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▶ Video account attention cross-border navigation It is learned that the Shenzhen Municipal Bureau of Commerce recently issued the "Notice on the Public Announcement of Proposed Funding (Rewards, Interest Subsidies) Projects for the E-Commerce Platform Cultivation Projects under the 2021 E-Commerce Innovation and Development Support Plan". A total of 13 Shenzhen e-commerce companies will receive subsidies of over one million yuan. Among them, Shenzhen cross-border e-commerce giant Tongtuo Technology received a subsidy of 5.4 million yuan . In recent years, relying on the support of national policies and the traffic dividend caused by the outbreak of the epidemic, China's cross-border e-commerce market has ushered in a peak period of explosive growth. As an important new form of foreign trade export, the country continues to introduce relevant support policies for cross-border e-commerce. However, as the epidemic battle line gradually lengthens, the e-commerce dividend effect brought by the epidemic is slowly weakening, and the growth "bottleneck" faced by the e-commerce market is beginning to emerge. In the first quarter report of 2022, the order volume of cross-border e-commerce platforms such as Amazon, Shopify and Shopee has declined. It was learned recently that the first quarter 2022 financial report released by LightInTheBox, one of the leading Chinese cross-border e-commerce platforms, seems to confirm this trend. LightInTheBox’s Q1 financial report released, with a net loss of up to US$5.5 million! It is learned that on June 23, Lazada released its first quarter financial report for 2022 ending March 31. During the reporting period, Lazada's total revenue was US$ 93.8 million , a year-on-year decrease of 16.3% ; its net loss was US$ 5.5 million , while its net profit in the same period last year was US$1.4 million, a year-on-year decrease of approximately 143% . ▲ The picture comes from LightInTheBox Q1 financial report As of March 31, 2022, Lazada held total cash, cash equivalents and restricted cash of US$42.8 million, a decrease from US$59.6 million as of December 31, 2021. In the report, He Jian, CEO of LightInTheBox, said that the company's performance loss was mainly due to the negative impact of macroeconomic uncertainty on the supply chain and consumer sentiment since this year: 1. The epidemic broke out repeatedly and the supply chain crisis continued Since the beginning of 2022, the global epidemic has repeatedly broken out, causing manufacturing plants around the world to shut down at irregular intervals, shipping channels to stop flowing, and the global supply chain to continue to be severely damaged. The chaos and stagnation of cross-border logistics have become a major obstacle to the development of cross-border sellers' business. 2. Market growth slowed down and foreign consumer demand weakened Affected by continued inflation and a weak labor market, the consumer confidence index of foreign consumers has been declining recently. Data shows that in the first quarter of 2022, the purchase frequency of American consumers fell by 5%, and more than 80% of American consumers plan to reduce spending in the next three to six months. In addition, UK retail sales in May also fell by 1.1% year-on-year, the largest drop since 2021. In the post-epidemic era, the cross-border e-commerce market is facing more difficulties and challenges while the dividend effect of the epidemic is weakening. However, in addition to this, He Jian, CEO of LightInTheBox, also mentioned that in order to cope with recent adverse factors and challenges, LightInTheBox will focus its work mainly on categories with higher profit margins. Among them, the apparel category is expected to account for the largest share of total revenue in 2022. Focusing on the apparel category, LightinTheBox achieved an increase in gross profit margin in Q1! In the context of global logistics delays, cross-border sellers and companies can still maintain their competitive advantages in the international market in the clothing category thanks to China's complete supply chain system advantages. Judging from the financial report data, clothing has become the most popular category of LightInTheBox. During the first quarter of 2022, clothing sales accounted for 71.7% of the company's total revenue , reaching US$67.2 million , an increase of 13.7% from US$59.1 million in the same period last year . ▲ The picture comes from LightInTheBox Q1 financial report In the report, Lightinthebox said that this data proved Lightinthebox's advantages in the clothing field and the effective optimization of the company's product portfolio. In order to alleviate the temporary high pressure of the supply chain, Lightinthebox allocated more resources to high-gross-profit clothing categories, driving the company's gross profit margin to 50.7%. It is learned that as the first Chinese cross-border e-commerce company, Lightinthebox has always attracted much attention for its cross-border development. SHEIN, China's most mysterious and fastest-growing fast-fashion cross-border e-commerce brand giant, used its multi-site operation site cluster model as its first learning model for traffic optimization when it first started. ▲ The picture comes from the official website of LightInTheBox Although in the first quarter of 2022, Lazada's net loss reached an unprecedented US$5.5 million, thanks to Lazada's timely response strategy, supply chain restructuring and continuous enhancement of global coordination capabilities, Lazada has tapped into upward opportunities including apparel categories. Chief Executive Officer He Jian also said that LightInTheBox will stick to its proven growth strategy to maintain a wide selection of high-quality products at competitive prices, continue to invest in research and development, and establish long-term close partnerships with suppliers. The world trend is mighty and powerful. Those who observe the trend are wise and those who follow the trend are smart. Since its development in 2006, LightInTheBox's cross-border business has been advancing by leaps and bounds. It has been listed on the stock market, acquired e-commerce platforms, and created its own industry legends. In the final analysis, it is precisely because LightInTheBox has taken advantage of the trend and is not satisfied with the status quo. We can also wait and see what direction the cross-border e-commerce landscape of Lanting Collection will take in the future. What do you think about this? Welcome to discuss in the comment area~ |
