According to a joint release by Google, Temasek, and others《The 2020 Southeast Asian Internet Economy Development Report states that Southeast Asia is currently the region with the fastest internet development in the world. The total transaction volume of local e-commerce products is also growing rapidly, in 2021achieve62 billion US dollars, a year-on-year increase of 63%.
The e-commerce market in Southeast Asia has enormous potential, and domestic merchants have also entered the market one after another. With a keen sense of smell, independent websites selling Jikeyin have already occupied a leading position in the local market.
Entering Southeast Asia, Jike India is targeting the target market
Jikeyin is an international company wholly-owned by Jihong Co., LtdB2C mobile social e-commerce company. The company operates a wide range of products, with a focus on Southeast Asia and a revenue share of over 30%.
Unlike other cross-border sellers who closely monitor the European and American markets,When Geek India entered the cross-border e-commerce industry in 2017, it targeted the Southeast Asian region.
Ji Ke Yin, Mr. Guo, introduced that Southeast Asia was a niche market that sellers of cross-border e-commerce could easily overlook in the early days. Due to its lower consumption capacity compared to developed countries, as well as its complex geographical environment, language, and religious culture, it was necessary to design completely different products and marketing plans in different countries to cater to the aesthetic needs of local people. At the same time, the development of local e-commerce is lagging behind, and the proportion of mobile payments is relatively low. Taking Amazon as an example, it is difficult for large-scale e-commerce platforms to have rapid development in the local area.
While facing the above disadvantages, we also see potential opportunities for the Southeast Asian economySince 2015, it has shown rapid growth, coupled with its huge population dividend and traffic dividend (low competition), which has nurtured unlimited development potential. Combining China's own full range supply chain and cost-effective product characteristics, entering Southeast Asia may have huge opportunities.
After determining the target market, Jikeyin conducted an analysis of local consumers. Mr. Guo introduced that compared to European and American regions, local consumers have the following characteristics:1. A large population; 2. Language diversity; 3. Complex cultural and religious beliefs; 4. Pursuing cost-effectiveness; 5. Weak awareness of e-commerce; 6. High penetration rate of social media.
Based on the local consumption situation, Jikeyin conducts precise marketing positioning for each product, accumulating a large amount of multi-dimensional product and user label data information for segmented categories. Relying on its own advantages, Geek India has made rapid progress in its development in Southeast Asia.
Sold within one year2.1 billion, Geek India becomes a Southeast Asian independent station giant
According to the financial report released by the parent company Jihong Co., Ltd,In 2019, its revenue was 3.01 billion yuan, a year-on-year increase of 32.62%;Realize net profit346 million yuan,YOYincrease51.65%.The revenue of the e-commerce section that year was887 million.
In 2020, Jihong Group's revenue was 4.4102 billion yuan, a year-on-year increase of 46.56%, achieving a net profit of 560 million yuan, a year-on-year increase of 71.3%, and the revenue of the e-commerce sector was 2.156 billion yuan.
In the first half of 2021,Operating income of Jihong Co., Ltd2.491 billion yuan, a year-on-year increase of 29.97%.The company actively expands the market by adjusting product categories, sales prices, and key sales areas in a timely manner, and adopting marketing strategies such as gift package promotions and gift buying activities.althoughNormalization of overseas epidemics and tightening of local residents' incomeIt has had an impact on the company's performance, butAbove itThe growth rate of cross-border e-commerce orders in the past six months has exceeded60%, maintaining its leading position in independent e-commerce in Southeast AsiasheepStatus.
Jihong Co., LtdListed in 2016,Its revenue scale has increased from the previous year'snear570 million yuan,SkyrocketingreachRMB 4.41 billion in 2020, expandingYesnear8x, demonstrating strong development momentum,thisbehindThe development potential of Jikeyin e-commerce is enormous.
The supporting force for Jikeyin to contribute revenue to the parent company may be its differentiationPositioning of.
Different from independent stations in Europe and America, JikeyinadoptAccurately push advertisements on foreign social network platforms such as Facebook, Google, TikTok, Line, YouTube, Instagram, etc,Conduct onlineB2C sales,Its businessNot relying on a single platformAnd platform policy control.
