Looking at every step of Soho's cloud business transformation, it has always been planned ahead of schedule and carefully laid out. From entering the field of cross-border e-commerce to setting up Soho Cloud Business, from a “cross-border explorer” that sells one million dollars a year to a big sales of 10 million dollars, how can Soho Cloud always move along with the “new” and enter the market?

President Wen said, “This is self-cultivation for people in state-owned enterprises!We often say that if everything competes and strives ahead, state-owned enterprises must take the initiative to get on the fast train of the digital economy, especially cross-border e-commerce, to help the country move from a “major trading country” to a “trading power.” "

President Wen said bluntly that as a new type of international trade, cross-border e-commerce is becoming a new engine for China's foreign trade and a new important economic growth point. Soho Holding Group attaches great importance to the development of cross-border e-commerce business. By establishing new cross-border companies to develop cross-border business, it also did the right thing at the right time. Mr. Wen listed several benefits of setting up Soho Cloud Business:
1. Through corporate reform, market-based valuation can be achieved, strategic investors can be introduced, and the cross-border e-commerce business can be strengthened and expanded;
2. The company's e-commerce business segment fully connects with the market, which can optimize resource allocation and improve operational efficiency;
3. It can provide higher quality and more convenient services to companies within and outside the group.

State-owned enterprises usually have deep accumulation. When adjusting their strategic direction, they often require long-term overall planning and internal resource coordination over a long period of time. This is also the reason why many people think “the soil of state-owned enterprises is not suitable for cross-border transformation.” Mr. Wen has a unique opinion on this. Mr. Wen said, “I'm comparing cross-border e-commerce to an art. It must be carefully crafted and paid attention to details. Anyone can carve it, and if it's done, anyone can create a miracle; however, the difficulty is that the cross-border e-commerce process is very long, and you need to really understand its essence to achieve innovation and development. Moreover, it has entered a new field. No matter who you are, you must wear new shoes and follow a new path. "

President Wen believes that state-owned enterprises have natural advantages in transforming into cross-border e-commerce. Soho Cloud Business not only has a strong supply chain and R&D capabilities, but also has solid team building and strong financial support. The potential for developing cross-border e-commerce is limitless. As for operational abilities, they can be obtained through learning or cooperation. Over the past six years, Soho Cloud has visited more than 300 e-commerce companies outside the coast. They have accumulated a large amount of cross-border e-commerce experience in terms of operation, marketing, design, channels, etc., and have used it for themselves, continuously adjusting their lineup while running. As for operational abilities, they can be obtained through learning or cooperation. Over the past six years, Soho Cloud has visited more than 300 e-commerce companies outside the coast. They have accumulated a large amount of cross-border e-commerce experience in terms of operation, marketing, design, channels, etc., and have used it for themselves, continuously adjusting their lineup while running.

President Wen said, “In the early stages, to establish a stable mentality, we must not only calm down to understand the rules and operation style of the channel, but also face up to our own shortcomings. This requires a great deal of patient practice, and must be internalized into one's own mentality in the process of continuous practice and summarization. "

“A state-owned enterprise is a giant ship. It has a strong hull, a huge talent team, and a strong financial base. We also hope to protect more Chinese companies going overseas. Through big boats and small boats, everyone can fish more and catch big fish!." From “exploring the way forward” to “helping enterprises go overseas”, the “adventures” of traditional state-owned enterprises going overseas. Soho Yunshang's preferred cross-border category, plush toys, are the strength of Soho Holding Group's traditional foreign trade business and have reached the top 50 exports in the country. However, at the beginning of the transformation, the cross-border supply chain became a “difficult” issue.

President Wen said, “The factories we work with are all making big traditional foreign trade orders. Because of our long-term cooperative relationship, they are reluctant to help us. Since we have very high requirements for the quality and fabric of plush toys, after one or two, it was difficult for the factory to break through the demand for flexible supply chains, and later they were unwilling to supply them. I also understood their ideas very well. "

As a result, Soho Cloud changed its mind and re-built its own supply chain system.
1. Develop new cross-border e-commerce supply chain resources. “We have found factories that specialize in supplying cross-border e-commerce sellers. They are also all converted from traditional foreign trade factories, and they are very responsive to orders. Abbottt, Premiere Creative’s creative director.
2. Traditional foreign trade factories are used to produce off-season resources, and small-batch product development and production are carried out. This not only solved the problem of off-season production for the factory, but also provided a guarantee for the cross-border e-commerce business to develop new products.

