Hard Revolution Of Chinese Brands Going To Sea: Still Hard Work

In the fiercely competitive domestic environment, "going to sea" may become a "lifeline" for Chinese brands to get incremental.

Some enterprises have unwittingly grasped the "straw". Some enterprises have tried hard to pform but their achievements are mediocre, while some enterprises have spent heavily on the layout, but finally left a sigh.

In the tide of domestic goods going out to sea, the platform plays the role of driver.

Whether Jingdong or Tmall are playing the abacus of brand launch, they came up with a plan to launch the brand on the same date last year. In June of 2017, Ali announced that the project of "Tmall to sea" was officially launched. In June of the same year, Jingdong announced the launch of the "Jingdong global sale" business.

And relying on these platforms to make brand dealers who increase sales, otherwise they will follow the general trend with great enthusiasm, or they will be "going out to sea" with a skeptical attitude.

All this coincidence led to the birth of the era of brand launch.

But the reality is cruel. At present, most Chinese enterprises' understanding of overseas markets and their popularity abroad are still low.

Then, what kind of enterprises can really "go to sea"?

Platform leading brands are led by the nose.

There are many enterprises that go to sea.

Many big cards follow the platform's strategy, and the degree of cooperation is very high.

In February 2017, Tmall and CFDA (American Fashion Designers Association) and Centrino fashion (Suntchi) held the "New York fashion Sunday cat China day (China Day)". Lining and Taiping bird were selected as candidates for the brand. It is reported that Taiping bird has only 1 months to prepare from Tmall's invitation to the formal show.

In addition, for Tmall 618, Lining also brought "new" casual shoes, Chinese Lining series short sleeved T-shirt, Tiger Crane short sleeved T-shirt, cloud crane crane baseball cap and Tmall exclusive Lego version of "Enlightenment" sneakers and other fashion week New York T.

Under these two local lines, there has already been a brand with perfect layout, and overseas has also followed the old road, and accumulated word of mouth slowly through the line.

Of course, there are also Chinese brands who want to adopt a more "light" online mode to conduct "sea trial".

ODM, a garment manufacturer born in the past, has been aware of the need to integrate online and offline. However, in the area of "going to sea", it mainly relies on the platform to launch online sales.

At present, Yin man and Ali's fast selling, Jingdong's Jingdong Indonesia station has cooperation.

Of course, Inman, who has little experience in working with cross-border platforms, is still puzzled.

The head of the company has told the billion power that although the platform has already solved the related payment problems, in the aspect of logistics, it can only use the platform's designated logistics mode and follow the rules of the platform.

"Yin man has just started, so he can only follow the platform now."

The person in charge said.

As the largest munitions light industry enterprise in China, Jihua Group is also embarking on the road of cross-border electric business. For its future plan, its head also admits: "as a newcomer, we will follow Ali more in the future."

Of course, even if Tmall's brand launch plan has been implemented for some time, there are still many enterprises in a fog. Even overseas sales are also told that it can be said to be very passive.

The head of a household electrical appliance company told the billion state power that it did not take the initiative to do cross-border business, nor did it set up a special cross-border electricity supplier department or team. The reason why the existence of overseas consumers was purely "unexpected" was that a group of data released by Tmall was able to know its sales across the border area. However, after knowing the data, it hesitated because of whether to increase investment, because it was not ready.

Eager to move, helpless and muddled...

Each brand faces the platform's encouragement to sea, it seems that there are different statements.

Bruising: the popularity of Chinese brands is generally not high.

Despite the positive "sea" brand, it is not plain sailing. The pain of the sea going brand is very obvious.

Billion power has interviewed people in charge of clothing, electronics, watch accessories, household appliances, home and other sea going brands. They all invariably point out that their brands are too low in popularity abroad.

For this pain, different enterprises have different ways of thinking.

For AUCMA, a home appliance company that has just boarded the cross-border electricity supplier, Haier, Hisense, the United States and other foreign competitors such as SIEMENS and PHILPS have given them no small pressure.

For the promotion of overseas fame, its responsible person said, AUCMA mainly through the product way to let consumers first get tangible benefits, and then endorse its products, first through small household appliances to sea, so that overseas users are familiar with AUCMA brand.

And the main dress of cotton and linen, IMMAn, has a high reputation in China. But when it comes to overseas fame, Yin man said that Chinese enterprises are not good at others, either Shanzhai, or poor quality or low price. Now what Chinese enterprises need to do is to bring ethnic things to foreign countries, so that overseas consumers can recognize Chinese brands and reverse the reputation of Chinese enterprises abroad.

