A recent report released by Customs Bureau noted that the past three years had seen China's cross-border e-commerce rank first in volume around the globe and year-on-year growth rate up to 50%. Given the difference between Northern cities and their Southern counterparts in terms of resource quality, cultural concept, talents pool, Northern cities, especially Beijing-Tianjin-Hebei region, are home to exporters of Mechanical and electrical products, bulk furniture, which are not reasonably fit for cross-border e-commerce platform and that made them lack of competitive edge in choosing goods items for daily customers.

Logistics Industry's Evolution: A City in North China's Strategy On Cross-Board E-Commence
(Photo : Business Times)
Sun Chunhua led the companies to inspect a luggage market in Baigou, Hubei province.

In this situation, Tianjin, a city in north part of China relying on the advantages of port transportation, gradually stepped out of the characteristic development path of "government to build platform guidance, logistics enterprises to explore". 70% traditional logistics enterprises stand to pilot cross-border e-commerce logistics and sales platforms under the encouragement of local government.

Logistics Industry's Evolution: A City in North China's Strategy On Cross-Board E-Commence
(Photo : Business Times)
Sun Chunhua, President of Tianjin Binhai New District Cross-border E-commerce Association, spoke at the Cross-border E-Commerce Conference of the “Belt and Road” of the Ministry of Commerce.

"Doing cross-border e-commerce has always been my dream as I had a lot of foreign trade clients when I was doing logistics." said a logistics-turned surnamed Liu manager told reporter with Business Times,"Later, they encountered various crises such as tariffs, so they hoped to combine my experience in international logistics with their product advantages and try cross-border e-commerce, a brand-new thing. "

Logistics Industry's Evolution: A City in North China's Strategy On Cross-Board E-Commence
(Photo : Business Times)
Liu Xiaowei, leader of Tianjin Luoerda Trading Co., Ltd.

Facing a collection of challenges like big-data capture, data analysis, logistics control strength, international consumption concept cognition, transformation of cross-border e-commerce of logistics enterprises not only requires the reconstruction of a data system compatible with e-commerce platform, customs, third-party payment and other links, but also a storage system that meets the requirements of cross-border e-commerce goods. In doing these, it will take time to recover cost. In addition, as there is no basis for sales and foreign laws, export sellers of cross-border e-commerce in Tianjin have also been repeatedly blocked and with their accounts frozen on the platform.

In order to support and encourage the development of cross-border e-commerce, Tianjin Binhai New Area will provide physical space for enterprises to strengthen development and establish a cross-border e-commerce industrial park. To reduce the cost of exploring cross-border e-commerce in Tianjin, Tianjin Binhai New District Cross-border E-commerce Association has organized at least 10 trade training classes every year since its establishment. Experts are invited to explain the selection skills of goods items in the Northern region, compensation and refund on amazon platform, so they gradually found a large number of products suitable for e-commerce platform sales, such as Wuqing carpet, Suning sweater, imitation flower, musical instrument. At the same time, the association has been reporting problems and difficulties to the government for cross-border e-commerce enterprises, and organizes enterprises to "go out" and participate in the Expo.

Logistics Industry's Evolution: A City in North China's Strategy On Cross-Board E-Commence
(Photo : Business Times)
Zhang Gang, general manager of Tianjin Dongjiang Shipping Exchange Market, introduced the company to the guests.

As an old Chinese saying goes, "He who travels a hundred miles is half past ninety" (The closer you get to success, the more difficult it is to stick it out until the end.) A pro, who has been engaged in foreign trade for more than 10 years, said "after more than 10 years of industry baptism, I was fully aware of the flaws of the traditional foreign trade industry. I think a better way to develop is to layout cross-border e-commerce business. Although the cost of initial investment is larger, we believe that this business can go further and better, so the investment is worthwhile."