Home>News

Alliance to fuel cross-border e-commerce growth

Updated:2020-06-15 (chinadaily.com.cn)

Print Mail Large Medium Small

Cross-border e-commerce in Ningbo has maintained double-digit growth this year despite the COVID-19 epidemic, statistics from local authorities show. 

To date, 48 businesses based in the city have set up 124 warehouses in 23 countries and regions worldwide covering a total area of nearly one million square meters, and those numbers are still growing. 

Hooya Group, a leading foreign trade company in Ningbo, has established 15 warehouses overseas. 

Bolstered by increased demand among those who have been forced to stay at home due to the epidemic ravaging overseas, the company's overseas warehouse shipments from January to May almost doubled since the same period last year.

In its latest report in April, the WTO forecasted that global trade could fall by 13-32 percent in 2020.

Experts pointed out that the main impact of the epidemic has shifted from the supply side to the demand side. However, challenges and opportunities coexist. 

Some local companies revealed in a survey that exports of home goods, including food, pet supplies, small household appliances, toys, daily necessities and fitness equipment, have seen an overall increase over last year. E-commerce has been playing an increasingly important role in stabilizing consumption since the pandemic began.

Loctek Ergonomic Technology Co Ltd, an ergonomic product manufacturer based in Ningbo, reported growth of over 30 percent in B2B orders on cross-border e-commerce platforms amid the epidemic, according to Le Hong, president of the company.

Now, 46 percent of orders placed by US consumers are delivered within one day thanks to the three warehouses set up by Loctek in the country, Le said, adding that the company plans to set up another 10 warehouses overseas.

Wu Wei, president of Hooya Group, said that sales of outdoor commodities like tents and surf boards are also rebounding, and so are fitness equipment and small home appliances.

Hooya saw an uptick of 30 percent in sales in the first five months of this year. The company has established branches in North America, Western Europe and Eastern Europe.

Wu attributed the company's growth to its global business distribution, which has brought factories closer to consumers. 

It has become a common goal among foreign trade enterprises to seek digital transformation and reduce the negative impact of the epidemic.

On June 11, Ningbo inaugurated a cross-border e-commerce alliance in an effort to help local manufacturing enterprises better tap into overseas markets.

The alliance was initiated by 22 local organizations, including foreign trade enterprises, plants, and universities. Hooya Group will serve as chairman of the alliance and be responsible for its operation.

As one of the initiators, Ying Xiuzhen, general manager of China-base Ningbo Foreign Trade Co Ltd, said that that the establishment of the alliance may become a historic turning point in the development of cross-border e-commerce in the city.