E-commerce aids local brands in gainning more popularity

Broader push

China is making solid efforts to boost development of new forms and models of foreign trade as part of a broader push to promote high-quality development.

In November, approval was granted for the establishment of comprehensive pilot zones for cross-border e-commerce in a total of 33 cities and regions in the latest attempt to boost foreign trade growth. This is the seventh batch of such pilot areas, which now total 165 nationwide.

The Ministry of Commerce said it will work with other departments to introduce measures to support logistics enterprises, cross-border e-commerce platforms and vendors to build overseas warehouses.

Zhang Zhouping, a senior analyst of business-to-business and cross-border activities at the Internet Economy Institute, a domestic consultancy, said, "Cross-border e-commerce has witnessed rapid growth during the COVID-19 pandemic to become an important driving force for stabilizing China's foreign trade."

This will have a profound impact on the transformation and upgrading of foreign trade in China, Zhang said, adding that Chinese enterprises have increasingly attached great importance to cross-border e-commerce, as it plays an important role in helping traditional foreign trade enterprises build new brands.

In addition, Chinese online retailers are stepping up efforts to expand their global footprint amid a broader drive to cultivate new users and diversify revenue sources.

Temu, which is owned by PDD Holdings, the parent company of Chinese e-commerce platform Pinduoduo, has gained popularity among consumers in the United States for its wide selection of merchandise. Since launching in the US in September, it has offered clothing, electronic products, jewelry, shoes, handbags, cosmetics and baby products at competitive prices.

According to analytics company Sensor Tower, as of Jan 31, Temu had been downloaded nearly 20 million times globally, with shoppers from North America accounting for more than 90 percent of the total.

In September, Pinduoduo announced plans to invest 10 billion yuan to help China's manufacturing enterprises widen their global reach. The first phase of the initiative will help 100 Chinese brands go global and also support 10,000 manufacturers to connect directly with overseas markets.

In addition, Chinese fast-fashion online retailer Shein plans to open two more distribution centers in the US, which could help shorten delivery times to its customers by three to four days.

In April, the company opened its first distribution center in the US in Whitestone, Indiana. The additional warehouses will greatly improve delivery efficiency, as it currently takes 10 to 15 days for Shein customers to receive their orders.

Chen Tao, an analyst at internet consultancy Analysys in Beijing, said, "Chinese e-commerce platforms are accelerating their layout in overseas markets to seek new sources of revenue, as growth in the domestic e-commerce sector is slowing."

He said Chinese enterprises should step up localization efforts in overseas markets and comply with local laws and regulations to ensure their brands are reputable.

Lyu Gang, a researcher at the State Council Development Research Center, said: "Cross-border e-commerce platforms have become an efficient and convenient way for traditional manufacturing enterprises to expand their overseas footprint. They can help micro, small and medium-sized enterprises open up new markets."

He added that more efforts should be made to help formulate international digital trade rules and increase policy support for these enterprises in fields such as taxation, customs clearance, digital transformation and rights protection in overseas markets.