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CIW / Retail & E-commerce / The gap behind China’s e-commerce factories

The gap behind China’s e-commerce factories

January 22, 2020 By CIW Team

This is the third part of a three-part series on e-commerce companies' exploration and collaboration with the manufacturing industry. Read part 1 here and part 2 here. You can download the full eBook here.

Compared with manufacturing, China's internet companies know more about how to interact with consumers. E-commerce factories is an attempt to promote manufacturing from the consumer end.

In other words, the e-commerce factory should be that e-commerce serves the factory and the internet serves the manufacturing sector. However, in every actual case,  there is a natural underlying gap between the Internet and the manufacturing industry.
1. Gap in the supply chain
The cooperation between e-commerce and the contracting factories is not as close as it seems. The core pursuit of factories is orders and profit - lower production cost and higher selling price. Under the pressure of survival, contracting factories just couldn’t give up big orders from brands which are the main source...

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Filed Under: Retail & E-commerce Tagged With: Alibaba Group, ciw premium, manufacturing, pinduoduo, taobao

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