For a month, the China-U.S. tariff war has continued to escalate, with the U.S. pressing China to counteract. Back and forth in several rounds, the U.S. unilaterally raised the peak tariff on goods imported from China to 245%, while China simultaneously implemented a 125% counter-tariff rate and clearly stated, "If the U.S. continues to impose tariffs on goods imported from China, China will not pay any attention to it."
This multi-round game, masked as a tariff dispute, actually reflects the century-long struggle for the dominance of international economic and trade rules.
Strategic Reconstruction
The self-reliance of the entire industrial chain constructs a new pivot for major country competition.
The tariff war initiated by the Trump administration stems from the dollar hegemony leading to the hollowing out of manufacturing, which is an inevitable result of the Bretton Woods system. History shows that monetary hegemony relies on industrial hegemony, and the maintenance of the dollar system depends on the competitiveness of the real industry.
Taking the clothing industry as an example, domestic clothing production capacity in the United States accounts for only 2.5%. In 2024, U.S. imports of clothing will exceed $80 billion, among which...China is the largest supplier of imports to the United States.It accounts for 22%. Correspondingly, our country has established a complete industrial matrix consisting of 41 major categories, 207 subcategories, and 666 smaller categories, forming a complete chain loop from basic materials to core components to end products.
Image source: the internet
It can be said that,The optimization of the industrial structure, self-controllable supply chains, and the cultivation of new productive forces have enabled China to build an industrial chain system with greater resilience, independence, and endogenous growth momentum.It is enough to build a strategic depth to cope with trade frictions.
Therefore, even if we have to endure short-term pain, we must positively break through the technological blockade, which can be described as 'resolutely addressing systemic risks with strategic determination'.
Breakthrough in the Clothing Industry
Three major dimensions reshape the global value chain
After understanding the macro context, as micro entities of cross-border enterprises, we face the normalized strategy of the Trump administration's 'talk while fighting'.It is necessary to realize the construction of a 'technology-brand-market' three-dimensional defense system.：
Firstly, build a technological moat., shifting from the value track of 'low-priced competition in OEM and private label' to 'functional fabric research and development and upgrading of smart production', for example, by building differentiated advantages through patented quick-drying technology and environmentally friendly dyeing processes.
Secondly, deeply cultivate brand cultural assets.By blending Chinese elements with international aesthetics to create cultural IP, and through the DTC model to establish emotional connections with users, the brand's premium pricing ability becomes a cushion to cope with tariff impacts.
Thirdly, optimize the global market layout.Seize the opportunities of the "Belt and Road" and RCEP, develop product lines that adapt to local cultural aesthetics according to the characteristics of different regional markets, and achieve a diversified market layout. For example, develop lightweight and breathable fabrics for the Southeast Asian market, design robe styles that conform to local culture for the Middle Eastern market, and implement a strategy focused on data selection to create best-selling products for the European market.
As TikTok is optimizing its global layout and global policies.
Recently, TikTok officially launched three stations in the European market, simultaneously launching its e-commerce business in Germany, France, and Italy.In addition to the previously launched local e-commerce sites in the UK, Spain, and Ireland, TikTok Shop has entered the six core markets of European e-commerce, making the current opportunities in the European market clearer.
The following are the standards for the self-operated cross-border entry into the TikTok official stations in Western Germany, Italy, and France:
Compliance requirements
Provided VAT number (from any European site) must meet EU regulations and local shipping requirements.
Entry Qualification
1. Support for the entry of companies from mainland China and Hong Kong is allowed, but individual entrepreneurs and sole proprietorships are not currently supported.
2. Support eligible merchants operating TikTok Shop in the US for cross-border entry.
3. The platform will accept merchants with experience in operating third-party platforms to join (the operating entity must be the same as the joining entity, and it must meet the GMV requirements of the third-party platform).
Source: TikTok Shop
Moreover, the European market has a high average customer price and strong消费能力. Under the pressure of US tariff policies and bans, it has even greater potential to become a promised land for cross-border e-commerce. According to data, during the 2024 Black Friday promotional period, there were an average of 6,000 live broadcasts per day in the UK, generating 1.6 million shopping videos, ultimately achieving breakthroughs in live broadcast GMV growth of 257%, short video growth of 148%, and mall growth of 170%, which is enough to verify its vast market and early dividends.
