The cross-border sales IPO boom is coming!

Cross-border big sellers, fight to the top of the listing!

According to the editor's unofficial and incomplete statistics, more than 30 big sellers have successfully listed. Among them are well-known big sellers such as Anker Innovations, Tongtuo Technology, Lejia Holdings, Youkeshu, Yibai Network, and Cross-border Communication, as well as low-key and powerful ones such as Daotong Technology, Giant Star Technology, Oni Electronics, Ecovacs, Beurer, and Hanwang Technology.

In addition, there are a large number of cross-border sellers waiting in line for listing.

Recently, Santai Co., Ltd. responded to the second round of inquiries from the Shenzhen Stock Exchange , and provided detailed information on issues such as the number of stores on different e-commerce platforms and the main operating categories.

With revenue exceeding 10 billion yuan in three years and 15 brands generating revenue exceeding 100 million yuan , Suntech Power also recently updated its prospectus and gave the latest response to the third round of inquiries.

Not only Savi and Santai, public information shows that more than 10 major sellers, including Qianan Technology, Dreame Technology, Huabao New Energy, Zhiou Technology, Tianzhen Shares, Oushen Electric, PatPat, Aosen E-commerce, Greebo, Eskimo, Zibuyu, Kangliyuan, etc., are in the sprint stage of listing. Although SHEIN, a unicorn in the field of independent stations, has not officially announced the listing news, there are frequent reports about SHEIN's listing, and industry insiders also speculate that SHEIN's destination is also listing.

Cross-border e-commerce has been dominated by keywords such as "listing" and "financing". Cross-border sales have become the darling of capital . Behind this is the booming cross-border e-commerce industry based on the new economic model of new consumption scenarios. Benefiting from the overall development of the global cross-border e-commerce industry and China's manufacturing industry, and against the background of the continuous growth of the overall scale of the cross-border e-commerce market , China's cross-border e-commerce export industry still has huge room for development in the future.

The countless hard-working people in the cross-border survival chain are taking advantage of the situation. In addition to the big sellers, there are also countless small and medium-sized enterprises. As the cross-border ecology undergoes earth-shaking changes, more and more Chinese overseas companies are accelerating the transformation of new and old growth drivers, helping China's economy to maintain rapid growth and forming the ability to export to the world in the process of transformation and upgrading.

Cross-border sellers queuing up for listing!

The list of cross-border big sellers that are planning to go public includes well-known big sellers such as Suntech, Zhiou, and Aosen, as well as low-key money-counters such as Qian'an Technology, Dreame Technology, and Huabao New Energy. Their public information shows their performance, business categories, etc. at a glance.

All roads lead to Rome. Comparing the development history of these big sellers, we will find that each big seller has its own unique growth process, but the secrets of the big sellers reaching the top of cross-border business also have something in common. Below, the author will try to restore the growth trajectory of the big sellers through the public information of the big sellers that are planning to go public, and explore the best way to cross-border expansion.

1. Savi: Revenue exceeded 10 billion in three years, and 15 brands had revenue of over 100 million

Youkeshu, Tongtuo Technology, Aokia and Savi are well-known sellers in the cross-border circle and are known as the "Four Young Masters of South China City". In discussions about listing, the four may have common topics, or they may have common goals.

As we all know, Youkeshu and Tongtuo Technology have successfully listed. The low-key Aogee was once rumored to be planning to go public, and Suntech, which is in the process of going public, has just responded to the third round of routine inquiries from the Shenzhen Stock Exchange , and it seems that it is one step closer to a successful listing.

Savi Times expects to raise 622 million yuan in this IPO, which will be used for the construction of supply chain, logistics warehousing, brand channels, etc. As an export cross-border brand e-commerce company, Savi has multiple brands such as Ekouaer, Avidlove, Homdox, Coocheer, ANCHEER, etc. , and mainly operates clothing accessories, department stores and home furnishings, sports and entertainment, digital automobiles and motorcycles and other categories of products through third-party e-commerce platforms such as Amazon, Wish, eBay, Walmart, etc., and its business covers many countries and regions such as the United States, Germany, and the United Kingdom.

