E-commerce has grown at a steady pace during the “click-and-mortar” era, and the pandemic accelerated this growth, especially across borders, as online shopping eased life during the prolonged lockdown, and enabled people to persue global products without traveling. In fact, overall e-commerce retail sales in major European, American and Asia-Pacific countries and regions experienced rapid growth of more than 15% from 2019 to 2020, according to Google and Deloitte’s 2021 China Cross-Border E-commerce Development Report.
Fu Yifu, Senior Researcher at the Suning Institute of Finance, says that cross-border e-commerce is the most efficient and convenient trade form of the Internet era, in terms of the types of trade being conducted. Fu says it can break the limits of time and space, skip the intermediaries, more accurately match global demand and supply and, consequently, resolve information mismatch. While creating opportunities for more countries, regions, and companies, cross-border e-commerce has also greatly enhanced the global supply chain capabilities of China’s foreign trade.
According to statistics from China Customs,the cross-border e-commerce customs management platform inspected and released 2.45 billion import and export invoices in 2020, a year-over-year increase of 63.3%. The total volume of cross-border e-commerce imports and exports was 1.69 trillion yuan (approximately US$261.8 billion), an increase of 31.1%. In 2020, China was the only major economy in the world that achieved positive growth in global trade regardless of the pandemic and shrinking global trade, with annual total import and export value exceeding 32 trillion yuan (approximately US$4.96 trillion).
Suning International is one of the leading cross-border e-commerce platforms, and the global division of Suning Group, a 30-year retail specialist headquartered in China. The company has committed to developing one-stop, end-to-end customized retail solutions that will accelerate the localization of overseas businesses in the coming years.
Picture: Suning International Released the “one stop solution for overseas brands to enter China” at the Global Partner Conference
Last May, Suning introduced a one-stop solution to enable overseas brands to enter China at the inaugural China International Consumer Products Expo, held in Hainan, an island, “paradise” for China’s duty-free shoppers. Suning digital solutions include integrated cross-border trading and marketing services that will help global brands enter, grow, and thrive in China, as well as serving as an engine to boost “dual circulation,” whereby domestic and overseas offerings reinforce each other. Leveraging Suning’s channels and resources, the one-stop solutions provide cross-border strategy consulting services, customized retail solutions, and global trade opportunities, aiming to position Suning International as the biggest import-friendly supply chain platform empowering global brands to take root in China.
China has pioneered some of the world’s leading e-commerce concepts ross-border e-commerce development has accelerated in recent years, matching the trend of upgraded consumption. Once pandemic-era travel restrictions prevented people from going abroad and shopping outside their home markets, the demand for cross-border e-commerce exploded.
Picture：Laox booth at the inaugural China International Consumer Products Expo
During the most recent annual618 shopping festival — China’s most popular mid-year online shoppingevent, Suning International received 250,000 orders in a single day. Thanks to the newly-opened Nanjing Lishui bonded warehouse, consumers in China’s Yangtze River Delta region were able to receive orders within 24 hours.
Suning’s cross-border trade has grown rapidly in the past three years. In 2020 alone, cross-border B2C business increased by 72%, cross-border B2B business grew by 400%, and service-oriented revenues increased by 82%.
Additionally, Suning Financial Services was recently granted a Hong Kong Money Service Operator license（hereafter referred to as MSO liscence） — official permission to conduct cross-border remittance and exchange businesses in Hong Kong. Huang Dazhi, Senior Researcher at Suning Institute of Finance says MSO license is very important for enterprises in the mainland to operate cross-border money businesses. He says obtaining a Hong Kong MSO license will greatly improve a company’s cross-border money payment and transfer compliance, and improve the compliance of business going overseas. It can also help companies reduce costs and enhance competitiveness.
Huang Dazhi, Senior Researcher at the Suning Institute of Finance, says an MSO license is very important for enterprises in the mainland to operate cross-border money businesses. He says obtaining a Hong Kong MSO license will greatly improve a company’s cross-border money payment and transfer compliance, and improve the compliance of businesses going overseas. It can also help companies reduce costs and enhance competitiveness.
According to the independently developed 2020 China Cross Border E-commerce Market Development Report , China’s online retail sales in 2020 were 11.76 trilion yuan (US$1.8 trillion) , an increase of 10.9% over the previous year, and the e-commerce penetration rate reached 30% of all sales .
Picture: (Left) HEYLAND & WHITTLE Classic Gold Luxury Elegant-Green Tea Pomelo Reed Diffuser Bottle; (Right) MORPHY RICHARDS Handheld Garment Ironing Machine; Both can be found on Suning International E-commerce Platform
Experts say people will become more dependent on online shopping in the post- pandemic era, and further accelerated growth of the cross-border trade market should be expected. As a vital player, Suning International will leverage its experience and resources to empower global merchants to thrive in the Chinese market, and better serve customers in China with a wide array of offerings from around the world.