New Steps For The B2B International Trades In Yiwu Zhejiang

County - level zhejiang Yiwu in the field of foreign trade exports miraculously in the forefront of the country. Now it has surpassed Shanghai in the size of cross-border B2B transactions, ranking third among all Chinese cities after shenzhen and guangzhou.

You can see the change very clearly. Now in yiwu, a large number of foreign merchants have started to purchase Christmas and New Year's products, and this purchasing period is a month and a half earlier than usual.

On June 19, 2019, the yiwu municipal government and alibaba group signed an eWTP strategic cooperation agreement - the two sides will jointly build eWTP global innovation center, China's second eWTP pilot area. The role of "world hub" quickly emerged.

Online cross-border trade is also changing.

As cross-border links on buyer side and the seller side, regulatory side step by step penetration in the digital level, combined with ali economy various lines of business include the ant gold and novice network, ali cloud, nailing strategic synergy, such as digital sea to serve small and medium enterprises as the core mission of ali international standing, nowadays is celebrating the harvest and outbreak period.

A set of official data from ali shows that the number of paying buyers and transaction size of ali international station have maintained a 3-digit growth in the past three years. In August 2019, online active buyers increased by 100% compared with the same period in 2017. In the past three years, the growth rate of online payment buyers has exceeded 100% in every natural year.

"These sustained growth rates give us every confidence to say that b-end opportunities are coming," yu yong, vice President of alibaba group and co-general manager of alibaba international, said in an interview with ID: haikecaijing.

This is a story of cumulative steps that lead to great distances.

The industry consensus is that education and digitization at the B end are generally slower than that at the C end due to numerous related factors. Domestic trade B2B is still generally in exploration and iteration, while cross-border B2B goes deep into the hinterland of the two countries with longer links and greater difficulty in digitization.

It can be seen that the logical starting point of ali international's efforts in cross-border B2B direction is to fully meet the needs of the buyer side and continuously enrich the value of the seller side. On this basis, the sellers in cross-border trade international standing around the small and medium-sized enterprises to find business opportunities in the process of difficult and high cost of circulation, use, access to financial support policy, credit barrier higher pain points and focus from digital goods yard, digital performance, digital credit system these three aspects continues to advance, strive to build a "digital operation of foreign trade department Series"

Zhang kuo, co-general manager of ali international station, said in an exclusive interview with haikecajing that among the current cross-border trade, more than 95% are B2B. Although B2C is growing fast, the overall proportion is relatively small.

Based on maximizing the seller's side value, ali international station constantly improves and polishes the tactics of each link of the cross-border link.Following the launch in December 2018 to digital fu can "word is changed to sea plan 1.0" of small and medium-sized enterprises, in June 2019, in the face of increasingly complex international situation and sellers demand corresponding change under the new situation, international standing by integrate the internal and external resources, ali ali launched "2.0 digital sea plan", further to the seller in open source, effect, provide power on the throttle.According to ali international website, compared with version 1.0, "digital sea going plan 2.0" has been comprehensively upgraded in directional flow introduction, precise flow matching, rapid entry with low threshold, financial service support, service fee preference, logistics solutions and other aspects.Benefiting from the development of platform business, as well as the popularization of smart phones and mobile Internet, the scale of active buyer users of ali international station has been growing rapidly.At present, although there is a long way to go, it cannot be achieved overnight, but on the basis of comprehensive digitization of core elements of the whole link, such as personnel and freight yard, contract implementation process and credit system, considerable achievements have been achieved, the major strategic opportunity of digitization reconstruction of cross-border B2B of ali international station has been truly felt.

