With the continuous updating and iteration of smart products and the penetration of the concept of smart home , consumers' demand for remote video monitoring and care is increasing. Especially in developed countries such as Europe and the United States, because most of the local houses are single-family houses, home video monitoring equipment has become a rigid demand.
According to a survey report by Strategy Analytics, nearly one-third of households in countries such as the United Kingdom, the United States, Germany, and France have home cameras installed. Moreover, among these households that have installed home cameras, 60% of users have two or more home cameras. Driven by high demand, home video surveillance companies have experienced rapid development in recent years.
The future of home video surveillance is bright, and another big seller is about to be launched!
Ruilian Technology, a big-selling company specializing in home camera products, has applied for listing on the Growth Enterprise Market, and has responded to the exchange's first round of inquiries and updated its prospectus.
Shenzhen Ruilian Technology Co., Ltd. ( hereinafter referred to as Ruilian Technology) was established in 2009 and is mainly engaged in the research and development, production and sales of home video surveillance product hardware and software. Its products use online platforms as the main sales channel, focusing on overseas consumer markets. In 2021, Ruilian Technology's overseas sales accounted for as high as 99.87%.
It is worth mentioning that the founders of Ruilian Technology , Liu Xiaoyu and Wang Aijun, previously worked at Huawei HiSilicon Semiconductor . After leaving, they founded the company with an initial registered capital of only 100,000 yuan. Now Ruilian Technology's annual revenue has reached 1.3 billion yuan, and it is preparing for an IPO. It is understood that in this IPO, Ruilian Technology plans to raise no more than 1.123 billion yuan, mainly for R&D center upgrade projects, headquarters operation center and information technology upgrade projects, etc.
According to the prospectus of Ruilian Technology , from 2019 to 2021, Ruilian Technology's operating income was 523 million yuan, 960 million yuan, and 1.361 billion yuan, respectively , and its net profit was 40.72 million yuan, 185.80 million yuan, and 248.60 million yuan, respectively. Both revenue and net profit grew very rapidly.
From 2020 to 2021, Ruilian Technology's operating income increased by 83.02% and 42.41% respectively, and its net profit increased by as much as 356.18% and 33.8% respectively.
From the perspective of specific business types, Ruilian Technology's main products include stand-alone cameras, camera sets and accessories. Among them, the sales of stand-alone cameras accounted for the highest proportion. From 2019 to 2021, the operating income achieved by stand-alone cameras was RMB 329.63 million, RMB 567.70 million and RMB 847.82 million, respectively, accounting for 62.84%, 59.13% and 62.01% of the main business income, respectively.
In terms of sales channels, Ruilian Technology mainly sells through online channels such as Amazon, brand official website, eBay, and AliExpress . In 2021, the above four channels accounted for 63.8%, 20.02%, 3.48%, and 2.51% of the total sales respectively.
As Amazon's influence expands globally, the platform is becoming Ruilian Technology's most important sales channel. In the past three years, its Amazon sales have accounted for more than 60%.
In addition, the product sales area of Ruilian Technology is also very concentrated. In 2021, 99.8% of the company's products were sold overseas, of which 48% were sold to the United States and 42% were sold to Europe.
With efforts in brand building, Ruilian Technology's independent website has an average monthly traffic of 1.7 million!
However, too much concentration in sales channels and sales areas is not a good thing. Amazon is the main online shopping platform in Europe and the United States. If competition in the European and American markets intensifies or the local economic environment changes, it may directly affect Ruilian Technology's sales on Amazon's European and American sites.
Despite this, Ruilian Technology has a great advantage in its own brand. Ruilian Technology focuses on video technology, focusing on three directions: smart cameras and sensors, private cloud storage, and Internet cloud services.
In the early days of Reolink, the company mainly adopted the ODM business model. After 2015, with the development of online channels, Reolink began to change its traditional business model and decided to transform and invest in brand building, creating and incubating its own home security video surveillance technology brand Reolink.
According to data from traffic analysis websites, the average monthly visits to Reolink Technology's official website reolink.com reached 1.7 million in 2021. The traffic is gradually increasing, and the momentum of development cannot be underestimated. In the second half of 2021, Reolink Technology also received 1.97 million yuan in funding for independent sites in Shenzhen.
Reolink's main products are stand-alone cameras and camera sets. From 2019 to 2021, the sales of stand-alone cameras have steadily increased, from 639,600 units in 2019 to 1,123,000 units in 2020 , and then soared to 1,694,500 units in 2021 .
At the same time, the sales revenue of the brand's official website has also increased year by year. The sales revenue from 2019 to 2021 was 79.57 million, 140 million, and 270 million, respectively, accounting for 15%, 15%, and 20% of the total revenue, respectively.
The steady growth of sales performance on the brand's official website is inseparable from Reolink's long-term R&D investment. It is understood that Reolink's R&D personnel account for a quarter of the total employees, and basically a new product is developed every quarter.
At the same time, in order to meet the personalized needs of consumers, Reolink also launched a "cloud subscription service" - Reolink Cloud, with a price range of US$3-10. Although the price is not high, the gross profit has reached more than 40%.
In addition to increasing R&D investment on the platform itself to meet the customized needs of consumers, acquiring traffic is also crucial.
Specifically, 58.99% of Reolink’s official website traffic comes from search channels, while free traffic accounts for a very high proportion of search channel traffic, reaching 84.15%, while paid traffic accounts for only 15.85%.
According to social media data, the three channels that provide the most traffic to Reolink's official website are YouTube, Reddit and Facebook. In addition, Reolink often cooperates with influencers to launch review content and recommend products.
Acquiring traffic is important, but converting traffic is equally important. In order to improve the conversion rate, Reolink has carried out refined operations on the website.
In order to promote purchases, the Reolink website has set up an interactive product recommendation chart, which can recommend the most suitable products to consumers based on their choices, and show consumers the product usage effects and product comparisons through videos.
At present, a large number of Amazon boutique sellers have begun to switch to independent sites. There are more and more overseas brands that focus on technology and brand building like Reolink, and independent sites will also usher in more market opportunities.
The market size of home video cameras has continued to grow over the past decade. According to data released by iResearch Consulting, it is expected that global home video camera shipments will exceed 200 million units by 2025, and the market size will reach more than 70 billion yuan.
After Ruilian Technology went public, it was a good development opportunity for itself. However, it still needs to continue to increase R&D investment and carry out technological innovation, realize the joint development of hardware manufacturing and software development, and continue to launch high-quality new products in order to maintain steady growth in performance in the fierce market competition. At the same time, it is also very necessary to expand offline sales channels, and continue to expand brand influence and improve brand operation capabilities on the basis of existing brands. Shenzhen big seller IPO |
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