Launch of Large Model Product 'Turing' - Alibaba's E-commerce Business Focuses on AI, 2024 Cross-border E-commerce Industry Development Analysis
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According to LatePost, Alibaba's Taotian Group has recently streamlined its AI business, consolidating from about 20 teams to 4, and internally released its own large model product 'Turing'. Currently, the AI team of the International Digital Commerce Group has exceeded 100 people.
In September this year, Alibaba's new CEO Wu Yongming established 'AI-driven' as one of the group's two strategic focuses in an internal letter to all employees. On November 29, 2023, Taotian Group CEO Dai Shan and others jointly led the team's formation. Taobao will leverage the group's technological and data capabilities to upgrade all existing merchant tools and create new user products and services for the AI era.
Securities Times cited analytical views stating that AI products can enhance user experience and engagement, promote transactions, reduce costs, help customers solve transaction issues, and increase value creation for clients. Meanwhile, the match between procurement, logistics, warehousing, supplier management system data, and AI is very high. Currently, major e-commerce and offline giants have actively embraced AI to improve efficiency and products.
With the accelerated empowerment of AI, fields like e-commerce are expected to become important scenarios for AI implementation, and the valuation of related industrial chain companies is expected to rise. According to Securities Times, companies such as Huakai Yibai and Focus Technology have relevant layouts in the AI e-commerce field.
Wang Ning, President of the China Electronic Chamber of Commerce, stated that cross-border e-commerce has become an important force in promoting SMEs' participation in global trade cooperation. Trade digitization is a key driver supporting global trade growth. It is hoped that countries worldwide can cooperate sincerely to jointly build trusted digital infrastructure and public service platforms for trade, forming an open, inclusive, and mutually beneficial digital cooperation ecosystem to expand new spaces for trade cooperation.
Customs data shows that in the first three quarters of this year, China's cross-border e-commerce imports and exports reached 1.7 trillion yuan, an increase of 14.4%; of which, exports were 1.3 trillion yuan, up 17.7%. Ministry of Commerce data indicates that over the past five years, China's cross-border e-commerce scale has grown nearly tenfold.
2024 Cross-border E-commerce Industry Development Analysis
As the latest and fastest-growing field in e-commerce development, cross-border e-commerce has become the newest and fastest-growing area of China's foreign trade. Against the backdrop of economic and information globalization, global economic integration, and the widespread popularity of e-commerce worldwide, Chinese enterprises should seize the opportunities of cross-border e-commerce to promote transformation and upgrading. Cross-border e-commerce has played a significant role in stabilizing foreign trade with advantages such as online transactions, contactless delivery, and short transaction chains.
In recent years, cross-border e-commerce has witnessed rapid development, with major e-commerce companies like Alibaba, JD.com, and Suning achieving remarkable growth. Their total merchandise transaction volumes have repeatedly reached new highs, while e-commerce technologies and transaction models have been increasingly applied and deepened across various sectors of society.
Currently, online e-commerce transactions are undergoing comprehensive integration with traditional实体经济, entering a period of explosive growth. Their impact on economic life and individual shopping behaviors continues to expand.
According to data from the General Administration of Customs, China's cross-border e-commerce import and export volume reached 2.11 trillion yuan in 2022, a year-on-year increase of 9.8%. Exports accounted for 1.55 trillion yuan (up 11.7%), while imports totaled 0.56 trillion yuan (up 4.9%).
Regionally, eastern coastal areas remain the primary hubs for cross-border e-commerce in China. In 2022, the top five provinces by total cross-border e-commerce import/export volume were Guangdong, Shandong, Zhejiang, Fujian, and Jiangxi, collectively accounting for 69.7% of the national total. Central and western regions showed faster growth rates, with Yunnan, Qinghai, Hebei, Inner Mongolia, and Sichuan leading in year-on-year growth.
China places high importance on developing digital trade and actively provides e-commerce technical assistance and capacity-building support to other developing countries. Moving forward, the International Trade Centre and China Chamber of E-Commerce will continue helping SMEs in developing countries and transition economies with digital upgrades to promote sustainable global trade development.
For example, this year supported two e-commerce training sessions in China by the International Trade Centre, building policy and international rule negotiation capabilities for over 50 government officials from developing countries. Another initiative is the "Cross-Border E-Commerce International Talent Training Program" jointly implemented with China Chamber of E-Commerce, providing students from developing countries with training and internship opportunities at Chinese e-commerce companies. These programs offer valuable opportunities for developing country professionals to gain e-commerce knowledge and practical experience.
Cross-Border E-Commerce Market Opportunities
On December 11, the General Office of the State Council issued the "Several Measures on Accelerating the Integrated Development of Domestic and Foreign Trade" (hereinafter referred to as the "Measures"). Regarding accelerating integration in key areas, the Measures specify: "Deepening pilot programs for domestic-foreign trade integration," "Cultivating integrated domestic-foreign trade enterprises," "Developing industrial clusters that integrate domestic and foreign trade," and "Accelerating brand building for both domestic and international markets."
Regarding the cultivation of industrial clusters for integrated domestic and foreign trade development, the "Several Measures" propose to foster and strengthen a number of such clusters in key sectors. It aims to advance the construction of commercial technology innovation centers, facilitating deep integration of the internet, big data, artificial intelligence, and related industries in domestic and foreign trade. The development of the "cross-border e-commerce + industrial belt" model is encouraged to drive more traditional industries to expand overseas collectively.
Guidance is provided for the gradual transfer of industries to the central-western and northeastern regions, enhancing the level of integrated domestic and foreign trade development in these areas, and supporting border regions in better connecting their distinctive industries with both domestic and international markets.
Trade digitization has emerged as a new model in international trade and a new engine for world economic development. As a significant component of digital trade, cross-border e-commerce is contributing to the advent of the global digital trade era. The deepening of trade digitization will further propel the growth of cross-border e-commerce, making it easier for small and medium-sized enterprises to enter the global market.
In the fiercely competitive market, the ability of enterprises and investors to make timely and effective market decisions is crucial to success. The cross-border e-commerce industry report compiled by China Research Network provides a detailed analysis of the current development status, competitive landscape, and market supply-demand dynamics of China's cross-border e-commerce sector. It also examines the opportunities and challenges facing the industry from the perspectives of policy, economic, social, and technological environments.
Furthermore, the report uncovers potential market demands and opportunities, offering accurate market intelligence and a scientific basis for decision-making to strategic investors for selecting the right investment timing and to corporate leadership for strategic planning. It also serves as a valuable reference for government departments.