In 2021, the global epidemic will continue to spread and repeat, and the prices of bulk raw materials at home and abroad will rise. Meanwhile, the freight of international logistics will increase by nearly 10 times. In the past, the freight of a container to the United States was about 4000 DOLLARS. Despite many difficulties, many Chinese cross-border e-commerce enterprises are not afraid of difficulties. Christmas "Tree of Life" jewelry, stress-relief toys, pet clothes for the New Year... At the end of the year, they put the global "New Year's eve business" doing brisk business.

New Year's eve "Made in China" popular overseas

"Rising prices of raw materials, difficult international logistics, high tax reform in Europe... This is the most difficult "double Dan" market in history, but also the best "double Dan" market. Despite all the difficulties, our export orders still doubled!" As a member of China's cross-border export e-commerce, Anhui Fan Hai founder Hu Pengcheng has been busy with his team at the end of last year using digital technology to accurately collect user demand, while transforming the supply chain efficiency of downstream factories, in order to improve the "double Dan" -- the 2021 Christmas season and 2022 New Year's Day holiday business effective supply and capacity.

"Love and confidence" is the key word for overseas consumers during the 2021-2022 Lunar New Year holiday. "Our recent bestselling items are all about love, and we use DTC(Direct customization) to let overseas buyers create their own designs with their imagination." One of their most popular necklaces, the Tree of Life, has already shipped twice as many items as it did when it was new last year, according to Mr Hu. Overseas buyers can choose the corresponding lucky stone and lucky color to customize according to the different constellation of the person they want to send, and they can also carve their names on the "leaves" in thousands of faces. This product has attracted many European and American "post-90s" to buy and send to relatives and friends, to express unique intentions and blessings.

"We've been working on our Christmas and New Year specials since Last June!" Ni Shihao, from Shenzhen-based Gerui Technology, has also tasted the benefits of DTC. Although the company has less than 50 employees, it has become the "best seller" of two pet Christmas clothes on Amazon in 2020. Since 2021, it will focus more on holiday economy as a cross-border e-commerce company. For the "double Dan" node, Ni shihao's team not only expanded the product line of pet Christmas clothes to more than 10 styles, but also developed warm themed Christmas tree decoration cards and confidence themed Christmas relief toys.

According to data released by Wanlihui, a cross-border payment service platform, on December 30, 2021, Chinese cross-border sellers are making every effort to get a share of the global "New Year's Eve economy". Since July 2021, Chinese sellers' demand for loans such as online business loans and US dollar loans has soared in view of the funding gap of the "double Dan" long period of stocking for Christmas and New Year's Day. With the advent of "double Dan", the "Chinese wisdom made" for the New Year has been sent to overseas consumers. Recently, the "flow" of cross-border payment has begun to enter the annual peak value.

"For the 'double Dan' node, we provide online business loan, US dollar loan and other services for China's cross-border e-commerce sellers, in order to help them rush to prepare goods before the festival!" Fan Jian, director of Wanlihui China, said that despite the impact of international logistics, European tax reform and other objective factors, Chinese cross-border sellers are not giving up easily, but are more eager to seize the New Year's holiday economy.

The digital supply chain should be implemented in RCEP countries

It is worth mentioning that with the regional Comprehensive Economic Partnership (RCEP), the world's largest free trade agreement, coming into force on January 1, 2022, many Chinese cross-border e-commerce merchants hope to bring more "Made in China" products to the RCEP market with the help of digital technology.

"We should not only seize business opportunities in the New Year, but also share the benefits of RCEP's entry into force. A series of keywords such as' zero tariff 'and' big market 'can help us solve practical problems for cross-border e-commerce." The "double Dan" business, which focuses on home furnishing and lighting in Guangdong Yanxun Trade, has sold solar garden lamps to Europe, the United States and Japan. David Li, general manager of the company, said for example, "The tariff cost in The Japanese market in the past two years is too high (the tax is higher than the 'logistics + product' cost), and many Chinese cross-border e-commerce sellers want to give up. If RCEP can gradually achieve zero tariffs among member countries, it will undoubtedly be good news for east Asian sellers."

The cross-border e-commerce, which connects overseas consumers online and flexible supply chains offline, at the same time realizes "zero threshold" to go overseas and "sell globally" with digital technology, represents a new possibility for China's export. Behind their continuous foreign trade orders, Both Chinese export and Chinese manufacturing are undergoing a digital transformation from production to operation.

Take Anhui Fanhai as an example. In the process of cooperation with downstream suppliers, they constantly optimize production efficiency through identification bar code, card reader, sorting system, etc. The newly launched ERP system can increase production capacity by six or seven times. So far, they have reached stable cooperative relations with 9 upstream factories.

Hu Pengcheng said: "In 2022, we hope to extend our business to RCEP member countries, including sharing the ERP supply chain transformation method that has been passed in China, and transforming local foreign trade factories."

In the context of rising costs, Anhui Fanhai still achieved a threefold growth last year. As a typical example of upgrading from a "micro multinational enterprise" to a "specialized and special new enterprise", Van Hai has 1 million "iron fans" around the world. Relying on the huge supply chain in the Yangtze River Delta and pearl River Delta, the number of its new SKUs exceeds 10,000, providing overseas consumers with endless trend choices. Meanwhile, relying on the independently developed SaaS system, it can quickly deliver goods within 24 to 48 hours after overseas consumers place customized orders.

"What cross-border e-commerce wants most is to sell goods and get money back. Capital compliance is the most important thing. Only by ensuring the safe and stable receipt of cross-border receivables can the cash flow of enterprises be smooth and free from pressure." Hu pengcheng admitted.

"Small and medium-sized cross-border enterprises value the global holiday economy the most. We hope that technology can escort them in these 'annual wars' and digital financial services can help them' scramble for funds' to relieve their financial pressure caused by the concentration of demand for goods preparation and delivery." Fan Jian said that with the implementation of RCEP, both "micro multinational enterprises" and "specialized new enterprises" will usher in greater opportunities for China's cross-border e-commerce industry.