Sales volume increased in 3 months! Uncovering the secret of making money on Shopee with Chinese toys

In recent years, the global population has continued to grow, and more and more newborns are being born. According to the United Nations forecast, by 2050, the global population will reach 9.7 billion, while the average annual population growth rate in Southeast Asia, Latin America and other regions is gradually rising at a rate far higher than the global average .

With insight into this trend, HUALUXE has become more determined to expand into Southeast Asia and Latin America. Relying on its in-depth cooperation with Shopee, it has delivered more high-quality domestic toys to the hands of children in Southeast Asia and Latin America.

After 10 years of overseas market development , sellers rely on Shopee to move to Southeast Asia

In fact, Southeast Asia was not Hualuxe's ​​first overseas destination. It was not until 2018 that it began to focus on Southeast Asia.

In 2019, Hualuxe decided to enter Shopee. With the support of big promotions, Hualuxe saw exponential growth in sales on Shopee in just three months. Now, 60% of its business focus is on the Southeast Asian market and the Shopee platform.

When asked why they focus on the Southeast Asian market, Lily, the head of Huayu Creative Operations, who has been working in the overseas e-commerce market for more than a decade, had a keen and unique insight:

The first is the demographic dividend . Southeast Asia has a huge population base, with the median age below 30 years old. The number of new generation parents is constantly rising, which will provide huge market space for maternal and child businesses.

Second, the economy of the Southeast Asian market is in a stage of sustained growth , and per capita income is also increasing year by year. As residents' consumption capacity increases, young parents will have a stronger desire and more ability to buy higher-quality daily necessities and toys for their children.

The third is the popularization of mobile Internet . Platforms like Shopee focus on building APP mobile applications. From the perspective of the entire market, the popularization of mobile Internet has created a larger market space for maternal and infant products.

Finally, there is the cultural relationship . The concept of family is very important in Southeast Asia. Asians generally pay great attention to the growth and education of their children. Therefore, maternal and infant toys have a very high market acceptance in Southeast Asia, and consumers are also willing to pay the corresponding price for high-quality, richer and more interesting maternal and infant products.

As of this year, Lily's Shopee team has more than 30 people, divided into large store group, medium store group, incubation group, advertising and marketing team, customer service team, and a product selection and development team specifically responsible for the supply chain.

At the same time, with the gradual increase of market share and influence in Latin America in the past two years, Hualuxe, which has been following in the footsteps of Shopee, has set its sights on the Latin American market.  

Let the data speak for itself: Hualuxe’s methodology for creating hit products on Shopee

Creating more hits is the only way for sellers to quickly grow their sales after entering a new market. For Huayu Creative, creating hits is not a problem. " It is relatively easy to create a hit on Shopee because Shopee covers a wide range of people and has a large platform traffic ," said Lily, head of operations at Huayu Creative.

Through effective advertising, keywords, and promotion, in less than three years, HUALUXE has created many popular products on Shopee, such as bed curtains in Vietnam, ornaments in the Philippines, and small dolls in Brazil .

Of course, the emergence of a hit product requires a good foundation of product selection. To this end, Huayu Chuanghui focuses on product selection from the following four points:

1. Pay attention to hot topics on social media platforms such as Facebook and Instagram , and select products based on the needs of young people with strong consumer desire;

2. Pay attention to the latest trends in various markets and seasonal and festive changes;

3. Refer to products that are hot-selling in Europe and America but still “unpopular” in Southeast Asia;

4. Learn about product trends from industry insiders who supply Southeast Asian foreign trade.

In addition to insight into trends, product selection must also be in line with the store's customer positioning. Based on the huge consumer groups on Shopee, Hualuxe divides the store's customer base into two levels: B-end (corporate wholesale ) and C-end (individual consumers). According to these two types of customer groups, the products and pricing are also very different: the first type is common hot-selling products and frequently sold products, which will follow the model of small profits but quick turnover; the second type of consumers often buy products as gifts for children, so they will pay more attention to the novelty, safety, quality, etc. of the products ; the positioning of different groups of people is not the same, so Hualuxe will take into account a variety of products.

After laying a solid foundation for product selection, operation is the key to creating a hit product. Huayu Chuanghui provides multiple operation plans based on competitive product analysis and puts them into practice.

