Concentrate on IPO! Many big sellers are facing the "cold"

Although cross-border e-commerce sellers have experienced a difficult year this year, in the long run, cross-border e-commerce does not change its long-term value. Therefore, even under the impact of the cold, there are still many sellers rushing for IPO.

Total revenue exceeds 5 billion yuan, and many sellers choose IPO this year

As we all know, after the market cooled, the capital market has become much more cautious about investing in the cross-border e-commerce industry, but some powerful sellers still received their support this year and embarked on the IPO road.

The companies that have caused widespread discussion in the industry include UGREEN Technology, DUYUAN Outdoor, and Ruilian Technology, whose revenues last year were 3.446 billion yuan, 350 million yuan, and 1.367 billion yuan, respectively. The total revenue of the three companies exceeded 5 billion yuan (5.163 billion yuan) .

From the perspective of business categories, they all come from different fields and have good sales on cross-border e-commerce platforms, including:

UGREEN Technology is engaged in 3C electronics. Last year, its overseas revenue was 1.414 billion yuan, of which the largest share came from Amazon, amounting to 1.149 billion yuan. Its products continue to be selected as Best Seller and Amazon's Choice on the Amazon platform, and are ranked at the top of the product lists of many mainstream platforms.

Duyuan Outdoors produces RV and yacht accessories and water leisure products. Last year, more than 80% of its revenue came from overseas, and many of its products have long been ranked at the top of the Best Seller list on Amazon in the United States.

Reolink Technology makes home surveillance products. Last year , 99.87% of its sales were overseas. Amazon is also its largest revenue channel, accounting for more than 60% of total sales. Its own brand "Reolink" has become the leading home video surveillance brand on the Amazon platform, with multiple links in its store and over a thousand reviews.

In fact, in recent years, the cross-border e-commerce sector has produced many A-share IPOs, from the initial backdoor listings of Jiazhilian, Zebao Technology, and Youkeshu, to the independently listed Anker Innovations, Lejia Holdings, and Gemtek, all of them have grown up by "feeding" the dividends of cross-border e-commerce.

However, these "protagonists" that have successfully listed or are in the process of IPO have gradually transformed from simple trading distribution companies to outstanding representatives in the subdivided fields. Such companies are often driven by technology or brand.

Factories transform into brands, and win in overseas market

From the above, we can see that brand sellers have obvious advantages on the road to going overseas in the future, especially in the context of the surging "going overseas" wave and increasingly fierce competition.

Factories that have taken the lead in trying to transform their brands and go overseas to find new growth points have already tasted the sweetness. Bluetti, a DTC brand of energy storage power supply that shines in overseas markets, is one of them. Before the transformation, its company, Delan Minghai, was a supplier of many popular cross-border companies, such as Anker Innovations and Aoki Technology.

In 2019, unwilling to survive on meager profits, DeLan Minghai selected several models with high popularity on its production line, put its own brand on them, and started its brand retail business on Amazon.

With the cost and quality control advantages of the supply chain, Bluetti's products have quickly gained recognition from many users on Amazon, achieving a five-fold increase in monthly sales of Amazon's single store. At the same time, in 2021, it achieved a gorgeous transformation from an OEM to a DTC brand. In just a few years, it has accumulated a group of loyal users.

There are many factories that have similar experiences as DeLan Minghai, including Mingxuan Technology, which makes carbon fiber rackets, and YesWelder, a welding machinery brand.

This type of brand sellers who start from factories already have R&D and supply chain capabilities. If they are also supported by brand power, their chances of winning are very high.

Moreover, from the observation of the capital market, more and more traditional equity investment institutions are moving closer to such enterprises. Their bottom layer is the supply chain, the middle layer is the overseas channels, and the top layer is the overseas brands, which can form a business matrix of manufacturing + channels + brands.

"Manufacturing is secure, channels can create scale, and brands can create value." Wu Di, executive director of Hongzhang Capital, said: "This type of enterprise can attack or defend."

With a scale of 12 trillion, cross-border e-commerce has great potential

From 2017 to 2021, the scale of China's cross-border e-commerce export market has grown from 6.3 trillion yuan to 11 trillion yuan. In the first half of 2022, the scale of China's cross-border e-commerce export market was 5.5 trillion yuan, and it is expected that the market scale for the whole year of 2022 will reach 12.2 trillion yuan.

The market size has nearly doubled in five years, and the growth rate is very fast. In addition to brand overseas expansion, future opportunities also include categories and emerging markets.

Since the beginning of this year, Latin America is undoubtedly the most discussed emerging market in the cross-border circle.

In the ranking of retail e-commerce sales in various regions around the world, the Latin American market ranked first with a relatively high growth rate in both 2020 and 2021. In 2020, its growth rate was as high as 63.3%, far exceeding North America and Europe. Even with the slowdown in demand in 2021, Latin America ranked first in the world with a growth rate of 25.6%.

