On June 27th, the 4th Global Cross-border E-Commerce Summit of “Chaoqi Qiantang·Digital Silk Road” hosted by China (Hangzhou) Cross-border E-Commerce Comprehensive Experimental Zone was held at Hangzhou Baima Lake International Convention and Exhibition Center. Hangzhou, the city of innovation and vitality, has once again become the focal point for the development of global cross-border e-commerce industry because of the 4th Global Cross-border E-Commerce Summit.
With the theme of “Digital Empowerment and Industrial Integration”, the summit brought together representatives from countries along the “The Belt and Road Initiative”, the heads of relevant state ministries and commissions, 35 representative cities of the comprehensive test areas, and the heads of relevant departments of the provinces and cities. And more than 1,000 outstanding cross-border e-commerce platforms, brands, sellers, foreign trade companies and service providers, focusing on advanced technologies and digital innovation models in digital trade.
At the summit, the former deputy minister of the Ministry of Foreign Trade and Economic Cooperation, former director and secretary-general of the Boao Forum for Asia, co-chair of the Global CEO Development Conference, and Long Yongtu, chairman of Center for China and Globalization, affirmed the opportunities brought by the digital economy to the global economic development. In his view, digital economy is population economy, which is conducive to a large number of countries with large populations and large data application scale effects will develop into a dominant country of the digital economy; digital economy is transitional economy, and manufacturing is successfully realized personalized "tailor-made" due to the use of big data, meeting the different needs of consumers better , to achieve product upgrades and the creation of new brands, to become a winner in cross-border e-commerce and digital economy.
Jiepei is a successful example of the digital transformation of Hangzhou's traditional foreign trade manufacturing enterprises, chairman and CEO of Jiepei, as one of the China’s first B2B entrepreneurs, was fortunate to be invited to the summit and gave a keynote speech. The speech included the future development of cross-border e-commerce. Jiejie intelligent collaborative manufacturing, factory digital and other aspects.
In the speech. Mr.Zhou indroduced that he entered B2B industry since 2005, and it has been 15 years.
In the early years, Ali started from B2B. In fact, it is not B2B that actually made Alibaba, but a consumer e-commerce. More than a decade ago, Alibaba took the train of consumer electronics to go away and left the traditional B2B behind. We traditional B2B people have been stupid for more than ten years and have suffered for more than ten years. I am fortunate. In 2013, I made a transformation and found a circuit board factory from the B2B 1.0 transformation. In 2017, I set up another factory in Anhui Guangde to study the natural factory. Now I am holding a self-operated factory and are turning to industrial collaborative manufacturing.
When it comes to B2B, it is necessary to talk about the development stage of B2B. From the previous 1.0 to 2.0, it began to integrate into the transaction. To 3.0, it began to have more services, such as financial services, and more logistics. I think that B2B will definitely enter the 4.0 version. The 4.0 version will surely be highly integrated with the manufacturing industry. It will be open to the manufacturing depth. I think this kind of B2B is the development direction in the future. Because the real support of all cross-border e-commerce is manufacturing support. I believe that the future of B2B must be closely integrated with the manufacturing industry, and opened to the manufacturing industry.
In Jiepei, cross-border business now are 1,500 orders per day , about 35,000 orders a month, and cross-border orders account for about 40% in the whole orders.
We have served 116 countries and regions, and the country is relatively scattered. The “The Belt and Road Initiative” countries account for about 60%. People often ask me recently: US increase tariff by 25%, does that effect your business? I said that there is almost no impact, because even with a 25% tariff increased , our products are much cheaper than the local circuit boards in the United States.
Our market is circuit boards manufacturing. The market capacity of circuit boards is not particularly large. It is 65 billion US dollars a year, but this product is very basic. All electronic products are basically made of circuit boards. All electronic components must be installed on the board to function. Therefore, this circuit board is very important. All the electrical products we can see need circuit boards.
In PCB industries, no one is willing to fabricate prototypes, but we are. Therefore, our users from the personal studio to the world's top 500, we grasp the customer through prototypes, and gradually infiltrate small and medium samples and large batches of samples, this is a good way to B2B.
What are the main pain points of cross-border business? The first is the time difference, and prototypes cannot be seen in the flesh. There is also the issue of delivery. For cross-border business, the lead time of traditional factories is very slow. Our new operating model is to get customers on from the whole network, basically Google, Facebook and community forums.
And self-operated website. For a high-frequency purchase of B2B cross-border business, there is no reason not to do a self-operated website. The self-operated website is very important. There is also online, the first is online pricing , as long as the customer enters the specifications, the price will show. Now you don't even need to choose specifications. When the user uploads the file, you can automatically read the files and quote directly.
We have already achieve 24 hours lead time, customers order today and finished products will be shipped tomorrow. Traditional prototypes is basically shipped in a week, and we have already achieve the goal that shipped in 24 hours. At the time we proposed this standard, the industry thought we could not do it, but we did it because we have the most advanced weapons. In the future, our factory can truly revolute, and digital must be the driving force of the factory, making artificial intelligence an important management tool for the factory.