Core Viewpoint - The article discusses the transformation of manufacturing factories in China as they adapt to the challenges posed by global trade shifts and the rise of cross-border e-commerce, moving from traditional B2B models to more direct consumer engagement [3]. Group 1: Current Challenges - A toy factory owner in Chenghai faces difficulties due to tariff impacts, leading to reduced orders and uncertainty about future shipments [2]. - Many factories are increasingly participating in cross-border e-commerce events, indicating a shift in strategy to adapt to changing market conditions [2]. Group 2: Shift in Global Trade Paradigm - The article highlights a transition from "Globalization 1.0," dominated by a few giants focusing on standardization and cost efficiency, to "Globalization 2.0," characterized by individual creativity, content, and community trust [3]. Group 3: Need for New Strategies - There is a growing urgency for source factories to engage in cross-border e-commerce to improve profit margins by bypassing intermediaries, potentially increasing gross margins from single digits to over twenty percentage points [7][8]. - Factories aim to gather direct market feedback and data, which is challenging under traditional foreign trade models [9][10]. - Ambitious factories seek to build brand equity, moving from being mere manufacturers to recognized brands on platforms like TikTok and Amazon [12][13]. Group 4: Collective Challenges in New Pathways - Despite the growth of cross-border e-commerce, many factories still have a limited understanding of this model, facing challenges in talent acquisition and operational restructuring [15][16]. - The product management logic must shift from catering to a single client to creating diverse SKUs that appeal to end consumers [17][18]. - Factories need to adapt to a flexible supply chain capable of rapid content iteration, as evidenced by the demand for quick turnaround on small orders [19]. Group 5: Understanding Consumer Preferences - Factories often misinterpret consumer preferences, focusing on technical specifications rather than lifestyle-driven choices that resonate with overseas users [20]. - There is a gap in content creation and marketing capabilities among many factories, which platforms are beginning to address through various support initiatives [20].