Looking back at 2022, under the impact of multiple factors such as the epidemic and high inflation, cross-border sellers are facing multiple challenges such as exchange rate fluctuations and consumption downgrades. But challenges and opportunities go hand in hand, and emerging market trends and development opportunities are also emerging. Live streaming e-commerce led by TikTok has risen strongly, the independent station craze has driven the layout of multiple platforms, and domestic e-commerce giants such as Pinduoduo have entered the market to impact the overseas e-commerce landscape...
With the collision of various platform systems and e-commerce models, the cross-border industry is undergoing a period of change and transformation. At this time of profound changes in the industry, we produced the "2022 Cross-border E-commerce Annual Report" through industry research and visits .
This report elaborates on the development status of the cross-border e-commerce industry in 2022, and analyzes industry dynamics such as sellers, markets, platforms, and financing , in order to help cross-border e-commerce practitioners gain insight into market trends, understand the direction of the platform, and embrace new development opportunities.
《| 2022 Cross-border E-commerce Annual Report》 The full report is 80 pages long ▲ Scan the QR code and reply “ report ” to receive it for free
The following is an excerpt of the report’s highlights:
Current situation of cross-border sellers
In the second half of 2022, under the impact of multiple factors such as the epidemic and high inflation, cross-border sellers face multiple challenges: exchange rate fluctuations, consumption downgrades, and declining order profits. However, with the support of national policies, the gradual improvement of the cross-border e-commerce service ecosystem, and the continued favor of the capital market, opportunities in the cross-border e-commerce industry still exist. According to the survey, due to the downgrade in consumption in Europe and the United States and the increase in multiple costs such as logistics fees and advertising fees, the order volume of cross-border sellers in the second half of this year was not ideal. 60.4% of sellers said that the number of orders decreased during the peak season in the second half of the year, of which 22.9% of sellers saw a 30%-50% decrease in order volume.
However, 39.6% of sellers said that compared with the decline in market orders in the first half of the year, the order volume in the second half of the year has increased, and sellers with a 30%-50% increase in order volume accounted for 14.3%. Another 26.5% of cross-border e-commerce sellers are in a state of slow growth, with an increase of less than 30%.
Overall, more than 60% of cross-border enterprises have not performed as expected this year. The survey shows that nearly 70% of sellers have revenues below 500,000 in the second half of the year, and their profitability has not improved compared to the first half of the year. Cross-border expansion trend
In recent years, as the domestic consumer market has become saturated, overseas markets with great development potential have become the key for Chinese companies to develop a second growth curve. As an important form of digital economy in the field of international trade, cross-border e-commerce, which greatly reduces the threshold for developing overseas markets, has become the preferred channel for Chinese companies to go overseas. As the online consumption environment in Europe and the United States continues to cool, emerging markets with broad growth potential such as Africa, Latin America, Japan and South Korea have attracted the attention of sellers.
In addition, with the rapid growth and intensified competition in the cross-border e-commerce sector, more and more Chinese companies going overseas have become more brand-conscious, and their business focus has shifted from "polishing products" to "building brands", entering a new stage of "brand going overseas". According to the "Brand China Top 50 Global Brands 2022" released by Google and Kantar BrandZ, SHEIN, Anker Innovations, Aoki, LightInTheBox and other cross-border sellers are all listed. These cross-border sellers rely on third-party platforms such as Amazon and Walmart or build their own independent websites, adhere to the development strategy of their own brands, and grow to become the leading brands in various market segments. At the same time, domestic brands such as Perfect Diary, Huaxizi, and Pop Mart are also leveraging the online channels of cross-border e-commerce to rapidly enhance their international status. At present, Chinese companies that go overseas with the help of cross-border e-commerce are not only moving towards compliance and branding, but are also showing an overall trend of multi-channel and multi-platform development.
Cross-border platform trends In 2022, affected by the global economy, the market growth rate slowed down, and "reducing scale and increasing delivery fees" became the key words for Amazon's business adjustments. Shopee suffered consecutive losses and strengthened its refined transformation.
At the same time, various data show that China's cross-border platforms Temu and TikTok Shop have successfully entered overseas markets. In the first month of entering the US market, Temu's daily average GMV exceeded 1.5 million US dollars, the number of daily active transaction users was about 60,000, the number of download users was close to 800,000, and the number of merchants settled in was close to 30,000. At the same time, Temu's repurchase rate reached about 10%, and the amount of each transaction was about 25 US dollars. In the second half of 2022, during the Black Friday promotion season, TikTok e-commerce data showed that from November 21 to November 28, TikTok e-commerce's cross-border GMV increased by 126%, and the order volume increased by 138%, setting a new sales record, and its popularity continued to soar.
In addition, other overseas platforms such as Alibaba Cross-border, AliExpress, and SHEIN are also making a series of strategic adjustments to break through growth bottlenecks.
Cross-border capital dynamics
In 2022, cross-border e-commerce will continue its steady growth, and related companies in the industry will remain hot in the capital market. The report takes cross-border sellers, service providers (including SaaS platforms), logistics companies, etc. as research objects, and compiles some cross-border companies that have obtained investment and financing this year. In January 2022, Insai Group signed the "Equity Subscription and Shareholder Agreement on Shenzhen Zhengniao Chuhai Technology Co., Ltd." and invested RMB 100 million to subscribe for the newly increased registered capital of Zhengniao Chuhai, corresponding to 11.4259% of the equity after the capital increase of Zhengniao Chuhai. In February 2022, the overseas home furnishing brand [Newme] completed a multi-million dollar angel+ round of financing. This round of financing was exclusively invested by Huaying Capital. The funds will be used for the research and development of its own brands and the expansion of incremental channels. In March 2022, the fast fashion cross-border DTC brand [Boundless Cross-border] completed a Pre-A round of financing of nearly US$5 million. This round of financing was led by BAI Capital and is the third round of financing completed by Boundless Cross-border. The funds will be mainly used for further improvement of the supply chain, system research and development, and reserve of capital flow. In May 2022, the smart home overseas brand [Ji Ka Technology] completed a tens of millions of dollars in Series A financing. This round of financing was led by NBT Capital. 20% of this round of financing will be used for technology research and development, 20% for online operations and marketing, 10% for staff expansion, and the rest as the company's working capital.
Cross-border media perspectives
This report invites industry media such as GoodCang, Brand Ark, Blue Ocean Yiguan, Cross-border Online, and Cross-border Eye Observation to express their opinions (in no particular order), analyze the development status of the cross-border e-commerce industry in 2022 from multiple levels, gain insight into market trends, and grasp the direction of the industry. To view more report contents, please scan the QR code below Reply "report" to download the full version
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