With the help of the "Overseas Borrowing" under Zhiyi Technology.，Cross-border merchants can obtain site data from various regions such as Europe, Southeast Asia, the Middle East, and South America with one click.covering dimensions such as sales volume, sales amount, number of listed products, average transaction value, number of SKUs, color trends, and style trends etc.Thus gaining a deeper understanding of global consumers' shopping preferences, consumption habits, and trends, to develop products that better meet market demands.
Source: Overseas Exploration and Investment
There is also the Southeast Asian market right in front of us.recentlyThe 'Overseas Explore' Temu section will also launch in Thailand, Malaysia, and the Philippines, while the TikTok section will launch in Indonesia and Malaysia.Covering richer data on clothing styles and consumer trends, empowering the Chinese clothing industry to find new market development opportunities.
Platform Empowerment
Digital infrastructure reshapes the service trade ecosystem.
In the face of the impending massive market growth, the next focus should be on how to quickly tap into other broader blue ocean markets such as Europe and Southeast Asia.
"Overseas Sourcing" summarizes how AI big data will help cross-border clothing merchants break through the limitations of traditional selection models, capturing the genuine needs of overseas consumers in a smarter and more efficient way, thus gaining an advantage during this wave of opportunity.
1. AI Driven: ODM Optimization of the Entire Selection Process
Through ODM (Original Design Manufacturer) full-chain data analysis, cross-border merchants can leverage overseas funding with AI big data.Real-time analysis of trending trends on Amazon, TikTok, and various sites in Europe and Southeast Asia.Consumer preferences, social media hotspots, and other data help businesses accurately predict market demand and deeply optimize every link from selection, design, production to sales.
Image source: Overseas Exploration - Amazon UK site
The "Product Center" and "Resource Center" for overseas exploration can also tap into and trace sales data from various overseas markets. They assist in multi-dimensional filtering of popular styles and product information, helping decision-makers, product buyers, designers, and operational planners efficiently understand the aesthetics and demands of the target market, ensuring that products can quickly respond to market changes.
OurThe client "Senbo E-commerce" once utilized ample preliminary data to carry out a smooth selection and pricing process. Under the pressure of launching 200 new styles per month, they increased the apparel sales success rate from 20% to 60%.。
2. Data Empowerment: Forecasting Trends of Best-Selling Products
Based on overseas exploration funding, AI big data statistics and exclusive image recognition technology, cross-border merchants can...Aggregate analysis of product attributes, fabrics, styles, and patterns of European sites.Capture the popular trends and market acceptance recognized by the market, helping merchants create hot-selling products that meet market demand in a short time.
Source of the image: Overseas Exploration of Funds
Combining consumer purchasing behavior with sentiment analysis can also help businesses optimize product details, improve market acceptance of products, and thereby accelerate the incubation process of hit products.
3. Marketing Hub: Build a Social Media Marketing Resource Library
As of now, Zhiyi Technology's 'Zhikuang' and 'Overseas Tasting' products have deeply covered INS,Resources from social media like Pinterest and influencers, accumulating 200,000 influencer data, filtered by region, number of followers, performance data, etc.By leveraging the commercial value of data mining experts, we provide a one-stop solution to help users establish their own exclusive influencer database.
Source: Overseas Exploration and Investment
At the same time, "overseas financing" alsoConnecting the LTK influencers, AMZ influencers, and the dynamic META placements and advertising centers of major online platforms.to help cross-border merchants quickly identify differentiated marketing entry points for their target markets, thereby ensuring the maximization of marketing resources in intense market competition.
Source: Overseas Exploration and Investment
Conclusion
In an era full of changes, when the industry is still anxious about the unknown uncertainties, the true breakthrough players have already raised AI to dispel the fog and illuminate the road ahead.
For the cross-border apparel industry, the AI technology we currently possess is not only a shield against challenges but also a sword for reshaping the rules - we are no longer passively waiting for opportunities but actively creating trends. When data streams replace traditional supply chains, and algorithms weave a new global aesthetic consensus, how can this silent revolution not be seen as redefining the discourse power of fashion?
The future has arrived, only innovators will succeed.
