Shenzhen, a booming city on the south coast of China, close to Hong Kong, wishes to add to its higher-tech export with the help of e-commerce.
Affected by the current global slump, Shenzhen’s neighborhood companies, mostly SMEs heavily relying on export, are in a hard time to increase revenues as usual, meanwhile with maintaining charges down becoming a prominent problem. In this situation, Shenzhen Government sees a opportunity to upgrade these enterprises with the help of e-commerce, deemed a extremely expense-effective channel to reach purchasers. www.ecvv.com, an revolutionary organization-to-organization site that provides online presentation for suppliers and goods, is amongst the e-commerce firms chosen to back up by the government.
These days, Shenzhen’s economics much incline to export-oriented producers, 99% of which are SMEs. For the past years, these enterprises have produced the city’s miracle of rapidly improvement. Scenario, nevertheless, is not always very good. They are also the ones that climate the austere climate of global economics. To help smaller sized businesses get by way of the difficulty, Shenzhen has put the help to e-commerce on the agenda, in the hope of recharging higher-tech production with higher-finish Internet solutions.
The government has promised to prop Internet service providers that are able to bring a lot more value to SMEs. Assistance policies involve introduction of talents, establishment of Internet industrial parks, tax reduction or exemption, and subsidies for overseas advertising.
According to Mr. Feng Dechong, vice director of Shenzhen Modest and Medium-Sized Enterprises Center, e-commerce has great prospective. Only 11% of the SMEs are making use of Web for transaction and business development. And in Japan and South Korea, firms who use e-commerce much more normally have greater transaction quantity by 1 to 2 percentage points.
Most SMEs in Shenzhen are victims of the worldwide wide recession triggered by soaring oil cost as nicely as domestic deflation policy, A most recent report shows that in the 1st half year of 2008 67,000 SMEs in the nation went bankrupt and far more than 20,000,000 workers lost their jobs. Even in Zhejiang, the province with the most SMEs, 20% closed as a result of insufficient fund and decreased production.
What need to the surviving SMEs do? “With the progress of e-commerce, SMEs are far more probably to get rid of the challenging circumstance. But B2B is not the remedy-all. SMEs need to constantly be concerned about how to put fees down to improve competitors, beneath any situations. Putting cash on affordable and efficient channels, specially when the market is tight, is the ultimate way to make a good results. In that sense, B2B is a answer.” Mr. Chen, CEO of ecvv.com, pointed out.