Flexible cross-border sales models expand financial frontiers

Robust growth

Fast-fashion online retailer Shein is boosting resources to help Chinese manufacturers expand their sales and presence in the global market.

In September 2023, the company announced plans to extend its outreach to industrial belts in 500 cities across China. Currently, it has more than 300 industrial belts covering over 20 categories including clothing, shoes, bags, jewelry, beauty care, electronic devices, and sports and outdoor products in more than 20 provincial-level regions nationwide.

Founded in Guangzhou, Guangdong province, and known for its low prices and large selection of fashionable clothing and accessories, Shein has gained traction among overseas shoppers. Shein was the most downloaded app in the fashion and beauty segment in the United States in 2023, registering more than 35 million downloads, data from global research firm Statista showed.

For sellers good at designing and producing products, but without overseas sales and operations experience, Shein provides one-stop services, including commodity operations, warehousing, logistics, and customer and after-sales service.

The company has announced further expansion of its product categories through collaborations with select global brands and third-party vendors to fulfill growing customer demand for diversified products.

Chinese cross-border e-commerce platforms can help establish a direct connection between manufacturers and consumers by applying advanced digital technologies such as big data, cloud computing and artificial intelligence, said Li Mingtao, head of the research institute at the China International Electronic Commerce Center.

"Many Chinese traditional manufacturers have gained an upper hand in production and quality control, but lack experience and capabilities in sales and operations, making it difficult for them to enter overseas markets," Li said.

Manufacturers should learn how to better grasp the needs of consumers via these platforms, adjust production, and reduce inventory, which will help improve the competitiveness of Chinese manufacturers globally, he added.

China's cross-border e-commerce industry has seen robust growth in recent years. The sector's imports and exports reached a record 1.88 trillion yuan ($257.6 billion) in the first three quarters of 2024, an increase of 11.5 percent year-on-year, data from the General Administration of Customs showed. E-commerce exports were 1.48 trillion yuan during this period, up 15.2 percent from a year earlier.

The country has accelerated steps to boost the development of new forms of foreign trade, and rolled out a series of policy measures that include establishing cross-border e-commerce comprehensive pilot zones, supporting the building of overseas warehouses and logistics infrastructure, and expanding the list of imported retail goods for cross-border e-commerce.