Core conclusions:On October 14th, General Administration of Customs of China announced that in the first three quarters, China's imports and exports to ASEAN amounted to 6.84 trillion yuan, a growth of 22.7%. Exports to the EU reached 4.78 trillion yuan, with a growth rate of 8.4%. Exports to the United States were 3.18 trillion yuan, representing a growth of 4.1%. Imports from free trade partners totaled 19.55 trillion yuan, representing a growth of 30%. These imports and exports accounted for more than 70% of China’s total foreign trade volume. Given this significant focus on ASEAN and free trade partners, over 50% of the annual budget should be allocated to regions with growth rates exceeding 20%. The platform strategy should involve having “1 main hub + 2 supplementary channels,” rather than creating separate accounts for each platform.
1. First, let’s see where the increment lies: there are three numbers that can be used directly.
The first number is 22.7%, which represents the growth rate of imports and exports to ASEAN in the first three quarters. The second number is 4.1%, indicating the growth rate of imports and exports to the United States. The third number is 30%, representing the growth rate of imports and exports to other trading partners. This category accounted for more than 70% of the total increase in foreign trade. The relationship between these three numbers shows that, with the same development budget, investing in ASEAN can yield higher returns compared to investing in mature markets.
This doesn’t mean giving up opportunities in Europe and America. Orders from Europe and America usually involve more stable amounts and payment terms, making them a reliable source of cash flow. As for ASEAN and other trading partners, they represent potential sources of growth. A practical approach would be to keep the existing channels active in Europe and America, while focusing the additional budget on ASEAN and other trading partners. In this way, both areas won’t compete with each other.
II. The platform doesn’t simply select one candidate; instead, it assigns a team composed of members from four different roles to carry out the tasks.
The available channels can be divided into four categories. B2B platforms serve the purpose of being “found by others”; buyers search with clear purchasing needs, and their intentions are clearly defined. Independent websites, on the other hand, serve the purpose of “communicating with oneself”. Product documentation, certifications, and case studies are all organized by the website itself, making it suitable for targeting long-tail keywords and building brand reputation. Social media and content channels play the role of “continuous engagement”, helping to build rapport with unfamiliar customers. Offline exhibitions, finally, serve the purpose of “efficient networking” – one encounter can make a crucial step in establishing trust.
A common mistake is to allocate all the budget to a single type of customer base. For example, focusing only on B2B platforms means that the number of inquiries depends on the platform’s traffic policies. Similarly, focusing only on standalone websites means that it may take six months before any valid inquiries are received. Finally, focusing only on exhibitions means that there is no continuous follow-up after just two meetings per year. After dividing the resources by customer types, it becomes clear that each channel requires different evaluation metrics: for platforms, focus should be on the number of inquiries and the effective inquiry rate; for standalone websites, attention should be paid to organic traffic and user engagement time on the website; for social media, importance should be given to reach and interaction with users; and for exhibitions, attention should be paid to the number of business cards distributed and the conversion rate after the exhibition.
| channel role | Initial investment range | Suitable factory type |
|---|---|---|
| B2B platforms (found by others) | Annual fee ranges from 30,000 to 90,000 yuan, plus promotion fees | A foreign trade team that can standardize products and generate visual materials for documentation purposes. |
| Independent website + Search advertising (Self-promotion) | Website construction costs range from 5,000 to 20,000 yuan. The expenditure is allocated monthly. | Factories that have the necessary skills and can produce product documents. |
| Social media and content marketing (continuous engagement) | Primarily manual labor, with an average monthly salary of 3,000 to 10,000 yuan. | Manufacturing enterprises with production lines/customs that can be photographed |
| Offline exhibitions (efficient way to meet people) | The total cost for a single period ranges from 80,000 to 200,000 yuan. | These products are suitable for on-site demonstrations, and are ideal for factories that want to introduce new products to the market. |
III. Allocation is divided into three levels based on budget size
For projects with an investment of less than 300,000 yuan, the recommended configuration is “1 B2B platform + a standalone website + relevant content”. It’s advisable to choose a platform that aligns well with the target region. The standalone website should be built using pre-designed templates, while the content should consist of product documentation and real-life photos from the production site. The key point here is to avoid spreading resources too thinly; instead, focus resources on two or three main categories, ensuring that all necessary materials are available and responses are provided promptly.
