The cross-border e-commerce sector continues to witness numerous business model innovations, but not all experiments succeed. The recent departure of Haimi Yanxuan CEO Zhuang Xiaofeng has cast doubt on the viability of the "curated selection" approach in this competitive space. Does this signal a fundamental limitation of the model, and what does the future hold for Haimi's transformation?
Haimi's Pivot: From C2C to B2C
Haimi initially launched as a C2C platform called Haimi Global Shopping, connecting overseas buyers with domestic consumers. However, inherent flaws in this model forced the company to reconsider its strategy. Founder Xu Jun publicly identified three critical challenges:
- Standardization Difficulties: Quality control proved inconsistent across different buyers, creating uneven user experiences that damaged brand reputation.
- Logistical Inefficiencies: The direct shipping model suffered from slow customs clearance and lengthy delivery times, failing to meet modern consumer expectations for speed.
- Revenue Constraints: When cross-border e-commerce funding cooled, Haimi began charging buyer commissions, triggering an exodus of buyers who turned to private transactions instead.
These pressures culminated in Haimi abandoning its C2C model in late 2016 and transitioning to a B2C platform.
The "Haimi Yanxuan" Experiment
The restructured company introduced "Haimi Yanxuan" (meaning "curated selection"), adopting a self-operated B2C approach to address previous weaknesses. While sharing a similar name with NetEase's Yanxuan, the models differ fundamentally. NetEase employs an ODM (Original Design Manufacturer) strategy, collaborating directly with manufacturers to produce private-label goods. Haimi Yanxuan continues selling established overseas brands, focusing on quality curation.
This self-operated model grants greater control over product quality and service standards but simultaneously increases operational burdens. Procurement teams face intensive product selection demands, while warehouse management, inventory structuring, and cash flow present additional challenges.
Mounting Competitive Pressures
Haimi's transformation altered its competitive landscape. Where it once contended with C2C rivals like Taobao Global and Ymatou, it now faces B2C giants including JD Worldwide, Tmall Global, and NetEase Kaola. These established players hold significant advantages in capital resources, supply chain management, and user bases.
Key challenges for Haimi Yanxuan include:
- Supply Chain Vulnerabilities: Building reliable overseas supply networks that ensure authenticity and competitive pricing remains paramount.
- Financial Strain: Self-operation requires substantial investment in procurement, logistics, and marketing—a heavy burden for smaller players.
- Market Differentiation: Standing out in a crowded marketplace demands unique value propositions to attract and retain customers.
- Customer Acquisition Costs: High marketing expenses plague cross-border e-commerce, necessitating innovative, cost-effective outreach strategies.
The Path Forward: Specialization and Precision
Despite these hurdles, opportunities persist in cross-border e-commerce. Haimi's experience offers valuable lessons for mid-sized players navigating a market dominated by giants. Success likely depends on:
- Niche Product Selection: Avoiding direct competition by specializing in distinctive categories that serve specific consumer needs.
- Operational Refinement: Prioritizing user experience through personalized services that foster loyalty.
- Marketing Innovation: Leveraging social commerce and content marketing to reduce customer acquisition costs.
- Supply Chain Optimization: Developing efficient systems to lower procurement expenses and accelerate deliveries.
While Haimi Yanxuan's future remains uncertain, one truth emerges clearly: the cross-border e-commerce sector will grow increasingly competitive. Only those enterprises capable of continuous innovation and market adaptation will secure long-term viability in this dynamic environment.