The real trump card: the supply chain advantage brought by China's industrial clusters

Chinese companies going overseas will face a new and changing situation in 2022 : the global economic growth rate is slowing down, and overseas factors such as inflation and exchange rate fluctuations have reduced consumers' demand for value-added consumption other than daily necessities, which has affected the sales of some categories. The global energy shortage has led to rising raw material prices and higher production costs, which has squeezed the profit margins of cross-border export companies. International trade logistics prices fluctuate more frequently, bringing challenges to the capital planning and cost control of export companies. At the same time, there is also a phenomenon of relocation of some manufacturing industries.

In fact, under the influence of the global epidemic, the stability of the industrial chain and supply chain is indeed facing a test. Despite the challenges, China's foreign trade exports and cross-border e-commerce industries have shown great resilience and maintained a stable development trend. The 2022 Chinese Government Work Report mentioned the role of "cross-border e-commerce" for nine consecutive years, pointing out and firming the direction for China's foreign trade. According to data released by the General Administration of Customs, China's export trade volume from January to August 2022 was 15.48 trillion yuan, a year-on-year increase of 14.2%, maintaining a good development trend. Among them, the export growth of private enterprises showed great vitality, and its share in export foreign trade increased from 37.6% in 2012 to 60% as of August this year. It is also worth noting that from 2017 to 2021, the scale of China's export cross-border e-commerce has grown at an average annual rate of about 40%, more than four times the growth rate of foreign trade exports.

(Picture from Amazon Global Selling)

China's economic miracle cannot be explained by the low prices of labor and land as we often said in the past. There is a huge system that has gradually evolved to support it.

In the world's largest manufacturing supply chain network evolved by China, the division of labor has become increasingly detailed, and the specialized division of labor of a single enterprise can reach an incredible level; countless enterprises in the network are mutually complementary, and the supporting relationship can be dynamically reorganized according to order requirements to produce a variety of products; China's huge group of engineers and skilled workers provide a huge human resource for the supply chain network; China's highly competitive environment and the Chinese people's strong desire to get rich have made this supply chain unparalleled in efficiency. In addition, China's huge supply chain is not only driven by the world market, but also by China's huge domestic consumer market.

my country has formed hundreds of export cross-border e-commerce industry clusters, and the leading cross-border e-commerce platforms also sell dozens of major categories of products with many subcategories. These industry clusters have their own characteristics, showing a trend of blooming in multiple places, from the coast to the inland, from the east to the west.

Through the evaluation of four dimensions, namely industrial foundation, trade ecology, development potential and cross-border development, 17 representative cross-border e-commerce industrial clusters are listed:

*Data source: Amazon Industry Cluster White Paper

China's foreign trade continues to grow steadily. As one of the fastest growing important pillars of foreign trade, export cross-border e-commerce provides a broad track for Chinese companies to go overseas.

In the past few years, amid the uncertainty of the global economic environment, China's foreign trade exports and cross-border e-commerce industries have shown great resilience and maintained a stable development trend. As a new form of foreign trade exports, they have gradually released new potential. We have seen that on Amazon's global sites, many sellers in China's advantageous industrial clusters have shown great potential and vitality in R&D design, product innovation, brand building, and global expansion.

China's foreign trade continues to grow steadily. As one of the fastest growing important pillars of foreign trade, export cross-border e-commerce provides a broad track for Chinese companies to go overseas. At the same time, global retail continues to shift from offline to online: more overseas consumers tend to choose and buy new products and new brands online, driving the proportion of cross-border e-commerce in global retail e-commerce to continue to rise. After years of accumulation and growth, as the integration of cross-border e-commerce and industry continues to deepen, the development of cross-border e-commerce collaborative industrial clusters has achieved remarkable results, bringing more advantages to Chinese companies going overseas. The international competitiveness of Chinese companies going overseas is also constantly increasing, aggregating policy support, supply chain advantages, technological innovation, service system, talent drive and other comprehensive resources to create global brands and jointly promote the sustainable development of export cross-border e-commerce.

Cross-border expansion is an opportunity and an inevitable trend of the development of the times. It is not easy to build a global brand overseas. There will be new challenges and difficulties. It also requires the entire cross-border e-commerce industry and overseas companies to persist in "deepening and long-term" and win persistently. Having sufficient funds to ensure business progress is crucial for overseas companies. Some sellers with funding needs can use the Amazon Seller Loan Program. Sellers who meet the application qualifications will have the opportunity to obtain loan products launched by domestic financial institutions, effectively alleviating cash flow problems, developing business, operating inventory and expanding business territory.

Under good business conditions, the credit line is definitely sufficient, but the market is volatile. If you encounter a tight financial situation one day, there may be pressure on business operations, or the company's development is blocked, then the interim operating data will not be so good, and the cost and difficulty of obtaining funds at that time will be much higher than it is now. Sellers must complete credit by binding their stores in advance, and first obtain sufficient funds to prepare for the peak season.

Apply for Amazon Seller Loan Program products now to enjoy annual benefits, with annualized prices as low as 5%!

Seller friends can log in to their Amazon seller platform account, click [Growth] - [Lending] to find Doushabao and check whether you have received a loan recommendation.