Similarly, as the clothing brand's AMII, the person in charge also said that when the brand makes the cross boundary electricity supplier, the biggest difficulty is that the brand has no brand reputation overseas.

Unlike in China, brands may have fans' accumulation, brand tonality, and sales and market driven recognition.

And abroad, it all starts at 0.

In addition to the clothing industry, the Shanghai watch, as the time-honored brand of China, is also facing a problem of low popularity. The head of its electricity supplier Department has indicated to the billion state power that the biggest difficulty of Shanghai watch export overseas is the lack of brand recognition.

In order to avoid being eliminated in the tide of Shanghai, watches are constantly improving their reputation, such as using more inexpensive products to occupy more market share, enhancing brand image, providing quality after-sales service, and providing familiar service teams to serve overseas consumers.

As for camel brand, which has been in the overseas market for several years, its responsible person also said that the main problem of the sea going is the difference in user demand and brand awareness. The main difficulty of camels is to design products that meet the needs of foreign consumers in the early stage, and promote the popularity of brands through multiple channels.

Brand awareness is tough, and most of the offshore brands can only do well from the products in the overseas market, and then accumulate word of mouth slowly before they can pition to the brand stage.

Soft rib: slow growth of customers and tens of millions of overseas sales

The fact that brand awareness is low is brutal, and it is hard for the brand to go to sea to boost sales.

When entering a new field, many enterprises will more or less expect to achieve rapid development in a new opportunity, but many offshore enterprises are not willing to do so.

The leaders of the China group pointed out that during the sea voyage, many brands met with the slow growth of overseas customers, which eventually led to a low overall sales volume.

Another brand company, which sells small household appliances, said that although sales in the less than a year had reached the scale of tens of millions of dollars, its overseas sales accounted for a real low level for its sales of $1 billion 110 million a year in Tmall.

In addition, since last year, the sales of cross-border electricity providers of the cross-border electricity supplier of its parent company, Hui Mei Group, is also only about tens of millions of sales, with a growth rate of around 120%.

At present, there are two brands of sinemon and initial language sold by overseas group online.

For the seasoned Zhang Xiaoquan knives, the sales volume is 370 thousand in the 3 month period of cross-border electricity business, and the average annual sales volume is about 10 million yuan.

This shows that compared with their domestic electricity supplier share, the sales growth of these overseas brands temporarily did not reach a "fast lane".

However, though not in the fast lane, it has to invest in cost.

It is reported that AMII began to do cross-border electricity business in mid 2017. In January of this year, according to the AMII estimate, only half a year ago, its entire cross-border business investment has reached tens of millions.

These inputs include personnel input and adjustment of the company.

In this regard, AMII official said that the profit margin of cross-border business will be lower than the domestic market at this stage, so we must invest money in the early stage.

It can be seen that brand players basically need to "throw money" in the early stage, and the sale scale of tens of millions of sales is more difficult.

Of course, there are also some Chinese brands who have invested in cross-border electricity providers earlier, and their sales in cross-border electricity suppliers have gone to a reasonable scale.

It is reported that camels began to do cross-border electricity business three years ago. The platform for cooperation includes Amazon, Aliexpress, Lazada and so on. The current small target is annual sales turnover of 100 million.

Sales from 10 million to 100 million, just to do cross-border business brand manufacturers want to have a long way to go in overseas market, increasing user volume and increasing sales is a pressing matter for brands.

Reserve talents in advance and set up professional cross border E-commerce Team

Of course, how to increase sales and how to build brand effect overseas is closely related to the team.

So, how do we build a cross-border e-commerce team with brand owners who own the E-commerce Team in China?

Internal screening and team building is a mainstream mode.

For the construction of cross-border e-commerce team, Lin's wood industry pointed out that the backbone of the selection of personnel through the company's internal operations, the formation of an elite team to work together with Tmall platform in-depth study, step by step exploration and try to build up the overseas team slowly.

"The newly established team will need to constantly break in and try because of lack of experience."

Lin's wood industry said.

Of course, there are other structures to support the business of offshore business.

The person in charge of AMII has pointed out that the problem of corporate restructuring is not taken into account by many companies before going to sea, but it will be very painful after going to sea.

Cross border electricity business is new business, so it needs high flexibility, which is different from the rhythm and method of mature domestic business.

If we directly support the domestic business structure, sometimes it will backfire.

It is reported that AMII has also considered using the domestic team to do the sea business, but later found that the progress was too slow, and the difference between cross-border business and domestic business was very large. Then the head of the sea was searched through professional hunting head, and he was fully authorized to recruit him to the Marine Corps.