01  Deep digital industrial belt

As co-general managers of alibaba international station, yu yong and zhang kuo discuss the top-level design of alibaba international station business division. In terms of specific division of labor, yu yong is responsible for sales, service and market in the front, while zhang kuo is responsible for the website and supply chain in the back. Mr. Yu prefers to draw an analogy: Mr. Zhang is the executive chef, responsible for cooking; He is the lobby manager, responsible for serving dishes to customers.Ali international station in the recent business model of a major decision, from the two people on yiwu commodity industrial belt insight and consensus.Yiwu has become China's second eWTP pilot zone after hangzhou. In addition to business cooperation between yu yong and zhang kuo, it is also considered to be a collaboration between two industry "leaders" - alibaba, the world's largest online market; Yiwu, the world's small commodity capital, is the world's largest offline market.

According to zhang kuo, the reasons for the rapid development of cross-border B2B in yiwu are mainly as follows:First, historical factors. Local since reform and opening up has formed the unique commodity spot market, buyers can live group goods, exports are in the same way, such as a buyer can buy 9 sellers of goods, and then the hair go into a container, and the nine sellers, usually have spot in there - so that yiwu the richness of a cash commodity and the price is very high, gradually formed a geographical advantage.Second, policy factors. Local government know very well the core demands of local businesses, given the small commodity more finely, the VAT invoice to collect all very laborious, but invoice not neat do export, and suspected of illegal crime, so they change earlier commodities in 0110 model, 1039 model, pioneered "shall be exempted from is not retreated," directly to have the goods sent out - this is not only let the small and medium-sized enterprises in the export process legal compliance, and was relieved from the middle collect VAT invoice, bothered to tax bureau to apply for tax refund, etc.Has led the stationed in yiwu long yu chung thinks, fragmentation and small single buyer needs is not a gust of wind, nor a tuyere, but a real future trends, and the trend is bound to bring dividends, so ali international sellers need to help small and medium-sized enterprise to embrace this trend as soon as possible, get these bonuses.Ali international decided to upgrade its infrastructure and start a brand new track while digging deep into the main turnpike, so that once the seller receives such an overseas order, it can ship the goods immediately.

Zhang kuo told haikecajing that there are many other special industrial belts like yiwu in China, such as fishing gear from Qingdao, shandong province, which is mainly sold to countries or regions like Europe and the United States where fishing is a family hobby. For example, many overseas hair salons and wholesalers come to purchase wigs in xuchang, henan province, while black americans are the largest consumer group of this kind of wigs. People who are in a good mood or in a bad mood always wear wigs. For example, the export volume of photovoltaic products from suzhou, wuxi and changzhou in jiangsu province increased sharply after the eu anti-dumping and countervailing duty (anti-dumping and countervailing duty) ban expired in September 2018. For example, the cloth from wujiang, jiangsu province is mostly exported to Bangladesh, Vietnam and other countries. After being processed into garments by Vietnamese factories, it is sold to Europe and the United States.

For more than 740 domestic belt, distinctive ali international standing around cross-border sales category, has been selected out of yiwu, Shanghai, yantai and weihai/wuxi, changzhou, shenzhen, guangzhou, suzhou, linyi, Qingdao, shaoxing/wujiang 10 industry area, hoping to drive the domestic 100 ordinary belt, radiation, the United States, Italy, Vietnam, India and other countries or regions, in order to jointly build international standing belt zone.Through cooperation with local governments, ali international station will not only build the digital enabling industrial belt, but also build the related ecology of web celebrity, agency operation, shooting, model, copywriting, advertising and media in the development of industrial belts around the country, gradually forming the depth of the entire industrial belt.According to yu yong, digital industrial belt refers to the digitization of all the links in the entire industrial belt. Only in this way can reconstruction be possible: the people inside, buyers, sellers, men and women, preferences, quantity and trends; Inside the business, production capacity, manufacturing capacity, research and development capacity, design capacity; Inside the goods, which is hot goods, which is hot style, which is slow-selling goods, which is inventory, which is cost-effective; Inside the price, logistics, finance, payment, etc., every link to go digital.

