Guangxi e-commerce thrives with growing vitality

On May 6, the Guangxi E-commerce Entrepreneurship Competition kicked off, aiming to discover a batch of outstanding e-commerce projects and use e-commerce entrepreneurship to drive rural poverty alleviation.

Previously, the 2016 Guangxi “Zhuang March 3rd” International E-commerce Festival came to a close in Nanning. The month-long e-commerce festival saw online transaction volume reach 1.07 billion yuan, with Guangxi specialty products such as Wuzhou Liubao tea, Liuzhou luosifen, handmade brown sugar, and mahogany handicraft ornaments becoming hot items.

“We also want to build the ‘Zhuang March 3rd’ International E-commerce Festival into Guangxi's version of ‘Double 11.’” Wang Naixue, Director of the Guangxi Department of Commerce, stated that in order to promote cross-border e-commerce development, key projects such as the “Internet+” Product QR Code (Guangxi) Center, the Nanning Cross-border Commodity Direct Purchase Experience Center, and Jumore · Guangxi Pavilion have officially commenced operations, and the “E-commerce Doubling Plan” has already been achieved ahead of schedule.

Facing ASEAN, how can Guangxi seize the e-commerce market opportunity? Compared with eastern pilot cities, what distinctive features does Guangxi's e-commerce development have?

Taobao Shop Owner

“Years ago I started from a street stall, but now things are completely different”

Mai Suibing, who registered an online store on Taobao back in 2002, is a pioneer in the Dongxing e-commerce circle.

Today, his physical store is located in the Dongxing Electronic Industrial Park. Although it is just a partitioned space of less than 20 sq m, he is able to sell mahogany handicrafts sourced from Vietnam to Dongxing and across the country.

“Around 2000, I was in the Vietnamese food business. I usually had to go to Vietnam in person to purchase goods, and a round trip took several hours. What I earned was truly hard-earned money.” Mai Suibing explained that years ago, those doing border trade in Dongxing generally started from street stalls, and even currency exchange was done at “street stall banks.”

“Now things are completely different.” As he spoke, he picked up a small coffee spoon made of shell from the table and told the reporter, “Look, this is a handicraft sample sent by a Vietnamese manufacturer. If the customer is satisfied, they place an order directly online, and the goods will reach Dongxing directly by express bus. It is indeed much more convenient, quicker and easier.”

Dongxing is separated from Mong Cai, Vietnam by a river and connected by a bridge, sitting at the forefront of opening up toward ASEAN. Its unique geographical advantage has attracted e-commerce giants to come and invest, and the Dongxing Pilot Zone became one of China's first batch of three border development and opening pilot zones.

This year marks the 10th anniversary of the founding of the Guangxi Beibu Gulf Economic Zone. The reporter visited the JD · China Specialty Products Dongxing Pavilion located in the Beitou Tourism Distribution Center in Dongxing. In the O2O exhibition area, the reporter saw a dazzling array of Dongxing specialty products such as Dendrobium officinale, sea duck eggs, and dried seafood, as well as Vietnamese specialty goods such as moringa seeds, blood lemons, and fish sauce.

Chen Jianlin, Mayor of Dongxing, introduced that e-commerce has become an important lever for Dongxing's transformation and upgrading and for promoting rapid rural development. In 2015, Dongxing had 1,905 e-commerce enterprises, achieving sales of 1.67 billion yuan. E-commerce express deliveries averaged more than 30,000 items per day in and out, and logistics shipments averaged more than 60,000 items per day.

Overseas Entrepreneurs

“After more than half a year since opening, the store's highest monthly sales reached 100,000 yuan”

In the Dongxing Mutual Trade Zone, 27-year-old Vietnamese woman Le Hoai Thuong is busy in her shop. She types rapidly on the keyboard, replying to inquiries from domestic and international customers, and from time to time stands up to direct workers to pack and send goods.

Prosperous border trade and well-developed hardware and software infrastructure attract overseas entrepreneurs like Le Hoai Thuong. “I came to Dongxing, China to start a business because I valued the complete infrastructure and services here.” Le Hoai Thuong gave the reporter an example: when she first opened the shop, she went to handle the electricity installation procedures and was amazed by the fluent Vietnamese spoken by the power supply account manager. “That feeling was especially warm.”

