Wang Xin, Executive President of Shenzhen Cross-Border E-Commerce Association

Liu Xinyang, General Manager of Cainiao International Export Logistics Division

Sun Zhichao, Head of AGM Outdoor Mobile Cross-border Platform

 

 

Question: Mr. Liu mentioned in his speech just now that our China-Europe highway has to pass through 6 foreign countries to reach Liege, which will cause two problems. The first is that customs clearance will be more complicated, and the second is that it has to go through multiple car changes. And handling, for these two problems, I would like to ask Mr. Liu to see how the rookie solved it.

 

Liu Xinyang:First of all, let’s answer the question of customs clearance. Customs clearance is indeed a place to test your ability on the road. This is precisely the ability of Cainiao. When Cainiao began to serve these cross-border merchants and sellers on a larger scale two years ago, we We have begun to fully establish a global customs clearance business center. In this process, one thing we are trying to do is that we can establish a digital customs clearance system with customs at all global import and export The construction of the infrastructure in customs and customs clearance capability allows us to have this capability.

The second is the transshipment problem you just mentioned about road transportation. Frankly speaking, it is not as exaggerated as everyone imagined, because in the whole restraint process, only one change of carriages and one change of trucks are involved, which happened in China respectively. Entering the overseas area to do a transfer of goods and change the carriage, because it is necessary to change the foreign standard carriage, and the second is to change the head of the car when entering the EU area. Only these two transfer changes are performed. The overall transportation involves only the handling of goods. At one time, it didn't make a big difference to the whole shipment.

 

 

Question: Hello! I am a cross-border traveler, and I have two questions I would like to ask. First, we are familiar with the cross-border industry. Generally, freight to Europe is shipped by sea, which is mainly cheaper. Your side is transported by land. I know that Russia is fighting a war now. It seems that it is more difficult to pass the border to Poland and Belarus. How do you keep the road clear? Second, you said that it usually takes 15 days to arrive in Europe. How much more is the cost than shipping by sea, or what is the trend? Third, I would like to know what your main users are. People in cross-border e-commerce have stricter control over cost. Are there many people who use this method?

 

 

Liu Xinyang:We encountered these challenges in the trial operation stage, but we have solved these problems today, which is why we can launch the service products of China-Europe Highway with such confidence.

 

The second point, the reason why we launched road transportation is essentially to see the issue of cost-effectiveness. There is a big problem in shipping to Europe. Shipping to Europe is in shipping. Your containers and ships are because of Suez. The problem of the canal will be limited by the ship type. The ship type restriction is a constraint on the price of sea transportation. We cannot say that road transportation must be cheaper than sea transportation, but road transportation must be balanced in terms of timeliness and costs, taking into account both timeliness and costs. characteristic of road transport.

 

Third, you are concerned about how this business will help the business. After we opened this dedicated line, the order volume of our beauty business line in southern China, including Dongguan, has achieved rapid growth, which is also due to the fact that we provide Only with more stable service products can we make our customers’ business better in this business. This is a mutually reinforcing process. If there is a market, logistics can provide stable services forward, and it is better to have stable services. to promote the market to tap its greater demand potential.

 

 

Question: The president has now observed, especially the association observed that merchants in this area of ​​Shenzhen have relatively unified pain points in going overseas, not only logistics, but may also include other aspects.

 

Wang Xin:I will not talk about the pain points of logistics. At present, the pain points of cross-border e-commerce companies going overseas are still quite a lot of pain points for sellers. From 2021, we have suffered the biggest crisis event on the platform, and we have experienced it four times before. crisis events.

 

The first incident was China's first stock, the wedding dress appearance picture infringement incident, so it suddenly encountered Waterloo on Nasdaq, this is the first rule incident for cross-border e-commerce to go overseas.

