Convention And Exhibition B2B Will Become The Next Profiteering Industry.

"2015 is a very unusual year in the history of China's foreign trade. The situation is more complex and severe, and the downward pressure is increasing.

According to preliminary customs statistics, in 2015, the total import and export volume of the whole country decreased by 7% compared with the same period next year.

Among them, exports fell by 1.8% and imports fell by 13.2%.

On January 20, 2016, at the news conference held by the Ministry of Commerce, the operation of business in 2015 was notified. What is worth paying attention to is the summary of the foreign trade situation in 2015.

The situation is grim and the downward pressure is high. For this reason, the analysis of the industry is mainly due to the low external demand, insufficient domestic demand, falling commodity prices, rising factor costs and the weakening of traditional comparative advantages.

It is worth noting that in the analysis of the characteristics of the development of foreign trade, the new business model has maintained rapid growth.

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New business models such as market procurement are gradually becoming a new growth point in foreign trade development.

In 2015, cross-border e-commerce grew by more than 30%.

Market purchasing trade mode

The growth rate is over 70%.

The growth of cross-border e-commerce is 30%, including two parts.

Yu Jun, senior director of B2B business group, said that the volume of B2B cross-border e-commerce is about ten times the volume of B2C cross-border e-commerce.

And in the entire import and export trade, B2B's foreign trade business is also known as "big trade". China's big trading market has a volume of 2 trillion dollars, of which SMEs have about 1 trillion dollars in volume, while Ali cross-border B2B electricity supplier currently occupies a share of 100 billion dollars.

Although the overall foreign trade situation was not good last year, for Yu's B2B cross-border electricity supplier, Yu Chung said that they had received a good trend.

"At the core of traditional trade, pure low-end manufacturing is rapidly sliding down, and the cross-border electricity supplier driven by new service formats, technologies and new modes is growing fast."

Yu Chung said that the overall strategy of foreign trade is "one circle and one ring".

The so-called "one circle" refers to the construction of a good ecological circle through the drive of big data, attracting more SMEs to enter this system; and the "one ring" emphasizes on making closed loop. This closed loop refers to the bright spot that Ali B2B's foreign trade started last year: it began to set foot in the exhibition O2O and make the channel sink.

In Yu Yong's view, this is an important direction of the B2B pformation, through the line, the traditional channels and new foreign trade channels to provide the overall solution to the customers.

From information matching mode to full link service mode.

Data help

In December 2015, Alibaba B2B division and UBM, Asia's exhibition company, reached a strategic cooperation. At the press conference of the day, Dong Zheng, director of Alibaba B2B business group decision support, elaborated on such a view: a year ago, Ma proposed the pformation of the electricity supplier company to the data company, and the overall strategy of B2B (business to business), including Alibaba.com, was pformed into the underlying business structure. Through business logic, data, integration of service providers and partners in the ecosystem, it created deeper value for the end-users (buyers and sellers).

Dong Zheng's speech released a very important point of information, that is, the change of Ali's overall strategy.

It is understood that Alibaba's Convention and exhibition business before 2014 is basically based on online exhibitions, and is also regarded as a competitor by many traditional exhibition companies. Online exhibitions attract sellers and buyers to the platform. But due to the lack of specific exhibition venues, users can hardly really conduct online pactions, and buyers and sellers finally return to offline pactions. This means that the online convention and exhibition business is limited to the information matching mode, and has not done well in channel settlement, so as to really go deep into buyers and sellers, and solve their services in the whole paction link.

Mice usher in the era of segmentation

At present, there are more than 8 thousand exhibitions in China every year, and the scale is about 20 thousand. Only UBM, the company has spanned more than ten industries, with 2 million real buyers and over 100 thousand suppliers.

The profit of the exhibition company is around 30% - 40%, compared with other industries, the exhibition industry is a profiteering industry.

However, the characteristics of this industry are also very obvious. The exhibition industry has a history of over 100 years, and it is a typical heavy human and service industry.

And the exhibition industry is also divided into industries, so as to gain comparative advantage.

For example, the business segment of UBM spanned over a dozen industries, and the advantages in the maternal and infant industry were more prominent. In order to create a deeper trade barrier, the exhibition company will do some industrial data analysis to attract a group of high-quality sellers. Generally speaking, the Convention and exhibition will hold only one or two exhibitions a year, though not many, but they can attract a wave of high quality businesses, and do very meticulous exhibitions.

Therefore, the advantage of the exhibition company lies in the matching of the front end and the exchange of the industry. However, in the back-end service system, they still lack data support, so they cooperate with ALI.

Alibaba B2B Business Group Development Director Wei Chen said that in the future, and even based on Ali's big data to determine which industries are new industries, which industries may need to develop new exhibitions.

In contrast, Alibaba online exhibition, it is understood, Alibaba online conference and exhibition are mainly small and medium businesses, they still hope to expand more resources through offline channels, after all, the exhibition under the line, in addition to the paction between buyers and sellers, but also get more recent industry dynamics and resources.

In order to solve this problem, in addition to a cooperation agreement with UBM in December 2015, it is understood that Ali is also in communication with Hannover and other larger exhibition companies.

At present, Ali is developing APP software for exhibition industry, connecting online and offline businesses, "for us, the pressure is relatively large is how to do the details."

And the specific mode of exhibition O2O, Wei Chen said, is still exploring.

After all, the exhibition industry is also a trillion level market. Previously, there was no unified integration between the two channels under the online and offline, and Ali from the online landing line, the exhibition company also resorting to Ali's back-end service to touch the net, which could absorb much market dividends in the future, and had a huge imagination.