why a cross-border transaction model spells success for smes, diane wang
TRANSCRIPT
Why A Cross Border Transac1on Model Spells Success for SMEs
-‐ Diane Wang, Founder & CEO of DHgate.com
GLOBALIZATION
OBSERVATION on B20 -‐ the Business Sector of G20
DIGITALIZATION
SME EMPOWERMENT
• Member of China on APEC Business Advisory Council (ABAC)
• Co-‐Chair of ABAC SME & Entrepreneurship Working Group
• Co-‐Chair of APEC Women Leadership Forum
• Member of China on B20 ( Business Sector of G20)
• Co-‐ Chair of B20 on SME & Entrepreneurship Taskforce
EXPERIENCE on APEC & G20
• Co-‐Founder & CEO of joyo.com since 1999
• Joyo.com is the first B2C marketplace in China, which
was acquired by Amazon in 2004
• Founder & CEO of DHgate since 2004
• DHgate is the first B2B cross border e-‐commerce
marketplace in China
EXPERIENCE on Entrepreneurship
AGENDA
2
3
1 Cross Border E-Commerce in China
Cross Border E-Commerce Value & Innovation
Global Expansion with Global Partners
China e-‐Commerce: a Catalyst of Economy Growth
Single Day Online Sales
up to $4 billion up to 2012
Internet Contribu1on to
GDP up to 22% By 2025
Can reach $420 – $650 billion in 2020
Job Created 1.8 million direct & 16.5 million indirect jobs are created by e-‐commerce
Internet Finance Value €1.5 trillion Euro
in 2014
Cross Border E-‐Commerce Contribu1on €0.5 trillion Euro
In 2014
Single Day Online Sales
€12 billion Euro in 2014
Online Transac1ons €1.8 trillion Euro
In 2014
• 5-‐6% of retail sales • 60% YoY increase • 90% on Marketplace PlaYorms • CAGR 120% since 2003
E-‐COMMERCE IN CHINA
SMEs ROLE In China’s E-‐Commerce
60+ Million there are over 60 million registered SMEs in China by the end of 2013
10+ Million among the 60+ million SMEs, over 10 million of them already started running their business via Internet
WHAT’S NEXT?
CROSS BORDER E-‐COMMERCE In China
1.1 1.7 2.1
3.5 4.2
5.5
0 1 2 3 4 5 6
2010 2011 2012 2013 2014 2015*
Transaceon
Value
In
Trillion RM
B Trends of China Cross Border Trade
on E-‐Commerce
Note: • Publisher: The data is released by China E-‐Commerce Study Center • 2015*: 2015 data is only from January to May
By 2013, 94 million cross border shoppers spending €95 billion euro
CROSS BORDER E-‐COMMERCE In The World According to a Nielson Report on Cross Border E-‐Commerce across 6 markets including US, UK, Brazil, Germany, China, Australia
By 2018, 130 million cross border shoppers spending €273 billion euro
300% Increase
Promoeon
Goods Inspec1on
Warehouse
Transla1on Logis1cs Legal
Services
Insurance
Cross-‐Border Payment Internet Finance
Internet Marke1ng
CROSS BORDER E-‐COMMERCE Ecosystem
Custom Clearance
CROSS BORDER E-‐COMMERCE VALUE
ACCESS TO GLOBAL MARKETS
Customers Retailers Wholesalers Import
Organiza1ons Export
Organiza1ons Factory
Customers All -‐ in -‐ One PlaYorm Factory
Tradi1onally
Now
ACCESS GLOBAL MARKETS
• Bypass Middlemen • Shortened Business Cycle • Increase Profit Margin
• Operate with Ease • Extend More Markets • Build Online Brands
CASE STUDY: Access Global Markets
Name: Mr. Chunhui Lee Locaeon: Shenzhen, China Occupaeon: Home Alarm
System Manufacturer
• Profit Margin increase 6 emes • Annual Sales from 0 to 10+ Million USD in 1 Year
• Market Coverage from 20 to 100 Countries • Employees from 0 to 30 in One Year
CASE STUDY: Women Entrepreneurship From a country girl in far-‐away village to a dream chaser in Paris, cross border e-‐commerce brought her a brand-‐new life.