Looking closely at Savi's four main product categories, we can find that apparel and accessories are Savi's main source of revenue, with revenue exceeding 1.5 billion in the first half of 2021.

From 2018, 2019, 2020 and January-June 2021, Suntech's revenue was 2.245 billion yuan, 2.878 billion yuan, 5.253 billion yuan and 2.906 billion yuan respectively, with revenue exceeding 10 billion yuan in three and a half years.

It is commendable that while expanding its business scale, Suntech has achieved continuous improvement in operational efficiency, successfully turned losses into profits in 2019, and achieved substantial growth in performance in 2020. In detail, Suntech's net profit in 2018, 2019, 2020 and January-June 2021 was -6.633 million yuan, 54.108 million yuan, 450.8809 million yuan and 258.0363 million yuan, respectively.

Since 2019, due to large investments in the "branding" transformation phase and the consumption upgrade trend of overseas customers, the company's brand market share and visibility have increased significantly, and many brands have achieved a dominant position in Amazon's sub-categories.

As of the first half of 2021, Savi Times has incubated 43 private brands with revenue exceeding 10 million yuan, of which 15 brands had revenue exceeding 100 million yuan during the reporting period , including home wear brand Ekouaer, menswear brand Coofandy, underwear brand Avidlove, sports equipment brand ANCHEER, etc.

2. San Tai Shares: About 580,000 SKUs on sale, with nearly 100 subcategories

The estimated operating income and net profit of San Tai Co., Ltd. in the first three quarters of 2021 are RMB 1.65 billion to RMB 1.85 billion and RMB 140 million to RMB 160 million, respectively. As one of the few companies in the industry that has both cross-border e-commerce retail and logistics businesses, San Tai Co., Ltd.'s seller and logistics identities can be described as "high-quality".

It is reported that in 2018, 2019, 2020, and January-June 2021, Santai Co., Ltd. achieved commodity sales revenue of 910.5111 million yuan, 1229.8269 million yuan, 1390.9202 million yuan, and 963.3352 million yuan, respectively, and realized logistics and warehousing revenue of 282.9861 million yuan, 330.5256 million yuan, 602.1060 million yuan, and 265.3696 million yuan, respectively . The compound annual growth rates of commodity sales revenue and logistics and warehousing revenue from 2018 to 2020 were 23.60% and 45.87%, respectively . Judging from the sales data of the past three and a half years, the commodity sales of Santai Co., Ltd. accounted for 4 billion.

In terms of product sales, Santai shares mainly sells in a B2C mode through more than 20 major overseas third-party e-commerce platforms such as eBay, Amazon, AliExpress, Wish, Lazada, Shopee, etc. At present, Santai shares has about 580,000 SKUs on sale , with nearly 100 subcategories . Among them , the main types of products sold by the company include fashion (clothing accessories, personal care products, beauty products ), tool accessories (industrial and commercial tools, auto parts), home life (pet products, kitchen and bathroom appliances, wedding ceremonies, home decoration, home gardening), digital technology (computer games, consumer electronics), hobbies (creative handicrafts, outdoor activities, leisure and entertainment, music and art, sports and fitness), etc. , covering consumers in more than 200 countries .

Unlike other cross-border e-commerce companies that focus on the research and development of their own brand products, Santai Co., Ltd. focuses on the research of cross-border retail efficiency. By using data intelligence and IT technology, during the product development stage, the company adopts a product selection strategy based on big data analysis to obtain multimodal features including search trends, product sales, marketing copy, and illustration styles, and uses recommendation collaborative algorithms to screen out products that are more in line with market preferences.

At the same time, due to the obvious multi-platform and multi-regional characteristics of the company's operations, the company also adopts differentiated operating policies and sales strategies based on the characteristics of different platforms and regions, further improving the company's sales efficiency and revenue scale. During the reporting period, the company actively deployed emerging markets with high growth potential such as Southeast Asia and Latin America. Through product optimization and resource investment in regional platforms , the company's sales in the above-mentioned regions achieved an average annual compound growth rate of more than 100% during the reporting period.

