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Dongguan Cross-border Electronic Commerce has Developed Rapidly with Guidance of Policies
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http://www.timedg.com/ Under economic new normal circumstance, traditional manufacturing industry is facing urgent need of transformation and upgrading. In Dongguan, many manufacturing enterprises target at the e-commerce business opportunity in order to achieve innovative development in virtue of the advantage of Internet. Its enormous manufacturing industry clusters, prefect industrial chain, strong logistics capacity and superior business environment attract a batch of e-commerce giants to invest in or increase their investment in Dongguan. The development of Dongguan e-commerce has accelerated since last year – there are new policy guidance measures for e-commerce development; traditional manufacturing enterprises make new progress in e-commerce application; cross-border e-commerce development has new breakthrough; development of agriculture-related e-commerce makes new headway.

Cross-border e-commerce ecosphere growing more and more mature in Dongguan

Intelligent robots are sorting and transmitting mails orderly and busily in Dongguan International Mail Exchange Bureau, which located in Dongguan Cross-border E-commerce Central Park. With the help of advance clearance mode of “electronic declaration, automatic sorting and intelligent inspection”, about 300 thousand mails are cleared by customs here and sent to over 200 countries and regions every day.

Yu Saiqun, marketing manager of China Post Dongguan branch said: “In the past, cross-border e-commerce enterprises in Dongguan had to go through Guangzhou customs when they sent international mails. But now they can go through customs in Dongguan directly. In this way, the delivery period can be shortened by a half day to two days.”

Dongguan International Mail Exchange Bureau was put into operation since September of last year. It will operate as international mails exchange center for the whole southern part of China in the future. The establishing of the International Mail Exchange Bureau will strengthen Dongguan’s competitiveness of e-commerce industry development. According to its plan, the Bureau can handle about 800 thousand mails a day. After the completion of the second phase construction, its processing capacity may surpass 200 mails a day. In the first season of 2018, it handled 23,154 thousand international small parcels in total.

This is only one of the mirror images of fast developing cross-border e-commerce in Dongguan. In 2017, Dongguan cross-border e-commerce import-export volume reached 14.3billion RMB, which rose 680% from a year earlier; there are 88,210,000 postal international parcels sent from Dongguan, which rose 24.3% from a year earlier and its total volume rank the fourth in China.

At present, Dongguan cross-border e-commerce ecosphere is more and more mature. Many well-known enterprises (including DHgate net, Hofan Group, Qyin, 4PX, easy bonus card and Ali Cai Niao) develop their cross-border e-commerce business in Dongguan because of its large demand of 3C, clothing, shoes and hats, toys, etc., its strong logistics system and its fast updating speed. And a batch of local cross-border e-commerce enterprises emerges in succession, such as Guangdong Sain Store Network Technique Co., Ltd. A large number of “Make-in-Dongguan” commodities and electronic products are sold across the world through cross-border e-commerce channel, which forming a new foreign trade development mode of “Made in Dongguan and Sold across the world”.

Traditional enterprises are favored by e-commerce giants.

Recently, Tencent, Jing Dong and Vipshop have invested in Dongguan famous underwear enterprise Cosmo Lady. It have raised fund of 510million HKD. After that Tencent, Jing Dong and Vipshop become shareholders of Cosmo Lady with 2.48%, 0.83% and 0.83% stake respectively.

Why a traditional clothing enterprise can be favored by e-commerce giants? Zhen Yaonan, CEO of Cosmo Lady considered that it is because not only Cosmo Lady is the biggest close-fitting clothing enterprise in China, but also its e-commerce channel develops rapidly in recent years. Cosmo Lady adopted the on-line & off-line dual-wheel driving strategy, so its sales volume realizes yearly multiplication. Its sales volume increased from 70 million RMB in 2014 to RMB 800 million in last year. This year, its goal is RMB 1.2billion.

After it was invested by Tencent, who owns top network traffic and entrance, Cosmo Lady enjoys much more resource than before. The fashion show it held on April 26th for its 20th anniversary was broadcast by several platforms including Vipshop, Jinri Toutiao, Tencent video, Huajiao, etc. More than 3million audiences watched the show on line. Actually, famous e-commerce platform can energize enterprises in marketing, big data and supply chain aspects. It can also help in opening new market segment, attracting young consumer group and enlarge its sales volume in first-tier cities.

Except for participation of the giants, traditional industries are also building their own platform to remodeling manufacturing and marketing patterns. Sanflag Fashion Company not only markets on PC end, mobile end and entity shores for compound mode, but also builds an integrated e-commerce platform named Juaimei. Its main products are clothing, shoes and leather products. Now there are 1000 suppliers enrolled in this platform.