 

The second thing happened in 2015. At that time, China's self-balancing scooters were selling very well. There was a quality accident in the power supply. Today, Cainiao has solved the problem of electricity. At that time, most of us shipped out by water. It can be involved in electricity, but there is a fire after safety and safety certification incidents occur abroad. Another thing is that because we have not obtained patents, China's inventions are still very fast. We copy others very well, but we are behind in terms of technology and patents. Our balance car incident in China was wiped out from Zhejiang to Shenzhen. , this is our second occurrence of the Platform Rules event.

 

The third thing is the mobile power incidents that occurred in 2016 and 2017. It also encountered the various certifications we have to do abroad, 18650 batteries for mobile power and other secondary battery cells and primary cells. , The complaints from foreign customers, the stability of the battery, power consumption, etc. have been questioned in foreign countries. Because our mobile power supply incident is a trivial matter, under normal circumstances, it will not exceed 10,000 mAh. These incidents are very common. After learning the lesson, the big sellers in Shenzhen are still selling quite well.

 

The fourth thing is that when the epidemic comes in 2020, when the platforms in the world call for relief materials, stand with people all over the world and call for all the problems of protective clothing and epidemic prevention materials that we encountered at that time. To get a fast supply, many platforms have also done the same. After the completion of the work, the situation turned sharply after April 2020. In March, we said that everyone is welcome to supply materials through the platform. In April, we started to say that you need supply chain support, and in May There must be the seller's EMOS in time, the merchant's authorization in June, various certifications in July, and the rules of the platform in August.

 

This is the fourth platform rule incident for our sellers. In April 2021, the platform rules we saw further exerted force. This force is no longer the image infringement, patent, technology, and security that everyone sees. Instead, you directly ask customers for good reviews, etc. These are all violations of the events that make us seem to be the default of everyone. On many platforms, they use the ToB platform to do it themselves, and also punish many merchants. This is a rule event. of five preceding crisis events.

 

The pain points we face here are from patents, technical property rights, trademarks, certification, and rules. Of course, another thing happened in May this year. We no longer have rules on the platform today. Where? It happened in the service provider, so we have payment problems this year, because payment is not controlled by the Chinese people, we have no right to speak, and today Cainiao should have this kind of social affordability, why? We must have the ability of a big country to undertake, and China must go to the center stage of the world. Since we want to coexist with the world as a community with a shared future, we need our companies that have the ability to go overseas. In 2022, our finance will appear again. Events that are constantly regulated by many platforms, will our logistics be like this in the future? Today I saw that Cainiao has roundabout tactics. There are air, air and water transportation. Cainiao has land transportation. It can reach Liege in 15 days. The ability to solve one stop and one order to the end is what we can help cross-border e-commerce sellers, and that is our service ability to come out.

 

In the end, Yibang Power also said that in the end, what we are going out is our intelligent service ability and the spirit of Chinese craftsmen. The craftsmen of a big country contain our service, manufacturing, and culture. This kind of craftsman spirit of a big country goes out. , Among our pain points, the five points I just summarized are constantly happening, and there will be more in the future. I hope everyone can take the responsibility and solve these problems together.

 

 

Ask:President Wang, your association is now drafting some industry rules, can you disclose this in advance?

 

Wang Xin: To be honest, I’m a little sorry here. This rule is being drafted. I’m not in the expert seat. We leave it to industry experts to draft it. I want to reveal that the pain point of the industry is too long. He said that he has only two nodes, one is to change the car, change the car when leaving the country, and change the driver there. In fact, there are only these two nodes. There are many nodes in cross-border e-commerce. We start from the front-end sellers. Let me start with the first order I placed. There are dozens of nodes in it. Today, cross-border e-commerce does not have this standard. We used to be ToB standards, which is the most painful for the cross-border e-commerce industry. One of the pain points is that a seller is right with 10 logistics providers. Each logistics provider brings me a bunch of POs and asks me to fill in a lot of information, such as the item number, who the buyer is, what the weight is, and whether they have obtained certification. What is the purpose of it, whether it complies with CE certification, safety certification, whether you have done it in the future, etc. There are many problems, and he does not know which ones should be filled or required. Anyway, the logistics providers give the order number to They have a bunch of stuff on it. There are so many odd-shaped order numbers, that is, the order number of the receipt. The seller asks if they can come up with a standard, simplify it, a general standard, just like a real estate sales contract. That is a template. You can make a second additional version when you make detailed changes. I can see it. The seller said that you can let me know where the changes were made. We set up an expert committee. The industry is opaque, not open, the procedures are more complicated, and there are many hidden pits in the industry. I hope everyone can see the things clearly.