Those companies that invest between 300,000 and 1 million yuan can be equipped with “2 platforms + independent websites + search advertising + 1 exhibition campaign”. Such companies now have the capability to create products in smaller languages, such as Spanish, Russian, and Arabic, thereby catering to the search preferences of non-English-speaking buyers.
For those with an annual investment of over 1 million yuan, the recommended configuration includes “multi-platform matrix, independent website cluster, search and social media advertising, as well as a comprehensive annual exhibition campaign.” The focus of this category has shifted from whether there are channels to how these channels can be utilized to drive traffic between each other. Buyer lists obtained during exhibitions can be used for social media retargeting, while data from inquiries made through various platforms can help determine which keywords should be targeted on the independent websites.
IV. Adjusting the number of units dispatched: Consider both the cost of inquiries and the conversion rate of those inquiries into actual transactions.
Whether or not to allocate budget for certain channels can be determined by two factors. The first is the cost per valid inquiry, which is calculated as the total investment in a particular channel during a month divided by the number of valid inquiries. A valid inquiry refers to those inquiries that include specific product models or quantities requested. The second factor is the conversion rate, which is calculated as the number of customers who convert from inquiries to actual purchases divided by the number of valid inquiries. It’s only meaningful to consider both factors together: if a channel has low inquiry costs but also a low conversion rate, then spending more money would simply result in more ineffective communication.
Example of conversion: A factory invests 36,000 yuan annually in Channel A, resulting in 180 valid inquiries throughout the year. The cost per inquiry is 200 yuan, and 6 customers are converted into sales. The conversion rate is thus 3.3%. In Channel B, the factory invests 120,000 yuan annually, generating 300 valid inquiries. The cost per inquiry is 400 yuan, and 15 customers are converted into sales. The conversion rate here is 5%. Although the cost per inquiry in Channel B is twice as high, the conversion rate is half higher, and the number of customers converted into sales is nearly three times higher. Such channels deserve budget allocation. The key metric for evaluation is “the cost per customer acquired”, not the price per inquiry.
5. Common questions
With a budget of only a few hundred thousand yuan, should we focus on building a platform first, or start with building an independent website?
First, create a platform. A platform already has its own audience and search intentions; thus, it can get inquiries more quickly in the initial stage. By using actual inquiry data, we can determine what products are being asked about in international markets, and where there are potential areas for improvement. It’s better to establish an independent website only after gaining some inquiries. The content on the independent website should be based on real inquiries, rather than designed based on hypothetical structures. Only after the platform has been running for one year and has received over 50 valid inquiries should we decide on the main products and keywords for the independent website.
2. Is it worth working on materials in lesser-known languages? Which language should be dealt with first?
It’s worth doing, but priorities need to be determined based on the target regions. For the ASEAN market, English is widely used, and the demand for local languages is relatively scattered. In Latin America and some Southern European markets, Spanish should be given priority. For Russian-speaking regions and Central Asia, Russian is the preferred language. In the Gulf countries, Arabic should be given priority. The approach involves creating versions of the product specifications, certification lists, and operating instructions in the respective languages. It’s important to include English translations alongside the local versions, to avoid misunderstandings caused by translation errors.
3. There are fewer and fewer inquiries from platforms. Is it because the platforms themselves aren’t good enough?
First, eliminate three internal factors, and then determine the platform to use. First, check whether the product information is complete—whether fields such as specifications, certifications, delivery dates, and minimum order quantities are filled out properly. Second, consider the response time: there is a significant difference between responding within two hours during working hours and responding the next day. Third, ensure that the keywords covered by the products remain relevant according to buyers’ search habits. If all these aspects are addressed and inquiries continue to decrease, then consider adjusting the combination of platforms or switching to a different leading channel.
For factories that engage in foreign trade, choosing the right channels is essentially a matter of prioritizing resources. It’s important to first determine which regions will generate the most growth, and the actual cost of processing each inquiry. Only after that can decisions be made regarding where to invest money.
Qihang Zhilian Foreign Trade Research Institute·Let China's intelligent manufacturing industry set sail to sea·Tel: 180-0327-6609
