Suzhou’s leap in urban industry is almost a reflection of China’s broader industrial development.
The popular saying that “above is heaven, and below is Suzhou and Hangzhou” highlights the historical prosperity and cultural richness of the Jiangnan region. Yet, despite Suzhou’s current economic strength, it was once lagging in the race for modernization.
In 1978, Suzhou’s GDP was only RMB 3.195 billion (USD 450.4 million), placing it 15th in the nation. Agriculture dominated its economy, and its manufacturing sector was fragmented, with small, scattered enterprises and a weak industrial base.
The turning point would come later, following China’s economic reforms, when Suzhou opened itself to the outside world. Proximity to Shanghai and access to a strategic inland river port made it an ideal destination for international industries, particularly in manufacturing.
Today, Suzhou has transformed into one of China’s most comprehensive industrial hubs. Its industrial cluster, focused on high-end manufacturing, supports its role as the country’s fourth largest foreign trade city, positioning Suzhou as a key player in the global “Made in China” narrative.
Yet, Suzhou cannot afford to be complacent. Traditional foreign trade models face increasing challenges due to macroeconomic shifts and fluctuations in global cycles. Suzhou’s industrial belt must also evolve to remain competitive. While the city is home to many international brands, it still lacks globally recognized Chinese brands. Technologically advanced companies dominate production, but they struggle to create the channels needed to engage global customers.
Suzhou’s industrial belt, renowned for its capacity to reinvent itself, is now searching for new avenues. The latest challenge: cross-border e-commerce.
Searching for new methods
Suzhou’s economy has long been export-oriented. In 2023, total foreign trade reached RMB 2.45141 trillion (USD 345.4 billion), making Suzhou the fourth largest trading city in China.
However, cross-border e-commerce remains a weak spot. In 2023, Shenzhen’s cross-border e-commerce trade exceeded RMB 300 billion (USD 42.3 billion), while Shanghai, Ningbo, and Guangzhou surpassed RMB 200 billion (USD 28.2 billion) each. Suzhou, by comparison, reached just RMB 12.47 billion (USD 1.8 billion)—accounting for only a fraction of its total foreign trade.
Transforming Suzhou’s industrial belt requires substantial momentum. This will come through a combination of grassroots business efforts and top-down policy support. Suzhou’s industrial structure may also be holding back growth in cross-border e-commerce.
Suzhou is home to approximately 160,000 industrial enterprises spanning 35 major categories, 171 mid-level categories, and 505 sub-categories. The city’s strength lies in sectors like hardware tools, precision instruments, and household appliances, where it boasts significant industrial capabilities. Many small and medium enterprises have robust manufacturing expertise, and several key companies lead the way in digital transformation with smart factories and online operations.
Yet, there is a mismatch between these companies’ sales models and business practices. Suzhou’s enterprises produce high-quality products but struggle to independently capture overseas markets. This explains why “Made in China” is so prevalent internationally, while globally recognized Chinese brands remain rare.
Cross-border e-commerce, which allows businesses to quickly connect with global markets, has become the agreed-upon path for growth among Suzhou’s enterprises.
ELEGRP, a manufacturer of smart electrical and electromechanical equipment, exemplifies this trend. Following the golden age of traditional foreign trade, ELEGRP actively sought new business models.
“As we entered the North American market, we realized that our competitors were century-old enterprises. Even though we offered products of equal or better quality, we struggled to achieve the same price premium. That’s the power of branding,” said Chen Liai, director of cross-border e-commerce at ELEGRP. From ELEGRP’s perspective, building a brand is essential to going global, and cross-border e-commerce provides a vital channel to expand beyond traditional foreign trade.
In 2019, ELEGRP joined Amazon to explore cross-border e-commerce. However, as a B2B company specializing in products like electrical outlets and switches, it was still learning how to build its brand. “Internally, we have made significant changes in mindset, shifting from a traditional B2B focus to developing products, production, and business models that cater to consumer needs,” Chen said.
In 2022, ELEGRP partnered with Amazon Business to enter the global procurement market. Amazon Business gave the company direct access to enterprise buyers worldwide. On one hand, this allowed ELEGRP to return to its familiar B2B logic, while on the other, insights from Amazon Business helped the company refine its product offerings and pricing strategies to better meet the needs of target customers.
For instance, ELEGRP originally sold individual electrical outlets and switches, which didn’t suit the bulk-buying needs of B2B clients. After identifying this issue, the company introduced larger SKU packages and launched targeted promotions. They also experimented with pricing strategies to strike a balance between customer discounts and profit margins—an approach that steadily increased sales.
Since joining Amazon, ELEGRP has seen remarkable results. In just two years, monthly sales surpassed USD 2.8 million, and annual revenue growth reached 189%. In 2023, revenue from Amazon Business accounted for 11% of the company’s total income, while the vast global enterprise procurement market remained largely untapped.
Cross-border e-commerce: The missing puzzle piece
Despite its potential, why hasn’t cross-border e-commerce gained more traction in Suzhou’s industrial belt? Why are so many traditional foreign trade enterprises hesitant to embrace this new model?
The core challenge lies in the differences between traditional foreign trade and cross-border e-commerce. Transitioning to e-commerce requires businesses to manage their own inventory, maintain sales channels, and build after-sales systems—all of which differ from traditional trade models. Even companies that do make the shift often struggle to secure orders and open new sales channels.
The key value of e-commerce lies in connecting supply and demand while fulfilling orders, but achieving success requires companies to enhance their internal capabilities. Cross-border e-commerce demands a higher level of operational expertise. Amazon Business, which connects companies directly with enterprise buyers, offers a more accessible path for Suzhou’s industrial belt. By leveraging their strengths, these companies can tap into both B2B and B2C traffic, driving growth on multiple fronts.
