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Xuchang Hair Products Industry Annual Cross-border E-commerce Logistics Costs Over 300 Million
Jan 11, 2019

For the "influx of people" who love beauty, wearing different styles of wigs, you can "seventy-two changes."

This gave the opportunity to people in Xuchang, Henan.

Today, Xuchang City has become the largest distribution center and production base for hair products in the country and the world, and its hair products have been “pursued” by people who love beauty around the world.

However, with the development of cross-border e-commerce and the increase in the export volume of hair products, hair products companies that export by traditional express delivery are faced with new problems such as difficulties in settlement and increased logistics costs. How to solve them?

data

Hair products cross-border e-commerce daily 10,000 single

On March 27th, Henan Aviation Logistics Enterprise and Hair Products Enterprise Docking Cooperation Symposium was held. The meeting discussed the new “difficulties” encountered by hair products enterprises.

Zhang Wei, vice chairman of the Xuchang CPPCC and director of the Bureau of Commerce, said that the hair products are the pillar industries of Xuchang's foreign trade. During the “Twelfth Five-Year Plan” period, the total export volume of hair products in Xuchang City exceeded US$2 billion annually, accounting for 60% of the total export volume of hair products. More than %, accounting for more than 60% of the total export of hair products in the country. There are more than 240 enterprises engaged in the production and import and export of hair products, and the number of production varieties has reached more than 3,000. Products are exported to North America, the European Union, Africa, Southeast Asia and other places, trading partners reached 120 countries and regions.

In addition, according to reports, Xuchang hair products have developed rapidly in recent years, and have realized the transformation from rough processing to deep processing, from raw material distribution to finished product production base, from human hair products to chemical fiber products, and become the largest hair product distribution center in the country and the world. And production base.

At present, the number of hair products enterprises in Xuchang City accounts for more than 66% of the total number of foreign trade enterprises in Xuchang City, one enterprise with an annual export value of more than 100 million yuan, two enterprises with more than 50 million yuan, and 33 enterprises with more than 10 million yuan. Twenty-two hair products companies set up overseas branches in 16 countries and regions, reaching 48, directly driving exports of 156 million US dollars.

In addition, the market share of Xuchang hair products in North America and Africa is over 20%, and it is increasing year by year. In terms of cross-border e-commerce transactions, Xuchang’s products maintained a growth rate of more than 400% in the Alibaba hot sales ranking.

According to Wang Xixiang, secretary general of Xuchang Hair Products Association, in terms of cross-border e-commerce, the preliminary statistics of Xuchang's hair products trading volume reached 10,000 yuan per day, and the average customer price was 100 US dollars. On the day of 2017, only 11 days, only Xuan City Jian'an District Electronics The business industry park sent more than 40,000 packages.

phenomenon

So expensive! Exporting a single wig will only cost 150 yuan for logistics.

With the increasing demand for overseas purchases of hair products, hair products industry transactions have also shifted to B2C.

Wang Xixiang said that at present, the entire hair products industry has been converted into B2C trade in large quantities. According to incomplete statistics, the annual B2C trade in Xuchang City is at least 300 million US dollars, but this part of the data is not included in the customs statistics, making the hair products enterprises face export. Some dilemmas.

Du Rongqing, president of Xuchang International Trade Network Merchants Association, further revealed that according to relevant regulations, small parcels that did not reach a certain weight were not included in the customs statistics, and the export data was lost.

It is reported that when the hair products industry is exported, because these data cannot be presented, it is not included in trade statistics, and it is difficult for enterprises to reasonably enjoy preferential policies related to exports.

"For example, it is difficult to refund taxes, difficult to settle foreign exchanges, and difficult to restore data." At the meeting, representatives of hair products companies pointed out new problems.

Zhang Xiang, general manager of Zhengzhou Chengchi Express Co., Ltd. told Henan Business Daily that the previous parcels were sent by postal means, and there was no way to retain the data. The foreign trade mailings of the products were fragmented, and many were sent by small parcels.

In addition, representatives of several hair products companies mentioned that due to the recent increase in logistics prices, hair products companies need to find good logistics channels and establish a complete set of cross-border e-commerce logistics solutions to help enterprises reduce logistics costs and respond to international The price increase of the express channel.

Rebecca's relevant person in charge said that according to the number of exports of 300 orders per day (equivalent to about 100,000 orders per year), there are 10 million logistics costs for the whole year. With the upcoming logistics price increase in April, the price per order has risen from 95 yuan to 150 yuan, and the company will bear 16 million international express logistics costs a year.

explore

Innovative cross-border trade supply chain gives enterprises double “burden reduction”

It is understood that with the rapid development of cross-border e-commerce, more and more hair products are exported in B2C mode. In the previous survey, the Provincial Department of Commerce found that many single items were declared from the north to the Guangzhou-Shenzhen, and the transportation cost was high, which caused the loss of export data.

"Changes in trade methods have also caused hair products companies to face some problems." Zhang Yanming, secretary of the Party Committee of the Provincial Department of Commerce, said that most of the hair products companies in the province are through international express delivery giants such as DHL and UPS, from Shenzhen and Guangzhou. Cities such as Shanghai have declared their exits, which not only led to the loss of huge export trade data from our province, but also increased the logistics costs of enterprises.

Currently, our province is accelerating the creation of the “Silk Silk Road. More and more Henan logistics enterprises are carrying out air cargo business. However, due to the poor communication channels between logistics enterprises and hair products companies, many hair products enterprises still do not understand Henan. Provincial aviation logistics companies can provide professional integration services. Gao Xiang, deputy director of the Henan Provincial Department of Commerce, said that the business hall held the symposium.

It is reported that in order to promote customs clearance and trade facilitation, in 2017, Zhengzhou Customs and Henan Entry-Exit Inspection and Quarantine Bureau took the lead in creating a “9610” cross-border export model in the country, realizing “list of nuclear deposits and summary declarations” for export commodities, and exploring and implementing “ Simplify the declaration and export tax rebate.

In addition, some companies have sought cooperation with hair products companies to explore new logistics models, provide professional integrated services for SMEs, help companies reduce trade costs, solve data loss and other issues, and help companies explore the international market.

For example, in 2018, Beijing Cat E-Commerce Co., Ltd. and Xuchang Ruimei Zhenfa Co., Ltd. reached a cooperative relationship. On February 2, they passed the Xuchang-Zhengzhou-British wig export B2C first order, and received the goods from home. Delivery is only 3.5 working days. This is undoubtedly a new attempt for hair products companies that rely on traditional mailing methods in foreign trade.

The person in charge of Xuchang Ruimei Zhenfa Co., Ltd. said that this attempt not only reduced the logistics cost, but also helped the company to restore and preserve the foreign trade export data, so that enterprises can apply for tax rebates and subsidies, which is equivalent to giving enterprises double burden reduction.

In order to further explore cooperation, at this meeting, Beijing Cat and Xuchang Ruimei Zhenfa Co., Ltd., Henan Xinbaifu International Logistics Co., Ltd. and Xuchang Jinfuyuan Hair Products Co., Ltd., Henan Weiku Supply Chain Management Co., Ltd. and Henan Rebecca Hair Products Co., Ltd. signed a cooperation agreement on cross-border e-commerce supply chain cooperation projects.


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