Cross-Border Electricity Providers Concentrate On South Korea's Trade Volume

Just past 2015 was recognized as cross-border electricity supplier reshuffle year, more and more giants began to nugget in this field, and some related entrepreneurs or small players are getting more and more difficult to survive.

The South Korean market may be a typical representative. From the beginning of the year to the short term peace, the cross-border electricity providers seem to have divided the South Korean market.

Behind the cross-border electricity supplier, however, is the gradual decline in physical sales.

In February, in search of a supplier of fast speed duty free businesses, jumei.com founder Chen ou and some top management teams visited more than 60 Korean brands and held a high-end dinner. In March 25th, vip.com announced the signing of a memorandum of understanding with the Korean trade and investment promotion community. Only a day later, Jingdong founder Liu Qiangdong announced Jingdong in Seoul.

"Officially launched"; in March, Alibaba confirmed that it had to cooperate with more than 200 Korea Companies in e-commerce business, and then the chairman of the board of directors of Alibaba, Ma Yun, unveiled the Tmall Korea Pavilion in South Korea.

Another aspect of cross-border electricity providers is the unusual popularity of China's cross-border electricity providers in South Korea.

Data show that there are only about 20000000 Korean female residents now, while in China, only jumei.com has more than 20 million female users.

What's more, Korean cosmetic brands, especially the number of new brands, are numerous. China is undoubtedly the best choice to increase sales volume.

However, since the installation of cabinets in China requires multi-layer examination and approval, new products need more than 1-2 years' formalities before entering China.

Many Korean cosmetics brands look at China's huge cake but can't divide the food, but also suffer from the brand injury caused by counterfeit products.

At this time, the rise of China's cross border electricity supplier has given Korean brands an excellent choice. The vast majority of Korean brands are willing to expand their capacity for the Chinese market, and even some brands are willing to produce special products for Chinese electricity suppliers.

The latest news is that at the end of last year, the cross border maternal and child business electricity supplier honey bud and curiosity Huggies signed a strategic cooperation agreement, and became the first cross-border electricity supplier signed overseas and international high-end diaper brand.

According to reports, the Korean curiosity factory is the world's highest standard diaper factory, has 7 automatic production line, producing 1200 diapers per minute.

Similar to other Korean brands, South Korea's Daejeon curiosity factory official told Tencent technology that in the future, more production lines may be introduced to supply the Chinese market, some of which are especially good quality products for sale in the Chinese market.

Liu Nan, founder of honey bud, told Tencent science and technology: "Korea, Japan and Australia are more friendly to cross-border electricity suppliers in China, while Europe is relatively conservative in several key countries of cross-border electricity supplier.

Honey bud is concerned about Korean products, including cosmetics, food and maternal and child products. In the 6 and July of this year, it has established direct links with many Korean food companies.

Relative make-up series.

The reputation of mother and baby brands is not high in China, but Liu Nan said: "many famous Korean cosmetics brands are developing their mother and baby lines, which will develop vigorously in the future."

In December 20, 2015, the People's Republic of China government and the Republic of Korea government free trade agreement came into effect after the first tax reduction and the second tax reduction in January 1, 2016, which means that after 10 years, 79% of Korea's products will achieve zero tariffs. After the longest 20 years of pition, South Korea's 92% products will achieve zero tariffs on China.

Behind the figures is that China is still the most important trading partner of South Korea.

In 2014, the export volume of cosmetics in Korea alone reached US $1 billion 920 million (about 12 billion 182 million yuan), up 50.4% from the same period last year, according to the office data.

Among them, South Korea's cosmetics exports to China increased by 89% over the same period last year, reaching 600 million US dollars (about 3 billion 807 million yuan), accounting for almost 1/3 of the total export volume of Korean cosmetics, exceeding the total sum of second Chinese Hongkong (410 million US dollars) and third US (160 million US dollars).

More importantly, those legendary "Chinese mothers" have even changed the rankings of Korean retail stores.

Figures show that sales of Seoul Lotte duty-free shop in 2014 reached 1 trillion and 900 billion won, an increase of more than 20% over the same period last year, and became the first retailing store in South Korea, exceeding the Sales Department of Le Tian Department store with a sales volume of more than 1.8 million won.

At the beginning of 2015, Tencent science and technology in Seoul's Ming Dong duty-free shop cosmetics counters learned from many tourists from China that most Chinese tourists bought more than RMB $10000, or even more than 100 thousand yuan.

Data from the Korea Institute of industry show that the average consumption of Chinese tourists in Korea in 2014 was 12 thousand yuan.

Such a huge market has triggered the struggle for cross-border electricity suppliers.

Since the beginning of this year, the cross-border e-commerce competition around the Korean market has been officially launched.