Cross-border e-commerce has become a living force driving the growth of foreign trade

Cross-border e-commerce has become a living force driving the growth of foreign trade

Qin Fen, head of the industry and merchant business department of Alibaba International Station, recently conducted an in-depth analysis of the foreign trade trends of various industries in China in the official live broadcast room of Alibaba International Station. He believes that China’s foreign trade is moving towards a high-profit era, and more and more Chinese companies will enter the ranks of branding and high-end manufacturing.

According to data from the General Administration of Customs, in the first quarter of this year, the total value of my country’s import and export of goods trade was 9.42 trillion yuan, a year-on-year increase of 10.7%.

The importance of cross-border e-commerce continues to highlight

In 2021, China’s export scale will continue to expand, and the total export trade will reach 3.36 trillion yuan, with a growth rate of over 30%. “Affected by the continuous rise of international logistics costs, my country’s export trade structure will continue to adjust in 2022, and many foreign trade businesses will begin to shift to high value-added industries.” Qin Fen said.

As an important force in the development of my country’s foreign trade, Chinese private enterprises are playing an increasingly important role in foreign trade exports. In 2021, the total import and export volume of my country’s private enterprises will reach 19 trillion yuan, a year-on-year increase of 26.7%, accounting for 48.6% of my country’s total import and export volume, and contributing 58.2% to the growth of foreign trade. Since my country opened up private foreign trade in 1999, private trade exports have increased by 1,800 times, accounting for 60% of my country’s total exports. Qin Fen believes that in the coming year, the vitality of my country’s foreign trade operators will continue to be stimulated, and private enterprises will play a more important role in promoting the stable development of my country’s foreign trade.

From the perspective of trade objects, China’s trading partners have become more diversified, and the markets of countries along the “Belt and Road” have become a new growth point for foreign trade. Since the joint construction of the “Belt and Road” initiative was put forward in 2013, trade between my country and countries along the “Belt and Road” has become increasingly close. According to customs statistics, in the first quarter of this year, my country’s imports and exports to countries along the “Belt and Road” reached 2.93 trillion yuan, a year-on-year increase of 16.7%. Among them, exports were 1.64 trillion yuan, an increase of 16.2%; imports were 1.29 trillion yuan, an increase of 17.4%. Qin Fen believes that “with the advancement of the ‘Belt and Road’ construction, Thailand, Malaysia, Singapore, Vietnam and other Southeast Asian countries have generated a lot of trade incentives for China.”

Among them, cross-border e-commerce, as a new business model and new model, has become a vital force in my country’s private foreign trade field and an important trend in the development of international trade. Customs statistics show that in 2021, my country’s cross-border e-commerce imports and exports will be 1.98 trillion yuan, an increase of 15%; of which exports will be 1.44 trillion yuan, an increase of 24.5%. With the rapid development of the digital economy, the five-year compound growth rate of global e-commerce will increase rapidly in less than three years from 2020 to 2022. “The rapid development of cross-border e-commerce platforms has spawned the rapid development of the entire online transaction, which is a very certain trend.” Qin Fen said.

Multiple industries promote the development of B2B cross-border e-commerce

From an industry perspective, the statistics released by Alibaba International Station show that in the past three years, nine major industries including new energy, machinery, automobile and motorcycle accessories, home building materials, home gardening, clothing, consumer electronics, outdoor and beauty have developed brilliantly. Among them, the new energy industry has been growing at a high speed, with a cumulative growth rate of more than 1000% in three years. In addition, the growth rate of clothing, automobile and motorcycle accessories, sports entertainment, building materials and other products has also maintained about 70%-80%.

The statistics accumulated by the new trade festival of Alibaba International Station in March show that new energy, building materials, machinery, beauty, and sports entertainment ranked the top 5 in the list of year-on-year growth in transaction volume, with year-on-year growth of 55% and 25% respectively, 15%, 10%, 5%.

In the new energy industry, in the first quarter of this year, the transaction volume of related products on Alibaba International Station increased by about 80% year-on-year. A large number of overseas buyers are looking for the new energy equipment they need from China. Among them, household photovoltaic systems are becoming the new favorite of overseas buyers. This has also made many factories along the coast of Zhejiang in my country transform to produce related photovoltaic equipment, commercial and civilian charging piles, inverters and other products.

In the field of machinery manufacturing, in the first quarter of this year, inquiries from buyers of small wheeled tractors increased by 100% year-on-year, buyers of small excavators increased by 90% year-on-year, and buyers of light laser cutting machines increased by 30% year-on-year.

In the auto and motorcycle parts industry, in the first quarter, the number of inquiries from Japanese refitted parts increased by 700% year-on-year, ranking first in the industry, followed by Tesla’s new energy charging pile with a year-on-year increase of 150% in inquiries. The buyers of kit enquiries increased by 90% year-on-year and ranked third.

In the home building materials industry, 3D wall panels are the most popular, with a year-on-year increase of 3,700% in inquiries, followed by modular mobile homes, with a year-on-year increase of 1,200%. Barn doors came in third, with a 380% increase in inquiries from buyers year-over-year. At present, more than 500 suppliers of modular mobile home solutions have been assembled on Alibaba International Station, which are distributed in Foshan, Guangdong, Qingdao, Shandong and other places to meet the needs of customers in different regions of the world.

In the home and gardening industry, the global retail market rose against the trend amid the epidemic. In the first quarter of this year, tons of cups, food storage boxes, and smart pet supplies became the hottest items sold on Alibaba’s international station. The number of inquiries from buyers for the three products increased by 1500%, 700% and 170% year-on-year respectively. Concepts such as healthy living and environmental protection are driving the rapid increase in consumer demand in this industry.

In addition, in the field of consumer electronics, the entire big-name replacement market experienced explosive growth during the epidemic. Cost-effective products such as drones, AR/VR headsets, and gaming headsets have not only attracted the attention of European and American consumers, but also favored by retailers on Amazon and offline sellers.

In the outdoor sports industry, sports equipment of the “big fitness” category with integrated functions, such as camping tents that can be quickly opened in one second and multi-functional weightlifting beds, are very popular in the European and American markets. And “small fitness” products such as environmentally friendly and natural yoga mats are more sought after in the Southeast Asian and Indian markets. Presenting core competitive categories to global buyers by groups and scenarios has become an advantage and strategy for the development of the outdoor industry.

In the beauty and personal care industry, the entire medical cosmetology track has ushered in rapid development opportunities. According to Alibaba International Station, it is estimated that there is a market size of about 200 billion US dollars.