Now Le Hoai Thuong has become a veritable nine-to-five transnational commuter, traveling daily between her home in Hanoi, Vietnam and her shop in Dongxing, China. “After more than half a year since opening, the store's highest monthly sales reached 100,000 yuan.” Le Hoai Thuong said.

Not only are Vietnamese like Le Hoai Thuong doing e-commerce business in Dongxing growing rapidly, but more Dongxing locals are also using preferential policies for border residents to transition from traditional border trade to cross-border e-commerce. Official data shows that in Dongxing, with a resident population of 148,000, 30,000 people are engaged in border trade, while the number of cross-border e-commerce practitioners grew from just over 100 in 2012 to 13,000 by the end of 2015.

At the same time, traditional processing enterprises are also on the path of transformation. Dongxing Yicheng Food Development Co., Ltd. is a leading enterprise in Dongxing's seafood processing industry, mainly engaged in seafood processing, with raw materials sourced locally and from Vietnam, and products exported far to Southeast Asia. In 2013, it formally entered e-commerce through Taobao and Yihaodian, and its physical store, which had operated for 5 years, leveraged e-commerce platforms to achieve a “turnaround.”

Zhou Shijun, Secretary of the Dongxing Municipal Party Committee, said that facing ASEAN is the greatest locational and market advantage. Dongxing was selected as one of China's Top 100 Counties for E-commerce Development for two consecutive years in 2014 and 2015, fully demonstrating that Dongxing's cross-border e-commerce development momentum is very good and its advantages are obvious.

Guangxi Characteristics

“We must not only let you buy, but also let you buy something unique”

“Through Dongxing's e-commerce development, one can observe the future potential of Guangxi's internet economy.” Wang Naixue said.

In 2015, Guangxi issued the “Several Opinions on Accelerating the Development of E-commerce in Guangxi,” which clearly stated the goal of building a China—ASEAN cross-border e-commerce base and accelerating the exploration of establishing a China—ASEAN cross-border e-commerce comprehensive pilot zone. By 2020, the region's e-commerce transaction volume is to exceed 1 trillion yuan, cultivate 3 e-commerce platforms with annual transaction volumes exceeding 100 billion yuan, and 20 e-commerce enterprises with annual transaction volumes exceeding 10 billion yuan.

Ethnic minority characteristics add a distinctive individualized flavor to Guangxi's e-commerce. “We must not only let you buy, but also let you buy something unique.” Ma Jixian, Deputy Director of the Guangxi Department of Commerce, stated that this time Guangxi is using the “Zhuang March 3rd,” a mass festival rich in ethnic and local characteristics, to hold the Guangxi “Zhuang March 3rd” International E-commerce Festival, which combines culture and commerce and is both ethnic and international in nature. It not only promotes traditional folk culture and showcases the unique charm of Bagui, but also enhances the visibility of Guangxi's specialty products, promotes “Internet+” industrial integration through e-commerce, and expands Guangxi's international influence.

It is worth mentioning that the Nanning Cross-border Commodity Direct Purchase Experience Center gathers tens of thousands of original imported duty-paid and bonded commodities from Europe, the Americas, Australia, Japan and South Korea, and Southeast Asian countries, covering light luxury goods, maternal and infant products, beauty products, food, health products, and more. It is currently Guangxi's largest cross-border commodity direct purchase platform integrating multiple merchants and operating simultaneously online and offline. It adopts an O2O operating model combining an “online purchasing platform + offline display and trading center,” which ordinary overseas online shopping or cross-border e-commerce does not have, providing consumers in Nanning and even throughout Guangxi with a brand-new shopping experience.

In 2015, Guangxi achieved 442 billion yuan in e-commerce transaction volume, a year-on-year increase of 120%. A batch of e-commerce enterprises such as Kuajingtong settled in Guangxi, and e-commerce platforms such as “Dongmeng Gou” and “Woyi Gou” saw substantial growth in transaction volume. All of these wrote the best footnote for the rapid development of Guangxi's e-commerce.

Ma Jixian stated that in 2016 Guangxi will implement the “E-commerce Ten Thousand, Thousand, Hundred, Ten Plan,” carry out the “4 Ten Thousands” action plan, launch the construction of ten thousand online stores, promote e-commerce entrepreneurship among ten thousand people, conduct e-commerce training for ten thousand people, and implement e-commerce into ten thousand villages, making Guangxi's e-commerce name known.