What lessons can the collapse of cross-border retail giant Mocan bring to the entire industry?

Since Amazon started blocking accounts,

They keep having big sales and then going bankrupt.

The old farmer can no longer remember how many businesses have closed down.

This time, the company that "died suddenly" was a well-known company.

Shanghai Mocan Network Technology Co., Ltd.,

Oh my! This time it’s a well-known cross-border company.

Many people must have heard of it.

This company can be in the entire clothing industry,

In particular, the Thirteen Factories in Guangzhou played a pivotal role.

How big of a company is this?

The old farmer tells you this:

It was ranked first among the top ten cross-border enterprises in Shenzhen.

There is a tree and Global Times were both number one on the list at that time.

Mocan is one of the top ten companies in the country.

This closure is totally not on the same level.

Many sellers can’t believe it.

Mocan's bankruptcy was also very sudden.

One supplier responded:

"An hour ago, Mocan Company was still urging him to ship the goods quickly.

An hour later, I received the news that Mocan Company would be dissolved.

We could no longer get in touch with him.”

However, the big tree of Mocan also supports many small factories.

Many small owners of clothing stores in Shisanhang,

The auxiliary material manufacturers are all suppliers of Mocan.

Now the big tree fell, which means most of the suppliers,

Maybe I won’t be able to pay the rent next month and won’t be able to eat pork trotter rice.

I have to introduce it here.

This company can make many suppliers unable to eat pork trotters.

The company's core team was established in 2016.

Years of consistent growth,

There are more than 800 employees.

Headquartered in Shanghai,

Focus on cross-border e-commerce business in the apparel industry.

Mocan has websites in English, French, German, Spanish and other languages.

Through cross-border online retail,

Selling Chinese-made products to more than 180 countries and regions around the world,

And we have established procurement bases in many places across the country.

This closure was also sudden.

Previously, there were frequent arrears in the industry.

Many suppliers panicked.

Worried about not being able to pay the bills?

Suppliers who did not meet Mocan's supplier standards before,

I feel fortunate that one manufacturer also said:

"Fortunately I didn't do it, but a friend of mine made more than 10,000 pieces of spot goods.

Today, the purchasing department sent a message saying that it has gone bankrupt. "

Mocan Shenzhen Branch also issued a "Supplier Payment Commitment Letter" .

Due to force majeure, we will terminate our cooperation with you, but we will not owe you the payment for goods, outsourcing pattern making fees, and deposits. Now our company promises:

1. The work orders or outsourcing costs of the pattern room and the purchase costs of the surface and auxiliary materials that were put into the warehouse before November 19, 2021 will be settled on next Friday, which is 20.1.11.26 (should be November 26, 2021);

2. The supplier's deposit will also be settled with the payment before Friday, November 26, 2021;

3. The stocking work order cancelled on the morning of November 19, 2021 shall be restored to its status or a new batch of work orders of equal quantity shall be placed before 24:00 on the evening of November 19, 2021. The team leader shall settle the account within 5 days after the goods are put into storage (working days).

Mocan also gave a reminder to the sellers this time.

Not following cross-border rules,

The lesson it brought was too profound.

The fall of Mocan and other companies this time,

In fact, it is directly related to Amazon's suspension of associated accounts.

In order to expand their business, many smart Chinese businesses

I took the risk of registering different accounts with the same entity.

Some large domestic cross-border e-commerce companies even have hundreds or thousands of accounts.

Finally, because of infringement, selling fakes, and fake orders on one account,

All accounts were implicated.

Many companies that had built up their business over a decade suddenly collapsed overnight.

The problem with this kind of barbaric growth is that there is too much.

Sometimes it doesn't explode.

Now that the truth has been exposed, it's out of control.

And single product is also a saying,

Because it is easy to misjudge the market trend.

The main business of Mocan and its affiliated companies is clothing.

But whether it is overseas or domestic,

The clothing market has become saturated in recent years.

I believe that the above problems are happening to more than one company.

Let's think back carefully.

The platform is moving forward, and it can be said that it is a waste of time.

But for Amazon, it’s just a new start.

Therefore, in the following process, the white way must be king,

That kind of barbaric way of development may no longer exist.