According to data in the Quarterly Monitoring Report on China’s Cross-border Import Retail E-commerce Market in the 2017Q3, in 2017Q3, the market scale of China’s cross-border import retail e-commerce was RMB 81.57 billion, a drop of 13.1% on a moving base.
On September 20, the decision on one-year extension of the policy for transition period of cross-border e-commerce retail import monitoring and supervisionto the end of 2018 was adopted at the Executive Meeting of the State Council. When it approached the end of the previous transition period, the whole industry was relieved for the time being and no longer worried about the intensified regulation of the next year. All vendors can continue their operations according to well-established plans and steps. However, we should consider it from a wider and deeper perspective because there is more influence from the extended transition period.
1. Exert an influence on modes, rules, trends, etc. of international circulation of commodities. Seen from circulation mode of consumer goods among countries, such trade types as general trade, processing trade, etc. account for the majority; however, the emerging force, cross-border e-commerce, comes in view of global consumers subsequent to the wave of global e-commerce. Since its inception, this emerging mode has become popular increasingly driven by user demands, forming the huge development potential. Besides, under the background of irreversible tendency of global economic integration, the cross-border e-commerce is expected to become a key form of circulation of international consumables. However, all countries haven’t formulated the relatively reasonable and sound management systems exactly as the cross-border e-commerce is a newborn mode, not mention of worldwide universality principles. China has established pilot experiments to make exploration on this aspect for years, and accumulated relatively rich experience. However, along with the extension of transition period, China will undoubtedly continue to improve its cross-border e-commerce management system till it has established a set of cross-border e-commerce supervision standards that will be applicable to the absolute majority countries and regions across the world, through which China will be certainly in a very advantageous position among the future international trade competition.
2. Create more favorable external environment for the construction of the “Belt and Road” For a long run, Chinese high-performance commodities have been popular among worldwide consumers, whereby China can also sustain a relatively high level of export trade in spite of severe economic environment worldwide, and thus sustain the growth momentum of trade surplus basically. Some countries in Europe and America often make unwarranted charges against China from this point of view, and band together to exert pressure on China. No doubt, this will produce adverse effect on China’s construction of “Belt and Road”. As the transition period is extended, there is a room for China’s cross-border import retail market to get expanded, which will, from a reverse perspective, enhance the purchase quantity and import value of commodities from trade partners, help adjust the relationship of trade balance, maintain and boost the economic ties with all trade partners, thus winning the external environment favorable for the construction of “Belt and Road”.
3. Strengthen the discursive power of Chinese vendors in the international cooperation. On the one hand, amid the continuous development of cross-border e-commerce market, China can adapt to the international supply chain system more deeply and closely, master and skillfully apply the principles and rules for such aspects as brand, market, channel, R&D, etc. of international consumer goods. On the other hand, the leading power and focus of international consumable market will be transferred from supply to retail terminal and from western countries to China, along with the expansion of terminal market. Along with the extension of transition period, China will continue and deepen this process, even explore and create a new mode of international cooperation, so as to make consumption upgrading more subversive and potential for growth under the leadership of China.
In 2017Q3, some vendors carried out diversified activities in July and August after the “6.18” Grand Promotion, but the whole industry had not formed an industry-wide promotionalscheduleyet. The whole market was calmed. Tmall Global continued to rank first with a market share of 24.9%. Ranking second, JD Worldwide took up a share of 16.9%. NetEase Kaola still ranked third, and its market share reached 16.7%. Two out of top three vendors suffered a little slump, except that Tmall Global saw a growth of market share on a moving base. In the 2017Q4, all major vendors are expected to suffer the most severe competition due to the “11.11” Grand Promotion and “Black Friday”Promotion at the end of the year.
The competitive landscape of cross-border import retail e-suppliers from related companies is also similar to that in the Q2. Tmall Global ranked first with a share of 34.4%, followed by JD Worldwide and VIP Global, ranking second and third respectively with a share of 23.3% and 12.6%.
The competitive landscape of independent cross-border import retail e-suppliers continued its tendency in the Q2. NetEase Kaola was far ahead peers with a share of 60.5%. The Little Red Book ranked second with a share of 17.5%. And Fengqu ranked third with a share of 3.7%.
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