Became a wedding dress seller through cross border eCommerce
Started the career as a worker in local OEM factory
Pursued childhood dream to study design in Paris
Born in a far-‐away village in Sichuan Province, China
CROSS BORDER E-‐COMMERCE VALUE
ACCESS TO FINANCE
“APEC Framework for Innovaeve SMME Financing Mechanisms”
JOINT REPORT with IFC
This Report was Co-‐Developed by: • APEC Business Advisory Council • IFC (Internaeonal Finance Cooperaeon)
This Framework Listed Out Innova1ve Financing Op1ons to Enable SMEs to Access Finance, Including:
• Internet Supply Chain Finance • P2P Lending • Crowd Funding
Financial Ins1tu1ons
Sellers Buyers
PlaYorms
INTERNET FINANCE MECHANISM
0 min
Loan Released
Started Loan Applica1on
Iden1ty Authen1ca1on
No1fica1on SMS from Bank
Online Confirma1on
6 min 10 min
3 min
2 min
Seller: Mr. Liu from Sichuan Province Background:
• No Guarantor, No Collateral • Apply Automaecally • 80% Goods Value, Less Than 1/2 Hour • Same Day Exchange Rate • Success Rate 99% • Annually 2,000+ Approval Cases
CASE STUDY: Access to Finance
SOCIAL COMMERCE THE NEXT BOOM IN CROSS BORDER TRADE
Total Global Popula1on 7.18 B
Ac1ve Internet Uses 2.95 B Ac1ve Social Media Users 2.03 B
Unique Ac1ve Mobile Users 3.61 B
SOCIAL COMMERCE The Next Boom
CASE STUDY: SocialShops.com
1. WIN SOCIA INFLUENCE 2. SIGN UP ON SOCIAL SHOPS
4. MONETIZE SOCIAL TRAFFIC 3. SHARE WITH FRIENDS
DHgate
GLOBAL TRADING ENABLER
DHgate Introduceon
DHgate is the FIRST MOVER & BIGGEST PLAYER in transaceonal cross border B2B e-‐commerce in China.
Founded in 2004, aoer 10 years of development, DHgate currently has over 30+ million product lisengs from over 1.2 million Chinese suppliers from 34 provinces of China, to nearly 10 million buyers from 224 countries and regions across the world.
GLOBAL WAREHOUSE
ONLINE RETAILERS
TRADITIONAL RETAILERS
SOCIAL INFLUENCERS
DHgate Global Trading Enabler
1.2 Million Suppliers
DIRECT PURCHASE OR WAREHOUSE INTEGRATION
ONE STOP SHOP IN BULK ORDERS
MONETIZE SOCIAL INFLUENCE VIA S-‐COMMERCE
30 Million Products Lis1ng
PRODUCT SELECTION
POOL
Electronics
Cell Phones
Health & Beauty
Babies & Moms
Computers
Jewelry Watches
Weddings
Automobile
Apparel
Sports Outdoors
Home Garden
Lights Lightings
Hair Styling
Bags Shoes
More Categories
DHgate Global Trading Enabler
Turkey Philippines Malaysia Indonesia
Chile
PLATFORM CO-‐DEVELOPMENT
Mexico
Australia & New Zealand
PROCUREMENT CENTER
TECHNOLOGY SUPPORT
OPERATION EXPERIENCE
INTERNATIONAL LOGISTICS
INTERNATIONAL PAYMENT
IN SUMMARY -‐ Enable Your Business Source through One-‐Stop Service
u Source directly from manufacturers and suppliers
u Receive a one-‐stop service to fulfill your order
Equip Your Website w/ Back-‐End Engine
u Integrate into global virtual warehouse to enrich your offering
u Fuel your business through back-‐end engine
Mone1ze Influence via SocialShops.com
u Achieve your entrepreneur dream by registering on socialshops.com
u Begin to moneeze your social influence through a few clicks
