East China's outdoor sales performance soared, with half-year net profit soaring 111%

Amid the recurring epidemic in the past two years, the "outdoor economy" has continued to heat up, driving the growth of market demand for camping equipment. Among them, the demand for related categories in the European and American markets has increased significantly.

With a large market size and room for development, domestic companies that specialize in outdoor camping products such as Mugoro and Nature have seized the opportunity and, while grabbing overseas market share through their brands, have also increased their market visibility.

Recently , the outdoor giant Muzi disclosed its performance in the first half of 2022, with both revenue and net profit achieving significant growth.

Net profit increased by 111%, with private label business becoming the main business

Zhejiang Mobi Outdoor Products Co., Ltd. (hereinafter referred to as "Mobi") was established in Quzhou, Zhejiang in 2006. Its main businesses include brand operation business (own brand MOBI GARDEN) and camping tent OEM/ODM business, and its products include tents, outdoor clothing, etc.

In the first half of this year, Muco has achieved double growth in revenue and net profit, with main business revenue of 867 million yuan, a year-on-year increase of 61.34%; net profit attributable to shareholders of listed companies of approximately 113 million yuan, a year-on-year increase of 111.80%; and non-net profit of 110 million yuan, an increase of 138.02% compared with the same period last year .

In terms of sales, Moco's OEM/ODM business products are mainly sold to Europe, America, Australia, New Zealand and other places. Its own brand business sales channels are divided into online channels and offline channels. Its domestic sales remain stable, and its export business revenue is 518 million yuan, a year-on-year increase of 24.81%, ushering in new growth.

In terms of overseas online sales platforms, Mobi mainly operates on platforms such as Amazon and Walmart. Its products are at the top of the sales lists of the e-commerce platforms on which they are sold, and its tents and outdoor accessories have become popular products in recent years.

In 2021, the average sales volume of Mogodi's five major products exceeded one million units. Among them, the sales volume of tents exceeded 2.21 million units, the sales volume of accessories exceeded 1.08 million units, and the average sales volume of the other three major products was about 670,000 units.

(Photo source: Mutadu official website)

It is worth noting that the company's own-brand business made a huge contribution to the overall performance growth in the first half of this year. In the first half of this year, Mogod's own-brand operation business achieved revenue of 346 million yuan, a year-on-year increase of 182.25%. In terms of own-brand operation business, its online self-operated business achieved revenue of 147 million yuan, a year-on-year increase of 248.81%.

It is understood that in order to strengthen product research and development and promote its own brands to better meet consumer needs, Moco has set up a product research and development center, and in conjunction with its senior outdoor products design and development team, it has widely collected domestic and foreign product development trends and market product demand changes, and has put a lot of effort into the actual application scenarios, performance, practicality and experience of the products.

Currently, the company has the main brand MOBI GARDEN, and sub-brands MOBI GARDEN URBAN and MOBI VILLA. Its main brand MOBI GARDEN advocates the core of "camping professionalism", bringing the equipment quality requirements of the harsh environment of high-altitude camping to other major scenes. With the dual force of humanization and emphasis on appearance, the brand has been favored by consumers since its launch.

The other two self-owned brands, MOBI GARDEN URBAN and MOBI VILLA, focus on high-performance travel apparel and mountain trendy camping clothing. Although the two brands were launched on the market a little later, they are also well received by consumers for the comfort and trendiness of their products.

The improvement of the online and offline sales channel system, coupled with a deep understanding of consumer psychology and a product-focused development strategy, has enabled Moco's own brand to successfully enter overseas markets, and it is no surprise that it has leading sales performance.

In fact, for overseas companies like Mobo that mainly produce outdoor products, in addition to their own long-term business accumulation, they also benefit from the continued vitality of the "outdoor economy".

Outdoor activities are popular and market demand is growing

As the epidemic resurfaces, short-term, safe and non-gathering outdoor leisure activities have become the first choice for many people. This trend has also driven the growth of demand in the outdoor equipment market.

From a global perspective, the participation rate of outdoor leisure activities in developed countries or regions such as the United States and Europe is high, and the number of people participating in outdoor leisure activities is large. Especially in the United States, the number of people participating in outdoor leisure activities and the participation rate are showing a clear upward trend . Outdoor leisure culture has entered a highly mature stage .

Among various outdoor leisure activities, camping is favored by many young consumers because of its convenience and fun.

According to a survey by KOA , the largest campground chain in North America , 57 million households in the United States said they had at least one camping trip in 2021, an increase of 18% from the same period last year, the largest year-on-year change since the agency began recording the data.

In 2022, nearly half of North American households said they participated in camping and other forms of leisure travel, and about 1 in 20 households chose camping as their only choice for leisure travel . When searching for the term "Camping products" on Google Trends, it can be found that camping products remain popular throughout the year.

The survey results show that millennials, families with children, and high-income people have the strongest desire for camping. Among them, luxury camping and overland travel are becoming the current mainstream trends . In 2021, 36% of campers went glamping for the first time, and this trend is expected to continue to grow.

Due to the mature development of the manufacturing industry, my country is also a major exporter of outdoor sports goods. Data shows that in terms of the export value of my country's outdoor sports goods, sports shoes rank first, followed by sportswear, camping supplies, fishing supplies, water sports supplies, bicycle sports supplies, etc.

With the rapid growth of the outdoor equipment market, the competition in the industry is becoming increasingly fierce. In recent years, the number of outdoor brands in China with annual shipments exceeding 100 million yuan is increasing, which means that the focus of competition in the industry is shifting from production, price, and channel competition to brand competition, and building brand advantages is becoming increasingly important.

In this regard, Mutagudi has also formulated a comprehensive brand operation plan.

In terms of sales channels, Mugudi has made joint efforts in Damu channels, Damu e-commerce, Xiaomu direct sales, Xiaomu franchising, etc., implemented differentiated operation strategies, increased brand exposure, and driven brand business growth.

In terms of marketing, Mobico plans to promote exquisite camping and integration of camping culture into people's life through the large-scale camping market; in the small-scale camping market, it will strengthen the promotion of popular products and online and offline linkage promotion through product system, main consumer groups, and brand terminal research; and it will develop the mountain and light functional clothing market segments through the mountain (MOBI VILLA) market.

In addition, in-depth market research, accelerated expansion of various product categories, continuous development of new products based on consumer demand, and enhancing competitive advantages in the industry are also important components of Muco's future development plan.

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