Report on the Ecological Development of Industrial Belt Going Global in 2024 with the New Paradigm of Digital Growth

I. Background

- "Cross-border e-commerce + industrial clusters" has become a new engine for foreign trade growth, driving enterprise transformation and upgrading. However, small and medium-sized foreign trade enterprises face many challenges in the transformation process and urgently need an empowered one-stop digital service ecosystem.

- This report focuses on the globalization strategy of industrial clusters, using the "Zero-Threshold Digital Intelligence Going Global Ecosystem Co-construction Project" initiated by Lianlian International as a model to help industrial cluster enterprises advance their global digitalization process.

II. The Time is Ripe for Industrial Clusters to Go Global

1. Distribution of major industrial clusters in China: China's industrial clusters are centered on the Yangtze River Delta and Pearl River Delta, showing a multi-point distribution pattern, with a total of more than 1,100 industrial clusters.

2. Four core forces driving high-quality globalization of industrial clusters: Advantages of Chinese manufacturing (complete industrial chain, rich and cost-effective products, strong digital intelligence supply chain competitiveness), platform-driven globalization (lowering thresholds, capturing demand, brand building), emerging market dividends (Belt and Road, RCEP, digital economy), digital service opportunities (technological innovation, localized expansion).

3. Central policy guidance: The country clearly supports high-quality industrial development, encourages digital and intensive development of industrial clusters through cross-border e-commerce, comprehensively enhances cluster capabilities, and has formed a relevant policy matrix.

III. Opportunities and Challenges for Four Major Industrial Clusters

1. Xuancheng, Anhui Sanitary Ware Industrial Cluster: Over 50 sanitary ware enterprises have gathered, forming a complete industry cluster, with annual industrial output growth rate exceeding 20%. Challenges include a focus on OEM for foreign trade requiring overseas market expansion, serious product homogenization and lack of innovation, and the need to accelerate integration with cross-border e-commerce.

2. Wenzhou, Zhejiang Footwear Industrial Cluster: Home to more than 4,900 footwear enterprises, with enhanced industrial agglomeration effect. Challenges include rising production costs, fierce market competition, and diversified overseas consumer demand. The future goal is to build a world-class footwear industry cluster.

3. Changzhou, Jiangsu Auto Parts Industrial Cluster: Menghe Town is the core area for auto parts in East China, gathering over 2,000 enterprises. Challenges include urgent need for digital transformation and upgrading, and challenges brought by online purchasing models.

4. Zhuhai, Guangdong Printing Consumables Industrial Cluster: Xiangzhou District is the world's largest production base for general printing consumables and spare parts, with products sold to more than 100 countries and regions worldwide. The future requires cultivating new digital foreign trade competitive advantages and leveraging cross-border e-commerce platforms to enhance international competitiveness.

IV. Eight Major Challenges for Industrial Clusters Going Global

- Weak product innovation and brand awareness, lack of overseas market expansion experience, insufficient digital application capability, low capital utilization efficiency, incomplete supporting service resources, lack of intellectual property protection awareness, information blind spots and information islands, lack of specialized technical talent.

V. Digital Intelligence Going Global Safeguards High-Quality Growth

1. Aggregating government and enterprise forces: Lianlian International initiated the "Zero-Threshold Digital Intelligence Going Global Ecosystem Co-construction Project", with more than 20 city pilot zones/government representatives joining, aiming to promote local cross-border trade industry development.

2. Full-link digital intelligence cross-border payment services + diversified innovative value-added services: Lianlian International provides full-link payment solutions for cross-border merchants in industrial clusters, covering global acquiring/collection, account management, foreign exchange services, global payments, etc., and offers diversified value-added services such as documentary projects, cross-border training, opening green channels for overseas cross-border e-commerce platforms, and one-stop cross-border trade solutions.

3. Europe and North America remain the core layout for going global, while emerging markets are accelerating: In 2023, North America and Europe were the core layout regions for overseas merchants, with emerging markets continuing to expand, and Southeast Asia surpassing Japan and Korea to become the third largest overseas market.

4. Building a global financial payment service network: Lianlian Digital holds more than 60 payment licenses worldwide, with its fund collection and payment network covering over 100 countries and regions, implementing localized and compliant business strategies to help merchants go global steadily.

5. Differentiated user needs in emerging markets raise higher requirements for localized operations: The e-commerce sector in emerging markets is vibrant, with significant differences in language, beliefs, consumption habits, and product preferences among countries, requiring overseas merchants to deepen localization strategies.

6. Local payment solutions for emerging markets: Lianlian International precisely targets Southeast Asian and Latin American markets, creating product solutions for global acquiring + international wallets to help sellers in their globalization and digitalization process.

VI. Ecosystem Synergy for Sustainable Development

- Lianlian International leads the construction of a comprehensive SaaS service platform for digital intelligence going global, has established cooperation with more than 30 high-quality cross-border service providers, building a full-link ecosystem covering enterprise production and operation, financial financing, sales and marketing, customs clearance and transportation, transaction payment, and tax compliance, helping clients connect with information flow, logistics, and capital flow services for going global.