E-business helps SMEs upgrade

Under the background that e-business is constantly innovated, logistic systems is becoming more and more completed, payment security and credit has been enhanced greatly, more and more SMEs applied e-business to develop domestic and overseas market.

According to statistics, up to June, 2011, China e-business market transaction volume has reached 2.95 trillion, an annual increase of 31%.

E-business has generated SMEs business development in foreign trade field. In the past, traditional foreign trade relied on traditional sales, buyers’ demand information can not be exposed to more suppliers, order cycle is long, exchange rate risk is high, and profit room is small.

E-business emergence has unbound the restrictions on SMEs development; network information distribution can be passed more quickly and more transparently.

So SMEs could cut down cost greatly and they could have more opportunities to face overseas markets.

E-business could push made-in-China products to retail terminal chains at any corners in the world. Manufacturers can utilize e-business to improve value chains and make more profit in the global industrial labor division.

In the past, manufacturers sold goods to traders and the profit must be shared by those traders. However, through e-business mode, Manufacturers could sell products to the foreign buyers directly.

There is still large room for SMEs to improve in terms of payment technology, financial services, information consultancy services etc.

IBUonline is a B2B portal, and SMEs could post product information on it and have more opportunities to face overseas buyers. ã