Online Wholesale Is Rising Suddenly, And Dongguan Wants To Build A Local Alibaba.

In May 25th, a new e-commerce website called "Dongguan manufacturing network" was launched.

This is a great benefit for thousands of Dongguan manufacturing enterprises who are developing the domestic market in Dongguan.

But for the local e-commerce companies in Dongguan, the arrival of the Hangzhou e-commerce company has made them unhappy.

Dongguan, which has 8 pillar industries, such as electronic information, electrical machinery, textile and clothing, has the advantage of developing natural resources.

However, due to the lack of e-commerce talents and too "pragmatic" business style, Dongguan's local e-commerce industry started in the 90s of last century failed to form a representative third party platform and network business.

"Lagging behind Jiangsu and Zhejiang provinces, weak in the depth of the spike" is a self mockery of Dongguan's local e-commerce enterprises.

In contrast, Taobao sells 30% of its goods from Dongguan.

The loneliness of local e-commerce

"Originally, the development of electronic commerce in Dongguan has unique conditions, eight pillar industries, abundant sources of goods and resources, as well as the location advantages of the Pearl River Delta hinterland, a large number of Internet business groups, but these advantages seem to have not been played out."

Dongfang said, chief research fellow of the online wholesale mode research center.

However, since the end of the 90s, e-commerce enterprises in Dongguan have not been formed for ten years, while Alibaba, Taobao and other foreign enterprises have become the main body of e-commerce in Dongguan.

It is reported that in 2008, Alibaba, which entered the Dongguan market, absorbed more than 900 members in Dongguan in 2009. With the continuous expansion of Baidu, Alibaba and other large foreign e-commerce companies in Dongguan, the survival and development space of Dongguan's e-commerce enterprises is squeezed, and most local e-commerce businesses are struggling.

"Dongguan lacks the leading role of large leading enterprises in the development of e-commerce."

Huang Weiqun, Secretary General of Guangdong E-Commerce Association, bluntly said, "the market is open, but in the long run, the government should focus on training local leading enterprises in the development of e-commerce."

Orient also told reporters, "although there are many network merchants in Dongguan and abundant source of resources, there are not many representative platforms and network vendors. There has not been a huge driving and demonstration effect. At the same time, the shortage of e-commerce talents (the gap reaches 50 thousand people) has also affected the demand for e-commerce development."

Besides the lack of customers and talents by foreign enterprises, Dongguan's traditional manufacturing enterprises also play a role in e-commerce.

Zhou Yan, executive vice president of Dongguan Electronic Commerce Association, said: "Dongguan enterprises attach great importance to whether e-commerce can bring real effect to them.

Otherwise, even if the government has money to subsidize them, they will not be interested.

The eastern told reporters, "in fact, the export resistance in the 2008 financial crisis has made Dongguan manufacturing enterprises start to use e-commerce, but once the large scale overseas orders are re acquired, they will put aside the retail and retail business on e-commerce."

Support fund flows to Alibaba

In 2009, after the investigation and study, the Dongguan Municipal Bureau of letters issued the "Dongguan e-commerce development report".

It is proposed that we should rely on eight pillar industries in Dongguan, abundant sources of goods and resources, and locational advantages in the hinterland of the Pearl River Delta, continue to expand domestic sales through e-commerce, maintain the existing export market share, and pay attention to the driving force of the online wholesale trade to the export market.

Dongguan began to throw out the largest financial support policy. From 2010 onwards for 5 years, the municipal finance allocated 30 million yuan annually as a special fund to develop modern information service industry related projects.

At the same time, allocate 15 million e-commerce special funds.

Previously, Dongguan's e-business support funds are only a small part of the foreign trade bureau's international market fund and a small part of the "trade Dongguan", the former mainly for foreign trade, the latter for the small part of the domestic trade.

In the past 4 years, the "business Dongguan" project has only spent about 1700000 yuan on e-commerce.

