Ningbo Motor: Developing Resilient and Sustainable Cross-Border Trade

Abstract

Ningbo Motor Auto Parts Co., Ltd. (“Ningbo Motor”) was a rapidly developing company specializing in the auto parts industry. It had evolved from being an original equipment manufacturer to becoming a branded manufacturer. The company had also shifted its business model from traditional foreign trade to a cross-border business-to-consumer (B2C) e-commerce approach. Unfortunately, the challenging circumstances stemming from the COVID-19 pandemic and the Russian–Ukrainian conflict had significantly impacted Ningbo Motor’s supply chain. Since 2018, the company had heavily relied on third-party platforms such as Amazon.com, primarily targeting the U.S. market. This dependency posed the risk of market over-reliance. Consequently, Ningbo Motor experienced a decline in its online and offline sales figures in the U.S. market from April 2022. To mitigate risks, Ningbo Motor needed to make strategic changes to enhance supply chain resilience and ensure supply chain stability. As external uncertainties continued to grow, the company had to strike a balance between cost control and growth. Accordingly, the questions posed are as follows: Should the company consider entering emerging markets such as Vietnam to gradually reduce its dependence on the U.S. market? Should it create an independent site to sell products through new channels? How could Ningbo Motor navigate this dilemma and continue progressing?