On the other side of the world, the time difference between Peru in South America and China is -13 hours. In this continent farthest from Asia, in this land that is most difficult for people to enter the inward global expansion, a group of Chinese global expansion brands are making big money here without any pain.
PART01 Small household appliances, porcelain and various consumer goods are sold out
In the Wholesale Center of Lima, the capital of Peru, there are all kinds of wholesalers, large and small, gathered within a few kilometers. They come from various countries in South America. They hunt for treasures from the Lima Wholesale Center and then sell the goods to many countries on the west coast of South America, earning huge profits from them.
Here, a wide range of products from China have become their favorite items. Whether it is 3C electronics, household products, leisure and entertainment or other daily consumables, everyone is welcome. China's supply chain is strong and the goods produced are of high quality and low price. For wholesalers, the profit margin is larger, so they are more willing to purchase Chinese goods.
A global expansion company from Foshan, Guangdong that specializes in small household appliances has tasted the benefits here. Like many global expansion companies, they are overwhelmed by the fierce competition in domestic trade and popular global expansion markets. However, in the wholesale center of Lima, Peru, because it is far away from the Asian continent, there are very few Chinese global expansion companies that have successfully developed customers here. They have gained another new world here.
Here they have the advantage of the right time, place and people:
First of all, the basic industries of the countries on the west coast of South America are relatively backward. Most mechanical and electrical products, daily consumer goods, textile and clothing products and other fields rely on imports, and their trade with China is highly complementary. The South American e-commerce market is in the early stages of development. Internet coverage is only 55%, and e-commerce only accounts for 5% of the market share. However, it has reached 20 billion U.S. dollars, and the market development space is huge.
Secondly, it is far away from mainland China. Everyone knows that the domestic market and many popular global expansion markets are relatively complex, and companies are under great competition pressure. However, many global expansion companies here find it difficult to easily localize and develop customers. Therefore, the competition pressure is relatively small, and global expansion companies can successfully expand overseas here.
Finally, South America has a younger population structure, higher per capita GDP, and strong spending power, which contains huge business opportunities. Compared with the involution of the domestic market and the popular global expansion market, companies have more room for premiums, and their price and profit advantages are more obvious.
Take this small home appliance company as an example. Through the online Facebook platform, they have received 700,000 private message marketing, the number of offline purchasing WhatsApp inquiries has reached more than 430, and the average monthly transaction volume has reached 1.14 million US dollars. For them, the development of this new South American market is worth the money. So why has this small home appliance company been able to successfully break into the South American market and reap the benefits? Below we expand one by one.
PART02 Overseas Exhibition and Sales Center: A new model of painless global expansion
It can be said that every global expansion company has gone through countless pains from scratch to new markets.
Pain 1: Domestic trade competition is under great pressure and involution is serious
The strong advantages of China's supply chain have allowed countless companies to rise, and it has also intensified competitive pressure. That is, serious involution has made it difficult for companies to survive. Therefore, global expansion has become a new choice for many companies. However, many popular global expansion markets, such as Southeast Asia, have already been occupied by early movers, making it difficult for latecomers to find new market opportunities.
Pain 2: Global expansion localization is costly and time-consuming
There are many problems that enterprises need to face in global expansion. One prominent point is localization. Global expansion is different from domestic trade. Enterprises need to know themselves and their enemies about the overseas market environment, humanistic environment, political environment, etc., and they also need to localize overseas warehousing, logistics, distribution, payment and other aspects. Without global expansion or finding a suitable platform, it would be difficult for companies to accomplish this, let alone in South America, which is on the other side of the world.
Pain 3: Difficulty in customer acquisition, transaction, and conversion
The core step of global expansion management is marketing customer acquisition. Customers are an important asset of the enterprise. Whether it is online marketing or offline exhibitions, marketing customer acquisition and transaction conversion are faced with the dilemma of high competitive pressure and difficult and expensive customers.
