Cross-border e-commence entered a dividend period of the government's policy in 2014, and then sprung up in 2015. Today, there are more than 5,000 cross-border e-commerce enterprises in China. However, with the implementation of tax reform in April this year, insiders were not optimistic about the development of the trade platforms and O2O experience stores of crossborder e-commerce. They said the dividend period is coming to an end, and the industry will enter into a consolidation period in the second half of this year.
Still, O2O experience stores have been constantly emerging during the recent two years as an extension of the online battle of cross-border e-commence. Last year, no less than 30 experience stores opened within six months. These stores attracted customers by online payment and brought enormous flow supplementary to the online trade.
Though its profit is not the highest in these stores, imported food still plays a very important role in attracting customers because of the high frequency and rigid demand of food consumption as well as Chinese consumers' pain point of food safety. Therefore, the crossborder e-suppliers of food with O2O model may have a breakthrough during the industry consolidation in light of their large scale, service and scenario experience advantages.
At the beginning of this year, Guangzhou Cross-Border E-Commercial Co., Ltd. held a spring festival shopping event at Nanning Department Store, where 80% incoming customers bought imported food. Also, 50% of the products found on shelves at the O2O experience zone of Ling Nan Hai Tao Cross-Border Mall are imported food. Liu Xiaoping, Chief Strategy Officer of Ling Nan Hai Tao, said that imported food should be given the top priority if we want to provide domestic consumers with a wider range of goods and ignite their desire for shopping.
Ling Nan HaiTao :“O2O+CBD” Model is Going Out
Ling Nan Hai Tao, opened early this year, is a major action of Ling Nan International Electronic Commerce marching into crossborder e-commence. Ling Nan Hai Tao is more than just a cross-border e-commerce platform. Based in the biggest e-commerce business district in South China, it has built O2O offline experience zones with the support from e-commerce CBD, providing an ideal marketing environment for cross-border e-commerce businesses. The 'O2O+CBD' model, initiated by Ling Nan International Electronic Commerce and Ling Nan Hai Tao, now is going out to the second-tier and third-tier inland cities of China.
O2O Omni-Channel Retailing Platform
Located in Guangzhou, a pilot city of crossborder e-commerce service, Ling Nan Hai Tao seized opportunities to set a solid business model of 'online platform + offline experience' (O2O) and opened cross-border experience stores near the consumers. In addition, it starts from a very large scale.
During the first phase, thousands of overseas duty-paid or bonded goods of quality, including maternity & baby products, fresh food, snacks, health products, wine & liquor, etc., were displayed in the experience zone with a total floor space of ten thousand square meters. The zone was divided into the Product Area (which can be further divided into national pavilions like American Pavilion, Australian Pavilion, Korean Pavilion, Japan Pavilion, and German Pavilion etc.), the Music & Gourmet Area, and the Kids Play Area, wherein every detail is well-designed for the best customer experience.
In the spring festival shopping event in January this year, Ling Nan Hai Tao acquired 5,000 newly registered online users within three days by on-site QR code scanning, which showed the high efficiency of introducing customers offline. Previously, Ling Nan Hai Tao, together with You Yi Cheng, built a retail platform system of 'online retail platform + mobile APP platform + offline shopping mall platform' and completed an omni-channel retailing layout by combining PC, mobile devices and stores together.
In addition, with the influence of Ling Nan International Electronic Commerce in Guangdong, Ling Nan Hai Tao has attracted numerous businesses to enter the three platforms, thus realizing an omnichannel operation of all-platform businesses. "We hope to become a sourcing destination of all supermarkets, where they can conduct B2B transactions. We hope to wipe off the information redundancy existing in traditional circulation through e-commerce industrialization. And we have various price comparison resources in our online system for customers' reference. Over the past 30 years of reform and opening up, China had engaged in a business of 'information symmetry', but now we are transforming to a 'credit symmetry' business", said Liu Xiaoping, Chief Strategy Officer of Ling Nan Hai Tao.
To Build an E-Commerce Central Business District
Ling Nan International Electronic Commerce is the largest modern and international e-commerce park in South China, with an office space of 250,000 square meters, integrating official business, storage, logistics and information flow. It stimulates the potential of e-commerce businesses and promotes the upgrading of e-commerce industry and other industries through industrial cluster. By this way, business operating cost has been reduced to the greatest degree. Problems about the supplies, training, promotion, recruitment, procurement, entrepreneurship, photography, design, storage, finance and marketing consultation of businesses have been resolved.
As a result, a one-stop industrial chain of e-business and a comprehensive service platform for e-commercial enterprises will be established. Ouyang Zhouyong, Vice General Manager of Ling Nan Hai Tao, introduced that besides Ling Nan Hai Tao Cross-Border Mall, business incubators like Lohas Beta Coffee and Lohas Youth Apartment were completed in the business district. Lohas Youth Apartment has made a success in crowdfunding with 15 million yuan at the first round in Jingdong.
It aims to become a 'one-button entrepreneurial community' providing entrepreneurs with chances to communicate so as to share value and acquire different knowledge. So far, the e-commerce park has undertaken many entrepreneurship roadshows, forums, company annual meetings and other activities. In addition to the conference room, restaurant and other supporting facilities, it also offers technical and resource support. Moreover, Ling Nan International Electronic Commerce, cooperating with Guangzhou University and Chaoshan Vocational and Technical College, provides profession training, operation and recruitment services for businesses.
Nationwide Expansion of the “O2O+CBD” Mode
Ouyang Zhouyong, indicated that the 'O2O+CBD' operation model, originated from Ling Nan Hai Tao, is going out as it is planned. Previously, the first practice area, Shawan Bridge Park of Ling Nan International Electronic Commerce, was completed; in the meanwhile, Baiyun Shijing Park is now under construction and upgrading. On March 9 this year, 'Ling Nan model' was applied in other provinces for the first time. With the completion of Jiangxi Nanchang Ling Nan International Electronic Commerce and the settlement of such projects as Ling Nan Hai Tao Cross-Border Experience Center, logistics, storage, photography and Beta Coffee in the business district, the Ling Nan e-commerce model has taken its first step in expending its coverage over the whole nation.