Compared with the backwardness of Dongguan's e-commerce development funds, in 2009, Hangzhou's finance increased 30 million yuan a year, setting up a special fund for "electronic commerce into enterprises".

Fujian has been in the 3 consecutive year since 2007, and has allocated 30 million special funds annually from the provincial finance to support 1 million enterprises to actively carry out e-commerce applications.

It is worth noting that before Dongguan also had some financial support for the third party e-commerce platform, it did not tilt to the local e-commerce enterprises.

According to the reporter, in July 2009, the Dongguan municipal government issued the "Supplementary Notice on the declaration of international market development funds for enterprises in our city" (East foreign economic and trade [2009] 77). Dongguan chose ten e-commerce platforms as a channel to support the application of e-commerce in foreign trade SMEs, nine of which were foreign enterprises, and only one was a local enterprise in Dongguan.

According to the data obtained by reporters, a total of 941 enterprises in the city have been funded by the e-business platform, with a total of 27 million 250 thousand yuan.

Among them, there are 717 enterprises that have been financially funded by Alibaba e-commerce platform, accounting for 76%, and the total amount of subsidized funds is 18 million 730 thousand yuan, accounting for 69%.

To a certain extent, this is also one of the reasons why Dongguan's local e-commerce enterprises are hard to develop rapidly.

Some e-commerce experts believe that building a local e-commerce platform in Dongguan is very important. Although the local enterprises are not as well-known as Alibaba, they originated in Dongguan to understand the local market and the tax revenue remained in Dongguan.

Online wholesale mode

In addition to the government's financial support, Dongguan's e-commerce development model has been on the right track after years of wandering.

The report points out that in the domestic market, Dongguan focuses on the development of online direct selling (B2C) and online wholesale (B2B).

Although Dongguan is the largest source of Taobao goods, there are not many private brand enterprises.

Orient told reporters, "now recognized as the mainstream e-commerce mode B2C, there are certain requirements for product brand, and the traditional manufacturing industry in Dongguan is mainly processing and manufacturing, lack of brand awareness, brand building concept is not deep."

Obviously, the development of B2C is not the biggest advantage of e-commerce in Dongguan. Therefore, the importance of online wholesale mode is highlighted for Dongguan.

In March this year, Alibaba launched the 1688 largest online wholesale market. Orient believes that e-commerce will start a boom in "online wholesale" from the beginning of this year. The huge scale of the traditional wholesale market, which accounts for 1/3 of total retail sales, also indicates the potential of the online wholesale market.

This huge market can never be monopolized by a Alibaba company. In fact, Dongguan's e-commerce enterprises have already played their own advantages in this mode.

The reporter understands that in the Humen Town, which has the most obvious clustering effect in garment industry, besides the local government's plan and assumption of investing 100 million yuan of funds and creating e-commerce platform in the Humen town industrial upgrading work plan (2009-2013), a number of e-commerce websites invested by private capital have built up a complete industrial chain, ranging from brand dealers, distributors to third party platforms.

Dan Shaoqun, director of the clothing brand of K R TRACY, a new Humen clothing e-commerce brand, told the newspaper reporter that "although our annual turnover is only about 2000000 yuan, we mainly create an intermediate platform between the factory and the shop by shooting first-hand photos and close cooperation with the factory, and packing the products of the factory with a unified brand."

Hu Xiaohua, director of Humen apparel wholesale network, which sells more than 1000 women's clothing on a daily basis, said: "we are now selling women's wear and children's clothing to some boutiques and Taobao stores. This year's sales volume is expected to more than double that of last year."

In addition, the third party platform, which is jointly built by Humen's local shopping mall, Daying Ying and Dongguan Huawei Network Technology Co., Ltd., has chosen the entity store plus shop mode, whose advantages are mainly reflected in product quality supervision and so on.

These local e-commerce enterprises have opened up the upper and lower reaches of the industrial chain, outlined the outline of Dongguan's online wholesale industry, and highlighted the unique advantages of Dongguan's manufacturing base.