Rookie opens shipping route for large goods

DaDa / tr. by Phil Newell)

01 buy dragon boats like Lao Gan Ma

In recent years, with the rise of dragon boat racing, the business of shipyards has gradually changed from offline to online. Orders are increasing after the Spring Festival, and recently an Australian Chinese wants to order a dragon boat before the Dragon Boat Festival and designate it to be shipped to Sydney's Valentine's Port. The dragon boat is 14 meters long and is worth 30,000 yuan. If the dragon boat goes abroad, it has to go through customs declaration. How can it be delivered to Lover Harbor safely and punctually?

On April 18, Cainiao Logistics, a subsidiary of Alibaba Group, opened a shipping business in Australia, which can send cross-border large items to Australia by sea. In view of the dragon boat, a landmark personal cross-border order, is highly valued by Ningbo Beilun Customs, the relevant responsible person said at the customs clearance site: "fully support Tmall to go to sea to help enterprises speed up customs clearance." Finally, with the coordinated efforts of all parties, the dragon boat was successfully transported from Qiandao Lake to Sydney's Valentine's Port 10,000 kilometers away after a 15-day trip. The incident overjoyed Ms. Wang, who placed an order on the dragon boat, and caused a sensation in the Australian Chinese community.

Some people sighed: "the export policy is becoming more and more convenient, allowing overseas Chinese to buy dragon boats like a bottle of Lao Gan Ma. This is the convenience brought by e-commerce, which I never dared to think about before."

With the rapid rise of cross-border e-commerce in China, the express delivery business is also rapidly extending overseas. The transport of large goods, which restricts the development of cross-border e-commerce, is gradually being broken.

Cui Jiehui, co-founder of Lin's Wood Industry, told reporters that the retail sales of goods sold overseas by the company through the Tmall platform last year exceeded 20 million yuan. Local Chinese in Australia are used to changing their homes frequently, changing furniture once every two years on average, and have higher price affordability. for Chinese furniture and household enterprises such as Lin's Wood, it is a great potential market. Cui Jiehui said that the three traditional models of opening direct stores, joining dealers and branding agents overseas are not very suitable for Lin's wood industry. Lin's biggest advantage is to achieve low-cost expansion through e-commerce platform. and the key to this matter is whether the express delivery is strong or not.

It is reported that in addition to Singapore, Malaysia and other places, Cainiao Logistics opened the fourth e-commerce exclusive shipping line for small and medium-sized enterprises. At present, Cainiao Logistics's shipping service in Australia can support beds, sofas, treadmills, cat crawlers and other large items that Australians like to send directly from China to the local area. At this point, in the face of several of the most important Chinese markets in the world, domestic small and medium-sized enterprises producing furniture, household appliances, outdoor equipment and other large goods have ushered in a new way to go to sea, saving at least 1 / 3 of the logistics cost. the transportation time limit has also been raised from January to about 15 days, making Taobao goods enter a new era of cross-border transportation of large goods. "from small package charter flights to Europe to cross-sea routes for large pieces in the Asia-Pacific region, coupled with more than 100 cross-border warehouses and hundreds of specialized routes all over the world, Cainiao has set up a three-dimensional logistics network of 'sea, land and air' around the world. it provides a set of perfect infrastructure for small and medium-sized enterprises to go to sea." Guan Xiaodong, general manager of Cainiao International, said, "in the future, Cainiao will also accelerate to achieve the 72-hour global goal, providing Chinese enterprises with a more extreme logistics experience."

In the layout of the "last kilometer", Cainiao has also set up nearly 200 pick-up points in Australia, allowing consumers to freely and flexibly choose the time and place to pick up, and save more than half of the transshipment costs.

02 Cainiao opens shipping routes for large goods, the logistics cost of small and medium-sized enterprises going to sea has dropped sharply by 1/3.

Solve logistics problems and stimulate tenfold sales

In June 2017, Tmall launched the "Tmall out to Sea" project, one of the most important tasks is to lead 1.2 billion domestic goods out of the country, Lin Wood, which started from e-commerce, is one of them. Cui Jiehui, co-founder of Lin's Wood Industry, told reporters that the retail sales of goods sold overseas by the company through the Tmall platform last year exceeded 20 million yuan. Local Chinese in Australia are used to changing their homes frequently, changing furniture once every two years on average, and have higher price affordability. for Chinese furniture and household enterprises such as Lin's Wood, it is a great potential market. Cui Jiehui said that the three traditional models of opening direct stores, joining dealers and branding agents overseas are not very suitable for Lin's wood industry. Lin's biggest advantage is to achieve low-cost expansion through e-commerce platform. and the key to this matter is whether the express delivery is strong or not. When Lin Wood first entered the overseas market, because large goods could not be transported by air, overseas orders could only be shipped to Shenzhen, Guangzhou and other cities after the order was issued, and then declared through an intermediary and then shipped by sea. it usually takes a month to complete the delivery, and consumers have to go to the seaport in person to pick up the goods. Not only that, because multi-links require the intervention of intermediaries, but also allow consumers to pay more extra fees. Take sofas as an example, ordinary sofas with a price of more than 1000 yuan need nearly 2000 yuan for shipping to Malaysia, even exceeding the value of the goods themselves. High logistics costs also affect the rapid expansion of businesses, but fortunately it does not last long. Soon after, Cainiao intervened in Lin's overseas transportation process, providing a complete set of supply chain management solutions. Now, Lin Wood receives orders from overseas, as long as it is sent to the collection warehouse in Shenzhen, and then Cainiao provides logistics, distribution and customs declaration services, the products can be delivered to consumers in Southeast Asia in 7-10 days, and there is no need to go to the port to pick it up. "now the freight has been reduced by about 1/3." Pang Xiqi, head of Lin's wood e-commerce, said, "after the freight has come down, it has also reversed our sales performance. Since Tmall started out at sea, our export sales have increased nearly tenfold."

The establishment of logistics channel is the key for small and medium-sized enterprises to go to sea.

For China's small and medium-sized enterprises, the "Maritime Silk Road" in "Belt and Road Initiative" is already an important new market. According to a report by Temasek and Google, the total volume of the Internet economy in Southeast Asia is expected to grow to $200 billion by 2025, driven mainly by e-commerce, online advertising and online games, leisure tourism, etc., especially e-commerce will reach an average annual growth rate of 32%. In the Australian market where Cainiao has added shipping services, local Chinese are used to changing their homes frequently, changing furniture every two years on average, and have a higher price affordability, which is a great potential market for high-quality and inexpensive Chinese furniture. Logistics is the most critical infrastructure to eat the big cake of this new market. "for example, even if it is the logistics details that are common to Chinese consumers, Southeast Asian consumers can not get all the node information until Cainiao opens a shipping service." Pang Xiqi said, "before that, all our customer service time was spent answering the question of 'where are things?'" At present, Cainiao has provided all types of enterprises with all-round "sea, land and air" solutions, including charter flights, shipping, China-Europe trains and so on. Cainiao already has more than 20 logistics warehouses along the Maritime Silk Road, and last year it established the first eWTP super logistics hub in Malaysia, bringing China's intelligent logistics solutions overseas. Zhang Yong, chairman of Alibaba Group CEO and Cainiao Network, said that Cainiao will speed up the development of a new logistics track under the trend of new retail. In this context, Cainiao has established two major development directions of new retail and globalization, accelerating the provision of new logistics services for small and medium-sized enterprises around the world.