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Development reform of foreign trade

Posted by: Jenny | 2016-08-26 10:29:11

Version 1.0 of Foreign Trade - go to the market model ( Canton Fair )

It let everyone come together regularly. The more people know here, the more prosperous in the market. The advantage of fair is to solve the problem of finding suppliers while the disadvantage is the high opportunity cost and the small-scale buyers can not come and simplifying access to information is not enough . Under this model, buyers can compare one by one, but it also makes customer stability relatively high.

Status: It only needs to provide capacity, no need the analysis of the market. Since it was in short supply in the early stage and the terminal information was out of the reach. With the transparency of information on both sides, it becomes more and more difficult to get new customers.

Version 2.0 of the Foreign Trade - Network bazaar mode ( Alibaba, AliExpress , ebay)

It moves the market online, reducing the threshold for buyers and opportunity costs. It solves the purchasing problem of small buyers and the problem of finding low-cost suppliers, eliminating the asymmetries of pricing information and profit.

Status: It needs some technical content, which gives birth to a number of new foreign trade enterprises and network operators enterprises who can quickly grab customers by mastering network applications.

Version 2.0 of the foreign trade pattern exists on an irreconcilable conflict: the platform advertising costs will become higher while the order will be less which is determined by the nature of the e-commerce. This is because the network flow is much less than the off line, and the flow is more concentrated and easy monopoly. With more and more companies enter the market, it has led to the situation that demand exceeds supply and the competition of the network flow is doomed to be more intense, and the cost be higher while the per opportunity be less. Even the winner is bound to be miserable wins .


Therefore, in the 2.0 version of the foreign trade enterprises, the predictable and capable company will look for the promotion project and special exclusive products, multi-platform promotion, B2B2C, new market areas exploit. The similar situation now appears in Taobao. Actually, the essence of business is the same, such as Alibaba, Taobao, AliExpress, Dunhuang. The foreign trade business enterprise is opened in such big market.

Version 3.0 of the Foreign Trade - wholesale brand model (lantern, DX, Amazon, independent Mall)

It is in the early stages of start exploring and it is also the branding running of the foreign trade wholesale mode. It uses the Internet to build the brand supplier and help customers find the stable quality suppliers to achieve competitive differentiation.

Status: It can get high price customer. Lantern's average gross nearly reaches 40 % and 25% of advertising costs is used for the list expanding which is generally 10%. Do not envy Lantern, and do not think he and you is different but to learn by such enterprises. Because they are changing the pattern of foreign trade. He is not don’t have the ability to make money bu to eat the traditional trade in downstream markets. Do a wholesale platform and do a foreign trade Amazon.

Version 3.0 is more focus on the flow source of platforms and the way to build brand reputation. No matter which version of the foreign trade enterprises, it now should have a sense of existential crisis and urgency sense of transition. As the continued appreciation of the renminbi is an irreversible trend, and with continued price rise because of the over domestic currency, the future will further require innovative product upgrades: open up new market and create independent brand value and to dig the terminal market.

Tags: Foreign Trade, Canton Fair, Alibaba, AliExpress, Ebay, Wholesale, Amazon

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