Topped the BS list, the hit product drove Amazon's revenue to increase by 2.3 times

Sanlida's new hit product helps increase revenue by more than 20 million

No matter what the overall environment is like, there will always be people who stand out and enjoy both the soup and the meat. In the recently disclosed financial report, the editor found a company with an increase in revenue, profit, and gross profit margin. The biggest contributor to such a beautiful "transcript" is the hot-selling product "displayed" on Amazon.

The real face of the hit is the "Dragon Claw X8 compound bow" , which is a primary compound bow specially designed for bow hunting enthusiasts under Jiaozuo Sanlida Archery Equipment Co., Ltd. (hereinafter referred to as " Sanlida " ) . The name of this hit is not exaggerated, and it is now firmly ranked first and second on the Amazon compound bow bestseller list.

Not only is it popular on Amazon, it has also driven the hot sales of domestic brands on the Amazon platform and a significant increase in the "OEM" business in this category.

The emergence of the hit product has made Sanlida widely recognized in the international market. Among them, the revenue from the Amazon platform increased by 8.1672 million yuan, a huge increase of 230% over the previous year; excluding the Amazon platform, the overseas revenue increased by 14.1372 million yuan, a year-on-year increase of 51.94%.

From the perspective of product classification, we can also see the explosive power of hot products. The revenue of compound bows increased by 136.96% year-on-year, while the growth rate of recurve bows was only 38.45%, and the hot products are compound bows.

Under the model of "bringing the whole family to the overseas market", Sanlida's total revenue reached 77.82 million yuan in 2021, an increase of nearly 60% over the previous year. Since 2013, Sanlida 's total revenue has been around 40 to 50 million yuan, and this time it can be regarded as a new step forward.

With such a good total revenue, the net profit is not bad either. Last year, Sanlida's net profit attributable to the parent company was 6.631 million, doubling from the previous year. Not only that, the gross profit margin also increased by 3.31% from the previous year . The increase in gross profit margin is mainly due to the gross profit margin of the Amazon platform, which is 49.56%. The growth of its revenue has driven the growth of the overall gross profit margin.

Many sellers jokingly call 2021 a year of "high sales and low profits". Just like Giant Star Technology, although its annual revenue exceeded 10 billion yuan for the first time, its net profit attributable to the parent company fell by 80 million yuan, and its gross profit margin also fell by 5.62% year-on-year. Even Anker Innovations was not immune, and its gross profit margin also fell slightly.

The main reason for this is the increase in operating costs, freight and raw material prices. In fact, almost all sellers have encountered these problems, and Sanlida is no exception.

Data shows that Sanlida 's operating costs reached 48.82 million yuan in 2021 , up 50.77% year-on-year. The increase in production and the rise in raw material prices led to an increase of 18.4109 million yuan in cash paid for the purchase of goods and services compared with the previous period; the increase in staff and commissions led to an increase of 5.363 million yuan in cash paid to and for employees compared with the previous period; the increase in Amazon platform service fees, advertising fees, online promotion fees and maintenance fees led to an increase of 2.5 million yuan in cash paid for other operating activities.

Under such circumstances, Sanlida 's gross profit margin was still able to grow, which shows that its performance last year was indeed good.

Believe in their own products, sellers: prices only increase, not decrease

Archery is actually a very old sport. To be more precise, in ancient times, it was a survival skill. Nowadays, there are many types of bows and arrows. Mechanical bows and arrows such as mechanical crossbows and crossbow machines are strictly controlled items in some countries ; while non-mechanical bows and arrows such as compound bows and recurve bows are sports equipment and have been used for training, competition, hunting, leisure, entertainment and fitness.

Take the United States as an example. According to Statista , there were an average of 7 million archers aged 6 and above in the United States each year between 2006 and 2017. Movies such as The Hunger Games and The Avengers have increased people's interest in archery. With more people, there are more places to go. According to the American Archery Trade Association, as of 2016, there were about 1,300 archery ranges and 608 official clubs in the United States.

A survey by the National Sporting Goods Association showed that the archery equipment market grew 107.2% from 2003 to 2017, and some analysts predict that it will grow 8.5% by 2022.

Compared to other sports, archery is a niche sport. Therefore, the global market size of non-mechanical bow and arrow equipment is not as large as some other sports equipment. However, its demand will always exist and will continue to grow, which also provides opportunities for sellers like Sanlida .

Sanlida has not been in the Amazon channel for long, only about two years. During this period, the income from the Amazon platform has always provided strong support for Sanlida .

The 2020 financial report shows that due to the impact of the COVID-19 pandemic, Sanlida 's catering, accommodation, and archery service revenues have dropped significantly, but its archery products have successfully opened up the US B2C online market by adopting the Amazon + overseas warehouse + single product hit model in the US market, and its archery revenue has increased significantly, so the overall revenue in 2020 has not dropped. In 2021, the hit products on Amazon have led to a significant increase in its revenue.

Of course, all this is inseparable from its own strength. Before setting out for Amazon, Sanlida had accumulated the ability to produce high-quality products.

Sanlida can be said to be a long-established enterprise, which has been established for more than 20 years. It is an enterprise commissioned by the State General Administration of Sports to specialize in researching, developing and manufacturing bow series products.

Qichacha shows that in the field of patents, Sanlida currently displays 48 pieces of information. Sanlida has also been recognized as a high-tech enterprise and a national-level science and technology-based small and medium-sized enterprise. In order to develop new products, improve existing products, and increase research and development efforts , Sanlida 's research and development expenses reached 4.29 million yuan in 2021 , an increase of 1.317 million yuan year-on-year .

Moreover, over the years, Sanlida 's bows and arrows have been used by many professional players in large-scale competitions, which also highlights its strength. In the archery competition of the 11th National Paralympic Games last year, a player used the company's bows and arrows and broke the record. At the same time, ordinary consumers also have a good evaluation of Sanlida 's bows and arrows. With a solid foundation, Sanlida's overseas expansion instantly became popular, and its brand became well-known.

In recent years, it has been very popular in the cross-border circle to grab market share by offering low prices, but Sanlida has taken a different approach, saying that it will not lower prices and may even raise them. At 5 o'clock and on the right side of the Amazon product details page, we can see Sanlida emphasize: We guarantee that this is the lowest price, and it will only be raised in the future, not lowered; we will not offer any promotions or discounts, because this price is the best we can offer; if the price is lowered, you can ask for compensation!

I rarely see statements like this on other product pages. Who gave me the confidence? I guess it was Sanlida's trust in its own quality.

Bow and Arrow

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