He also pointed out that the biggest problem facing the introduction of talents is that many excellent talents may be responsible for over 10 million businesses, but at that time they were supported by adequate system and company structure, so they could redistribute themselves.

These people will want to go deep in the professional field and do not want to be in charge of other businesses.

While some other mature talents in the border industry actually focus only on a small business, because middle management has system support and does not involve practical operations.

In the case of team, camel system is more perfect.

Camels reveal that the camel itself has a well-established autonomous training mechanism. Its team is mainly composed of talents with overseas study background and talents from local foreign trade and electricity supplier. This team can develop the market with the reality of the enterprise itself, so as to create a road that belongs to the camel brand itself.

Platform's "brand to sea"

It is not just the branding companies who are trying to make the brand go to sea. As a platform, they have invested a lot of manpower, material and financial resources.

Among them, in R & D technology and supporting facilities, as the two major platforms in China, Tmall and Jingdong have made many efforts to help Chinese brands go to sea.

It is reported that in June 2017, Tmall formally launched Tmall's sea going project. In September of that year, Tmall supermarket jointly launched the "day shop plan" with nearly 30 old brand brands in Beijing, helping to explore the global sales and new retail sales of the time honored brand.

Then Tmall quickly promoted the plan to cover the whole country. At the end of 2017, the brand sales volume of the first batch of deep operation day name plan increased by over 80%.

During the double 11 period in 2017, Tmall platform established the global channel advantage of online, offline, and integrated logistics, payment, big data and other omnidirectional technological capabilities, and effectively extended mass goods and services to more than more than 200 countries and regions in the world, and truly realized "one shop selling the whole world".

For Chinese businessmen and domestic brands, "Tmall is going to sea" is opening up a new blue ocean for them.

Tmall merchants only need to comply with the export quality and authorization requirements. They can sell overseas through existing stores, and do not need to add overseas operation teams, nor do they need to consider cross-border logistics, payment, merchandise plation and other issues.

In January of this year, Tmall announced the upgrading of the "sky" plan, which will help Tmall enter the global market through more than 1000 famous brands and large domestic products through the sea, focusing on the "new China card" of "global expression" in China.

In addition to Tmall, Jingdong is doing the same thing.

It is understood that Jingdong also formally launched Jingdong in June 2017 to sell global business. In the same year, double 11, Jingdong launched the "Chinese brand Baotuan sea going plan". More than 200 Chinese brands and Jingdong together sailed to sea. Thousands of Chinese enterprises signed the "going to sea" book with the promotion of "sell the world" business to the global.

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By the end of October last year, Jingdong has customized the overall solution for more than 300 Chinese brands, including the full support of payment, logistics and operation, and the zero commission policy, helping brands to enter the international market with lower investment, and easily sell Chinese products such as mobile phones, electric brain and network products, household appliances, electronic accessories and household goods to the whole world.

Of course, the introduction of Chinese brands overseas is not just a super platform for China's growth.

As an international business platform, Amazon and eBay have done a lot of work in supporting Chinese brands to sea.

In April 2017, eBay announced the launch of the "China brand building plan" and set up a "brand building special fund" to provide Chinese sellers with independent brands and fist products to create product catalog, create exclusive product pages, and integrate buyers browsing experience.

In addition, eBay announced this year's "thousand sail plan" to promote China's brand manufacturing to the world, including a series of specific supporting measures such as brand support fund, traffic slant, exclusive promotion and so on. The brand enterprises that meet the requirements will be able to complete docking in 3 days.

It is understood that the core of the "thousand sail plan" is to promote the one thousand Chinese brands to enter the overseas market through the eBay platform. Combined with the core resources such as eBay platform construction, market insight, big data analysis and other core resources, help Chinese sellers develop leading products that lead the market trend and consumer demand, and help Chinese brands open up rapidly.

Make the "made in China" as a gold lettered signboard.

In addition, at the end of last year, Amazon also released the "global shop" business in 2017. China's strategic focus is "quality", "global brand", "Amazon Business" and "manufacturing +", and its purpose is to help Chinese sellers build brands.

Opportunities and challenges for Chinese brands to go to sea exist. Whether Tmall, Jingdong or eBay, Amazon, these e-commerce platforms have made strategic plans in building Chinese brands.

Although the way is different, the platform is leading the Chinese enterprises to go abroad with their own unique way.

Of course, the revolution has not yet been successful, and brands still need to work hard.