Can Ding Lei's huge orders from NetEase enter the image of koala's "small crowd"?


Can Ding Lei's huge orders from NetEase enter the image of koala's

Reporter Zhang Jie reports from Beijing

When cross-border e-commerce enters the policy era in an all-round way, the domestic e-commerce enterprises that mainly buy by sea are pushed to the top of the storm overnight by public opinion, and the domestic second-line cross-border integrated e-commerce platform Netikola, which mainly focuses on the concept of self-employment and direct mining, is also trying to take the opportunity to "enter the Expo" card, or even to suppress the gambling.

On November 6, a reporter from the China Times learned from the "Global Trend Summit Forum on Cross-border Import of Netease Koala" that Netease Koala signed huge orders of nearly 20 billion RMB with more than 110 global brands during the Expo.

Reporters consulted the relevant information and found that this is the largest order NetEase Koala has issued to brand merchants since its launch. As a business platform that has been controversial in the industry, Netease Koala used the opportunity to enter the Expo to suppress the gambling, is it to take advantage of the policy dividend to rush ahead?

Sign 20 billion order

"The sea buys the electricity supplier" after entering the first China International Import fair enters the flesh and blood combat era.

On October 6, Ali announced that the world's imports of 200 billion US dollars in the next five years had just fallen. Before that, Netease Koala, which had always been low-key and steady, had signed huge orders of nearly 20 billion US dollars with several global brands, and signed strategic upgrading agreements with 10 representative brands such as Danone.

Although the order amount of Netease Koala is not high relative to Alibaba's purchase order, it is the largest order in Netease Koala's history.

For Netease Koala to break the precedent of the layout, Netease CEO Ding Lei believes that in the next decade or more, China will be the best market in the world.

Ding Lei explained that China's consumer market, the number of consumers and the breadth of consumption levels are beyond everyone's imagination; the Chinese people's demand for "new consumption" is beyond everyone's imagination; and the Chinese government's support for expanding domestic demand and cross-border e-commerce will also exceed everyone's imagination. Therefore, the Chinese era of buying the whole world has just begun.

According to the latest data of China's Customs, the total import and export trade of our country reached 27.79 trillion yuan in 2017, an increase of 14% over the previous year, which is the first double-digit growth in six years. Previously, Ali data estimated that China's cross-border e-commerce transactions will reach 12 trillion yuan in 2020, with a compound growth rate of 16.44% in three years and a penetration rate of 37.6%. There will be huge market space for cross-border e-commerce development in the future.

According to Zhang Lei, CEO of Netease Koala, the purchase amount of 20 billion yuan is only a reflection of the rapid development of Netease Koala in recent years. Since 2017, Netease Koala has announced a large number of purchase plans in the investment activities of Europe, Japan and the United States. If it expands to the global scope, the future will be bright. In the next few years, the global direct mining amount of NetEase koala will reach more than 20 billion dollars.

In fact, the reason for such a big gamble, Ding Lei in his speech revealed the ultimate idea to expand domestic e-commerce.

Ding Lei further explained that NetEase did not want to be an intermediary, nor did he want to be a landlord. "We want to be your partner, to show you about China, to discover China, and to help you share the hardest work. The only thing you need to do is produce good products. Ding Lei said.

According to the data, in the first half of 2018, NetEase Koala signed strategic cooperation agreements with nearly 50 global famous brands or groups to promote cooperation with brand parties, including commodity procurement, commodity development and brand promotion.

According to the previous layout of Netease, Netease Koala has launched the global factory store business, and even intends to penetrate the development ideas into the factory side, to help the factory operate its own brand, and to carry out product, brand, marketing and sales portfolio innovation.

In this regard, some insiders told reporters that this shows that Ding Lei really found his own development ideas, and this move may break the original intention of Netease Koala's development.

On November 9, a reporter from the Cathay Times addressed the relevant person in charge of the power grid. However, as of the press release, the other party had no specific response to the issue.

The dilemma of niche brands

"Although Netease Koala is a leader in the overall growth of Netease's performance, it is still a minority brand in the eyes of most consumers and experts, and this time Ding Lei announced new development ideas for the first time, which will undoubtedly break the minority image in the hearts of consumers." Insiders told reporters.

Over the past two years, as the main force of Netease e-commerce business, Netease Koala Haishou continued to lead the industry in mid-2017. According to the previous results of Netease in the fourth quarter of 2017 and the whole year of 2017, although the growth of games has slowed down, the net income of Netease's e-commerce business in 2017 was 11.67 billion yuan, an increase of 156.9% over the same period of last year. In 2018, this strong trend continues, especially in the second quarter, Netease e-commerce maintained a steady growth rate of 75% in the second quarter, with gross profit rate rising to 10.1%.

In this regard, some insiders told reporters that this is mainly the continuous influence of Koala as a niche brand, which also positioned the development of Koala. This time, NetEase Koala suddenly announced that it would change its previous development strategy and choose a partner's development model. Whether this outstanding performance can continue is still the biggest challenge at present.

According to the report on the market competition pattern and future development trend of China's online shopping industry from 2018 to 2024 published by Zhiyan Consulting Network, the growth rate of Internet retail sales began to decline in 2013, and increased by 21.28% in 2017, with the growth rate reduced by more than half in four years. The growth rate of online shopping market scale is expected to continue to decline this year and 2019.

Nevertheless, in an interview with the media after the meeting, Ding Lei said that the better we can do, the more strict the selection, the larger the size of pork and the larger the pig farm. After the transformation partnership mode, can NetEase koala break through the "niche" positioning of consumers? In this regard, our reporter will continue to pay attention.


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