Pain 4: It is difficult for companies to establish direct contact with customers
Many companies go overseas through cross-border sales platforms, so it is difficult for companies to establish direct contact with customers. Customer data is not in hand, brand awareness is not deep, and the cost of customer repurchase recommendations is relatively high. For enterprises, there is no customer stickiness.
Faced with fierce internal competition and the pain of global expansion, companies urgently need to find a glimmer of hope in a difficult survival environment. At this time, Andes SocialEpoch Overseas Exhibition and Sales Center has solved the above problems for many companies with its new global expansion model.
Similarly, the small home appliance companies in the above cases have also faced these pains. By settling in the Andes SocialEpoch overseas exhibition and sales center, they said goodbye to various problems of global expansion in South America. Global expansion localization, marketing, warehousing and logistics, etc., can all be comprehensively solved through the exhibition and sales center.
Andes SocialEpoch Overseas Exhibition and Sales Center is an online and offline global expansion integration service jointly created by Andes (an enterprise digital transformation and upgrading service expert) and SocialEpoch (an overseas WhatsApp full-link marketing expert). Through overseas offline physical exhibition halls + online social media marketing/mall systems, corporate personnel can achieve online + offline collaborative display sales and complete cross-border transactions without physical global expansion.
The first phase of the project is located in the core area of the wholesale market in Lima, the capital of Peru, South America. There are wholesale markets around 5 kilometers away. The products radiate to countries on the west coast of South America. It has deep customer resources and huge market potential. The total exhibition area is 20,000 square meters. Not only that, the Andes SocialEpoch Exhibition and Sales Center also has 40 years of local trading experience in the local area, accumulated a large amount of local resources, is familiar with the local market environment, policies and regulations, and can provide local resources and consulting support for global expansion enterprises.
At the same time, the online combination of social media social marketing system and mall system can help global expansion companies solve problems such as online marketing, customer data retention, and online display sales, allowing companies to collaborate online and offline to truly retain customer data and directly trade with customers.
PART03 The value of overseas exhibition and sales centers
Why overseas exhibition centers are a painless and lightweight new way of global expansion compared to other global expansion modes? The reasons are as follows.
1. Real offline long-term exhibition halls: Through overseas physical exhibition halls, the products of global expansion companies are directly placed in front of overseas buyers. Overseas buyers can directly experience the products without traveling across thousands of mountains and rivers, communicate and understand, and enhance transaction trust. The most important thing is that the exhibition hall has a geographical advantage. It is located at the core of the wholesale center. Compared with other areas, it has more concentrated customers and a larger number of customers.
2. Online social media social marketing: The project includes an online social media social marketing system to help global expansion companies build marketing systems on overseas Facebook/WhatsApp and other leading social media platforms, and obtain accurate customer data to achieve batch marketing. For enterprises, online publicity guarantees are added to offline ones.
3. Build an online mall system: Build an online mall to facilitate overseas buyers to browse product information anytime and anywhere, place orders with one click, and communicate directly with domestic sales online. For enterprises, it is equivalent to having both online and offline malls. There is no need to build other mall systems and the investment cost is less. And all customers can be directly introduced to online communication, making offline customers online and making customers more sticky.
4. Direct customer connection management: Exhibition hall products are marked with company contact information, and all online and offline customer data are in the hands of the company itself. The WhatsApp SCRM customer management system helps companies retain data and manage customers. Different from other global expansion models, overseas exhibition and sales centers are pure service platforms that allow companies to directly communicate with customers through the platform, and also provide SCRM systems to help companies retain customer data.
5. Brands can grow freely and independently: Enterprises can set their own prices, make transactions, and build their own brands to achieve direct communication and management with customers. The platform is a service provider and truly helps brand global expansion.
6. Overseas exhibition and sales centers empower enterprises in multiple dimensions: service projects include overseas exhibition centers, overseas warehouses, international logistics, social owned channel promotion, online malls, customer management systems, etc. Through the integration of online-mobile-offline trinity big data + experience store marketing, we empower enterprises to grow in global expansion and do our best to solve various problems for enterprises in the process of global expansion.
