China e-commerce: how SoftBank-backed Firework aims to help mainland merchants sell directly in overseas markets
- Firework, which set up its Hong Kong office this year, aims to help mainland merchants transform their websites into social and storytelling hubs
- The company’s flagship video commerce solution provides each merchant with a virtual showroom, which can operate in real time or pre-record campaigns
California-based Firework, which set up its Hong Kong office this year, is now bringing its solution to mainland merchants to transform their websites into social and storytelling hubs, so they can build deeper, long-term relationships with customers.
Luk pointed out that the brands he works with prioritise “authenticity, personalisation and emotional connection” with customers, especially when their average order value is worth more than US$50.
The emergence of technology providers like Firework coincides with a growing DTC trend in cross-border e-commerce, in which merchants build their own websites rather than rely on large third-party platforms to sell overseas, according to a DTC independent brand report by GoodsFox, a global marketing data analytics platform.
“Chinese sellers are moving from focusing on cost advantage to prioritising brand value and user experience,” the report said.
One major factor for merchants to set up an independent website is to build brand value and improve shopping experience, while mitigating compliance risks and various restrictions associated with third-party platforms, according to the report.
“We expect a decent portion of our revenue will come from the Greater China region in the next few years,” Luk said.
China’s cross-border e-commerce exports in 2023 grew 19.6 per cent year on year 1.83 trillion yuan (US$252.9 billion), according to China customs data. That figure is expected to reach 2.66 trillion yuan in 2025, according to data from iiMedia Research.
There were 31,500 cross-border e-commerce enterprises operating on the mainland as of July 2023, with exports amounting to 1.55 trillion yuan in 2022.
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“What we are seeing is that the Greater China region is creating a lot of high-quality products. These are very competitive in overseas markets and get a lot of traction,” Luk said. “We’re betting on the future of the Chinese supply chain, which I believe is the best in the world.”