This approach is particularly effective for high-end manufacturing industries. The story of Rigol Technologies, a “little giant” in precision instruments, illustrates this well. In the field of oscilloscopes and other testing instruments, Rigol’s innovation and technological expertise are recognized globally.
Rigol has already transitioned to digital factories, allowing the company to quickly and flexibly meet international orders. However, its overseas marketing and sales channels have not kept pace.
“In professional fields, brand perception is often the most important factor,” said Cheng Jianchuan, chief strategy officer at Rigol. “Branding is key to earning trust and competing globally.”
While brand-building takes time, cross-border e-commerce has given Rigol a faster path to customer recognition. In 2021, Rigol joined Amazon Business, pairing its strong product lineup with Amazon’s enterprise procurement capabilities, opening new growth opportunities.
Through Amazon Business, Rigol connected with key clients, including universities, governments, and large enterprises. Rigol’s adaptable products and fast response times helped the company break into new markets. In North America, sales to universities and government agencies now account for more than 30% of Rigol’s revenue. Educational buyers alone saw a sales increase of 212%, with higher education institutions experiencing a 318% rise in purchases.
For companies like Rigol, Amazon Business has paved a path to transformation, while others have discovered entirely new opportunities.
Tineco, a household name in smart home appliances, is another success story. Formerly a sub-brand of Ecovacs Group, Tineco rebranded itself in 2018 and quickly entered the global market, with cross-border e-commerce via Amazon as its main channel.
Tineco’s innovative smart vacuums and floor cleaners became cornerstones of its global expansion. Amazon’s user data and feedback analytics have driven the company’s growth, enabling it to refine its products and expand rapidly. For instance, its smart floor washer—a product that combines vacuuming and mopping—created an entirely new category, allowing Tineco to bypass traditional competitors and establish a niche.
As of today, Tineco has topped Amazon’s Prime Day and Black Friday sales lists and holds the leading market share across nine Amazon sites. More than 45% of Tineco’s total business now comes from overseas markets.
Additionally, Tineco, originally focused on B2C, has expanded into the B2B space through Amazon Business. After gaining traction with individual consumers, Tineco began securing orders from supermarkets and hotels, extending its reach beyond the household sector.
Cross-border e-commerce has become a powerful growth engine for industrial belt companies, offering a platform to build global brands. The key is developing effective communication channels between businesses and customers, whether end consumers or corporate buyers.
“Amazon’s rating and data systems provide us with an excellent communication mechanism, allowing us to better understand the needs of both consumers and businesses and to adjust our products accordingly,” said Li Shichong, head of Tineco’s online operations in the Asia Pacific and UK markets.
Ribao Technology, a niche player specializing in financial devices like coin sorting machines, has similarly thrived through cross-border e-commerce.
Mao Limin, chairman of Ribao, has always been focused on branding. The company registered its trademark at its founding in 1996, and by 2004, Ribao had registered international trademarks. Even in the traditional foreign trade era, Even during the traditional foreign trade era, Ribao was actively promoting its brand at trade shows, steadily gaining industry recognition.
The company didn’t just rely on trade events. Ribao explored new marketing channels, testing SEO strategies to improve overseas visibility and tap into digital conversion pathways. At the same time, it took steps to establish a physical presence in key markets like the US. But as an SME, Ribao faced the limits of a low-cost operational model, and progress was slow.
In 2018, Mao noticed that Ribao’s niche products were beginning to find a market on Amazon. Capitalizing on this momentum, the company officially joined Amazon in April 2019 and launched an Amazon Business account. Ribao’s accumulated expertise in SEO and search engine marketing (SEM) funneled traffic to the platform, while Amazon Business generated a steady flow of B2B orders. By 2023, revenue from Amazon Business accounted for 23% of Ribao’s total sales.
“The biggest surprise came in May when we won the largest tender for high-speed coin counters from Japan Post,” Mao said. Japan, known for its rigorous standards in financial instruments, was a key market, and the win was a milestone in Ribao’s strategy to elevate its brand positioning. “We had to consider every detail—from product features to application scenarios—but in the end, we found the perfect channel where our products could speak for themselves.”
The industrial belt: A puzzle falling into place
Suzhou’s industrial belt is slowly piecing together a new puzzle—one that shifts the focus from simply exporting products to building exportable brands.
From a transactional perspective, high-tech, high-value-added products are becoming the city’s breakout export category. Among China’s top 100 cross-border e-commerce brands, every Suzhou-based company listed is classified as a high-tech enterprise.
These are familiar faces within the industrial belt. Their manufacturing expertise has become the foundation for innovation and the ability to produce flexible solutions that address specific user needs.
Amazon’s role in this transformation cannot be understated. On one hand, it provides a direct channel for companies on the belt to reach global consumers. On the other, Amazon Business opens doors for these enterprises to thrive in B2B transactions, leveraging Amazon’s ecosystem to accelerate their growth.
Amazon Business also runs an accelerator program aimed at helping traditional manufacturing and trade enterprises shift from legacy supply chains to digital ecosystems, reducing the costs and risks of going global.
Ultimately, a dual strategy—targeting both consumers and corporate buyers—aligns well with the strengths of Suzhou’s industrial belt. By deepening its integration into the belt’s ecosystem, platforms like Amazon Business can help companies climb the ladder of cross-border trade, pushing them ever closer to becoming global brands.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xiao Xi for 36Kr.