10month4dayTikTokIndonesian e-commerce business has been officially shut downTikTok ShopThe platform no longer provides trading services, and shopping needs to be redirected to external links. The shutdown is related to Indonesian policies.9month27Yesterday, Indonesia released2023Year31The Ministry of Commerce's Order No. [XX], stipulating that social commerce can only be used to promote the promotion of goods or services and prohibits payment transactions. Therefore, social media must divest from e-commerce operations. Cross-border e-commerce involves many countries. From the perspective of competitive landscape and future market space, how should we viewTemuWhat is the development of cross-border e-commerce represented by it? What is the biggest challenge in the future?
Frost & SullivanFrost & SullivanZhang Xiaojing, Executive Director of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Wall Street Journal Insights to discuss the development of overseas markets for cross-border e-commerce in China.
*Click "Read the Original Article" at the end of this text to read the complete report.
Wall Street Observations
Q
PinduoduoTemuWe are accelerating our overseas expansion, opening new sites almost every month. What are the main difficulties in such overseas expansion? Is it mainly about cargo scheduling and logistics?
For cross-border e-commerce, logistics and supply chain management are difficult aspects of business operations. Due to the wide coverage of cross-border e-commerce and the numerous links involved, from domestic package reception to warehouse storage, sorting, packing, customs clearance, to last-mile delivery, all require cooperation with logistics companies and system construction. Different logistics methods have different prices, and the difficulty of returns and exchanges also varies. Therefore, how to choose the appropriate transportation method to control costs, how to manage cross-border supply chains effectively, and establish efficient logistics networks to ensure that goods reach consumers in a timely manner are challenges faced by cross-border e-commerce companies expanding overseas.
In addition, overseas expansion will face challenges from international and local well-known brands, such as Amazon.ebayWal-Mart, among others, typically possess a large market share, a wide range of products, and a convenient shopping experience. Therefore, when domestic e-commerce companies expand overseas, while ensuring that their brand image remains consistent globally, they also need to create localized content and advertising campaigns, find unique positioning in the market, align the brand with local culture and values, and attract more traffic. Thus, how to effectively promote and build a brand is also one of the challenges in overseas expansion for e-commerce.
Q
Cross-border e-commerce involves many countries. From the perspective of competitive landscape and future market space, how do you view the situation withTemuWhat is the development of cross-border e-commerce represented by? What is the biggest challenge in the future?
With the customs announcement2014Year56number and day57The release of the announcement includes the addition of codes for customs supervision methods for cross-border e-commerce, and regulatory norms have been established for cross-border e-commerce imports and exports, marking the rapid expansion of China's cross-border e-commerce industry.2015In the year, the cross-border e-commerce market scale reached5.4trillion yuan, compared to2014Year-on-year growth28.6%According to the latest data from the Ministry of Commerce,2022In [year], the market scale of cross-border e-commerce in China reached15.7trillion yuan, than2021year14.2Year-on-year increase of trillions10.56%withTemuThe development of cross-border e-commerce represented by [company name] shows that China's cross-border e-commerce has grown from scratch and has become a new engine driving foreign trade development. At present, the number of cross-border e-commerce entities in China has exceeded10Wanjia, cross-border e-commerce industrial park within the comprehensive test area, approximately690First, the import and export scale of cross-border e-commerce goods has increased significantly.
The competition in the cross-border e-commerce industry is fierce, with well-known multinational e-commerce platforms offering consumers a variety of choices in terms of product categories, delivery range, and delivery timeliness. Therefore, providing customers with a more personalized experience and higher-quality customer service, as well as maintaining long-term contact with customers by offering discounts and promotions, are challenges that cross-border e-commerce will face in the future.
In addition, local policy changes are likely to be the biggest challenge that cross-border e-commerce may face in the future. AsTemuandSheinThe product unit price is low, and the packages are light. Most of them are small parcels shipped directly. The value of a single package is mostly less than800US dollars. According to the US tariff exemption policy, as long as the value of imported goods purchased by US individual consumers800Below the US dollar, tariffs can be waived. This exemption policy applies toTemuandSheinand other e-commerce businesses focusing on cross-border small package services are very beneficial. U.S. Customs data shows,2018yearly4.11Hundreds of millions of goods entered the country through the "minimum declaration principle",2022Year achieved6.85hundreds of millions. Recently, due toTemuandSheinThe explosive growth, withTemuandSheinE-commerce mainly engaged in this area has faced strict scrutiny by the US Congress's Committee on US-China Economic Security Review. The US may tighten its tariff policies against China or lower the threshold for tariff exemptions, which could have a certain impact on future cross-border e-commerce exports. Therefore, in the future, cross-border e-commerce enterprises need to closely follow policy changes in each country to ensure legal operations and timely adjustment of business models during rapid expansion of their businesses.
* This interview was published in Wall Street Journal Insights, with reporter Liu Baodan. The original title was: TikTokE-commerce stumbles in Indonesia ">
