The Middle East is an ancient and mysterious region. In the context of "One Belt and One Road", not only attracted SheIn and Jollychic, cross-border sales tongtuo also began to lay out the Middle East, Africa and other emerging markets business this year. As more and more cross-border e-commerce enterprises shift their perspective to the Middle East market, they need to "analyze" it first if they want to enter it. According to BMI Research, the Middle East e-commerce market is growing fast, with the region's e-commerce sales expected to grow from $4.3 billion in 2016 to $22.3 billion in 2020. Seemingly full of opportunities, emerging markets in the Middle East are actually hidden "rocks", such as cross-border logistics in the Middle East.
There are six main challenges to Middle East logistics
When the efficiency of Logistics in China allows consumers to enjoy a convenient life of next-day, same-day or even 30-minute delivery, what is the logistics industry in the Middle East like?
Egypt has about 98 million people, Iraq has 38 million and Saudi Arabia has more than 30 million, but most of the population is scattered. The density of population will also affect the development of logistics market. Although the Middle East has a large population, its distribution is relatively wide, which leads to the problem of regional dispersion in the marketing of Chinese sellers in the Middle East, which increases the difficulty of publicity. At the same time, because the region has not established a sound address database, the popularity of logistics infrastructure is relatively backward, which also restricts the efficiency of local logistics to a certain extent.
In addition to geographical factors, short working hours and cultural barriers are also the pain points of Middle East logistics. On the one hand, the length of working hours. From each year to promote, such as Ramadan, such as white on Friday, it will bring a few for cross-border sellers multiplication long orders, but as a result of working hours during Ramadan compression, and Muslim worship five statutory rest over the weekend, local severe lack of capacity problems of logistics delivery, extended the order delivery time. On the other hand, cultural barriers. In middle Eastern markets, if there are no men in the house, women will not open the door for other men, resulting in a delay in delivery, which is part of the reason for extending logistics efficiency.
1. The local logistics market lacks advanced and efficient management system.
2. Logistics technology facilities are backward and there is no perfect logistics sorting system.
3. Lack of local front-line talents and incentive mechanism leads to low enthusiasm for sending pieces.
4. COD mode is an emerging thing corresponding to the local logistics market, which also increases the difficulty of delivery.
5. The local delivery area and address database are not perfect, resulting in inefficient delivery.
6. The telephone connection rate of local buyers is low, and most orders require appointment for delivery.
What should Chinese export enterprises prepare for the Middle East logistics pain?
Although the Middle East logistics market is "surging reef", it is because of the imperfect local logistics service that Gives Chinese logistics enterprises more opportunities to display their capabilities. Different from local logistics enterprises, Chinese logistics enterprises entering the local market can accelerate the update and iteration of local logistics enterprises. Among them, advanced logistics management system and high-quality delivery service can promote the development of local logistics and give buyers in the Middle East a better shopping experience.
So what preparations should Chinese enterprises make in advance to enter the Middle East logistics market?
1. Be familiar with local laws and regulations, especially when it comes to COD capital flow and other issues.
(1) From the perspective of Chinese logistics providers, in addition to respecting local buyers, they can also make corresponding optimization in terms of logistics timeliness and service, so as to appropriately change the behavior and habits of local consumers.
(2) From the perspective of payment platform, we should focus more on developing fast and safe payment tools similar to Domestic Alipay, lower the payment threshold, and provide overseas consumers with better online shopping experience.
(3) From the perspective of cross-border sellers, it is necessary to do a good job in product quality control and after-sales service to eliminate buyers' concerns.
2. Carefully select the local joint venture company, master the advantages and disadvantages of the other company in detail, and make a good analysis of the advantages and disadvantages.
3. Understand the local administrative division to optimize the last mile delivery. Especially for the lack of clear address information in the Middle East, Chinese logistics providers need to optimize the address base according to the local actual situation in addition to optimizing the delivery area and process, so as to make the address base more suitable for the national situation and more close to the writing habits of buyers.
4. Purchasing delivery vehicles and renting warehouses is a huge expense, so you need to prepare well in advance.
5, carefully recruit foreign workers.
6. Improve China's mature logistics model to meet the needs of emerging markets.
When talking about the future development trend of logistics in the Middle East, Xiao Guilin believes that compliance, openness and brand localization are the general trend.
First, compliance. Based on the promulgation and implementation of the new e-commerce laws of the United Arab Emirates and Saudi Arabia, the qualification requirements for cross-border e-commerce logistics enterprises in the Middle East will be more compliant and professional, so as to better protect the rights and interests of cross-border logistics providers and cross-border sellers.
Second, openness. As the development policies of the Middle East countries continue to open, the cross-border logistics market will also open up to the customs of the Middle East countries.
Third, brand localization. The development of e-commerce market in the Middle East will prompt sellers to constantly improve packaging and brand localization. In order to meet the higher requirements of cross-border sellers going to the Middle East, the cross-border logistics market in the Middle East will also make a new round of innovation in the localization of overseas warehouses in the future.