On June 11th, the Ministry of Commerce, along with nine other departments, issued guidance on expanding cross-border e-commerce exports and promoting the construction of overseas warehouses. The directive encourages local governments to utilize comprehensive pilot zones for cross-border e-commerce, industrial parks, advantageous industrial clusters, and foreign trade transformation and upgrading bases to develop models that serve as benchmarks for the "Cross-Border E-commerce Empowering Industrial Belt" initiative.
The guidance emphasizes the following strategies:
- Industrial Belt Display and Selection Centers: Encouraging regions with suitable conditions to focus on local industries and establish selection centers for industrial belts. These centers are expected to collaborate with cross-border e-commerce platforms to create dedicated online zones for showcasing local products.
- Integration of New Technologies: Supporting the lawful and compliant introduction of new technologies, such as digital humans, and expanding sales channels through online live broadcasts. This aims to boost the export of more competitive products.
- Traditional Trade Enterprises: Encouraging local governments to leverage their unique advantages to support traditional foreign trade enterprises in developing cross-border e-commerce. This includes establishing integrated online and offline marketing service systems that connect domestic and international markets.
Focus on Lab-Grown Diamonds in Overseas Markets
The overseas market demand for lab-grown diamonds is robust. However, there are inefficiencies within our domestic industry chain that need to be addressed. It's crucial to develop cross-border trade strategies promptly to avoid minimal profit margins in the value chain.
Recommendations for Cross-Border E-commerce Strategy in Lab-Grown Diamonds:
- Collaborate with Established Platforms: Partner with existing lab-grown diamond e-commerce platforms such as www.ebooom.com. Although it's a startup content e-commerce platform, it specializes in lab-grown diamond products.
- Build Offline Supply Chains: Work with lab-grown diamond jewelers to structure an offline supply chain. Ensure compliance with various certifications and entry requirements to access the European and American markets, including adhering to tax policies of the destination countries.
- Engage with Local Industry Associations: Collaborate with local industry associations to integrate into the jewelry retail market without disrupting existing marketing frameworks.
Given that the majority of the lab-grown diamond jewelry market is in Europe and the United States, which are relatively traditional and conservative, Chinese lab-grown diamond companies need to adopt a long-term mindset. Integrating into the local market is essential, as aggressive low-pricing strategies that eliminate middlemen will likely fail.