The Shanghai Free Trade Zone is exactly 100 days old on Monday. While most pilot programs only take place within the trial area, the launch of a cross-border e-commerce service allows a wider population to enjoy the FTZ's benefits.
From bags to cosmetics, clothes to food, quite a lot of Chinese consumers are fond of foreign products. While many made purchases through third-party delivery companies or individual online vendors, some were worried about the authenticity and lawfulness of these products.
Seeing the market opportunity, the Shanghai Free Trade Zone launched the country's first cross-border e-commerce platform called "kuajingtong.com" last month. Kuajingtong says products sold on its platform are generally 30 percent cheaper than those in retail stores. Although it's difficult for the platform to beat individual vendors who can offer even lower prices, the company’s CEO says he’s confident about the platform’s competing strengths.
"Kuajigntong can guarantee the authenticity of the products with fast delivery, reasonable pricing, after-sale services and transparent taxes. I think we are changing the cross-border e-commerce industry by providing consumers with new shopping experiences," Yan Jing, CEO of Shanghai Kuajingtong International Co., says.
Yan Jing says the key to achieve these goals is to sign agreements with payment, logistics and retail companies while reaching deals with major global e-commerce giants such as eBay and Amazon. Consumers will still have to pay customs duties for their purchases, but they will be able to save money.
"Compared to the old model, the products are already in the Free Trade Zone, so consumers only need to pay customs and mail duties. This reduces logistic costs," a Shanghai Customs staff says.
The company Kuajingtong says China's cross-border e-commerce exceeded 48 billion yuan, or 8 billion US dollars in 2012. It expects the market to have grown by more than 50 percent in 2013.
Source: CCTV