02  Promote innovative full-link services

In order to better serve cross-border B2B buyers and sellers, ali international has many innovations in financial, fiscal and tax products.Pay later is one of them.Pay later, as its name suggests, is a product launched by alibaba international in partnership with Kabbage, an American fintech firm, aimed at buyers.Kabbage has extensive credit data on its buyers' users, and in addition to tracking their behaviour at ali international, it has a large number of other documents to assess the buyers' credit to determine the amount of credit granted. Depending on the buyer's circumstances, Pay later will be eligible for a credit line of $50 million to $20 million. After the buyer transfers the money to the seller, he can repay it in installments. It's like a flower for overseas b-end users.The first buyers of Pay later will be in the us, followed by Australia and Europe, according to haikecajjing.Xinbao is another innovative financial product launched by ali international station.In cross-border trade, the buyer and the seller because of difficult to build trust, most of all looking for a bank to open the l/c, but the l/c basic service only in large buyers and sellers, once the order is the relatively small size, would not be able to support the l/c mode, because make, the cost is too high to hold hundreds and thousands of dollars.Xinbao is a product jointly launched by alibaba international station and ant financial. It is designed to provide guaranteed trading services for both buyers and sellers- the buyer pays a sum of money in advance. The seller, based on his own qualifications, can withdraw the money first to complete the financing of goods preparation. When the fulfillment of all orders is completed, the buyer pays balance payment.

According to haikecaijing (ID: haikecaijing) to understand the news, ali international station this year will also launch a financial product, let buyers and sellers every order will have payment days. The product is designed against the background that more than 70% of cross-border trade partners have a demand for payment days. However, in the early days, either through the traditional bank customer service, or based on the old customer relationship, the seller and the buyer formed their own offline account period system - but this has no guarantee for buyers and sellers.

Ali international station and ant financial service will make payment days products to both the buyer and the buyer in the future, and both the buyer and the seller can repay in installments. Earlier in this problem, pain point is very much: pay with credit card as an example, as long as it is large, a handling fee is high, the success rate is low, often will be rejected brush, brush rate as high as 50%; If you do local TT (telegraphic transfer), the time limit is not good, often 7~10 days to receive the payment. All of these problems can be solved if the two sides trade directly into a payment days product.

The launch of this product may restructure the traditional trade model.

In terms of fiscal and tax services, ali international station first completed the process of customs exchange through its affiliated one datong, in which tax is tax refund service. At present, ali international station serves merchants based on ali ecology. In the future, it is expected to speed up the tax refund through data integration between ali and tax bureau. We hope to create an experience for customers that they can get the tax within two working days as long as the documents are complete.

Before, businesses had to deal with the regulatory side, at least to the customs, foreign management, tax bureau these three agencies. Now in ali international station, if you place an order, the customs clearance order can be directly generated through the order. Once the goods are cleared, the external settlement of foreign exchange can be directly transferred to the seller's account through the fund collection platform provided by the international station. The refund, as long as all documents are online, can be credited to the merchant's account within three days.The above actions can improve efficiency and reduce operating costs, and for businesses, it can no longer hire customs declarators, tax officials, and accountants dealing with Banks. All operations can be solved through the Internet, and the core business of businesses is to produce goods well and serve buyers well.

"Ask all the Chinese merchants, including those who are doing e-commerce in China, if they are willing to sell their products to the world. It's about how the platform helps them solve their problems." Zhang kuo told haikecajing.In order to digitize and reconstruct cross-border B2B, besides the buyer side and seller side, the openness and digitization of the regulatory side are also indispensable.Yiwu samples become a very appreciated one of ali international station, and the rapid development of cross-border B2B in yiwu has a very important relationship with the opening of the supervision side including the local government to judge the situation.Digital government affairs is currently a popular way to plug. As one of the earliest practitioners of China's digitized government affairs, whether ali can make progress in China's cross-border B2B digitized government affairs, especially whether it can take this opportunity to be allowed to access the regulatory system and serve the whole industry by policies, the current emphasis depends on the attitude of the regulatory side.

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