Hot products are popular all over the world! Shenzhen big sellers get hundreds of millions of financing

With the promising prospects of the 3C market, many domestic 3C companies are penetrating into overseas markets by relying on their product strength, ushering in rapid development and gaining favor from the capital market.

Baseus Technology received hundreds of millions of yuan in Series A financing

Recently, Shenzhen Baseus Technology Co., Ltd. (hereinafter referred to as "Baseus Technology") held a financing press conference and announced the completion of a round A financing of several hundred million yuan.

It is understood that this round of financing was jointly led by Shenzhen Capital Group and CICC Capital, and followed by Yuexiu Industrial Fund and Gaorong Capital. This round of financing will be used for Baseus Technology's product research and development, overseas offline market construction, supply chain construction, factory construction and brand promotion.

It is worth mentioning that this round of financing is the first time that Baseus Technology has conducted financing in the external market. This shows that the capital market is full of confidence in the future development of Baseus Technology.

According to public information, Baseus Technology was established in 2011. The company focuses on the design, research and development, sales and production of mobile digital products. Its products mainly include mobile phone charging devices, Bluetooth headsets, etc.

After 12 years of development, Baseus Technology's business has expanded from single mobile phone accessories to electronic products such as charging, audio, and car accessories, expanding more than 20 categories and more than 3,000 SKUs. Now it has formed multiple product series such as Baseus mobile phone accessories, Baseus car products, Baseus music, Baseus games, and Baseus home appliances.

Currently, Baseus Technology is in a leading position in the fields of charging and TWS (True Wireless Stereo). After successful financing, Baseus Technology plans to extend and explore its products in smart terminal peripherals, office electronics, and in-vehicle travel scenarios.

Baseus Technology's products have covered more than 100 countries and regions around the world, with the brand reaching more than 6 billion people and annual sales exceeding 90 million units, ranking among the top 20 Chinese overseas brands on AliExpress.

Baseus Technology has opened up a variety of overseas channels, including not only the global e-commerce platforms we are familiar with, but also its own retail website, as well as national agents, offline physical stores, etc.

In addition, Baseus Technology has established stable cooperative relationships with many well-known brands such as OPPO, Huawei, and Navitas.

In the sluggish market environment in the past few years, Baseus Technology's performance has maintained rapid growth and is at a leading level in the industry.

In China, Baseus Technology's products won the championship in the 3C digital accessories category sales ranking of Tmall Double Eleven Shopping Festival in 2022. Abroad, Baseus Technology's flagship product TWS headphones sold 1.5 million units in the first quarter of 2022.

Baseus Technology’s recognition by consumers in the global market is inseparable from its strong product strength and technological advantages.

Baseus Technology has self-developed charging technology and self-developed audio TWS technology, including BPS Baseus smart charging technology, BCT Baseus heat dissipation technology, BHP Baseus hybrid technology, Baseus self-developed BSC smart dual-connection technology, DCLL Baseus dual-channel low latency technology, BRC Baseus instant flash charging, etc.

As of April 2023, Baseus Technology has won more than 140 domestic and international design awards and obtained more than 2,000 patents.

In terms of brand and product promotion, Baseus also adopts both online and offline approaches, such as online in-site promotion, off-site influencer marketing, and social media marketing such as Facebook. It actively communicates with users on domestic media platforms such as Weibo, WeChat, and Zhihu, and conducts offline promotion in various forms such as magazines, door-to-door marketing, and subway hard advertising, delivering the latest brand and product information through multiple channels.

However, it should be noted that Baseus Technology is in a track with a wide variety of products, and the update and iteration are very fast, and the production process is very complex. This places very high demands on the brand's product research and development capabilities and industrial design capabilities. At the same time, the market competition is also very fierce. It can be said that opportunities and challenges coexist.

Baseus Technology stated that it will continue to explore new application areas in the future and continuously improve its market competitiveness and market share.

The global 3C consumer electronics market is experiencing rapid development

In recent years, the 3C consumer electronics market has experienced rapid development.

According to Statista's forecast, the global consumer electronics market size is expected to reach US$1.11 trillion in 2023.

The key categories of consumer electronics are mobile phones and computers, and these two categories have radiated many categories of digital accessories, including chargers, TWS headphones, mobile power banks, wireless chargers, mice, keyboards, docking stations, storage and other products.

The surge in demand for mobile phones and computers has also driven a breakthrough growth in the mobile digital accessories market, a subcategory of consumer electronics .

In 2023, the mobile digital accessories market will reach US$25.6 billion, with China accounting for 40% of the market.

Many cross-border e-commerce sellers have also targeted this high-growth, high-profit, and high-potential track, and are actively accelerating their overseas expansion to explore the blue ocean market. Many domestic big sellers have become Amazon's top sellers by virtue of their own product advantages.

The more well-known and best-selling ones are Anker Innovations and UGREEN Technology.

As a well-known global consumer electronics brand, Anker Innovations has successfully built a global brand matrix consisting of six major brands including Anker, soundcore, eufy, Nebula, Ankerwork, and AnkerMake, covering multiple product categories such as charging, smart innovation, and wireless audio.

According to the latest performance report released by Anker Innovations, in 2022, Anker Innovations achieved total operating revenue of 14.251 billion yuan, an increase of 13.33% compared with the same period last year; and achieved net profit attributable to shareholders of listed companies of 1.143 billion yuan, a year-on-year increase of 16.43%.

In the past two years, UGREEN Technology has achieved remarkable results on the platform. Many of its products are ranked in the top ten on the Amazon platform, covering a variety of products including charging, transmission, audio and video categories, with cumulative revenue exceeding 150 million yuan. On average, each SKU can contribute 15 million yuan in revenue each year. At the same time, many products continue to be selected as Best Sellers and Amazon's Choice on the Amazon platform.

In the first three quarters of 2022 , GreenLink Technology's revenue increased by 13.14% year-on-year to 2.742 billion yuan; net profit increased by 11.29% year-on-year to 222 million yuan.

According to UGREEN Technology's forecast, its revenue in 2022 is expected to be 3.799 billion yuan to 3.929 billion yuan, a year-on-year increase of 10.23% - 14.01%; its net profit is expected to be 324 million yuan to 347 million yuan, a year-on-year increase of 6.23% - 13.94%.

In the past two years, domestic 3C major sellers have rushed to raise funds and go public.

In August 2021, Anker Innovations was listed on the A-share market, and its market value once reached 80 billion yuan after its listing.

In June 2022, GreenLink Technology started its IPO journey. It has now passed the listing committee meeting and is about to knock on the door of the Shenzhen Stock Exchange's Growth Enterprise Market.

In general, the business development momentum of Anker Innovations and UGREEN Technology continues to improve.

For sellers who have already entered the 3C consumer electronics market, if they want to achieve long-term development in overseas markets, they must focus on their own products, build their own market competitiveness in multiple aspects such as brand and channels, and seize current development opportunities.

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