3. Huabao New Energy: specializes in energy storage power supplies, with annual sales of up to 1 billion

Huabao New Energy Company's main products are portable energy storage products and power banks of different capacity specifications, as well as solar panels and related accessories that can be used with portable energy storage products. The products are mainly sold through well-known domestic and foreign third-party e-commerce platforms such as Amazon, Rakuten Japan, Yahoo Japan, Tmall and JD.com. It has successfully incubated two ace brands: "Jackery" and "Dian Xiaoer" .

Among them, portable energy storage products are core products, which can be used in outdoor travel, emergency preparedness and other scenarios. In 2021, the company's sales of portable energy storage products reached 183,505.28 million yuan, with an average annual compound growth rate of 171.10% during the reporting period.

The company expects its operating income in January-March 2022 to be RMB 504 million to RMB 616 million, a year-on-year increase of 25.21% to 53.04%; its net profit is expected to be RMB 61.2 million to RMB 74.8 million, a year-on-year decrease of 9.07% to 25.60%, mainly due to the increase in the purchase prices of major raw materials such as battery cells and the increase in head freight costs due to the impact of the "new crown" epidemic, as well as the company's increased investment in sales and R&D expenses such as product marketing and promotion, new product design and development.

Portable energy storage products have become the favorite and choice of outdoor people as soon as they were launched due to their large capacity, high power, safety and portability. Since 2019, the sales of Huabao New Energy's portable energy storage products in the United States have been 69,200 units, 130,000 units and 332,900 units respectively, and the penetration rate of portable energy storage products has increased rapidly. Since 2020, portable energy storage products have continued to be selected as the best-selling products (Best Seller) and Amazon's Choice on the Amazon platform, and have won the Japanese "Disaster Prevention and Safety Association Recommendation Award" medal for two consecutive years.

4. Other big sellers to be listed

Aosom E-commerce: Plans to issue shares for the first time and go public in April 2021. Founded in 2013, Aosom E-commerce is a major seller in Ningbo, Zhejiang. The products it sells are mainly divided into outdoor series, home series, health and leisure series, etc. Its business covers more than 20 countries including Europe and the United States. It has its own brands Aosom and Homcom, etc. In the first three quarters of 2020, it achieved revenue of 2.42 billion yuan, an increase of 94.71% over the same period last year; and achieved a net profit attributable to shareholders of 248.6 million yuan, an increase of 1936.4% over the same period last year.

Qian'an Technology: In January 2021, Shenzhen Qian'an Technology Co., Ltd. plans to issue shares for the first time and list on a domestic stock exchange. The company owns several core brands including Sportneer, Tribit, Ohuhu, iClever, Elechomes, etc. In 2020, Qian'an's core brand monthly revenue exceeded 40 million US dollars.

Qian'an Technology uses B2C brand websites and third-party platforms such as Amazon as its main sales channels. Its main product lines include smart home appliances, Bluetooth audio, sports and outdoor, LED lighting and other categories. It has created a series of influential Chinese brands in Amazon markets such as the United States, Canada, Germany, France, the United Kingdom, Italy, Spain, and Japan.

PatPat: People familiar with the matter said that PatPat is in the process of an initial public offering, and the stock sale may be carried out as early as this year, and may raise about US$500 million, and PatPat's valuation will also reach US$3 billion. PatPat is a clothing and maternity and baby brand. Founded in Silicon Valley, USA in 2014, it started with children's clothing and is committed to building a global maternity and family consumption scene brand.

Eskimo: The IPO launch meeting will be held on April 27, 2021. Eskimo is a big seller on Tmall in Hangzhou. In 2015, it established a cross-border e-commerce division, and its business categories have gradually expanded from a single home textile category to a full range of home furnishing categories . At present, its products have been sold to more than 100 countries and regions around the world . It has not only opened full-site services on Amazon North America, Europe, and India, but also expanded its business to platforms such as Shopee and eBay. In the first half of 2020, Eskimo successfully squeezed into the top five of Amazon's home textile category, with sales soaring and cross-border e-commerce transactions exceeding 300 million.

