| Danial Norjidi |
DIGITAL globalisation is revolutionising the way we communicate, the way we purchase online and the way we receive education, and one way for businesses to adapt is to embrace cross border e-commerce.
Tony Tao, the Vice President of DHgate discussed the potential opportunities of e-commerce while delivering a presentation at the 1st MSME Innovation Conference, themed ‘Enabling access to the Digital Economy’, which took place earlier this month at the Brunei International Defence Exhibition (BRIDEX) International Conference Centre in Jerudong.
DHgate is a business-to-business e-commerce website that facilitates the sale of manufactured products from small and medium enterprises to buyers. Founded in 2004, DHgate has approximately 10 million global buyers from 230 countries and regions, with 1.4 million sellers offering 40 million products. The platform allows buyers to directly purchase and connect with global manufacturers from leading brands.
Tao began his presentation by sharing some global statistics. “There are already over 900 million people talking through the Internet, through social networks. There have been more than 300 million people purchasing overseas products on digital platforms. And there have been more than 13 million people receiving online education,” he said. “All these things which were hard to imagine in the past have become very common nowadays.
“Thanks to digitalisation, globalisation is speeding up. Digital globalisation is revolutionising the way that we communicate, the way we purchase online and the way we receive education.”
Tony Tao, Vice President of DHgate speaking during the 1st MSME Innovation Conference. – AZROL AZMI
He touched on how e-commerce has changed the ecosystem. “On the one hand, you can see that a lot of manufacturers, traditional trading companies and retail stores are shrinking or closing down. On the other hand, there are tens of millions of micro, small and medium enterprises (MSMEs) already starting to run their business by e-commerce and within 10 to 15 years, half of the factory workers’ jobs will be replaced by machines.
“So you can see how this world is changing, and only those that adapt to the new world can survive.”
Tao then discussed cross border e-commerce. “I think many of you have some barriers in your mind preventing you from making the first step. How can I ship the goods to a customer in Indonesia? How can I receive money from buyers abroad with different currencies? I know many of you are doing marketing on Instagram with existing followers. And most importantly, how can a buyer trust you if all he or she knows about you is who you are, and what will happen if you didn’t deliver the goods to him/her?
“And that’s why I think digital platforms play a role to help our SMEs to make their first step and start up their e-commerce.”
He then proceeded to discuss how digital platforms are helping SMEs. He highlighted that a digital platform has many solutions, helping SMEs to receive money and have logistic solutions.
“And most importantly, there will be a standard process and policies making sure that buyers are protected. Buyers will have very good knowledge of the platform rules and they are safe to shop online.
“They know if they meet any problems whenever a product was not delivered or there are any problems with the quality, it can be reported and the product can be returned.
“So that’s how a platform is building its trust system and building its services to help our SMEs to start their online business.”
Sharing some examples from China, he began by discussing a traditional manufacturer who, in 2008, saw his business destroyed completely by the financial crisis, with clients cancelling orders and suppliers chasing unpaid bills.
“The only way to end its misery seemed to be closing the company,” shared Tao. “But he didn’t give up. He tried every means, through traditional channels to sell his product but nothing worked, until he put all his money on digital platform. Years later, he recorded that this was the most important and right decision in his career. At the end of the day, he has expanded his business to more than 100 countries and increased his profit margin by six times, with only a small team.”
Another example he shared was that of a woman who graduated college five years ago, and wanted to start her own business and practise what she learnt from college into the real business world, but the young girl had no money, no experience and no social connections.
“She found it very hard to start her own business. Then, she found another way. She built an account on a digital platform and started her on business. After five years of operation, she has built her own brand called Sarah Bridal, and sells to more than 50 countries, with more than 100 designers and 10 manufacturers working for her.”
“So these stories happen every day in China, and I believe it can be your entrepreneurship stories as well,” he said.
On what the future looks like, he said, “With cross border e-commerce, Malaysian farmers can sell to international buyers their fruits, without anything going to waste, and Bruneian designers can sell hand-made products globally. A mum can stay at home, take care of her baby and do part-time jobs, and kids can receive education without going out of their hometown.
“I believe that you can take away from today and learn that this is an inevitable trend that has penetrated into every corner of the world. Today is the spring of innovation or the winter of stagnation – the choice is in your own hands,” he added.
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