traditional clothing production, which seeks to scale its cost advantage, often requires tens of thousands of orders and clearly does not meet the need for “fast-fashion”. In turn, it has tens of thousands of “small workshops” in garment production, which, although small in size, are flexible and provide unique conditions for the landing of shein's “soft supply chain”。
Shein and china's garment industry have each other's achievements。
As is well known, garment production is a labour-intensive industry and is very cost-sensitive. Already at the beginning of this century, international leaders began to transfer some of their capacities to south-east asia, and domestic firms would not return if they continued to fight prices。
The “soft supply chain” is close to the demand-driven production model of the c2f (consumer-to-factory) model, moving away from simple pricing and focusing more on increasing responsiveness and production efficiency, in fact driving the transformation of the garment industry throughout china。
The main premises of temu are located in guangzhou rather than shanghai, apparently also for industrial resources. This is also confirmed by the battles with shein over supply chain resources。
Miniso's sku and temu are close, selling small chinese commodities, and their success depends on china's supply chain advantages。
Business has to go its own way
Shein is grass-roots, but so far she has not seen a second family. Why
Shein has been following the dtc model of the stand-alone dtc (direct-to-consumer face-to-consumer) with a keen grasp of the dividends of social media, and has worked hard to build a soft supply chain, culminating in a “sliding back” killer。
Of course, it is also important to see that the success of shein has its particular historical context. For example, the flow dividend period for social media is no longer in place, and the flow will not be as cheap if it is seen and capable。
The increasing cost of traffic is a major problem for cross-border sellers, with the exception of “rich two generations”, such as temu。
During the inflation period in europe and the united states, temu came to the top in a very short period of time, using extremely low-priced strategies, along with the fissure of social cliques and the placement of large-hand advertisements。
Cross-border electricity vendors are largely on-line because of the relatively low threshold and the relative speed with which they operate. Pros and cons, transparent online information, a large influx of sellers, and extremely competitive。
The huge investment of large players like temu has objectively raised the cost of online outreach and speeded up the “inner scroll” on the line。
Against this background, the sub-development line has become a hot spot, but high thresholds, high early investment, and long marketing cycles have discouraged most vendors。
The miniso prize from guangzhou may serve as a reference sample。
By the end of 2023, there were 2487 miniso leading overseas market outlets, an increase of 372 over the previous year. In the north american market, where cross-border electric operators competed, by the end of 2023, there were 172 outlets with a gmv of $178 million, an annual increase of 120 per cent。
There are different contexts of power, different resource endowments, different external timings and competitive environments, and different paths。
Lack of opportunity, or lack of insight into discovery
Core resources and overall efficiency
Economic behaviour seeks efficiency。
Shein's “spollback” essentially maximizes the efficiency of the interaction cycle between consumer demand and production supply, that is, the overall efficiency of the whole industry chain。
This presupposes that consumers are in their own hands and supply chains are under control, and that the maximum effect is achieved by means such as digitization。
It's like running a race. It's got to be four-legged. If one leg is thick, one leg is thin, it cannot run fast; or if it has only one leg to walk with crutches or other help。
Temu started with a full hosting model, where the platform addressed the cumbersome tasks of operational and logistics clearances in an integrated manner, both to ensure cost-effectiveness and to allow vendors to focus on the production of supplies and to attract source producers with cost advantages。
It also addressed the pain points and enhanced overall efficiency。
Unlike rapidly changing consumer electronics, it is difficult for traditional goods to make a big move, and more to be refined and fined at every stage, more efficiently than competitors。
Broadly speaking, it is to get deep enough at the end of consumption and at the end of production, and then to be coordinated and mutually reinforcing, so that the legs run and the virtuous cycle。
To a certain extent, it is understood that it is the formation of a small ecology that is relatively stable。
Long-termism
It's been almost two years since a lot of people knew that there's a shein, but shein's history dates back to 2008。
There are approximately 2,500 overseas businesses in miniso, which continue to grow. However, they opened their first offshore shop in 2015 in south-east asia, where they had been farming for almost 10 years, and the owner, yip guo-fu, who was already a retail boss。
Temu relies on the strength and strength of the “generation generation” to build up and support it, otherwise it will not be able to be so quick。
The explosive capacity of traditional products is limited and can only be done slowly at one step and not quickly。
Well, it'll be more stable once it's done。
Price warfare and brand upgrading
Prices are an endless means of competition and, above all, a common strategy for new players。
Shein has been able to catch up with the old fast-fashion brands of zara and h&m by taking advantage of cheap prices, many styles and new speeds. Low prices, however, inevitably affect profits, are not conducive to sustainable development, and can lead to problems such as environmental protection and labour rights in industrial chains. Thus, shein has in recent years tried to break through to a medium-high end by setting up a higher-positioned sub-brand, motf, and increasing product prices。
But at the same time that the transition has escalated, it is a challenge to avoid the basics being encroached on by the opponent。
After all, the late temu's price battle was more “absolute”。
Temu itself, after introducing the semi-hosting model this year, is attracting better sellers, such as the brands on china’s cross-border merchandise impact list。
Miniso is also promoting brand image through large flagship shops at the heart of global business such as times square in new york and oxford street in london, as well as through joint ip。
The majority of enterprises choose to enter the market at a low price and move up on their feet。
There is still a long way to go for china's cross-border electricity company。
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