Making a fortune in silence! The big seller made 400 million yuan by relying on niche categories

The God of Wealth arrives on the fifth day of the Lunar New Year! In the new year, Yienjun wishes everyone a lot of money and continuous orders!

According to the Spring Festival customs, many shops will choose to open on the fifth day of the Lunar New Year , which indicates prosperous business and good fortune .

In the new year, many cross-border sellers have also begun to look for new business opportunities. The following successful experiences of top sellers can be used for reference.

Zhejiang's largest brand entered the niche blue ocean category, with annual sales exceeding 400 million !

Many sellers usually go straight to the categories with the best sales when selecting products , but they don’t realize that although these popular categories have relatively high market demand, the competition is also very fierce.

As a result, some sellers have developed a more sensitive "sense of smell" and have discovered niche blue ocean categories in different tracks , truly making a fortune in silence .

Zhejiang Yayi Technology has targeted the niche market of outdoor leisure furniture - fire pots and gas stoves . It has actively expanded its overseas business by leveraging its own advantages, with annual revenue exceeding 400 million yuan.

Yayi Technology was founded in 2005. Its main business is the development, production and sales of outdoor leisure furniture such as outdoor fire pots and gas stoves. Its main products include fire pots and gas stove series. With years of experience accumulation, Yayi Technology 's sales have also increased year by year, and it was successfully listed at the end of 2021 .

Fire pots and gas stoves belong to the sub-sector of outdoor leisure furniture. The products require a high level of R&D and design capabilities from the company , so there are relatively few large-scale competitors. Relying on its own advantages, Yayi Technology has strong profitability and competitiveness in the U.S. market .

It is reported that in the past two years, Yayi Technology's sales in the United States accounted for more than 90%. At present, Yayi Technology 's main customers are large retailers such as Walmart and Home Depot. The cooperation has lasted for more than ten years and has a relatively stable sales market.

However, this model is too dependent on the US market and is not conducive to long-term development. Based on the steady development of the US market, Yayi will actively expand into the European and Australian markets such as the UK, Germany, France, and Australia.

In recent years, with the development of technology, Yayi has also developed a series of gas stove products, further expanding its product line. Driven by multiple series of products such as fire basins, fire basin tables, gas stoves, and gas stove tables , Yayi's sales channels have been broadened.

As the concept of leisure life and the pursuit of a better quality of life have become more popular, the categories of outdoor leisure furniture and supplies have also expanded. From the previous tables, chairs and benches to the current braziers, swings , hammocks, etc. , more and more outdoor products have opened up new market opportunities.

Lechuang sold its overseas warehouses and made a huge profit of 77 million US dollars!

In recent years, Levo's home furnishing business has experienced rapid development.

In the first three quarters of 2022 alone , Lechuang 's revenue exceeded 2.3 billion yuan, an increase of 10.10% over the same period in 2021. The profit attributable to shareholders of the listed company was 158 million yuan, a year-on-year increase of 28.12%.

In addition to its main business, Lechuang is also targeting new business opportunities.

At the beginning of 2022 , Leckey announced that it would spend US$32.6 million to build its own ship, and later announced that it would invest US$17.6 million to buy land and build a warehouse in the United States.

In November 2022, Leckey announced that it had sold a "small" warehouse of 360,000 square feet in California, and the sale made a profit of nearly US$77 million.

According to an official statement from LEC , its overseas subsidiary 6075 LANCE LLC sold its overseas warehouse in California, the United States, for US$120 million, covering 360,000 square feet (about 33,400 square meters), with a profit of US$77 million.

It is reported that the overseas warehouse was purchased by Lechuang in 2020. It was Lechuang's largest warehouse in the western United States at that time. This also laid the foundation for Lechuang's transformation from self-operated to a third-party public overseas warehouse . However, it rented out the overseas warehouse in December 2021 and stopped using it completely in March 2022 .

It is worth noting that this is not the first time that Leckey has sold its overseas warehouses. Leckey stated that the purpose of selling overseas warehouses is to subsequently lease and build larger overseas warehouses, so as to further improve the company's overseas warehousing and logistics system and enhance the company's cross-border e-commerce public overseas warehouse operation capabilities.

In 2019, Lechuang began planning for public overseas warehouses and vigorously promoted the development of this business in 2020.

Lechuang's overseas warehouses do not only serve its own products, but also open up leasing forms to rent to other sellers to make more profits. Its financial report shows that in the first half of 2022, Lechuang's overseas warehouse business revenue reached 258 million yuan, of which third-party service revenue was 180 million yuan.

Overall, Lejia’s overseas warehouse business is a sure-win business.

With the expansion of Walmart, Zhejiang's sales revenue exceeded 1.3 billion in 9 months!

However, expanding overseas warehouse business requires very high comprehensive strength from sellers. Another key channel for many sellers to make money is Walmart.

After experiencing the wave of account suspensions, many sellers began to realize that they must deploy on multiple platforms to improve their ability to resist risks . In this process, another retail giant, Walmart, became the first choice for many sellers.

Some big sellers in China have long seen the development potential of Walmart and started to plan early, making a lot of money on the Walmart platform.

Recently, Walmart's home gardening giant Daye Holdings announced its financial report for the first three quarters of 2022. Its revenue in the first three quarters of 2022 exceeded 130 million !

According to the financial report data released by Daye Co., Ltd. , in the first three quarters of 2022, Daye Co., Ltd. achieved operating income of 1.328 billion yuan, a year-on-year increase of 11.28%; net profit attributable to shareholders of listed companies was 65.7663 million yuan, a year-on-year decrease of 8.84%. Net cash flow generated by operating activities was 153 million yuan, a year-on-year increase of 408.56%.

In 2021, Daye Co., Ltd. achieved annual revenue of 1.607 billion yuan, an increase of 60.52% over the previous year, and net profit attributable to the parent company was 55.5229 million yuan .

Daye Co., Ltd. was established in 2006 and is headquartered in Yuyao City, Zhejiang Province. It is a garden machinery design and manufacturing company. The company's main products are lawn mowers, in addition to lawn mowers/brush cutters, and other power machinery (snow sweepers, grass combers, micro-tillage machines, leaf suction blowers, etc.). According to the power source, its products can be divided into gasoline-powered, AC-powered, and lithium-powered.

It is understood that more than 90% of the company 's products are sold abroad, mainly in Europe and the United States. Its main customers include international brands or retailers such as Walmart and Home Depot. It owns its own brands such as "MOWOX" and "Green Machine".

Daye Co., Ltd.'s revenue growth and market layout are closely related to the current market situation of garden machinery.

Affected by factors such as world economic development, population and household growth, and the popularization of gardening culture, the demand for garden machinery has maintained a steady growth trend.

In developed countries, the development of the garden machinery industry is relatively mature, and Europe and the United States are the main consumer markets for garden machinery. For example, in the UK, more than 90% of households have private gardens.

Since 2018, Daye has signed a framework cooperation agreement with Walmart and achieved scale sales . During this period, the company 's performance has grown rapidly. In 2019 , Daye's sales to Walmart reached 138 million yuan . The in-depth cooperation between Daye and Walmart ensures the stability of the company's future revenue . At the same time, Walmart has also brought strong sales channel support to Daye , which can drive technological progress , enhance product strength , and promote the company's performance to steadily improve.

At the beginning of 2022, many sellers are looking for new business opportunities. When selecting products, new platforms, and new tracks, in addition to meeting market demand, they must analyze the pros and cons of themselves and their goals, make precise controls, and improve their ability to resist risks.

Niche categories

New Business Opportunities