In today’s global trade arena, China’s cross-border e-commerce is undergoing a profound change.
On May 6, reports pointed out that cross-border e-commerce is engaged in a “brand-building campaign.”
JD.com entered Europe with Joybuy in March, Pinduoduo announced at the end of March that it would invest 100 billion in three years to develop its own brands, and AliExpress held a closed-door brand meeting in Shenzhen in April. It is no coincidence that the three giants collectively unveiled their brands within a month.
As the road to low-price distribution becomes narrower and narrower, “branding” has changed from an industry slogan to a battle of real money.
JD.com, Pinduoduo, and Alibaba have different paths in cross-border branding, but they have the same goal, which is to regain the pricing power of Chinese products from Amazon.
JD.com Joybuy has taken the asset-heavy self-operation route, acquired Ceconomy for 2.2 billion euros, and coupled with European warehousing and express delivery sites, it has been able to “place orders in the morning and receive goods in the afternoon” in some cities. However, the investment cycle is long, returns are slow, and it is not easy to capture the minds of European consumer brands.
Pinduoduo’s new Pinmu builds a brand from the supply chain, integrates industries and factories, and turns OEMs into brand owners. It is fast and has strong product distribution, but there are doubts about the independent development space of the brand.
AliExpress Brand+ adopts an open empowerment model and exports brand operation methodology. The goal is to help 2,000 Chinese brands double their overseas scale. In the past year, platform brand GMV increased by 40% year-on-year, with remarkable results.
Temu’s recent policy adjustments have also attracted much attention.
On April 1, the semi-custodial fee rate was structurally adjusted, warehousing fees and distribution fees increased, and the overall cost increased.
On April 10, the mandatory price-following mechanism was cancelled, the price weight was reduced from 70% to 30%, and the “value indicator” weight was increased to 70%.
This may seem like a relief to sellers, but it is actually a deeper reshuffle.
After the rate adjustment, the semi-managed model order volume, the number of sellers with overseas warehouses, the proportion of semi-managed GMV and other data all performed well. The unit price per customer increased and the return rate decreased.
In the Korean market, Temu and AliExpress have grown against the trend, and the proportion of Chinese e-commerce platforms in Korean consumers’ online spending has increased significantly.
In addition to the actions of the platform, the policy level is also helping to promote branding overseas.
9810 “Tax Refund on Departure” was officially launched on May 1, shortening the capital turnover cycle of the overseas warehouse model, and the export return tax exemption policy was implemented simultaneously, providing sellers with the confidence to make inventory and brand investments.
The five major platforms have collectively rectified AI content to protect the value of “real-person” content, and refined operations have become a prerequisite for survival.
The zero-tariff policy for 53 African countries took effect on May 1, opening up cost space for cross-border e-commerce “African Nuggets”, but it also faces infrastructure and other problems.
The TikTok Shop Southeast Asia Summit is scheduled for May 22. Competition in the Southeast Asian market is fierce, and TikTok Shop is trying to break through with content e-commerce.
Looking back at this week’s industry trends, Chinese e-commerce companies are shifting gears from “sales logic” to “brand logic”.
The external environment is compelling, domestic platforms are responding, and policies are also encouraging “brands going overseas.”
However, branding takes time, and the capital market, platforms, and sellers all have short-term needs. Whether the three giants can find a balance between “short-term growth” and “long-term branding” determines the success or failure of this “brand-building movement.”
Domestically, 618 has started preparations. The platform has bid farewell to its extensive model. Consumers have a clear trend of rational consumption, and the value of the brand has become increasingly prominent.
The only thing that is truly valuable is the brand.