The precision marketing model has effectively driven the company's business growth. Utilizing the large amount of product and user data accumulated through precision marketing, Jikeyin has iteratively developed its ownAutomated product selection and advertising system. At present, Jike Printing has more than 1600 employees and originally relied on human investment to achieve order growth and revenue. If we want to maintain growth, we need to use digital, automated, and intelligent light human capital technology to drive business transformation. Therefore, in the past two years, the company has increased investment and attention to research and development, such as "intelligent product selection" and "automated advertising placement" Automated procurement review and splitting are all "technological products" that are iteratively driven by digitization.
In the future, Jikeyin also hopes to use the power of technology to break free from the limitations of the number of people and achieve higher dimensional business upgrades.
In the process of continuous business development, Jikeyin is also facing new challenges.
In response to the decline in profits, the experience of Jikeyin can be regarded as a textbook
After the outbreak of the epidemic, while online sales skyrocketed, cross-border logistics also faced enormous pressure, highlighting contradictions such as delays and rising shipping costs. Most consumers in Southeast Asia are accustomed to a buy before pay model, so for cross-border sellers, the signing rate is crucial.
Faced with the sudden surge in orders and logistics pressure, Jikeyin fought a beautiful battle. General Guo stated that the company has overcome logistics difficulties and achieved a counter trend outbreak by utilizing the following methods.
1) Fewer flights, the company integrates resources to alleviate order backlog through charter flights;
2) Due to the lockdown of cities in various regions, land transportation has been hindered. Thanks to the full cooperation of logistics companies, goods can be transported to their destination normally by changing people without changing trains;
3) Organize the supply of goods and overseas warehouse stocking in advance, to some extent alleviate the pressure of logistics.
In addition,Due to the company's establishment of a certain moat advantage in Southeast Asia, long-term logistics service providers also prioritize resource allocation in the face of external epidemics and resource scarcity, and itsHand in hand to overcome difficulties.On the basis of stabilizing logistics channels, the issue of rising freight rates has once again been raised.
Like other cross-border e-commerce enterprises, Jikeyin has also faced the situation of rising shipping costs and lowering profits.
Introduction from Mr. Guo of the company,aboutCross border sellersGenerally speaking, the factors that determine profits includeThree pointsSigning rate, order cost, and operating cost.If we want to maintain profits, we need to work from all three aspects simultaneously.
Firstly,Improve the signing rate .From the perspective of delivery efficiency, customer service is highly involved in reducing returns,cooperateCategory optimizationThe system optimizes numerous nodes such as real-time automated procurement, logistics status monitoring and warning, delivery and receipt time periods, customs clearance time, overseas warehouse inventory monitoring and relocation, and adheres to:The cultural concept of "simplicity, extreme, and efficient collaboration"Further improvementSigning rate.Through the highly open, transparent, and real-time information circulation and transmission of the system, the collaboration and cooperation between positions are greatly improved, and the efficient circulation of goods and the signing rate can also achieve the benchmark in the industry and market.
Secondly,Reduce order or operational costs .Specific breakdown includes3 dimensions:1Advertising end:By connecting to an automated advertising placement system, cost traffic can be monitored and controlled in real-time, and testing and conversion costs can be further reduced;2Logistics end:Refine product dimensions,Set up better order splitting mechanisms and transportation methods;3Product sideAdjusting and optimizing the category structureAnd promotion mechanisms,Establish a mature stocking mechanism for overseas warehouse goodscarry outSecondary sales.
Finally, reduceoperating costs .Realize system automation and intelligence through digital upgrading and transformation, further improve human efficiency (order output), and achieve larger scale of orders.
The practice of independent website giant Geek India in dealing with rising shipping costs and reduced profits can be considered a textbook level. This year, third-party platforms have been heavily targeted, resulting in the closure of several domestic top selling stores and brands, resulting in heavy losses. Against this backdrop, the differentiated positioning of Jikeyin has brought new growth opportunities to it.
As a cross-border seller, would you like to explore more operational experience of Jikeyin?On December 13th,2021 First China (Zhengzhou) Central Cross border E-commerce Seller Brand Overseas SummitAbove, Ji Ke YinVP Guo Xinhua will share the survival secrets of Southeast Asian independent stations based on years of experience, bringing more exclusive dry goods to attendees on-site. Quickly click on the QR code below or read the original text to register!