BEIJING--(BUSINESS WIRE)--CCID Consulting Co., Ltd. (HKSE:08235):
I. Current Situation and Major Challenges of E-Commerce in China’s Commodity Marketplace
The financial crisis that swept the globe in 2008 caused a severe turbulence in the world’s economy. During the crisis, a large number of Chinese enterprises, especially SMEs in the export processing industry in Southern China’s Pearl River Delta and Eastern China’s Yangtze River Delta, were put at the verge of bankruptcy due to reduced orders and payment delays that led to production suspensions and stock buildups. Although the Chinese economy weathered the financial crisis in 2009, it was still tremendously impacted. With the large-scale stimulus policies issued by the Chinese government, the Chinese economy showed a strong trend of rebound in 2010 after a one-year adjustment while the global economy remained sluggish. Statistics show that the Chinese economy is about to start a new round of high-speed growth, making China once again a focus in the world economy.
The severe impacts of the financial crisis led to reflections on China’s commodity marketplace. For a long time, China’s traditional commodity transaction mechanism has kept many enterprises, especially small and medium processing manufacturing enterprises, lagging behind the market development in terms of production as well as access to and management of order information, which makes it difficult for them to respond to the international market demand promptly. Due to the lack of a sound social credit system as a result of the weak governmental supervision and guidance, along with the prolonged construction procedures of the relevant legal system, the application of e-commerce in China’s commodity marketplace is still in disorder. Although the domestic market has been dominated by major players including Alibaba and hc360.com, they are not operating under a unified credit system to guarantee the benefits of the users. Besides, China’s e-commerce operation is still limited to the area of pre-transaction information flow. Without the strong support of government resources, it is impossible to realize a complete paperless electronic transaction approach that covers the three major procedures of information flow, capital flow and logistics, which include information matching, quotation, contract signing logistics, distribution, electronic settlement, credibility system authentication, electronic clearance, secure payment authentication and cargo track detection.
II. Strategies for E-Commerce Development in China’s Commodity Marketplace
CCID Consulting considers that for the healthy development of e-commerce in China’s commodity marketplace, the following issues shall be taken care of:
1. Learning from the international experiences and taking the road with Chinese characteristics
China’s commodity marketplace system is not so well developed as the Western countries, while the application of e-commerce is still at an initial stage. Learning from the developed capitalist countries’ experiences and combining them with China’s actual demands is necessary for the development of e-commerce in China’s own commodity marketplace.
2. Innovating e-commerce operation mechanisms under new supervision methods
Currently the State Administration for Industry & Commerce of the People’s Republic of China is in process of formulating separate supervision methods for the online commodity marketplace to distinguish it from the traditional marketplace. Under the circumstances, it will be key for the e-commerce website operators to innovate their operation mechanisms accordingly so as to sharpen their edge over the traditional market players.
3. Optimizing the content of e-commerce websites to increase appeal
While paying attention to enhancing the functionality of the e-commerce websites, the operators shall also optimize the content of the websites to increase the appeal and gain more business development opportunities. In addition, if an enterprise chooses a third-party e-commerce platform such as Alibaba to build a website, it should pay more attention to the website’s optimization and promotion, or the website will be of little use.
4. Integrating technology R&D with business operation
As a new marketing channel, e-commerce is gaining attention from an increasing number of commodity traders. Meanwhile, as an emerging technology in the traditional commodity marketplace, it is rooted in technology R&D and advancement. The real success of application of e-commerce in China’s commodity marketplace will largely depend on investment in online technology innovations.
5. Cultivating talents
Competition for talents lies at the heart of the competition among Internet enterprises. Identifying, allocating and cultivating talents are key to the long-term competitive edge of the enterprises, with the focus on cultivating multi-disciplinary talents that have knowledge of both commodity transaction and e-commerce.
About CCID Consulting Co., Ltd.
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China. With its powerful industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services. The company's customers range from industrial users in electronics, telecommunications, energy, finance and automobile to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming China's No.1 advisor for enterprise management, No.1 consultancy for government decision and No.1 brand for informatization consulting.