Cross-border trade has a soft three yuan concept: a retail price of four yuan of commodity production costs only one yuan. The remaining three yuan is the value of all aspects of the supply chain, including warehousing and transportation, order processing, wholesale distribution and retail and so on.
Many product manufacturing costs have reached the point where it can not be reduced, so the soft three yuan has become the focus of attention of the major enterprises. And electricity suppliers in the soft transformation of the contribution of three yuan is huge. Liu Peng, general manager of Tmall, said that from the overseas brands to the Chinese consumer market between 5 to 10 layers of middlemen, while the use of electricity suppliers in the middle level is expected to be controlled within 3.
However, the domestic electricity supplier to direct access to overseas brands is not easy, to foreign shopping spree to mainstream practices with foreign agents take goods is still most cross-border electricity. What is the reason for the obstruction of the domestic electricity supplier with overseas brands cooperation? What kind of model can make the import trade “soft three yuan” to achieve the best optimization?
The day before, a direct supply of global cross-border electricity supplier the logic behind the billion state power network and Liu Peng conducted an in-depth dialogue.
Tmall international general manager Liu Peng
Peng: in fact, from the development of domestic providers see, the advantages of electronic business is an optimization in the middle of the consumption side and the supply side of many levels, the final result is 1. The circulation of consumption level in reducing; 2. Consumption circulation efficiency improve.
And the import or global commodity circulation is the same, future trend of cross-border electricity must be global direct supply, namely cross-border electricity cut directly brand, from brand establishing supply system, again for direct sales, to import intermediate agent, distribution the system to get rid of.
So whether it is a platform or self electricity supplier, along the supply chain to go up, with the global brand or retail stores directly to do supply, will have the opportunity. And now a lot of cross-border commercial “overseas shopping spree”, “buy on sb’s behalf”, from overseas agents purchase, by selling to China to earn the difference mode in the future is not necessarily sustainable.
Peng: because when the future global brand and sell more and more understanding to the importance of the Chinese market, the distribution structure of the global price strategy, brand will adjust, left middle layer space will become less, “purchasing” the cross-border business would be difficult to survive. When the brand side hit a sneeze, the price a little to make adjustments, the middle layer of the profit space is not a sudden.
Actually, final fight in import business is global brands to consumers in China this chain is efficient, which is more efficient and reflect the costs generated in the chain, to produce the final volume and platform of the brand influence, whose solutions are optimal, it must be the mainstream.
Billion state power network: for cross-border business, at present the seller to cooperate points are many: brand, overseas retailers and domestic and foreign distributors. That in accordance with the logic of the world, you are that the future of cross-border electricity suppliers only with the brand side to cooperate?
Liu Peng: the future of cross-border electricity suppliers mainly to cooperate with the brand and overseas retailers. In fact, retailers have their own advantages. First overseas retailers also have their own brand. In addition, retail associations and foreign brands have a long-term supply relationship. And because these overseas retailers to help brands leveraging is not only in the Chinese market, but to the whole of the world market, so the retailer of brand associations have better bargaining space, also get more services from the other side of the brand.
Moreover, the two brands and retailers are not contrary to. For example, Tmall international, health care products brand Swisse flagship store products sold well, while the same as our platform for the business of Australia’s large pharmacy Warehouse Chemist sell Swisse product sales is also very good. The combination of brands and retailers is also an optimal layout of the ecological system of the Alibaba.
Billion state power network: but brands and retailers present is not the same, brand flagship stores only sell a brand products, retailers flagship store more is like a mall, you think to the user, which kind of forms of shopping more mainstream?
Liu Peng: there are two kinds of. In fact, from the line to see, you will see that retailers and brands are at the same time, you sell things may go to the store to buy the brand, but also to the retail stores to buy.
Take the brand, not so easy
Peng: general small cross-border business is difficult to do with the brand side direct cooperation, as a global brand business in China or the world already has a very molding distribution network, bypassing the distribution network directly with the upstream suppliers to communicate, the volume of cross-border electricity must be big enough.
So the brand is very realistic. Who can help them produce sales in China, who can help them to promote the brand to the local, who can give them more consumer data, brands who are willing to cooperate with.
