Merchants implementing the standard product strategy can achieve very low prices due to their mature supply chains, attracting consumers with the advantage of good value for money and achieving revenue growth at the initial stage through the diversion of third-party platforms, which is also the traditional model of "Made in China" going abroad in the original foreign trade industry, i.e. from the end of the industrial chain.
This is the traditional model of "Made in China" from the end of the industry chain, i.e. entering the market with cost advantages. For this type of merchant, who has a standard product strategy or is just starting, a third-party platform can better meet their needs, relying on the platform to attract traffic, without the need for more marketing investment.
However, with the development of the domestic economy, the gradual disappearance of the demographic dividend and the transition of the low-end supply chain to the high-end, the cost advantage of commodities is declining, and many enterprises, especially those who started as OEMs (original equipment manufacturer ) in the early days, are facing fierce price competition in the same industry, and their profit margins are gradually shrinking, and they are facing the crossroads of transformation. This kind of involutional competition will make brands miss the opportunity to upgrade their product technology, functional quality, and brand image in all aspects, thus gradually losing their core competitiveness, and when the cost advantage is no longer available in the future, it will be difficult to gain the favor of consumers.
Therefore, more and more domestic entrepreneurs, at the very beginning, take product differentiation and brand value enhancement as the leading development direction, avoiding the already competitive and weak profit market of standard products and making full use of the advantages of online sales to create a DTC brand strategy. It is about building a long-term brand value story from top to bottom, polishing the product, keeping in line with market demand, and attracting consumers who recognize the brand and have enough loyalty to form a long-term core competence.
For these businesses, an independent website model that better reflects their brand image builds brand value and goes directly to the consumer is a necessary option in their development path to the sea.
Finally, in terms of the different roles, they play in the industrial process, the third-party platform model and the independent site model each have their advantages and disadvantages, and their market positioning remains complementary.
Independent sites are more suitable for mature merchants who wish to build brand power at the outset, have some independent marketing capabilities, and can access traffic alone to open up the market. For new merchants with zero experience in cross-border e-commerce, it is more suitable for them to open up the market first through the third-party platform, to improve the direction of product selection and operation ideas with lower trial and error costs.
【Source text: by report】