Mr. Wen said, “Later, many traditional foreign trade enterprises saw the rapid growth of our business and were also inspired. They began to pay attention to cross-border e-commerce. Some became our core suppliers, while others transformed themselves into cross-border businesses.” What made President Wen feel emotional was that he did not expect his transformation to change the business direction of many traditional foreign trade enterprises. As a result of this incident, President Wen is more aware of the leading role of state-owned enterprises in leading example in cross-border transformation. Since then, while “upgrading itself,” Soho Cloud Business has also helped traditional foreign trade enterprises actively change their mentality, seize cross-border opportunities, and break through development bottlenecks.

Play a “worry-free overseas” talent combo to shake up cross-border business
1. The success rate of introducing new products in sub-categories continues to rise;
2. More than 100 products were added in a year, and the number of categories increased more than threefold over the same period last year;
3. Despite the doubling of storage costs and a sharp rise in shipping costs, it still maintains a considerable profit margin.

How can a young team, with an average age of only 29, hand over a “high score questionnaire”?President Wen used the “sixteen characters” to indicate the reason — internal excavation, external introduction, people did their best to do their best, and only then did their best. At the beginning of the transformation, Soho Cloud Business matched the right talents from within and rationally dispatched their talents. For example, the IT department could be responsible for digital transformation work, and marketers could transfer operations; then recruit troops and buy horses, introduce outstanding external talents, and expand the team. As the cross-border volume increases, from procurement, to R&D, and even IT, segmented teams can also split into more independent groups to operate at the center of business and the market. Through positive motivation, the team's professionalism continues to improve in “catching up with learning”. Additionally, each department of the cross-border e-commerce team can either support its own business or provide services to other companies. For example, the marketing team can provide advertising services, and the operation team can provide incubation agency operation services. Soho Cloud Business not only helps local enterprises understand and access cross-border e-commerce channels and corresponding information, but also “diagnoses” the current situation of enterprises, solves their “transformation pain points” through customized services, and helps them pay less tuition fees and take fewer detours.

Seize the new digital racetrack and seize future opportunities with digital insights
In the early stages of transformation, Soho Cloud Business began to build its own ERP system and explore the path of digital transformation from 0 to 1. President Wen said that the significance of digital transformation is unspeakable. If enterprises want to develop in the long term, they must shift from extensive management to refined operation and open up a new situation through digital transformation. As a state-owned enterprise, we have a greater responsibility to set an example. Soho Cloud Business set up an IT department in 2016 and completed a phase of independent ERP system research and development in 2017. Currently, the company has also built a BI system for business intelligence analysis, and has made “big articles” on cost reduction and efficiency and risk control.

President Wen said, “We have a clear “road map” for enterprise digitalization. The enterprise is clear from top to bottom. This is a protracted battle, and it is also an offensive battle. We must not only look at short-term benefits, but also invest capital and personnel in a planned and continuous manner. "

In Mr. Wen's case, there is an entrepreneurial spirit of “determined reform”. He said that digital transformation cannot be achieved “overnight”; employees should be encouraged to experiment boldly and allow necessary failures. Speaking about the future direction, he said, “I hope that through self-built ERP systems and integration with other IoT technologies, while developing themselves, we can also lower the threshold for local companies to go overseas and help them gain prominence on the cross-border circuit.

State-owned enterprises have a rich pool of brand resources. In terms of brand building, have they set any “small goals” for themselves?
This year, we have set a goal of “adding two independent brands with sales exceeding 10 million US dollars”. We hope to tell the world the story of Chinese brands and show the world the image of Chinese brands. The path to development may be fraught with thorns, but we will continue to push our limits. Next, how will Soho Cloud Business unlock the brand's new attitude of going overseas and accelerate the brand's upward path?

Mr. Wen said, “As a 'specialized, special and new' key nurturing enterprise of Soho Holding Group, the Group's clear direction is to guide innovation through R&D, lead development with technology, and support our key investment in R&D. This year, we will increase our R&D investment and apply for relevant patents to gradually extend to both ends of the 'smile curve'.” Lean research and development means putting in more effort. Soho Cloud Business will use the platforms of multiple R&D centers to work in three areas: cosmetic innovation, functional innovation, and technological innovation, making R&D the main tool for enterprises in market competition and gradually establishing the core barriers of the brand.

Conclusions
Who said it would be difficult for a boat to turn around?The real case of Soho Cloud Business dared to take the lead and forge a new path tells us that there is no glory to wait for, only wonderful work!Once they identify the direction of transformation, rely on a strong supply chain and solid talent pool, concentrate on analyzing their strengths and weaknesses, and continue to refine digitalization and brand building in multiple ways, state-owned enterprises can also take the lead in the cross-border e-commerce field, and help transform and upgrade more traditional foreign trade enterprises and promote more Chinese brands to the world.