The joys and sorrows of cross-border logistics

With the boom of cross-border e-commerce, cross-border logistics has also ushered in a new development draught, soaring upward.

Recently, many cross-border logistics platforms have received a new round of financing:

On May 25, yungo, a one-stop international intelligent logistics platform, completed a ROUND D financing of usd 100 million.
On June 7, Speedaf, A cross-border logistics service provider commonly known as "Africa's mobile king", announced the completion of A+ round of financing.
On June 9, cross-border Good Luck, A one-stop logistics service platform for cross-border sellers, announced the completion of hundreds of millions of yuan of a-round financing.
The continuous occurrence of cross-border logistics financing events reflects that the industry is being heated by capital. In fact, cross-border logistics was already popular in China a few years ago, when capital was not so sensitive. Then, why cross-border logistics in the current capital xiangboshe? In a crowd of players under the chase, who can quickly out of the circle?

Cross-border e-commerce's fire "burns" to cross-border logistics
As for the reason why cross-border logistics can be hotly held by capital at present, in the view of Hong Kong Stock Research Society, there are mainly two reasons.

On the one hand, the boom of cross-border e-commerce is giving downstream logistics more growth drivers.

According to customs statistics, the import and export of cross-border e-commerce in 2020 will reach 1.69 trillion yuan, up 31.1% year on year. According to forecast analysis, the transaction scale of China's export cross-border e-commerce in 2021 will reach 7.73 trillion yuan, and it is expected that the transaction scale may break through 9 trillion yuan in 2023.

The huge market size indicates the fervour of cross-border e-commerce circuit. Last year, the beautiful performance report revealed that the industry is developing in a good attitude.

With this, industry players good performance, capital began to scramble to bet:

In August 2020, SHEIN, the leader of independent station, completed the E round of usd financing of over 100 million yuan;
In September 2020, Starlingco completed A round of 300 million RMB financing;
In June 2021, the store secretary completed a round B financing of 150 million yuan.
According to data from an enterprise information query platform, there were 56 financing events in cross-border e-commerce projects in 2020, with the amount disclosed reaching 18.6 billion yuan. In front of a steaming cake, sharing is the joy of capital games. Enough to see that the capital of this track's preference, the protagonist of the game is making profits among them, under the capital also has more confidence.

The joys and sorrows of cross-border logistics

It is worth mentioning that the onion, a cross-border e-commerce company, successfully landed on Wall Street in May this year, followed by the IPO news of Yangtou, which entered the 2019 Hurun Global Unicorn List with a valuation of 7 billion yuan in 2019. Players have stepped into the secondary market, exposing their development ambitions at the same time, all of them also reveal the capital's goodwill to the industry.

With the increase of capital, various players flocked to the market. The old players jingdong, Ali, Suning and Vipshop took the first-mover advantage with a large market share, while the latter entered the market with a bad attitude.

Last year, Xiaomi launched a new cross-border e-commerce platform, ShareSave. This year, Douyin decided to restart cross-border e-commerce business. Kuaishou officially released import and export e-commerce rules and created the "Kuaishou Cross-border E-commerce Linyi Product Selection Center".

All kinds of industry signs show that the cross-border e-commerce track has ushered in a period of dividend, but at the same time, it will certainly ignite the cross-border logistics at the other end of the industrial chain, contributing to the hot cross-border logistics track today.

In addition, the outbreak of the black swan, makes people accustomed to online consumption, electricity to further enhance permeability, and with the domestic epidemic control, economic recovery, the public's desire to consume to inspire, as the cross-border electricity consumption high class time also quickly, the butterfly effect, cross-border logistics ones also become is understandable.

On the other hand, in a sense, cross-border logistics has also caught up with the policy dividend.

Last year, the Executive meeting of The State Council stressed that the unimpeded international express and other air cargo, to give policy support to international cargo routes; The General Administration of Customs formulated 50 "lists" to ensure the smooth flow of the industrial and supply chains of foreign trade. China Banking and Insurance Regulatory Commission issued a notice to increase the supply of foreign trade credit and establish a "green channel" for high-quality foreign trade enterprises.

To sum up, with the popularity of cross-border e-commerce, cross-border logistics in segmented fields has also ushered in opportunities. With favorable market conditions, policies and capital preferences, cross-border logistics has become the "sweet property" of today. However, after the entry of large and small players, the industry pattern will undergo another change.

After all, as the attention of an industry increases, the market will pay more attention to the performance of players on the track. Who can run better and faster will also be a focus of attention.

Who can become the "Ctrip" of cross-border logistics?
According to the statistical calculation of the General Administration of Customs, the volume of China's cross-border e-commerce logistics incremental market in 2020 is about 33.8 billion to 507 billion yuan, the growth rate of cross-border e-commerce import and export in 2020 will reach 31.1%, and the cross-border e-commerce logistics market will reach more than 2.7 trillion yuan. This shows that the cross-border logistics market is in a stage of constantly expanding the cake, which also means that for the new and old players on this track, there are opportunities to share.

In fact, cross-border logistics with the OTA field ctrip's approach has something similar. From the perspective of their underlying business logic, although they belong to different industry categories, they also adopt the B2C model. At the same time, there is no lack of market who can become cross-border logistics in the "Ctrip".

Therefore, in the current cross-border logistics such a rapid growth of the market, in order to run faster, the final competition is still each other's core strength.

Looking at the development of each player, we can see that the cross-border luck of round A financing has just been completed. More than 1,000 service providers have settled in, serving nearly 36,000 small and medium-sized cross-border e-commerce sellers. Speedaf, which serves emerging markets, has just completed A+ round of funding; Taking the differentiated route, Qunar has completed D1 round of financing and is expected to carry 700,000 TEU in 2021, making it the first Chinese enterprise with unicorn level valuation.

From the recent three financings of enterprises, it is obvious that yungo, which has the most financing times, is A little tougher. Its valuation of $1 billion is more advantageous than the two players who have just completed the A round of financing. However, in terms of the industry itself, cross-border logistics is still in its infancy, and there may not be too much difference between players.

In may, SF Express announced its plan to acquire Kerry Logistics, an international third-party logistics service provider. As of January this year, Qitu has more than 240 large transfer centers, 600 intelligent sorting equipment, 8,000 owned vehicles and more than 23,000 outlets worldwide.

Although the market cake is expanding, but cut into the player more and more, the old player is having a certain advantage, but the giant's blow can not be underestimated, the influx of new players, who can really laugh at the last also have to see players how to tell the subsequent story.

Worthy of players pondering is that the industry continues to develop under the challenge is still not small. In the general environment, although the domestic epidemic has been effectively controlled, there are still sporadic outbreaks, while the epidemic abroad has not been effectively controlled. Today, India, Brazil, Argentina, the United States and other countries are still in trouble. Under the unfavorable economic environment, cross-border logistics is difficult to stride forward.

With the cross-border logistics cost is high, lead to small customers would choose international parcel or network shopping platform to delivery, and the current cross-border logistics development is still immature, infrastructure is not perfect, imperfect laws and regulations, as well as the vicious competition, opening each commodity behavior, industry under the chaos beings will seriously hinder its development. On the whole, there is still a long way to go for the cross-border logistics industry to produce "Ctrip".

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