Take a plush toy with letters on it as an example . There were many competing products at the time , but the sales performance was average . However, Hualuxe observed that the titles of competing products were diverse and focused on different aspects: some focused on the diversity of styles, such as the 26 letters from A to Z; some emphasized the popular trends of the products; some focused on the functionality of the products and combined them into gifts .

By analyzing the different focuses of competing products , Hualuxe created multiple main images and keywords, and distributed them to different stores for testing and promotion . Soon, the attention on these products was activated and sales increased steadily .

In terms of resource investment choices for different products, Hualuxe will first increase the amount of advertising for products that can be included in Shopee promotions; secondly, it will reset all the store's coupons before the big sale , and set the coupon amounts higher for the big sale; finally, it will schedule all the flash sales in the store in all possible time periods .

“In fact, Shopee has done a lot in marketing and promotion. As long as these three traffic-enhancing tasks are done well and the platform traffic is fully utilized, the sales volume during the big promotion will basically not be bad. ” Lily said.

Southeast Asia's maternal and infant market has great potential, and Shopee solves the pain points of going overseas

Almost all data indicate that in the next five to ten years, the e-commerce market in Southeast Asia and Latin America will continue to grow, which will become a bonus market worthy of in-depth development for cross-border sellers.

However, it should be noted that consumption concepts are changing with each passing day, and consumers are paying more and more attention to the environmental protection , sustainability , safety , intelligence and trendiness of products . At the same time, the demand for personalized customization and products without special logos will also increase .

The change in concept from focusing on economic cost-effectiveness to pursuing high quality and brand is also driving the steady increase in the average order value in the maternal and infant markets in Latin America and Southeast Asia .

Based on these market judgments, Hualuxe trusts Shopee, which has occupied most of the e-commerce market share in Southeast Asia and is deeply developing the Latin American market.

In Huayu's view, Shopee has sufficient natural traffic allocated to each store, and rich marketing tools, such as zero-threshold coupons, package discounts, discounts, etc., including most of the platform's advertisements, such as affiliate advertising and associated advertising promotion, which can help cross-border sellers reduce operational pressure. Therefore, Huayu also stated that its business is now mainly rooted in Shopee, and it wants to lay a solid foundation on Shopee .

Of course, Hualuxe encountered some pain points in the early days, such as choosing overseas warehouses. How to figure out the details and rules of overseas warehouses? How to choose the right partners?

After learning about the problem, the Shopee account manager team provided Hualuxe with a lot of support, assisted in monitoring business data , deeply explored and analyzed sales performance , and provided corresponding guidance, such as how to break down consumer needs, how to adjust the positioning of each product in the store, and which products will gain greater benefits after entering the overseas warehouse , etc. Now, by using Shopee's overseas warehouse, Nanning warehouse and other logistics systems, its operating costs have been reduced, and it can focus more on products and operations.

To help increase product exposure and optimize operational efficiency , the Shopee team provides a series of professional services to all sellers, including Hualuxe: comprehensive technical and operational support , data analysis, advertising, logistics and distribution , etc.

Lily also gave full affirmation to this , " Shopee's management team has a deep understanding of the e-commerce market and local policies in Southeast Asia, and can provide targeted and professional guidance to new sellers , including analyzing product trends, determining product positioning, optimizing operation strategies, planning stores , etc. These high-level guidance makes it very easy for sellers to use the platform. "

In addition, Shopee will regularly organize various promotional activities based on local market characteristics , and will also help some brands to promote themselves, which will greatly help increase sales.

After all these experiences, Lily feels that Shopee is a platform worthy of long-term investment and cultivation: "In the future, we will focus on improving our capabilities in technology, product innovation and expansion, while strengthening the construction and promotion of our own brand. We will also continue to deepen our cooperation with Shopee and develop more and better domestic products."  

After seeing Lily's experience, are you sellers already excited? At 6pm tonight (May 24), Shopee's official investment conference will be held again with multiple gifts. The annual investment plan is still in full swing. Sellers can scan the QR code below to learn more, or click the link to join. There are many gifts to be given away. Hurry up and make an appointment! (To learn more about Shopee, click Shopee's official website )

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