In recent years, the cross-border e-commerce industry has developed rapidly. In 2014, the overall growth rate of the cross-border e-commerce industry was 30%, which is relatively fast compared to a single industry. In 2014, within the industry, so-called leading enterprises had a maximum annual revenue of 500 to 1 billion yuan. Nowadays, leading enterprises in the industry have a basic annual income of over 1.5 billion yuan, and those with an income of 2-3 billion yuan are considered average among leading enterprises.
With the continuous development of the industry, competition within the industry is becoming increasingly fierce. Large enterprises have become giants, and their annual income is doubling. Small cross-border e-commerce enterprises are difficult to keep up with, leaving no trace of being left behind.
In 2008, cross-border e-commerce could start with a few thousand yuan, and selling something for one yuan to the United States could earn one dollar, resulting in substantial profits. Currently, although the profits in the cross-border e-commerce industry are not as large as before, there are still many opportunities. However, for small businesses, opportunities are not as easy to seize as before.
At the same time, the speed of cross-border e-commerce enterprises and capital docking is also getting faster and faster. Generally speaking, in e-commerce, there is a payment period of about two months, so companies are required to stock up before selling. A sales revenue of 500 million usually requires a stock of 150 million. So cross-border e-commerce enterprises must have sufficient funds in order to promote their development.
Key directions for future capital investment in cross-border e-commerce
Firstly, leading enterprises. Zhu Cheng introduced that for investment in cross-border e-commerce enterprises, they have been continuously investing since 2015, and cross-border e-commerce leading enterprises are their first choice and also the preferred choice. Previously, the investment amount in leading enterprises may have been around 250-30 billion, but in the future, this number will increase to around 1-1.5 billion.
Secondly, the management team of the enterprise should be sufficiently excellent. The management in the e-commerce industry must be very excellent, and many leading companies have management graduates from Tsinghua University and Peking University, so their development is definitely much faster than other companies in the industry. Some companies, although their leaders themselves do not have a good background, will introduce excellent teams to help operate.
Thirdly, brand e-commerce. Now is a very good time for building brand e-commerce. Domestic brand e-commerce is well-known, such as JD, Three Squirrels, Fairy's Pocket, and so on. As these e-commerce enterprises expand in scale, they gradually present a very good brand, and the formation of a brand can greatly help improve the competitiveness of products.
Amazon is one of the best brands in the cross-border e-commerce field. Amazon's current market value is even higher than Alibaba, and it is growing at a rate of 36% annually. Building a brand on Amazon can cost 100-300 million RMB, with no need for many categories, such as Tree, Savi, and over 100 stores on the platform selling everything, achieving sales of several billion RMB. Create a single category, such as Anker, which sells mobile power supplies with an annual sales of 3 billion yuan. Relying solely on the brand, it already has a significant influence on Amazon.
Fourthly, cross-border e-commerce services. For example, PingPong is a service for receiving payments. In fact, many small and medium-sized sellers may initially want to make tens of thousands, millions, or even tens of millions. When they reach billions or even higher, the enterprise itself will have higher requirements for services, data, and finance.