Billion state power network: the business platform party through what kind of brand and model of cooperation, in order to achieve maximum benefits, give them generate sales?
Service providers mainly refers to the rookie network this kind of logistics service providers and scouring of TP (Taobao partner. The partner Amoy) such third party on behalf of the operating business.
Because brands has more rooted in overseas, so inevitably some brands is do not know how to do business in China, then service provider role is particularly important. Under the help of the brand operators and foreign sellers can not spend more energy will be able to operate in china.
In fact, the brand side, the platform side and the service provider directly to the three party collaboration is to remove a lot of agents and the middle layer of the process, which is more dominant model of cross-border electricity suppliers. And in this model, how to further reduce the costs associated with, how to optimize logistics, how to improve the ROI (return on investment), business how to with overseas businessmen to develop goods, this a series of things is by the three parties together to discuss.
Billion state power network: the when the cooperation of these brands and retailers with the platform, with more and more businesses, similar lynx international the platform side the with what mechanism for all business cooperation sales reached comprehensive upgrade?
Peng: as a platform, the lynx will open to business are applicable to the platform tool, this tool based on, business operations and businesses use the tools capabilities of the platform is the key, so the characteristics of the platform is for everyone is transparent, the through Ming is the premise of certain rules of transparent. Under the rules and platform tools, all businesses no matter how big or small, there is a chance of a certain.
Of course, when doing activities, large businesses have the ability of stocking certain, of goods have must master the ability, the price will be more suitable. This platform to take account of the interests of the consumer side of, will eventually be high-quality goods, prices of high-quality businesses goods will be recommended to such consumers, which is the inevitable platform mechanism.
Content and personalized recommendation to be caught at the same time
The first is the content. now the content of cross-border electricity suppliers is more important. This is not limited to the description of the goods themselves, also includes business display shelf when the goods on a what kind of merchandise and prices, the electricity supplier to the point in the interests of the goods clearly to consumers show.
There are many ways to display the content, there are text, live, or graphic. But no matter what the electricity suppliers are used, they must ensure that they have a good interaction with consumers, this type of content operations is very important.
For the platform, the content of the production must have a more effective mechanism, rather than simply let the brand to write, because the brand to describe their own products, it is necessary to boast that they are good.
Second is personalized recommendation. China consumers are increasingly popular, many people in the future may form a small group in eating, use and wear will. How to provide personalized recommendations for this personalized needs, which is all the electricity suppliers are considering things.
For example, the lynx international activities when pictures of entrance is personalized display, not all consumers see pictures of entrance is the same, you browse through activities associated with the goods, you can see the entrance map may see with the other consumer entrance map.
In fact, in the era of personalized recommendation, different types of consumers according to their browsing habits and consumption characteristics, they see the wireless side of the page, the product sort, with the traditional presentation will be different. This will help consumers more quickly to make choices, make decisions and find better products.
Billion state power network: you talked about to let consumers faster to make a choice, but some content recommend commodity words sometimes need to consumers after reading the content to make decisions, whether this will cause the consumer decision to slow down?
Liu Peng: it depends on what kind of content. Content belongs to a passive recommendation, you can do a must buy list to consumers is also content, which is efficient. In addition, the content is also divided into many groups, not to say that the same product must do the same content, but must do personalized content.
In fact, the Chinese people’s consumption potential is unlimited, through the content of the way to allow more Chinese consumers to know the characteristics of the brand of goods. Consumers will not buy because of cheap products, but because the product is useful to buy. So “useful” is the first premise, “price” is the second premise. Some products are so popular in foreign countries is bound to have a reason, and when this “reason” was accepted by Chinese consumers, this product is bound to fire up in china. So for cross-border electricity suppliers have a great mission is to allow consumers to find the world’s good goods.
Liu Peng: it must be driven by technology. At the beginning you easy to cut content guide the market, for example, to hire writers team write good content to do shopping guide. But in the final analysis, the electricity business or do retail, electricity suppliers in the end is to do around the consumer, and the business side with good, this is very important at both ends. And it is a technology that can drive the two ends to connect efficiently.