Now, whether it is the unicorn SHEIN, or cross-border e-commerce platforms such as Amazon and Shopee, they have all entered the Latin American market. Their actions are all sending a message: the next opportunity is in Latin America.

This is also confirmed by a set of data from the General Administration of Customs. The data shows that from January to December 2021, China's exports to Latin America reached 1,479.68 billion yuan, a year-on-year increase of 41.8%.

Another is the category opportunity. China has many high-quality industrial belts, such as the luggage industrial belts in Shiling, Guangzhou, Baigou, Hebei, and Pinghu, Zhejiang, and the lighting industrial belts in Zhongshan, Guangdong, and Yuyao, Ningbo. With strong manufacturing capabilities, it can provide a stable supply of production capacity to overseas companies.

At the same time, there are many opportunities to be explored in these industrial belts. For example, Deerma, which is currently in the process of IPO and invested by Hongzhang Capital , is a small home appliance export enterprise that came out of Shunde, Guangdong, the home appliance capital of China.

However, not all enterprises can obtain the help of capital. What should these factories/enterprises do if they want to go overseas to "dig for gold" but cannot find matching resources? The cross-border e-commerce exhibition will be a breakthrough point.

Cross-border e-commerce exhibitions help more high-quality companies go overseas

It is understood that the 2022 DHCB Cross-border E-commerce Supply Chain Expo (Shenzhen Station) and the China Shenzhen International E-commerce Industry Expo with the theme of "Promoting the overseas expansion of cross-border e-commerce brands and the transformation and upgrading of the top 100 industrial belts in the country" will be held in Halls 2 and 3 of the China Shenzhen Futian Convention and Exhibition Center from December 23rd to 25th.

This expo covers an exhibition area of ​​40,000 square meters, with DTC brand pavilion, cross-border ecological pavilion, national top 100 industrial belt zone, fashion culture zone, needlework expo zone, African e-commerce zone, etc. It focuses on hot products at home and abroad, aims to build an industry exchange and cooperation platform, and promote enterprises to go abroad and grow stronger with the help of cross-border e-commerce.

Under the impact of the "cold", some companies have collapsed. Now is a good time for companies to participate in exhibitions and increase publicity efforts, because this will help companies quickly occupy the "stagnant" and "blank" markets and expand market penetration after the epidemic is over.

On the other hand, the exhibition plays the role of new product display and industry weathervane, which has a vital impact on product research and development and the expansion of sales channels. As the country continues to shut down and resume work due to the epidemic, the market urgently needs more new and eye-catching products to lead. The new products brought by the exhibition are the booster of the market. Only by seizing this opportunity can enterprises quickly open up the market after the industry reshuffle.

Some companies may be hesitant to spend money on participating in exhibitions during the cold winter. However, companies do not need to worry too much about this because Shenzhen provides certain financial support to participating companies.

Among them, Shenzhen Small and Medium Enterprise Service Bureau will provide a certain proportion of the actual booth fees, with an annual subsidy ratio of up to 50%, and the annual subsidy for each company not exceeding 500,000. In addition, Nanshan District Bureau of Industry and Information Technology, Longhua District Bureau of Industry and Information Technology, and Longgang District also provide subsidies of different amounts to participating enterprises.

It is worth noting that this expo will also provide an additional subsidy of 6,000 yuan to factory exhibitors .

It is reported that this exhibition has gathered ten highlights, including group participation of the top 100 industrial belts in the country, online cloud exhibition, on-site policy docking of comprehensive pilot zones in various provinces, inviting more than 100 authoritative experts and academicians in the cross-border field, display of industry benchmark cases and sharing of advanced experience, real-time docking of on-site customer resources, on-site release of industry white papers, cross-border joint exhibitions, full-dimensional promotion by hundreds of media, and more than 100,000 traffic exposure.

Among them, it is particularly worth mentioning that most of the current exhibitions invite domestic enterprises and sellers to participate, while this expo has linked a large number of overseas toB distributors through the online cloud exhibition. Xingyun Group will recommend this expo in 72 countries overseas as well as Hong Kong, Macao and Taiwan, and then exhibitors will participate online by registering for the online cloud exhibition.

This online cloud exhibition is based on the latest cloud exhibition technology of the metaverse concept, creating a world-leading platform for digital economy cooperation and exchange, which will help create an exhibition that never ends.

Whether you are participating in the exhibition or visiting the exhibition, it is worth going. Come and contact us! Registration method: 1. Long press to identify/scan the QR code on the poster below; 2. Add WeChat: LLP19989067816.

Cross-border e-commerce

Greenlink Technology

Duyuan Outdoor

Ruilian Technology