The dominance of Guangzhou-based companies, Shein and Temu, in global shopping app downloads reflects the allure of China's manufacturing prowess to international consumers. According to the recent "2024 Mobile Market Report" by data.ai, Shein and Temu secured the top two spots in the global shopping app downloads for 2023.
These two companies are formidable players in cross-border e-commerce, with Shein claiming the top spot for the second consecutive year in 2023, and Temu exhibiting exceptional growth, with a staggering 840% increase in sales in the US from January 2023 to 2024.
Industry experts attribute the choice of Guangzhou by Shein and Temu to its geographical advantage, robust infrastructure, favorable business environment, and market opportunities in cross-border e-commerce development.
Shein established its supply chain center in Guangzhou in 2014, capitalizing on the city's strong industrial foundation and the concentration of industry professionals and university talents. The city's conducive environment allowed Shein to solidify its supply chain and enhance product competitiveness, paving the way for its unique path in overseas brand development through flexible on-demand production.
Guangzhou has become a hub for high-quality cross-border e-commerce enterprises, nurturing companies like Vipshop, O'Mall, Topideal, Nansha International Logistics Center, and Jiesheng Logistics. With Guangzhou leading import volumes for nine consecutive years, it has emerged as a battleground for cross-border e-commerce giants.
The significant increase in logistics demand reflects the strong expansion demand of cross-border e-commerce giants. According to the "Guangzhou Real Estate Market Review and Outlook for 2024" report by Savills released in January, Guangzhou witnessed a significant rebound in logistics net absorption to 883,000 square meters in 2023, approximately 2.5 times the average level of the past five years. CarlbyXie, Head of Savills Southern China Research, attributed this to the strong expansion demand of a few well-known cross-border e-commerce players.
The rapid development of cross-border e-commerce in Guangzhou can be attributed to its favorable geographical and transportation advantages,withport clusters of Nansha, Shenzhen, and Hong Kong greatly facilitating maritime shipping and international trade. Additionally, the city's transportation hubs, including railways and airports, along with free trade zones like the Nansha Bonded Zone and the Baiyun Airport Comprehensive Bonded Zone, have greatly facilitated the development of logistics and commerce flows.
Moreover, Guangzhou's well-developed manufacturing industry actively embraces cross-border e-commerce during its transformation. The industrial belt undoubtedly plays a crucial role in attracting cross-border e-commerce businesses.
Taking the clothing industry as an example, Guangzhou has gradually developed a complete industrial chain integrating raw material procurement, fabric and accessory production, clothing design, manufacturing, and sales.
The city's high-quality and robust industrial foundation has become a gold mine for the development of cross-border e-commerce, with the "cross-border e-commerce + industrial belt" model contributing to a powerful combination of new business formats and high-quality supply chains, empowering numerous small and medium-sized sellers to expand globally.
Source: Yangcheng Evening News
