How Will Cross-Border Electricity Providers Go In The Future? Three Major Changes In The Industry

Cross border logistics is an indispensable part of cross-border electricity providers.

While in cross-border export electricity providers, China Post EMS occupies the vast majority of export direct mail.

According to the relevant data, the e postal parcels of China Post ENS are now up to 200 million.

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In the future, the possible way for China Post EMS to see it may be clearer.

Recently, in the 2017 China (Longgang) cross-border e-commerce industry summit and foreign trade pformation Forum

Jin Yongping, deputy manager of China Post Express Logistics Limited by Share Ltd, put forward his own views on cross-border e-commerce and cross-border e-commerce logistics.

Look at cross-border electricity providers from the figures

In 2016, the cross-border electricity supplier turnover was about 6 trillion and 100 billion, the compound growth rate of 5 years was around 33%, and by 2020, the plan reached 12 trillion.

On the export side, cross-border electricity suppliers are divided into two parts: cross-border B2B and cross-border B2C. At present, B2B accounts for a large proportion, up to 83%, and B2C accounts for 17%.

But from the point of view of development speed, the speed of B2C is obviously better than that of B2B. B2C industry statistics increased by 43% last year.

Import data, the annual cross-border import volume is 1 trillion and 100 billion, the growth rate of B2C is very fast, and the C2C market is slowly shrinking, so B2C still has the opportunity, but unfortunately, the B2C market is basically monopolized by several platforms. If you are an individual or a small business, you want to enter, the threshold is already high, so now it is more optimistic about exports.

New changes in cross-border electricity providers

Of course, the whole industry is changing.

When we did not have the word "cross-border electricity" 10 years ago, the customer demand we saw was quite different from today's.

Now the platform's strength, platform's voice is bigger and bigger, the individual voice is getting smaller and smaller, the platform is upgrading, the Amazon and Alibaba's platform policy is upgrading, including eBay, wish, the platform policy changes in these two years are very fast, the core trend is 3 upgrading.

The first is the upgrade of the seller. Before it was a personal user, everyone opened a shop casually. Now the personal user wants to open a shop, the main platform platform will get higher and higher.

Now the seller is upgrading, all the manufacturers are opening the shop.

Second, consumers are upgrading.

Before we faced consumers need to buy some Chinese products, maybe the price is low, the added value is not high, the whole time limit is not so fast.

But now it's different. Most platforms are concerned.

The proportion of high-end manufacturing is very high. This consumer group is different from overseas. It is not the same for overseas consumers to buy one dollar package product and sell dozens, hundreds or even thousands of dollars, and customer experience requirements are different.

So this upgrade will bring about great changes.

The platform will also introduce many new policies to guide sellers and buyers in the direction of platform expectations.

For example, when the time limit is fast, China Post EMS designed the e postal treasure when it was designed 7 to 15 days, when the time limit was enough.

But now it seems far from meeting the needs of the present.

Now the platform is two days, days, 5 days, 7 days.

Including now no excellent logistics, wish Tatsu, we can see the changes of these platforms.

The third is the change of logistics channels.

It may have been more direct mail before.

Today, however, the situation has changed. Besides direct mail channels, the channels for overseas warehouses are also coming out. The channels for landing distribution are also coming out, and the channels for private lines are also coming out. We will find that more and more logistics products are coming up, and the market is mixed.

Overseas warehouses become important logistics channels

For overseas warehouses, in fact, these two years from the government to the industry, including our sellers, are all praises. The government documents at all levels can see that all kinds of subsidies are available. Moreover, when we attended some meetings of the central ministries and commissions recently, the government encouraged the development of overseas warehouses along the line and the construction of the exhibition centers for products.

Overseas stores have a very good customer experience. European and American countries require 35 days to receive goods. You have to receive them for 10 days, and consumers do not want to.

Now you buy an electronic product, no matter which website you go to, you order in the morning, and you want to receive the goods in the afternoon. He doesn't want to wait.

Of course, apart from individual markets, such as South America, Brazil, Russia and other individual markets, that is the special customs policy that led to this result, consumers accept this situation.

But in Japan, South Korea, Europe and Australia, buyers have been normal for 35 days, so you sell high value-added products or high weight products, you can not receive two or three days, indeed, customer experience will be worse.

