B2B tends to become the main driver of E-commerce growth in the nearest future.
Even now global B2B E-comm is three times bigger in volume than B2C segment. Only in China B2B E-commerce revenue has reached $2,000 bn. More than 10 million companies worldwide are using marketplaces like Alibaba or Aliexpress. In fact, we face a generation used to buying goods in one click using all the benefits of E-commerce.
Therefore Russia is still far beyond booming global B2B E-comm, despite forecasted growth of 18% in 2020. Potential clients, multichannel sales, general Internet availability provide a basis for automation of sales in the Internet for B2B players. Taking in consideration the evolution of business, we understand the necessity to establish a unified trade platform for B2B business in Russia. At the same time, it has to suggest a number of strong advantages to compete on the market.
On the first step, the platform will be aimed at wholesale suppliers of products from Russia and buyers from China. With time, other countries and categories might be added to the platform.
Background
The reason for the creation of a unified electronic platform lies in the demand of Russian producers and consumers to get access to the internal and external markets, the need to grow quality and sales of the products as well as technological and production resources development, the use of capacity, financial stability and economic growth of Russia and China.
Russian business, regardless of geographical placement, turnover and matrix size will get an opportunity to add their products and raw materials to the platform while Chinese companies will be able to purchase from them directly at a good and transparent price.
Special attention will be paid to the convenience and usability of the platform: intuitive interface, ease of uploading and selection of products, search algorithm giving relevant results. Besides, the platform will help to calculate logistics, insurance, help to create a customs declaration if needed or offer competent consultants assistance.
The platform is supposed to become an efficient channel of communication between suppliers and customers.
Main advantages
- Automatic e-documentation
- Automatic calculation of logistics, insurance and customs-following services
- Contract production
- Rating system
- Access of business to the international markets
- Access to civil production of ex-military industrial plants after diversification
- Other infrastructural solutions
Contract production
Contract production model supposes building infrastructure to produce goods placing orders at the Russian producers with free capacity and maintaining quality control as well as full technological cycle based on client’s brief. Client will be able to find a producer, agree on the terms of the contract and start production. The first step of contract production will cover agricultural companies.
Military industrial producers
One of the key features of the platform is the involvement of ex-military industrial plants after the process of their diversification – a shift from military to civil production. Ex-military suppliers will get an access to new sales channels, while customers will access new innovative products.
We suppose that a new B2B platform is a way to implement Russian national projects as well as Chinese national project “One belt – One way” and strengthen multinational trade and economic relations. In fact, the platform may become a part of the international partnership mechanism.
Another strength of the platform is the development of a new digital economics that will optimize production process and lower the costs due to its convenience and speed.
The platform will help to implement economic policy of Russia, aimed at the development of positive conditions to business, lower inflation and the growth of industrial capacity that will terminally lead to the common strategic goal – economic growth.
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Author: member of the RAUIE, Vice-President for Mobile and Electronic Commerce of RFI Bank JSC - Elena Chizhevskaya