At present, Google, Amazon, Facebook and other platforms dominate the external platforms of cross-border e-commerce. With the monopoly of resources, it is difficult for businesses to open overseas markets without these platforms.
This round of Amazon's title storm has been fermenting since the end of April. By May, more and more domestic cross-border e-commerce companies had platform login problems. At that time, many businesses chose to take the way of email complaints to seek recovery. On May 2th and June 16th, Amazon published open letters in WeChat official account, stressing that platform sellers should not forge comments. Amazon said that the platform resolutely suspended the sales rights of some sellers after discovering that a considerable number of merchants made false comments through social media or hired third-party service providers.
according to the statistics of Shenzhen cross-border electronic commerce Association, in the past two months, more than 5, China sellers have been closed down on Amazon platform, which has caused an estimated industry loss of over 1 billion yuan.
Of course, the most affected enterprises are the head enterprises, such as Shenzhen's super-big seller-Youshu. Recently, Tianze Information, the parent company of Shushu, released the 221 semi-annual report. According to the financial report data, Tianze Information's half-year revenue was 1.177 billion yuan, down 5.27% year-on-year; The net loss was 949 million yuan, a year-on-year decrease of 1285.48%. From the perspective of subsidiary business, affected by Amazon's store closure, there was a net loss of 742 million yuan in the first half of the year.
Source: Tianze Information Semi-annual Report in 221
After the Amazon store closure incident broke out, the public's eyes were more focused on Shenzhen. There are related slogans on the Internet: world e-commerce sees China, and China e-commerce sees Shenzhen.
according to the statistical data of cross-border e-commerce enterprises investigated by enterprises, the largest number of cross-border e-commerce enterprises in China is actually not Guangdong province, which owns Shenzhen, but Beijing. The top three are 9445 in Beijing, 998 in Guangdong and 3552 in Zhejiang.
Source: Enterprise Check
However, this ban occurred in Amazon, so Shenzhen became the hardest hit area. According to data released by Marketplace Pulse, among China sellers on Amazon, Shenzhen accounts for nearly 32%. Therefore, this is also in line with the statement of Shenzhen cross-border electronic commerce Association-Shenzhen is the most seriously damaged city in this store closure storm.
in fact, cross-border e-commerce has six links, namely, producers/manufacturers, cross-border e-commerce enterprises, payment platforms, logistics providers, customs clearance and commodity inspection and consumers. After the storm of store closure, the link we are most concerned about must be cross-border e-commerce enterprises, because they are the executors and are directly affected.
now let's look at the manufacturers/manufacturers behind this floor. A foreign analysis organization conducted a questionnaire survey on Amazon buyers during the epidemic. The final result showed that household appliances, especially small household appliances and household toys, became the demand point after small commodities due to the epidemic. Small commodities will undoubtedly be greatly impacted in Wenzhou, Zhejiang Province. We will not discuss them here, but mainly look at the second-ranked household appliances.
In fact, from the perspective of product attributes, one of the main commodities handled by Shenzhen foreign trade merchants is electronic products, which are in a state of prosperous business in a stable quarter. Statistics show that in the first quarter of 221, China's exports of household electrical appliances reached US$ 27.49 billion, an increase of 67.6% over the same period of last year.
According to the data of China Household Electrical Appliances Association, the export of household appliances in China accounts for 38% of the global trade, and domestic brands account for more than 5% of household appliances such as air conditioners, televisions, microwave ovens, refrigerators, freezers and washing machines. Among them, online sales have a great market space. In the North American market alone, online household appliances sales are expected to exceed $85.3 billion in 221.
in fact, domestic household appliances can achieve a good market share in the world, which is strongly related to the development strategy of domestic household appliance enterprises. With the fierce competition in the domestic market, the focus of China's home appliance enterprises is all on globalization. Major enterprises, including TCL and Hisense, are building their brand image in overseas markets by sponsoring large-scale sports events. At the same time, in terms of channels, besides establishing official sales outlets, cross-border e-commerce undertakes a great task of channel distribution. For the emphasis on cross-border e-commerce channels, small brands are more than big brands.
At the level of home appliances, Shunde, Lianjiang and Hefei will also be affected by the Amazon store closure storm behind Shenzhen.
let's take a look at Shunde first. In 26, Shunde was awarded the title of "China Household Appliances Capital" by China Light Industry Federation and China Household Appliances Association. The home appliance industry is a pillar industry in Shunde, with more than 3, home appliance enterprises settled in Shunde, which has cultivated many industry giants such as Midea, Kelon, Galanz and Wanhe, and its output value accounts for about 15% of the national home appliance industry. Foreign trade, including cross-border e-commerce, is the invisible password for the development of Shunde's home appliance industry. Now, Amazon, the main platform, has made great moves, and some home appliance enterprises in Shunde need to rebuild their overseas e-commerce channels.
At the same time, in addition to household appliances, Shunde also has a large export commodity-electromechanical. The General Administration of Customs' Table of Major Trade Modes of Some Export Commodities from January to July, 221 shows that mechanical and electrical products are the types of commodities with the largest export value in general trade. From January to April this year, Shunde exported 49.74 billion yuan of mechanical and electrical products, accounting for 68.9% of Shunde's foreign trade exports. Some Shunde electromechanical enterprises that choose Amazon as the sales platform will be affected.
the second is Lianjiang, which was awarded the title of "China Small Household Appliances Base" by China National Light Industry Federation and China Household Electrical Appliances Association in 217. Lianjiang is also the famous "hometown of electric cookers in China". In the Amazon questionnaire mentioned above, small household appliances were highlighted. In addition to rice cookers, hot water kettles and air fryers, cleaning appliances such as vacuum cleaners, steam mops, mites and sweeping robots were also widely welcomed by foreign netizens. Relevant report data show that the average number of small household appliances in the United States has reached 3+, and that in developed countries in Europe has reached 2+. There are many businesses operating small household appliances in Amazon in China, so the competition is fierce. It is the "hardest hit" to brush comments and the "hardest hit" to be affected.
Hefei was awarded the title of "China Household Electrical Appliances Industry Base" by China National Light Industry Federation and China Household Electrical Appliances Association in 29, which was the first industry in Hefei to break through the output value of 1 billion yuan. Similar to Shunde, Hefei not only has a number of home appliance brands, but also has a relatively complete home appliance industry. Therefore, as for the impact of Amazon's store closure, the two cities are basically the same.
of course, cross-border e-commerce is only a form of foreign trade, not the whole thing. Amazon is only one of the cross-border e-commerce platforms, but it accounts for a relatively high proportion. At the same time, partial ban does not mean total destruction, and cross-border e-commerce will also be one of the main directions of major enterprises.
under the influence of the epidemic, the manufacturing capacity of overseas markets is seriously insufficient. Even with this storm of store closure, domestic manufacturing enterprises, including home appliances, will flood into Amazon. It's just that Amazon has defined a new way of playing, and legal and compliant operation is the long-term way, and opportunism will eventually suffer the consequences.