In addition to the internal economic cycle, the brand going overseas may promote a new pattern of dual-cycle development

Sept. 8,2020

Netease News2020-08-05

Recently, there is a new term that is particularly popular, "economic internal circulation". Many people are ignorant of this term. So, what is economic internal circulation?

In fact, the internal economic cycle is nothing new. People are experiencing the so-called "internal cycle" every day. Simply put, it is just another name for self-sufficiency. Ascending to the national level, that is, domestically produced goods are sold to the domestic people to realize the economic model of self-production and self-sale.

At this time, some people may ask, as China, as the world's largest exporting country, why did the decision-making makers start the mode of economic internal circulation?

As the biggest beneficiary of the third world industrial transfer, China has been able to rise rapidly thanks to its manufacturing industry and huge import and export trade. However, as Trump came to power and began to engage in anti-globalization, the global trade cycle and manufacturing cycle were disrupted. Off.

Therefore, the decision-makers proposed economic internal circulation to stimulate domestic demand, promote steady economic growth, and ensure domestic economic security.

Of course, "mainly internal circulation" is only one of them, and "domestic and international dual-circulation development" is an important strategy to promote the high-quality development of China's economy.

But since the inner loop has been started, why do you need the outer loop?

Each country has different comparative advantages in resources and capabilities. Through external circulation, it is helpful to allocate various elements more efficiently, and can increase economic benefits to a greater extent.

The external cycle, on the one hand, is trade, and the other is the global industrial chain. For example, Thailand is rich in rubber and Canada produces wood. Each country has its own advantages. Through international exchanges, the economic development of countries can be promoted, so it is within Under the premise of circulation as the mainstay, the external circulation level is also very important.

However, since the beginning of this year, due to the dual impact of the epidemic and the trade war, the exports of most foreign trade companies have been hit hard. Small and medium foreign trade companies have closed down one after another, and large companies are also facing an urgent need for transformation. Then, is the foreign trade industry dead? Is the outer loop impossible to implement?

In my opinion, the traditional foreign trade industry has indeed been hit hard, but another sub-industry in the foreign trade industry has not been affected much, that is, cross-border e-commerce.

In recent years, the popularity of e-commerce has allowed many companies to become cross-border e-commerce and enter the international market. Similarly, many traditional foreign trade companies have transformed into cross-border e-commerce and have achieved good results.

I once visited a food brand. This brand was originally a merchant operated by domestic Taobao, and other electronic goods stores, and it has a good performance. Later, its leadership changed its development strategy, prepared to go to overseas markets, and began to increase investment in cross-border e-commerce. In 2019, the company opened new markets such as Russia, the United States, and South Korea, which brought a wave of strong growth to the brand.

So is the foreign trade industry okay? My answer is yes. The epidemic and the trade war have indeed had an impact on the foreign trade industry, but the impact on cross-border e-commerce is very limited, even due to the increasing severity of overseas epidemics and the ban on offline activities. On the contrary, online retail is growing, which also brings opportunities for cross-border e-commerce.

However, as we all know, there are many platforms for cross-border e-commerce. Among the more mainstream platforms are Amazon, AliExpress, eBay and other platforms. For sellers and companies that have just entered cross-border e-commerce, which platform is more friendly?

In the current world structure and market environment, it is most appropriate to prefer a platform with overseas warehouses, a large number of users and a wide coverage. In these points, Amazon is one of the cross-border e-commerce platforms that is most suitable for entering the market at the current stage. It has global sites and is currently the cross-border e-commerce platform with the most cross-border sellers. It also provides overseas warehousing services for sellers. It is a very good choice for merchants who need to expand their global business, and Haofang Group, based on the Amazon platform, has deepened the platform's refined operation, and provided overseas companies with logistics and warehousing, e-commerce operations, A complete set of services including brand marketing, fiscal and taxation consulting, etc.

Haofang Group is a profe


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