Foreign Trade Professionals Seek to Avoid Involution in a Competitive Market
By [Your Name], Senior Journalist and Editor
The term involution has become a buzzword in China, referring to a state of intense competition where individuals or businesses engage in increasingly unproductive and self-defeating activities. Thisphenomenon is particularly prevalent in the foreign trade industry, where companies are struggling to stand out in a crowded market.
In a recent article published on the popular foreign trade platform, Mike Circle, a seasoned foreign trade professional, known as India’s Little Prince Alwen, shared his insights on how to avoid involution in the industry. Alwen, who has extensive experience working in the United Statesand Vietnam, believes that finding a niche market and focusing on differentiation are key to success.
The Importance of Niche Markets and Differentiation
Alwen argues that the United States, being the world’s largest consumer market, offers awealth of opportunities for foreign trade professionals to identify niche markets and develop differentiated products. He highlights the following reasons:
- High per capita GDP: With an average per capita GDP of $7-8,000, Americans have disposable income to spend on a wide range of goods and services, leading to diverseand often personalized consumer demands.
- Diverse demographics: The United States is a melting pot of cultures and ethnicities, creating a unique market with specific needs and preferences that can be targeted through niche products.
- Strong entrepreneurial culture: The US fosters a vibrant entrepreneurial ecosystem, making it easier to find partners andcollaborators who can help foreign trade professionals navigate the market and understand consumer trends.
Alwen’s own experience exemplifies this approach. He initially focused on the B2B market, providing customized products to institutions, government agencies, and schools. While this strategy yielded high profit margins, it was limited by low customer repeat rates and industry cycles.
To overcome these challenges, Alwen ventured into the B2C market through TikTok-based e-commerce, leveraging his expertise in B2B to develop tailored products for specific niches. He emphasizes the importance of understanding consumer needs and adapting products accordingly. For example, he describes a successful project where they developed achild-safe air diffuser for the US market, targeting a specific demographic with unique safety and health concerns.
The Value of Domestic Collaboration and Supply Chain Optimization
Alwen stresses the importance of building strong domestic supply chains and collaborating with local partners to achieve sustainable growth. He argues that the trend of foreign tradebecoming domestic trade is crucial for foreign trade professionals to embrace.
He shares his own journey of forming a joint venture with a US partner, establishing a company in the US market to develop customized products specifically for American consumers. This partnership has brought significant benefits:
- Improved market access: Having a local partner facilitatesmarket access and builds trust with American clients, overcoming potential cultural barriers faced by foreign companies.
- Enhanced marketing and brand building: US partners bring valuable expertise in market research, branding, and marketing, which are crucial for success in the American market.
- Strengthened supply chain: Collaborating with domestic partners allowsforeign trade professionals to leverage local resources and expertise, optimizing their supply chain and product development processes.
Harnessing the Power of Cross-Border E-commerce and Global Branding
Alwen believes that foreign trade professionals who have established strong domestic partnerships and differentiated products can further leverage the growing trend of cross-border e-commerceto build global brands.
He highlights the advantages of utilizing Chinese e-commerce expertise and resources, particularly in the areas of:
- Cost-effective talent: China offers a pool of skilled and affordable e-commerce professionals, which can be leveraged to manage online platforms and optimize marketing campaigns.
- Supply chainefficiency: China’s robust manufacturing and supply chain infrastructure can be utilized to produce high-quality products at competitive prices.
By combining Chinese e-commerce expertise with US market insights and branding strategies, foreign trade professionals can build strong brands and expand their reach globally. This strategy requires a deep understanding of target markets, a commitment toproduct quality, and a focus on building long-term relationships with customers.
Conclusion
Alwen’s insights offer valuable guidance for foreign trade professionals navigating the increasingly competitive global market. By focusing on niche markets, differentiating products, building strong domestic partnerships, and leveraging cross-border e-commerce, they canovercome the challenges of involution and achieve sustainable growth. The key lies in embracing innovation, collaborating effectively, and building strong brands that resonate with global consumers.
Views: 0