From new formats to the new normal, innovative development breaks through the post-epidemic era

At the meeting, Amazon Global Selling officially released the "From New Business Model to New Normal - 2020 China Export Cross-border E-commerce Trend Report", which sorted out the development trends of China's export cross-border e-commerce industry and sellers in the past five years.

For the full report, please visit: gs.amazon.cn/report2020

Seller Trends: From "Wild Growth" to "Intensive Cultivation"

Cindy Tai, Amazon's global vice president and head of Amazon Global Selling in Asia Pacific, said: "In the past five years, China's export cross-border e-commerce industry and sellers have experienced an evolution from 'wild growth' to 'intensive cultivation'. Export cross-border e-commerce is becoming an important support force for China's foreign trade, and is changing from a 'new format' to a 'new normal'.

Based on Amazon data and a survey of Chinese sellers, the report summarizes and shares five significant trends that Chinese sellers have shown over the past five years:

1. Sellers are from more diverse regions and types

The geographical distribution of sellers is becoming increasingly wide, extending from the Pearl River Delta and the Yangtze River Delta to the inland, among which the scale of sellers in the Yangtze River Delta is growing the fastest; sellers in the Haixi Economic Zone represented by Fujian are becoming more and more active; and sellers in North China and Central China are constantly rising.

2. Global layout is accelerating

Sellers are accelerating their international expansion and are constantly seeking diversified business opportunities. In the process of accelerating global layout, sellers are not only considering mature sites such as the United States and Europe, but also actively deploying emerging sites such as the Middle East, Australia, and Singapore.

3. Increased brand awareness

Brand building awareness is unprecedented, and sellers are more concerned about the long-term development of their business, and continue to invest in product development, brand registration and construction, brand protection, etc. Amazon data shows that more than 200,000 brands around the world have participated in brand registration.

4. Accelerate product innovation

As global consumer demands become more diverse and refined, Chinese sellers are constantly enriching their product selections and gradually shifting from standardized products to higher value, more diverse, and more personalized products.

5. Upgraded responsiveness

Over the past five years, sellers’ ability to respond quickly to changes in overseas environments and consumer demand has been continuously upgraded. They are able to quickly identify global consumer trends and flexibly adjust product selection strategies, fully demonstrating the advantages of a flexible supply chain.

Seller Case Study: Various Ways to “Go Global” and Show Their Skills

Although the road to cross-border expansion is long and difficult, and there are many unstable factors in the international environment and various links of the cross-border ecosystem, sellers who have gone overseas have successfully reached shore, regardless of before or after the epidemic.

(1) Product innovation-oriented companies: Orolay (apparel)

Overseas skills: Focus on customer needs and deeply innovate products based on user reviews

In order to make coats that truly meet the needs of consumers, Orolay once removed all products from Amazon and focused on only one product for more than two years, constantly revising the size, color, function, fabric, and even the location of pockets and fillings.

(2) Multi-site operation Representative company: SOJOS (high-end glasses)

Overseas skills: Follow the pace of Amazon's expansion into different markets and seize market opportunities through multi-site global operations

SOJOS has gone global through multi-site operations and maximized its brand value: it has achieved outstanding results in major sites such as North America, Europe and Japan, as well as emerging sites such as India.

SOJOS will develop products and styles based on the pain points of consumers in different site markets, localize product descriptions according to local language habits, and equip each site with professional customer service in small languages.

(3) Brand building Representative companies: Shenzhen Humboldt Technology (sports and health)

Overseas skills: Actively complete brand registration and make good use of Amazon brand protection tools

Shenzhen Humboldt Technology started the transformation from B2B to cross-border e-commerce in 2015, adhering to brand thinking and high-quality products, and striving to become a global leading sports and health brand. It has also formed a large brand influence through the three major advantageous categories of smart wearables, sports headphones, and sports accessories.

(4) Companies that grew despite the pandemic: Mobvoi (artificial intelligence)

Skills for going abroad: Don’t be afraid of the epidemic, and actively respond to challenges and uncertainties

When the epidemic hit, the company quickly resumed work and production in March after reorganizing the supply chain process and improving operational efficiency. Its products have been fully produced and shipped since the end of March, and the shortage of supply caused by the epidemic has gradually eased. In the face of cross-border e-commerce, which holds huge opportunities, the company must turn difficulties into opportunities to improve its organizational strength and consolidate its competitiveness, and be fully prepared at any time to successfully turn the crisis into an opportunity.

Affected by the global epidemic this year, many Chinese cross-border e-commerce companies have been impacted to varying degrees, but we can also see that global consumer consumption behaviors are increasingly shifting from offline to online.

Peng Jiaqi, vice president of Amazon China and head of Amazon Global Selling Asia Pacific, said in an interview with the media, "Changes in consumer behavior may bring many new opportunities to Chinese cross-border e-commerce companies, so we think this is a very critical time point."

I hope that Chinese export e-commerce sellers can seize the trend, learn from the experience of successful sellers, and innovate and develop to break through the post-epidemic era!