New Chinese foreign trade force, “Overseas Warehouses”

This year, Chinese government suggested the expansion of cross-border ecommerce, supported building a net of “Overseas warehouses”, which will help expand foreign trading capabilities. OConnect CEO, Kevin Fenn, in the interview for China Economic Times newspaper, talked about that idea of expanding arise before “Internet+” model, some companies, seeking for growth made researches of guidelines of the future growth. And now, “Overseas warehouses” become official part of Chinese government economic strategy for the foreign trading.     

At present, China have more than 5000 of all kinds cross-border internet companies, which linked to 200 000 foreign buyers companies. According to the Ministry of Commerce predications, Chinese ecommerce export from 6,5 trillion RMB in 2016 will grow to 8 trillion RMB in 2017, in future Chinese ecommerce export and import will increase from 20% to 30% from all Chinese trading coverage. Chinese cross-border ecommerce supplier rapidly grow and with the help of “Overseas warehouses” they will get an instant help.

Chinese Ministry of Commerce spokesman Shen Danyang on March 17 held a press conference, talking about government requirements, international law, effective measures that government will take for the success of “Overseas warehouses”, and it effect on Chinese economic growth.  

The so-called "Overseas warehouses" model, refers to official foreign enterprises, created  in accordance with the general trade laws, after the sale from electronic platform, warehouse will send products directly to the foreign buyers.

Shen Danyang said that this is an innovative business model, of creating “Overseas warehouses”, which was created to support Chinese ecommerce foreign trading development, and a important step overcome Chinese trade limitations.  

Earlier a lot of orders were cancelled only because shipping waste along time, now “Overseas warehouses” will shorten this waiting time from 20 till 3-5 days waiting. It’s the same waiting time with Chinese logistics.

Along Chinese Department of Commerce at May 2015 launched " Internet + Logistic " business strategy, OConnect,YKS, FocalPrice and other Chinese ecommerce platforms take part in creating “Overseas Warehouses” network system. OConnect is already established foreign warehouses at Russia, Ukraine, India and few other countries, and in 2016 will open 5 showrooms in overseas capitals. All this pavilions will be a big help for Chinese government strategy. Kevin Fenn, not only “warehouse” will be build, but also a stage for pre-demonstrating Chinese products to foreign buyers.

Not only cross-border ecommerce suppliers "test the water" using overseas warehouses,  but also the local governments are actively helping foreign trade enterprises development. According to the "Cross-border ecommerce development three-year actions plan in Zhejiang Province" released in early 2015, Zhejiang will actively support strong enterprises to set up overseas warehouses in the United States, Russia, Britain and other major export markets of cross-border e-commerce by 2017, with the global coverage of 60 major exporting countries.

Kevin Fenn also predicted, that “In the next year Chinese government will finished construction of worldwide warehouses network, optimize export supply chain, enhance export competitiveness, improve Chinese suppliers image.”