March 20, 2020

After the Corona virus epidemic, will cross-border e-commerce usher in a new starting point in 2020?

The World Health Organization (WHO) has declared a global pandemic over a new corona virus which causes an illness known as COVID-19 that has spread to more than 150 countries and territories, the dead of 7,873 people amid almost 195,000 cases. If the outbreak of the corona virus is not taken seriously globally, it is determined to have widespread global consequences in 2020.

Looking back 17 years ago, the “SARS” has caused three huge impacts on the Internet and even business models for China:

  • Promote the vigorous development of Internet e-commerce
  • Created two Internet retail giants, Alibaba and Jindong
  • The rise of the three Internet portals Sina, Sohu and NetEase

In 2020, The global economy, trade, and offline consumption will be a big cold wave, including offline retail, catering, and tourism. With the exception of China, the world has entered a state of emergency in many places and the world is showing an explosive trend.

Due to this year’s epidemic, most people stayed in their homes, so various related business orders for home delivery skyrocketed three to five times, and the number of sales increased rapidly. It can be seen that the history of the major epidemic is repeating itself, and the crisis is also turning for the better. 

Right now, this increases cross-border e-commerce, the biggest challenge is that stock cannot be moved to China, and the international shipping cost has doubled. This is because Airlines halts most of the international flights as coronavirus restrictions tighten.

After experiencing COVID-19, consumers will be afraid of “face-to-face” shopping in a short period of time, and Internet consumption will become the preferred consumption model for consumers. This creates an opportunity for planning and starting cross-border e-commerce business.

Emerging categories such as sterilizing mop, sterilizing dishwasher, alcohol gel, and disposable hand sanitizer started to be very popular which solve the need for disinfecting effectively during the epidemic. Traditional sterilization washing machines, disinfection cabinets, and air purifiers have achieved rapid development. 

It is predicted that turnover will reach records during the second biggest online shopping festival 6.18.  At the same time, all online shopping platforms will usher in ‚ÄúRetaliatory consumption‚ÄĚ at the end of the second quarter of this year. In another word, because of the closure of various industries especially express industry, people’s shopping desires cannot be met. Therefore, when the epidemic slows down, consumption frenzy will be triggered. For the year 2020, it will be in a low-to-high pattern.

The danger and opportunity are mutual. From SARS in 2003 to the coronavirus epidemic this year, there is a possible chance for e-commerce companies to exploit this opportunity. When the epidemic is over, all industry must restart, and the winners will be the ones using time wisely.