Another is the return, we direct mail export, customs clearance out, it is very difficult to come back, in addition to EMS can be returned free, but many other channels are very difficult to do.

Then there is after-sales service, there is a small flaw, to make a simple return, really a longer cycle.

So, which products are suitable for overseas storage?

First of all, electronics, if you use direct mail, using e mail, it may be good in Shenzhen, we have live channels in Hongkong, you want to go to the mainland, want to do security check, once live can not do, live products you want to through direct mail method is very difficult, but in overseas warehouse is easier to do.

The second requirement is timeliness.

The third is some home gardening products, large volume, heavy weight.

The fourth is auto parts.

Public overseas warehouses must produce mature markets.

The overseas warehouse market has gradually developed, and some sellers have built their own overseas warehouses.

But in the end, the public warehouse market will still be the mainstream.

Take China Post EMS one of its major customers, for example, he sells several hundred million a year, and now he starts building his own warehouse. The cost of a flat rice shelf is 2 million dollars. He is doing it on his own capital. At present, he is very tired. He can earn a lot of money on the books, but he can't see any cash. It's on the way, floating on the cupboard, or in the library, and he can't see any money in the stack.

In the past two years, many large sellers have already built their own positions. Regardless of the size of the warehouse, they built and managed their own businesses overseas. But if the enterprises want to develop, you can't always be limited to 10 thousand square meters. In the course of development, you will find that single enterprises invest in logistics such assets, including recruiting themselves, which is very difficult overseas, and the domestic labor force is relatively easy to find, but the management of overseas human resources is very difficult.

In addition, cultural differences are also a problem.

Policies, laws and regulations are different.

So it seems very simple that the overseas warehouse is not simply a warehouse, a forklift truck, two people to end it, it is not so simple to do a good job. It may involve more matters related to customs, legal matters, even the company registration there, you have to recruit people, and there are tax problems.

So we judge that there will be a mature market in the future public overseas warehouse.

Why do we now want to build it ourselves? Because there is still a lack of public goods. Of course Amazon is one, but the cost of Amazon, many companies have seen their products back and hope to connect them.

So any product has its advantages and disadvantages, and it is inappropriate and suitable.

In the layout of overseas warehouses, China Post EMS began to make overseas warehouses 12 years ago.

At that time, a joint venture with Australia Post was set up, which is to make overseas warehouses in Australia and New Zealand.

For example, in China, the labor cost is low, and the management of multiple suppliers is convenient. If you put it in the bonded area, the effect will be better.

Now the demand has changed, and the former is mainly sellers, and now buyers are the main ones, emphasizing customer experience.

Before we shipped it to Australia and New Zealand by sea, it took forty or fifty days to accept it, but we can't accept it today.

In recent years, we have set up overseas warehouses in the United States, Britain, Germany and Australia to provide warehousing and integration services for the domestic manufacturing industry, including some cross border e-commerce sellers.

Of course, distribution channels are not limited to postal channels. For example, in Europe, China Post EMS is available in addition to German post, British Post, and other channels available on the market.

World cross border electricity providers look at China

In recent years, cross-border electricity providers are developing very fast, and the global development of cross-border electricity providers is actually looking at China.

From the Universal Postal Union, the World Customs Organization and the world railway organization at various international summits, China will be taken as a case, hoping that China will provide him with more experience and sharing, including our customs, to provide some standards for cross-border electricity supplier innovation, and to go to the world customs organization to promote them.

Including the world railway organization, because the express mail is to be exported, when the world railway organization was established, it did not include the express mail, especially the mail, into the railway pportation category. In recent years, China and Europe have opened a lot of railways, and at the beginning it was all kinds of Europe. After the end of Europe, the iron road general company said no, everyone appealed to not to call all kinds of Europe, to unify the brand, to call the China EU railway.

But there are many things for cross-border electricity providers, but they can not be pported because the world railway organization has many demands, and the World Customs Organization has no way to regulate it.

China first called the world railway organization to China to make such a demand. Now railway mail delivery has been recognized in the world railway organization.

In recent years, we are also promoting the supervision of the World Customs Organization in the process of railway mail delivery.

Air mail and shipping are very mature and complementary. But how to supervise the railway mail delivery is a topic China has put forward to the world. I believe there will be a satisfactory solution in the near future.

Yes, the world's cross-border electricity providers are looking at China.

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