Cross-border e-commerce has increased by nearly 10 times in 5 years, and it is opportune for Lexiang Group's data algorithm to "go to sea"

On January 13, a spokesman for the Ministry of Commerce said that in recent years, the mainland's new foreign trade formats have flourished and continued to innovate. Cross-border e-commerce has grown nearly 10 times in 5 years and will continue to maintain double-digit growth in 2021.

Behind the rapid growth of cross-border e-commerce is the prosperity of China's digital trade in the era of great development of the digital economy. The data shows that China's digital trade volume increased from $200 billion in 2015 to $294.76 billion in 2020, an increase of 47.4%.

In October last year, the Ministry of Commerce and 24 other departments jointly issued the "14th Five-Year Plan" Service Trade Development Plan, which for the first time included "digital trade" in the service trade development plan, pointing out that it is necessary to seize the opportunities for the development of digital economy and digital trade, actively support the trade of digital products, and create a good environment for digital products to go global. This provides national policy-level support for the development of digital trade.

Driven by multiple factors such as policies and markets, Chinese Internet companies, which have always had a keen sense of smell, have frequently "gone to sea", competing for card slots on the subdivision track of digital products such as hardware, cross-border e-commerce, social entertainment, and games.

In 2021, Alibaba established the "Overseas Digital Business" section, Tencent Games established the overseas game distribution brand Level Infinite, and ByteDance also ushered in a new milestone in the overseas market. The latest data from the American cloud network security service company shows that in 2021, TikTok has replaced Google as the world's most trafficked Internet website.

At present, the number of monthly active users of TikTok has reached 1 billion, and it is still growing at a high speed, which has accumulated a large number of native interest e-commerce consumers for TikTok e-commerce. Since 2021, TikTok e-commerce has launched e-commerce platform business in Indonesia and the United Kingdom. At the end of the year, TikTok Shop announced that it was fully open to Chinese sellers. It is reported that in the next five years, TikTok e-commerce will enter the world's major mainstream markets.

Based on the successful experience of Douyin short video interest e-commerce in China, TikTok is expected to be successfully copied overseas. Live broadcasts, short videos, and window displays, as the troika of TikTok, are leading Chinese merchants into the trillion-dollar track of going to sea.

The interest e-commerce derived from the short video social platform has opened up a new way of playing domestic e-commerce. Compared with the traditional shelf e-commerce based on the classification display of goods, interest e-commerce is an e-commerce model that emphasizes the mining of potential demand for consumers and efficiently matches the supply and demand sides to reach transactions through recommendation technology. Because of the different marketing environments at home and abroad, to carry out cross-border interest e-commerce business on platforms such as TikTok, it is necessary to fully understand the local mobile new media resources and characteristics, and the interest matching mechanism should also be adapted to local conditions. This requires the help of interested e-commerce service providers.

Domestic new media effect marketing technology companies represented by Lexiang Group (06988.HK) will play an important role in interest e-commerce marketing services by relying on data and algorithm advantages, as well as valuable experience accumulated in active exploration on cross-border e-commerce platforms.

It is reported that Lexiang Group has taken overseas interest e-commerce marketing services as an important business layout. In view of the operational characteristics and market environment of overseas mobile new media, Lexiang Group has set up an algorithm team in Sweden to build a new technical model and service system to analyze overseas video content and user behavior data. As one of the first Chinese companies to apply the interest algorithm model to carry out marketing business on the TikTok platform, Lexiang Group's business testing on the TikTok platform has been launched, and the transaction closed loop of TikTok traffic operation, model algorithm to increase sales, intermediate page transaction, local warehousing, payment, and logistics has been preliminarily explored.

As a pioneer in domestic effect marketing services, Lexiang Group continues to deepen the domestic short video e-commerce marketing track, while vigorously expanding the overseas interest e-commerce business based on short video content, and the deeper consideration behind it is to hope to bring the DTC effect marketing model and mature interest algorithm recommendation technology accumulated in China for many years to the overseas market. This is in line with the policy orientation of digital products and technologies going global.

Digital trade has become a new model of international trade and a new engine for the development of the world economy. With the country vigorously promoting digital trade and the effectiveness of RCEP, cross-border e-commerce, games, online texts and other subdivisions will usher in a new round of development, which will bring new imagination space for Lexiang Group to expand overseas business.

Source: Internet

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