 

Ask:I would like to ask Mr. Sun, the whole cross-border logistics market has changed a lot this year. From the seller's point of view, what kind of logistics role do you use to reduce the negative impact on your enterprise as a whole.

 

Sun Zhichao: It is relatively simple, because the categories and categories we make are relatively small, focusing on outdoor mobile phones. Outdoor mobile phones are completely different from most cross-border products. We are high-value products. , We basically have a strategy of all overseas warehouses, so we have not encountered many cross-border problems. Our company has also cooperated with Cainiao for a long time. Basically, all countries pass the official warehouse of Cainiao. Or the ecological warehouse will do this, and we also bought insurance. Basically, the fluctuation of logistics this year has no particular impact on us.

 

 

Ask:You mentioned just now that we have a strategy of almost all overseas warehouses. The next question is about Double Eleven, and the peak season is coming soon. Many sellers have almost finished their stocking, but they face a problem that the whole stocking and the whole sales It may not necessarily be equal. What kind of logistics mode do we use to meet the needs, such as timely replenishment or the like, or there are some unsalable situations, how do we deal with this problem?

 

Sun Zhichao: In fact, for us, for the industry I am in, we don't have many choices, because the value of goods is relatively high, we will not choose the way of shipping, most of them are by air, and some In some special places, because of the war, like Russia and Ukraine, we have to choose land transportation and road transportation, that is, for these countries in Eastern Europe, because air transportation is difficult, we have already shipped all the goods in September. As of last week, We have all the goods for Double Eleven, Black Friday and Christmas in the warehouse. If there is an oversold situation in the future, we will follow a batch of goods by air transportation. As for the problem of slow sales, it is not special. Because our mobile phone is a very fast turnover category as a whole, our stocking strategy will be relatively conservative, so so far we have not seen this from the previous data.

 

 

Ask:I also want to ask the rookie about this question, because the goods here are relatively high-value, but the whole is still a little more low-value. Do we have any solutions here that can help sellers solve this problem? The problem?

 

Liu Xinyang:During the big promotion, I briefly talked about it just now, and I will expand it a little bit. It is true that different types of goods require different services. Just like the high-value goods that Mr. Sun mentioned just now, I believe that merchants who are overseas warehouses should At present, the overseas warehousing has been completed. If the overseas warehousing has not been completed, there may be a big problem in sales this year. This is one.

 

I think Cainiao's overseas warehouse layout is more comprehensive this year. We basically have overseas warehouses in many countries in Europe, not a single country layout, including Spain, France, Germany, and the United Kingdom. We will all have overseas warehouse layouts. , to meet the needs of customers, this is part of the overseas warehouse.

 

The second part is still a relatively traditional part of cross-border parcel service, which is reflected in several pieces. The first is that all our domestic first journeys and collections are not closed this year, and we can operate normally on weekends. There is no difference in working days, and collection services will be provided for all merchants. This year, we have also made further resource investment in the distribution center and the operation system of the first kilometer. We have made corresponding increase in resources in the investment of the entire warehouse personnel, including the work on duty shifts, to ensure that the big promotion is not required in the domestic section. any bottlenecks appear.

 

In the aviation trunk line, whether it is land or sea transportation, we mainly rely on air transportation or air transportation. In terms of flight locking this year, we actually pay more attention to charter flights. The number of our charter flights will be increased during this year's Double Eleven. Further growth, through more deterministic charter capacity to provide our customers with more deterministic capacity, because the charter is essentially dedicated to our customers, and will not give this position to others in the market Use, we will make such a behavior and action of charter plane specially for our customers.

 

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