Revenue exceeded 1.4 billion yuan in half a year: What are the secrets of these cross-border e-commerce

　　Recently, it is an intensive release period for the interim report of listed companies on the New Third Board. In the cross-border e-commerce field, the financial reports of three companies are obviously particularly impressive:

        The three companies have exceeded 1.4 billion yuan in half a year, with revenue growth of more than 60%, and profit growth of more than 98%. They are veritable cross-border e-commerce giants with large scale but can achieve rapid growth. For sellers, the success of these companies not only confirms that cross-border e-commerce is indeed a hot topic, but also can find their future principles from their success trajectory.

　　In this regard, the content of the interim reports of the three companies, Cross-border Connect, Haiyi Co., Ltd. and Aoji E-commerce, summarizes the common characteristics of the three companies.

　　Feature 1: Product differentiation focuses on R&D accumulation. In the current increasingly fierce cross-border export e-commerce market, it is not enough to acquire users to rely solely on cost-effectiveness. It is obvious from the interim reports of the three companies that to establish product barriers and using innovative and differentiated product strategies is an important way to distinguish them from other sellers.

　　In its semi-annual report, Cross-border Connect pointed out that Cross-border Connect is mainly driven by product functional innovation and technical property rights and patents as barriers to achieve multi-category operations in the whole picture. The main logic is to rely on data analysis to obtain market trends and industry information in advance, quickly introduce or upgrade products, establish competitive barriers in categories and products, extend product life cycle, and at the same time continuously optimize data models to guide procurement, sales, stocking, clearing and other links to achieve a healthy inventory turnover of the company. Correspondingly, Haiyi, as an overseas brand, is also paying great attention to re-product development.

　　In its semi-annual report, it pointed out that Haiyi Co., Ltd. will continue to increase investment in new product research and development to enhance product differentiation and overall competitiveness.

　　Among them, the number of members of Haiyi product development team has also continued to increase to ensure the quality and speed of updating and upgrading products in all important business categories of companies, ensure rapid response and iteration in emerging market segments, and ensure that the new generation of products will be launched in a timely manner before encountering competition. Aokey's interim report also pointed out that its own brand products mainly adopt the "independent brand research and development design + outsourced processing and production" model. According to the data analysis of various cross-border e-commerce sales platforms, it continues to explore products that match overseas market demand (including but not limited to mobile 3C products), and gives companies such as "Aukey" their own brands. Obviously, the research and development of new products and the differentiated competition with old products on the market are topics that export sellers never go out of date.

　　Feature 2: Strong fundraising capabilities Data represents everything, let’s look at the data first.

     Judging from the cash inflows of the three companies, each company can raise enough capital through various means, and combined with the funds obtained from its own revenue, cross-border e-commerce companies have enough cash flow to cope with the challenges of peak season and further expansion. In its financial report, Aoji E-commerce also pointed out that the main reason why the net cash flow generated by the company's operations is negative is that the second half of the year is the peak season for the company's sales. The company prepares stock for the second half of the year in advance. At the same time, the company's own brand sales continue to grow, and private brand sales are the stocking model, and funds are needed to prepare stock.

　　In fact, for most cross-border e-commerce companies, "shortness of money" is a normal state. But it doesn’t matter if you “lack money”, what’s important is how to raise money when you’re “lack money”. Therefore, to achieve success, strong financing capabilities are indispensable. At the same time, the company itself needs to have sufficient strength to make the company worthy of the investment of others to help and repay loans.

　　Feature 3: Multi-channel development Multi-channel refers to multiple national channels, or other channels other than traditional export e-commerce B2C channels, such as B2B channels or offline channels. Judging from the financial reports of Cross-border Connect, Haiyi Co., Ltd. and Aoji E-commerce, all three companies attach great importance to multi-channel layout. The Cross-border Connect financial report pointed out that in recent years, the scale of cross-border e-commerce transactions in my country has continued to develop rapidly, and in addition to mature European and American markets, emerging markets have broader space. Therefore, it is necessary to actively expand emerging markets and local platforms such as lazada.com, cdiscount.com, linio.com, priceminister.com, etc., and basically realize localized operations, and establish a localized sales platform through in-depth analysis of small language markets.

　　The most prominent one in Haiyi's annual report is offline channels. Its current offline wholesale business is managed by different sales teams according to the region, and it has currently covered more than 100 countries and regional markets around the world. Offline wholesale customers mainly include: regional agents, chain stores and supermarkets and professional sales channels. At the same time, Haiyi is also doing offline direct sales business, such as providing corporate products to it directly facing corporate customers. It is reported that at the end of last year, Anker officially sold its own brand products at more than 3,000 Walmarts in the United States. Through this process, e-commerce brands that make a fortune by selling products from cross-border e-commerce platforms such as Amazon and gradually become overseas brands that have online and offline sales capabilities. "In 2016, through cooperation with offline chains, Haiyi quickly increased the proportion of offline business to 20%, which was also the reason why revenue and profit exceeded expectations last year." Zhang Xi, vice president of Haiyi Co., Ltd., said. Aoji is mainly a combination of online and offline play.

　　Aoki's interim report revealed that Aoki strives to build a global Internet consumer brand through the combination of online and offline. At present, AUKEY E-commerce is headed by the independent brand of "AUKEY", selling high-quality Chinese products in more than 200 countries and regions, and ranks among the best in mainstream online sales in Europe and the United States.

　　Of course, these companies' active expansion of multiple channels is also based on the current status of cross-border e-commerce : First, the trade environment of mainstream markets is unstable. For example, the "Brexit" incident and the incident in which the United States announced this month that it would launch a "301 investigation" against China, both show that the risk of exporting overseas by a single channel is huge. Second, the market competition is fierce. With the popularity of cross-border e-commerce in China, more and more sellers are being sold, product homogeneity is becoming more and more serious, and vicious competition is beginning to increase. Therefore, expanding new channels has become an important way to find high-growth profit margins.

　　At the end: Although the strategic experience of a company's success needs to be learned, whether a company can succeed in the end still depends on its own internal skills. The matter is due to human behavior, and whether it can win the end depends on the company's luck. Everyone encourages you to cheer! (Source: Yibang Power Network)

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