"The ongoing overseas epidemic in 2018 has accelerated the rapid development of local e-commerce, and consumer habits have been completely changed. Take the United States as an example. According to data released by its Ministry of Commerce, U.S. e-commerce sales increased by 32% in 2018 to US$790 billion, accounting for 14% of total retail spending, a significant increase from 11.3% in 2017. Also in 2018, independent sites rose rapidly with the help of e-commerce. The market value of SaaS website building service provider Shopify reached US$186 billion, surpassing JD.com's market value. Amazon, the originator of e-commerce platforms, is also stepping up its layout of independent sites by acquiring Shopify's competitor Selz."
This is a background introduction from the "Ebrun Cross-border E-commerce Conference and DTC Brand Independent Station Summit". Why does the industry focus on independent stations rather than large platforms like Amazon? As the cross-border landscape is changing with each passing day, independent sites have become a new bargaining chip for many brands to bet on their overseas expansion as a signpost of the "new route". Cross-border players who have been blindly following the big platforms have also begun to explore the area of independent sites.
In fact, cross-border routes are not a choice between independent sites and large platforms. What brands need to go overseas is the simultaneous exploration of different routes, which is exactly the case that “all roads lead to Rome”.
So if you are a DTC brand, you might want to think about how to go cross-border.
The first step is to understand the global market. To understand the contemporary pattern of the cross-border ecosystem, what are the characteristics of large platforms and independent sites, and what is the significance of their integration and confrontation in the same ecosystem, you should first do background homework from an academic perspective, conduct market research, and then listen to the capital's estimates of independent sites to see whether independent sites have development potential in the eyes of investors. This is also market research.
The second step is to take product selection seriously. The first is to sell the right things to the right people. Players who have the conditions should browse more data on overseas markets and be able to understand the product demands of different markets. It is best to have a ready-made "overseas consumer mind map" and try to do your "homework" in advance. The second is to put the right things on the right shelves. You must understand the differences in product selection between large platforms and independent sites, and know what kind of sales channels your products are suitable for. The third is to bring out the good things and export high-quality products overseas. In short, you must understand that products are the "roots".
The third step is to work hard to strengthen the brand. Anker and SHEIN are both good examples. The business logic behind their glamour is worth repeated scrutiny. Whether it is focusing on quality innovation in a niche category or pursuing style innovation with the ultimate cost-effectiveness, you must find more opportunities to study their growth experiences and learn how to create brand value. In short, you must understand that the brand is the "soul".
The fourth step is to do a good job in traffic operation. After understanding the background, selecting products, and building a brand, you need to consider more practical ways of playing - how to play in overseas private domains? How to use Tiktok traffic? How to use influencer marketing? In addition to the front end, there is also the back end. How to control fraud risks? How to plan global logistics? These all need to be considered. Try to access more resources and turn them into strong backing to fight risks.
The business philosophy of taking products as the root and brand as the soul is one of the right ways of the independent station model, and it is also the foundation of the DTC brand. Independent websites give merchants real autonomy over pricing, marketing, and users.
In general, there are thousands of options for cross-border expansion, but "all roads lead to Rome". The article only proposes a highly replicable idea. Even so, it requires you to dig up a huge amount of information to make overseas notes.
Thanks to every cross-border player who has read this far.
If you agree with the above views but are troubled by the lack of answers to the previous views. Then you must come to the "Ebrun Cross-border E-commerce Conference and DTC Brand Independent Station Summit" held at the W Hotel on the Bund in Shanghai on April 22. Perhaps a one-day meeting can help you decide on your overseas expansion ideas for the year! For more details, please visit the official website of Yibang Power.
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