Products are listed on Amazon BS list, Shenzhen sellers' overseas revenue doubles

Overseas revenue increased by 95.63%, and its share further expanded

The full name of BUYDEEM is Shenzhen BUYDEEM Jinghui Technology Co., Ltd. Some sellers may not be familiar with BUYDEEM . In fact, BUYDEEM is a small home appliance seller. Its main products include health pots, electric kettles, toasters (also known as toasters) , ovens, water dispensers, steamers, etc. , as well as health ingredients and peripheral products launched around health pots and ovens. Its main businesses include the "BUYDEEM BUYDEEM" independent brand business and OEM/ODM business.

The report shows that Beijing Ding Co., Ltd. achieved double growth in revenue and profit in 2021 , specifically: revenue of 847 million yuan, an increase of 20.84% ​​over last year; net profit attributable to shareholders of listed companies was 108 million yuan, an increase of 8.11% year-on-year. Among them, the independent brand BUYDEEM contributed the most, with revenue of 632 million yuan , accounting for 74.64% of total revenue . Overseas, Beijing Ding BUYDEEM's revenue was 58.74 million yuan , a year-on- year increase of 95.63%. Not only that, the proportion of Beijing Ding BUYDEEM 's overseas revenue is also larger than last year, expanding from 5.99% to 9.29%.

It is understood that BeDing has been expanding its overseas independent brand business through the distribution model since 2017. In 2019, BeDing began to try overseas direct sales. At present, the overseas market mainly covers North America, Japan, Southeast Asia and other places, and the main channels include but are not limited to BeDing's overseas official website, Amazon and other channels .

In 2020, the customers of BeiDing's overseas private-label business were mainly overseas Chinese, so the main products were also categories such as health-preserving kettles. In 2021, the categories with the largest growth in overseas revenue were categories such as toasters.

The toaster market is huge abroad. According to data, the global toaster market size was US$3.83 billion in 2019 and is expected to reach US$4.72 billion by 2027, with an average annual compound growth rate of 4.2% during the forecast period.

Due to the huge demand, China exports a large number of toasters. Customs data show that China's exports of slice toasters in 2020 amounted to US$563 million, an increase of 11.3% over 2019. In terms of export regions, China's slice toasters are mainly exported to Europe and the United States. In 2020, the regions with the highest export share of Chinese slice toasters were the United States, the United Kingdom, and Germany, with a combined share of more than 50%. Among them, the United States accounted for the highest share of 32.2%, while the United Kingdom and Germany accounted for 13.7% and 7% respectively.

Toasters are a hot-selling product of BeDing Co., Ltd. on Amazon US. On the best-selling list of toasters, BeDing Co., Ltd.'s toaster ranks 11th (data as of April 8). Not only that, the product has also received the Amazon's Choice logo, a four-and-a-half-star rating, and nearly 8,000 reviews.

Toasters have been around for a long time, and during this period many big brands have occupied a considerable market share. However, the time for BeiDing 's own brand to enter the overseas market is relatively short, and it is not easy for it to make it into the top 20 of the best-selling list given that the price is not low.

The reason why this product has won the favor of consumers is not only because of its high appearance and retro style, but also because of its various intelligent operations. Behind this is the research and development strength of Beijing Ding Co., Ltd.

In 2020, BeiDing's R&D investment was 30.779 million yuan, accounting for 4.87% of its own brand's operating income. As of December 31, 2021, BeiDing has 210 patents, including 81 domestic invention patents, 42 utility models, 52 design patents, and 35 overseas patents. In addition, the company's independently developed and designed products have won many industrial design awards such as the "iF Industrial Design Award", "Red Dot Industrial Design Award", "IDEA Industrial Design Award", "G Mark Award", "Aplan Industrial Design Award", "Red Star Industrial Design Award", and "Good Design Industrial Design Award".

BeiDing shares said that its future overseas strategy will not simply target Chinese and overseas Chinese users, but will focus on the mainstream consumer market, so BeiDing shares will take a more comprehensive view of the usage scenarios and habits of local people. Of course, BeiDing shares will have special channels for Chinese users, and some product function settings will be relatively focused. In the future, the needs of Chinese users will only constitute a part of BeiDing shares' overall product line, and will no longer be the focus of the overseas market as in the past.

Transformation and upgrading: from OEM to overseas direct sales of independent brands

At present, independent brands are the main source of income for Beijing Ding Co., Ltd. But have you ever thought that this is a story of a foundry transforming into an independent brand manufacturer?

In 2003, Jinghui Technology Co., Ltd., the predecessor of Beijing Ding Co., Ltd., was quietly established in Shenzhen. At that time, Jinghui Technology was one of the world's most professional kitchen small appliance R&D bases and manufacturers, mainly providing small appliance OEM services for world-class international brands such as Whirlpool Group, Morphy Electric, and Bofu Group. It produces about four million units of various products each year, and its products are sold well in more than 70 countries and regions including Europe, America, Australia, and the Middle East, with a global market coverage rate of up to 60%.

However, due to the impact of the global financial crisis in 2008, Beiding Co., Ltd.'s export business slowed down. In 2009, it launched its own brand "Beiding BUYDEEM" for domestic sales.

In fact, in recent years, there are many companies that have transformed from OEMs to independent brands, such as 3C seller JMET. In 2020, JMET's ODM/OEM business and private label business accounted for 65.75% and 34.23% respectively. Although the private label business accounts for a small proportion, its proportion has increased year by year and the gross profit margin is relatively high. In 2020, the gross profit margin of private labels was as high as 51.88%, while the gross profit margin of ODM/OEM business was only 26.26%. The pursuit of higher gross profit margins is one of the main driving forces for most OEMs to choose to develop their own brand business.

At present, the sales model of Gemtek's own-brand business includes direct sales in addition to purchase and sale. Direct sales are mainly achieved through the online B2C model, with the main income coming from Amazon.

From the actions of BeiDing Holdings and JMET, we can see that while developing their own brands and pursuing high gross profits, they are also actively expanding overseas online direct sales channels.

Some analysts say that before, brands were controlled by foreign buyers, and channels were controlled by large supermarket chains. Domestic suppliers had no brands and no channels, and could only passively process and manufacture. The current cross-border e-commerce opportunity lies in the fact that domestic brands can sell their products on Amazon, eBay and other platforms in Europe and the United States, understand customer needs and market needs through sales, and establish their own warehousing and logistics systems through large-scale sales. In the entire value chain, domestic brands not only occupy the profits of production and manufacturing, but also the profits of brands, channels and sales terminals.

The essence of the rapid development of domestic cross-border e-commerce companies is actually to utilize the manufacturing advantages of the consumer goods industry accumulated by Chinese foreign trade companies over the years, combine them with the development trend of e-commerce, upgrade the traditional B2B trading model to the B2C trading model, and adapt to market demand.

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