Matters:
Recently, the office of the US trade representative said that it would resume the tariff exemption of some Chinese imports, involving 352 of the previously 549 pending products. The exemption period dates back to October 12, 2021 and will last until December 31, 2022.
Guosen retail view: 1) the commodities involved in this exemption are mainly concentrated in the fields of electrical equipment, mechanical equipment, household consumer goods and some chemical products. Among them, household consumer goods are the common categories of B2C for China’s cross-border exports, including textiles, furniture products, household electronic products, etc. 2) In the early stage, influenced by the rising prices of shipping and raw materials, the emotional concerns brought by Amazon’s strong supervision and the higher consumption base of overseas e-commerce, the performance of cross-border e-commerce sector was under pressure. The tariff exemption helped boost the market’s confidence in the export trade environment, and the profit performance of relevant enterprises is expected to benefit; 3) In terms of investment suggestions, cross-border e-commerce enterprises mainly engaged in private brand export will directly benefit from the performance improvement brought by tariff exemption. At the same time, the strict supervision of Amazon at the industry level will help optimize the competitive environment. Among them, enterprises with strong overseas brand awareness and excellent operation ability are expected to benefit first. Anker Innovations Technology Co.Ltd(300866) , which is mainly engaged in consumer electronics products and has excellent product operation and management ability and overseas brand awareness, is recommended, And it is suggested to pay attention to the Yibai network under Hunan Huakai Cultural And Creative Co.Ltd(300592) banner and actively promote the layout of multi category cross-border e-commerce operations.
Comments:
The resumption of tariff exemption for some Chinese imports by the United States is conducive to the development of cross-border e-commerce B2C export industry
In the 352 tariff exemption list of the United States, common cross-border e-commerce export categories include household electronic products, textiles and furniture. For example, according to the 2019 report on China’s cross-border e-commerce development and opportunities issued by Kantar and Google, the category structure of cross-border e-commerce retail exports is dominated by electronic products, clothing and home gardening, accounting for 20% / 13% / 9% respectively.
Cross border e-commerce refers to the international business activities of transaction subjects belonging to different customs territories, which reach transaction settlement through e-commerce platform and deliver goods through cross-border logistics. It has developed rapidly with the advantages of reducing flow links, reducing the threshold of international trade and high efficiency of supply chain. According to the data of the General Administration of customs, China’s cross-border e-commerce import and export reached 1.98 trillion yuan in 2021. Under the influence of the epidemic, it still achieved a year-on-year growth rate of 15%, of which exports accounted for 73% and the scale was 1.44 trillion yuan, a year-on-year growth of 24.5%. Among them, the cross-border e-commerce B2C export model is directly oriented to C-end consumers and uses e-commerce platforms such as Amazon and eBay or self built websites to sell products. In recent years, a number of enterprises with independent technology and private brands have emerged to promote the global sales of Chinese brands. It is also expected to benefit from the resumption of tariff exemption for some goods in the United States and increase their performance.
According to the data of tariff rebate of relevant enterprises, 1) vesync’s self air purifier was exempted from customs duty in the US market. In 2019, it recorded a tax rebate of US $2.3 million, accounting for 3.4% of the current gross profit, resulting in an increase in the gross profit margin of 1.34 PCT; 2) JS global life recorded a tariff rebate of US $38.1 million in 2020, accounting for 2.19% of the current gross profit, driving the gross profit margin to increase by 0.91 PCT.
Investment suggestion: the cross-border e-commerce export industry continues to grow, paying attention to leading enterprises with strong brand awareness
Although the performance of the cross-border e-commerce sector has been under pressure for some time due to the rising prices of shipping and raw materials and the emotional concerns caused by Amazon’s strong supervision, in the short term, the tariff exemption is expected to boost the market’s confidence in the export trade environment. Recently, the Ministry of Commerce issued the notice on making good use of the service trade innovation and development guidance fund to support the development of new business forms and models of trade, It is proposed to increase investment in new formats and models, support the construction of cross-border service systems such as overseas warehouse and cross-border logistics, and cultivate digital trading enterprises.
In the medium and long term, the cross-border e-commerce industry is expected to usher in sustained growth momentum under the background of the continuous release of policy dividends and the improvement of overseas e-commerce penetration. The industry competition pattern is also developing towards standardization under strong supervision. Among them, enterprises with strong overseas brand awareness and excellent operation ability are expected to benefit first. It is recommended to focus on their main consumer electronics products, Anker Innovations Technology Co.Ltd(300866) , which has excellent product operation and management ability and overseas brand awareness, and it is suggested to pay attention to Hunan Huakai Cultural And Creative Co.Ltd(300592) , and its Yibai network has arranged cross-border multi category development.
Risk tips:
The overseas epidemic has an impact on warehousing and logistics; Deterioration of Global trade environment; China’s epidemic has repeatedly affected production capacity supply.