Established in 1985, Wenhua Garment Factory orients at industry 4.0 intelligent manufacture development in recent years. It developed automatic pattern generation system and APP patent customization system by itself and has successfully achieved industrialization development of large-scale customized production. Its sub-brand “BILANG” provides online men’s wear personalized customization and self-design service to consumers.

Local vertical e-commerce giants are emerging.

Dongguan has enormous and mature manufacturing industrial chains. Many platform enterprises of different kinds of vertical e-commerce have found their business orientation here and begun to excavate this “rich ore”.

In recent Processing Trade Products Fair, MONDA Group’s subordinate platform DAYI35 brought many “black technology” products together with its partners, such as water soluble plastic bags, tearproof bags, cutting resistance leather bags and 3D printing portraits, etc. These products get extensive solicitude of major media.

MONDA Group is Dongguan model e-commerce enterprise and 2017 provincial model e-commerce enterprise. It has been regarded as the municipal pilot enterprise of “multiplication plan”. As its subordinate, Global Plastic Chemical Net is the intra-industry information platform with top-ranked user volume and visitor volume. For DAYI35 platform, whose main business is online trading of plastic materials, its cumulative turnover has surpassed 30billion RMB. CEO of MONDA Group said: “DAYI35 platform will have major breakthrough in aspects of new trading and payment method, new material technology and intelligent purchase and sales, and its online transaction scale is expected to surpass 60 billion RMB. It will lead the industry in accelerating industry upgrading.”

In consumption area, there is “unicorn” type innovation enterprises emerge. In this March, leaders of The Financial Affairs Bureau of the People’s Government of Dongguan City and Shenzhen Stock Exchange, SCGC visited Dongguan enterprise Jianke Net Company for investigation and survey of accelerating listing pace. It is said that Jianke is the leading online medication enterprise in China that is established in 2006. Its subordinate Jianke Net is one of the largest online pharmacies in China. IResearch lists it as the first rank of industrial valuation “unicorn” enterprise.

According to Xie Fangmin, CEO of Jianke Company, it raised a series “A” financing of 100 million dollar in 2016 and a series “A+” financing of 50million dollar in 2017. Its main business contains online pharmacy, mobile health care, entity hospital and chain drugstores, etc. The company now has 5 entity hospitals, over 20 offline chain drugstores and DTP pharmacies.

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City e-commerce transaction volume increase by 13.5% last year

Dongguan e-commerce develops rapidly in recent years. According to data provided by Dongguan Bureau of Commerce indicates that the e-commerce transaction volume of Dongguan city reached 42.02 billion RMB in 2017, which increased by 13.5%. Meanwhile, there are new policy guidance measures for e-commerce development; traditional manufacturing enterprises make new progress in e-commerce application; cross-border e-commerce development has new breakthrough; development of agriculture-related e-commerce makes new headway.

In aspect of policy, Dongguan launched “Opinion on Further Acceleration of E-commerce Development” and “Dongguan E-commerce Special Fund Management Regulation” and made “Dongguan E-commerce Special Fund Application Guidance” in last year. 51 projects proposals from 40 enterprises have been handled, among which 46 projects from 35 enterprises were accorded with the acceptance requirements. RMB 23,150,500 special fund has been allocated to qualified projects.

Meanwhile, Dongguan e-commerce development environment improve constantly. In May of 2016, Dongguan city was approved to be a comprehensive pilot city of building new open economy system. The pilot started from the field of developing new foreign trade industry format, especially for cross-border e-commerce. At present, there are 4 e-commerce customs clearance zones (Dongchen, Nancheng, Changping and Shatian) and 2 tax-protected zones (Qinxi and Humen) in Dongguan. In last November, Dongguan Bureau of Commerce submitted a report to Ministry of Commerce about applying for the third batch of national cross-border e-commerce comprehensive pilot zone in order to explore a new path for Dongguan characteristics e-commerce development.

With the advantages of supportive policies and mature industrial environment, many domestic and international e-commerce platforms begins to plan their development in Dongguan. In March of last year, People’s Government of Dongguan City signed a strategic cooperation framework agreement with Alibaba Group about comprehensive cooperation in 8 major fields including cross-border e-commerce B2B, Key town building project, China Manufacture Quality Improving Project, etc. in the future. People’s Government of Dongguan City signed a cooperation agreement with Jing Dong Group in last September. Dongguan government and foreign famous cross-border e-commerce platforms Amazon and eBay held more than 20 communication activities last year to lay a foundation for foreign cross-border e-commerce platform jointing with Dongguan manufacture industry.

Source: http://www.timedg.com/

 

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