Here, many companies have achieved very ideal results: as of September 2024, the exhibition and sales center has successfully assisted 65 companies, with the total monthly export volume reaching 143 containers.
PART04 The first phase of overseas exhibition and sales center: Exhibition Hall in Lima, Peru
The above small home appliance company case belongs to the first phase of the entire overseas exhibition and sales center project - the Lima, Peru, Exhibition and Sales Center. The building shown in the picture is the first phase of the Lima, Peru exhibition hall, with a total exhibition area of 20,000 square meters. This is the wholesale center of Lima. There are various wholesale markets within a five-kilometer radius, gathering countless wholesalers from all over the world. The products radiate to many countries on the west coast of South America. It is also a platform for countless Chinese global expanders to enter the South American market in the future.
Why choose the Lima, Peru showroom? It turns out that these advantages and opportunities are covered here:
1. Market advantage
Linking to emerging markets, countries on the west coast of South America have relatively backward basic industries, and most mechanical and electrical products, daily consumer goods, and light textile and clothing products need to be imported.
2. Advantages of localization
Andes has been deeply involved in South America for 40 years. It has tens of thousands of square meters of overseas warehouses and 20,000 square meters of display and experience centers. It imports hundreds of millions of dollars of goods from various countries around the world to South America every year. It is the largest importer of Chinese goods in South America. With its profound localized resources and information advantages, Andes provides maximum convenience and support for various enterprises to go to South America.
3. Price advantage
South America has a younger population structure, higher per capita GDP, and strong consumption power. Companies have more room for premiums, and their price and profit advantages are obvious.
4. Cost advantage
South America is the continent farthest from Asia, and companies need to spend a lot of time, energy and cost to go to South America. The Peruvian exhibition hall project has fundamentally reduced the costs of research, travel, marketing, shopping malls, etc. for enterprises, allowing enterprises to expand globally at a low cost.
As of September 2024, the exhibition and sales center has successfully assisted 65 companies, with the total monthly export volume reaching 143 containers. Combined with online social media marketing, a certain ceramic global expansion company did 220,000 private message marketing on the Facebook platform, and the offline promotion team received 270 precise inquiries in one month, with an average monthly transaction volume of 440,000 US dollars. The above-mentioned small home appliance companies have received 700,000 private message marketing through the online Facebook platform. The number of offline purchasing WhatsApp inquiries has reached more than 430, and the average monthly transaction volume has reached 1.14 million US dollars.
New business formats, new models, deep resource base and the development concept of mutual benefit and win-win have made overseas exhibition and sales centers begin to attract the attention of more global expanders.
PART05 New business formats and new models create new opportunities
Global expansion is difficult, but not global expansion is even more difficult. Currently, many companies are facing severe environmental situations. There are endless voices saying that they will be out without global expansion. When companies really enter the global expansion position, they find that logistics, warehousing, payment, marketing, localization... any one of them is a stumbling block, so that companies have to spend high costs and a long time to solve it. It's hard work, the results are unknown, and the risks are huge.
Andes SocialEpoch Overseas Exhibition and Sales Center has experienced global expansion and has accumulated deep offline and online resources respectively. It is committed to improving the global expansion dilemma for enterprises from the source, so that enterprises have less pressure, lower costs, shorter time, and lighter investment.
Empowering international trading companies to realize asset-light overseas localization, companies do not need physical global expansion, and products can be displayed and sold in overseas local exhibition halls for a long time. Chat with customers independently, do transactions independently, do cross-border sales independently, and build brands independently.
At the same time, taking the South American and Peruvian exhibition hall as a starting point, the exhibition and sales center will continue to explore new cross-border sales formats, new model innovation systems, and create an industrial Internet ecosystem. Continuously expand new projects in the exhibition hall vertically to serve more global expanders and more target areas, and serve as a window for linking global expansion destinations with China's superior products and for economic, trade and cultural exchanges.
