Coastal city sees bright future in cross-border e-commerce industry

Zhanjiang considers cross-border e-commerce a golden opportunity to boost logistics and services.

With a population of about 8 million, the city has shown an increase in consumption power in recent years. Total retail sales of consumer goods last year hit 116 billion yuan ($18 billion), up 44.25 percent from 2011, according to Zhanjiang Bureau of Commerce.

Zhanjiang was the first city in Guangdong province that built its own web portal, Yinsha.com, early in the 1980s when the Internet was still new to people in many other Chinese cities, said Liu Xiaohua, the city's Party chief.

Cross-border e-commerce, has emerged in the port city's foreign trade in recent years, with some exports of aquatic products to Southeast Asian countries done online.

"Cross-border e-commerce is a new business mode. It is an important opportunity to upgrade the city's commerce and services to embrace international cooperation," Liu said. "We shouldn't miss the opportunity while others are all reaching out to grab it."

Liu said promoting cross-border e-commerce should be included in the city's 13th Five-Year Plan (2016-2020).

One of the measures is to set up pilot areas, with two under construction in Chikan district and Haidong new district.

The big potential market for cross-border e-commerce in Zhanjiang has already attracted investors like Daludong E-business Co from Guangzhou.

Li Zhiqiang, deputy general manager of Daludong, said the company is building an online-to-offline experience center with an area of more than 10,000 square meters for cross-border e-commerce in Zhanjiang, the first of its kind in the city.

The center will open on Oct 1 during the Golden Week of the National Day holiday and is expected to attract 50,000 visitors daily, with a variety of imported goods available, such as wines from the United States and milk powder from Australia, Li said.

"Cross-border e-commerce has great potential in second and third-tier cities. But to fully tap the potential, cities need to improve transportation and logistics," he said.

Zhanjiang boasts a deep-water port and has plans to build a new international airport with expectations that it will be operational in 2018.

Construction on the first phase of the Zhanjiang bonded logistic center, the first such center in western Guangdong, will likely be completed in October.

The first phase includes five 10,000-square-meter warehouses, a 51,000-sq-mcontainer yard and areas for customs inspection. The center is expected to facilitate Zhanjiang's import and export businesses.

The Daludong experience center is importing goods through Shenzhen and Guangzhou customs and the city's bonded logistic center could save 30 percent on costs, Li said.

Party chief Liu said that the city's authorities plan to give financial support, such as subsidized loans and land lease discounts, to enterprises involved in cross-border e-commerce.

"A bright future for cross-border e-commerce in Zhanjiang is just unfolding," Liu said.

xujingxi@chinadaily.com.cn

(China Daily 09/22/2015 page19)