‘Stringing pearls together’ along the Belt and Road
Diane Wang Shutong recalls a conversation she once had with a client, seeking to pick his brains as to how the other side could really tell when to restock goods that were in vogue because filling up the shelves at the wrong time — after the products had faded into oblivion — would definitely be a non-starter — it would be too late.
Wang probably had the answer herself. “There’s a cycle for the popularity of various products. If you can catch and follow the trend using data before they accelerate, it means you could foresee the trend and you’ll be competitive in the market,” says the founder and chief executive officer of DHgate.com — China’s first business-to-business (B2B) cross-border e-commerce platform.
Having accumulated 14 years of data on cross-border e-commerce between China and 222 countries, such as the frequency of purchases by consumers, product catalogs and how different currencies go into different provinces on the Chinese mainland, DHgate may help you trace the trend relying on its database and have your products distributed around the world through the digital Silk Road.
Focusing on small and medium retailers, DHgate has stood out among other e-commerce platforms as the country’s pioneering B2B cross-border e-commerce network.
“More importantly, our cross-border e-commerce model makes small and medium -sized enterprises (SMEs) less fragile. SMEs could receive orders worldwide which may not be possible in traditional trade.” Wang tells China Daily.
The company is taking maximum advantage of its expertise and advantages in data and algorithm to dive into B2B online trading. “The digital business is driven by technology. With the help of artificial intelligence (AI), big data, cloud computing and other technologies, DHgate is making goods and services visual, audible, touchable, usable and as simple and effective as domestic trade,” Wang explains.
Using business scenarios provided by DHgate, AI is applied as you could upload the product’s picture to find a similar one. Besides, you can negotiate with the seller to customize the product you need using a function called “Wanted it Now”.
DHgate is integrating its data to help clients come up with manufacturing and purchasing plans. “Talking with buyers and sellers, we found they want us to provide guidance in helping them choose what to buy and what to sell in certain markets,” says Wang. DHgate and the Union of Chambers and Commodity Exchanges of Turkey last year jointly launched the DHgate-eWSF program — a breakthrough in e-commerce between China and Turkey.
“In the initial stages, we aim to help SMEs in Turkey, Georgia and countries along the Belt and Road route realize online trade and share the profits from the e-commerce wave,” vows Wang.
Proposed by DHgate, a digital trade center — an upgraded e-commerce platform that facilitates two-way trade and merges online and offline operations— was set up in Turkey. It enables customers to see the product and touch it, place the order and negotiate the exchange of products in one place. “Looking into Turkey is like looking into China a couple of years ago when e-commerce was still in its infancy,” says Wang. “The Turkish government is now supporting e-commerce. We would like to share our experience gained over the years and use it to make profits together on the global e-commerce stage.”
DHgate also provides crossborder e-commerce training (CBET) to Turkish university students and SMEs. “We’ve cultivated around 20 economies, including more than 8,000 SMEs, through CBET.”
According to Wang, one of their Turkish students had made up to $3,000 with just $100 provided by the government as a practice fund. “You could see how fast young people are embracing e-commerce.”
Wang believes e-commerce’s challenge is to manage every link involved in the trade well, including payment, storage, customs clearance and logistics.
She also feels the responsibilities of taking the lead in the innovative development of e-commerce. “As a veteran in cross-border e-commerce, we should not only share our experience, but also explore the way of innovation.”
DHgate aims to expand digital trade centers to other countries. “What we’re doing is like stringing pearls together,” says Wang, believing that countries and regions along the B&R are like pearls with specialties and similarities. “And, now, we are linking each other through the digital Silk Road.”
Our cross-border e-commerce model makes small and medium-sized enterprises less fragile. SMEs could receive orders worldwide which may not be possible in traditional trade.”