CBEC China or Vietnam
Written by Thinh Luu
This type of e-commerce is called cross-border e-commerce (CBEC), wherein, products or services are sold to buyers overseas through e-commerce websites. The extent of globalization is such that the annual growth rate of CBEC, which is 17%, has surpassed the growth rate of overall B2C e-commerce, which stands at 12%.
E-commerce has been burgeoning in China since 1997. After two decades of continued growth, the e-commerce industry keeps booming while adopting various modes (e.g., B2B, B2C, C2C and O2O). Cross-border e-commerce began to grow significantly in 2011 and is now an important part of Chinese foreign trade. In China, cross-border e-commerce is a completely separate, official and state-sanctioned trade channel mostly for imported goods.
What are CBEC Pilot Zones?
The CBEC pilot zones play a key role in this selling model, and they have become home to many well-established e-commerce players: import / export e-commerce platforms, third-party payment platforms and logistic companies. This workshop has been designed for any SMEs looking into the Chinese market.
Thanks to CBEC, customers in different areas of the world benefit from global e-commerce by receiving more product variety. Products or services may be very desirable in countries or regions that do not develop them internally.
How does cross border e-commerce affect one country’s consumers producers and government?
It significantly reduces the number of middlemen and enables producers and consumers to connect directly. In addition, it also significantly improves the marketing efficiency of traditional e-commerce, reduces marketing costs, makes it easier for customers to buy goods, and effectively improves customers’ satisfaction.
Cross border e-commerce is the online selling of products and services to customers in other countries. If your business engages in cross-border selling, customers around the globe will be able to shop on your website and ship them to their door.
What is “daigou” or “hang xach tay” business?
Daigou (Chinese: 代购; pinyin: dàigòu; lit. ‘surrogate shopping’) or Hang xach tay (Vietnamese, goods carrying by hands) is an emerging form of cross-border exporting in which an individual or a syndicated group of exporters outside China purchases commodities or importing commodities to Vietnam (mainly luxury goods, but sometimes also groceries such as infant formulas) for customers in China or Vietnam. This activity is not illegal in China or Vietnam as long as all local laws are complied with.
“Daigou” or “Hang xach tay” business is conducted both by sole traders and through companies. The sole traders are small-time buyers who live overseas or who go abroad frequently on buying trips. Some work with travel agencies, which give them discounts at designated duty-free stores to which they are introduced by the agency.
Written by Thinh Luu
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