Startup looks to help ex­porters build web­sites

China Daily (USA) - - G20 2016 CHINA - By MENGJING in Hangzhou

De­spite be­ing a startup, a Hangzhou-based dig­i­tal mar­ket­ing so­lu­tions provider is look­ing to help more tra­di­tional ex­porters build up their e-com­merce em­pires.

Xorder (China) Tech­nol­ogy, which is head­quar­tered in the same city as e-com­merce gi­ant Alibaba Group, helps Chi­nese ex­porters set up their own web­sites in mul­ti­ple lan­guages, en­abling them to di­rectly com­mu­ni­cate with their clients and stream­line trans­ac­tions.

“It is im­por­tant for Chi­nese ex­porters to have their own sites to show­case their prod­ucts, build up brand aware­ness and gather in­for­ma­tion and data on po­ten­tial cus­tomers,” said Han Jie, chief ex­ec­u­tive of­fi­cer of Xorder, which was launched in Jan­uary 2015.

Many of China’s tra­di­tional ex­porters set up vir­tual stores on e-com­merce plat­forms, such as Alibaba and DH­gate, be­cause they of­fer ex­po­sure to a huge num­ber of sell­ers and buy­ers. How­ever, with a crowded plat­form comes cut­throat price com­pe­ti­tion.

“After all, those clients who are at­tracted by your price will leave you be­cause of a lower price,” said Han, a vet­eran en­tre­pre­neur who be­gan set­ting up his own busi­ness in 2000.

While be­ing on an es­tab­lished e-com­merce plat­form is an easy­way to at­tract new­cus­tomers, a sep­a­rate web­site helps ex­porters re­tain ex­ist­ing cus­tomers, es­pe­cially when there is a fo­cus on qual­ity rather than price to win over­seas mar­ket share, saidHan.

Xorder now has about 100 clients — all ex­porters with an­nual sales be­tween $1 mil­lion and $50 mil­lion.

Han said the com­pany, which has 25 em­ploy­ees, has

It is im­por­tant for Chi­nese ex­porters to have their own sites to show­case their prod­ucts.”

al­ready bro­ken even and is ex­pected to turn a profit later this year.

“With the im­prov­ing in­fra­struc­ture in cross-bor­der e-com­merce, such as the in­creas­ingly high pen­e­tra­tion rate of dig­i­tal pay­ments, the mar­ket for busi­ness-to-busi­ness cross-bor­der e-com­merce will soon take off, “he said.

Ac­cord­ing to a re­port re­leased in early Au­gust by Hangzhou-basedChi­naE-com­merce Re­search Cen­ter, about 84 per­cent of on­line ex­port vol­ume was made via the busi­ness­model.

Zhang Zhoup­ing, se­nior an­a­lyst with the cen­ter, said such ex­ports will con­tinue to com­prise the ma­jor­ity of China’s cross-bor­der com­merce.

“With the chal­leng­ing sit­u­a­tion faced by tra­di­tional ex­ports in China, the Chi­nese govern­ment has taken a lot of mea­sures to smooth the process of e-com­merce en­abled ex­ports and en­cour­age ex­ports mov­ing from off­line to on­line,” he said.

China’s tra­di­tional ex­ports de­clined 1.8 per­cent year-onyear to 14.14 tril­lion yuan ($ 2.12 tril­lion) last year, but the ex­ports made via e-com­merce chan­nels jumped 26 per­cent to 4.5 tril­lion yuan in the same pe­riod, ac­cord­ing to govern­ment fig­ures.

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