Dreame Technology: Completed a C round of financing of RMB 3.6 billion in October 2021. Dreame Technology is a big seller in Suzhou, and its key product categories include cleaning appliances and personal care appliances.

Revenue exceeded 500 million in 2019, exceeded 2 billion in 2020, and was close to the full-year level of last year in the first half of 2021, with a year-on-year growth of more than 100%. In June 2021, Dreame vacuum cleaners topped the sales of vacuum cleaners above 300 euros on AliExpress Europe; in June 2021, Dreame robot vacuum cleaner D9 swept the Amazon rankings in France, Italy, and Spain, becoming the best-selling champion of vacuum cleaners in the 200-300 euro price range; in the first half of 2021, Dreame cordless vacuum cleaner shipments in the German market were three times the full-year shipments in 2020.

The above inventory is only a partial list of companies waiting to be listed. Their names were put together under the call of the keywords "listing and financing". In the " Top 100 Chinese Cross-border E-commerce Companies in 2021" released by the China Internet Network Information Center not long ago , many big sellers gathered together again.

It is reported that SHEIN, Anker Innovations, patpat, Zebo Technology, Banggood Technology, Youkeshu, Cross-border Communication, Lianluo Interactive, Tongtuo Technology, LDK, LightInthebox, Zibuyu, Zhiou Technology, Auke, Starlink, Aopeng Networks, Santai Holdings, Quanliang Quansu, Aosen E-Commerce, Xingshang, and Bestec have all been successfully listed in the " Top 100 Chinese Cross-border E-commerce List in 2021" .

Cross-border e-commerce has long been a place of hidden talents. Among the cross-border giants that have not been publicly listed, there may be many low-key and powerful ones who are quietly preparing for listing applications!

The “excellent genes” of Chinese companies going global

Summarizing the common points of the listed or planned listed companies, we can find that at present, traditional developed countries and regions represented by the United States, France, Russia, and the United Kingdom are the main markets for China's cross-border e-commerce exports. With the advancement of the "Belt and Road" construction and the rise of emerging market countries around the world, Southeast Asia, South America, Africa and countries and regions along the "Belt and Road" will gradually become potential markets and new growth poles for China's cross-border e-commerce exports in the future .

At the same time, in the face of the ever-changing cross-border overseas environment, cross-border sellers are also relying on "brand" to build an indestructible moat for themselves. Just like Savi, which is currently listed, it has gone through three stages of development:

Initial development stage ( 2012 to 2015): Focus on building the underlying architecture and continuously improve operational efficiency;

Transformation stage ( 2016 to 2018): Implementing the “branding” transformation strategy;

Rapid development stage ( 2019 to present): further strengthen full-link digital capabilities, supply chain integration capabilities, and brand operation capabilities, improve logistics and warehousing layout and supporting facilities, and actively implement the "branding" strategy.

In terms of business categories , 3C accessories, department stores and home furnishings, sports and entertainment, digital automobiles and motorcycles are their main categories . These categories are also the "excellent genes" in the bones of Chinese companies going overseas.

China is a major light industrial country. Whether it is clothing, electronics, home furnishings or auto parts, it has manufacturing industry clusters from design and finished product manufacturing to warehousing and logistics. Long-term win-win cooperation has enabled excellent domestic e-commerce companies to build their own supply chain systems.

Data shows that in 2018, the largest categories of China's cross-border e-commerce retail export value were electronic products, clothing and accessories, and home gardening, accounting for 20%, 13% and 9% respectively. In terms of growth rate, the export sales growth rate of clothing and accessories and home gardening products was as high as 52% . In addition, consumers also have a large demand for home gardening, outdoor products, beauty and health care, shoes, hats and bags, accounting for more than 5%.

As a new business model for foreign trade, cross-border e-commerce has become a new driving force for foreign trade development, a new channel for transformation and upgrading, and a new tool for high-quality development. The 2022 Government Work Report proposes to accelerate the development of new business models for foreign trade, give full play to the role of cross-border e-commerce, and support the construction of a number of overseas warehouses. Cross-border e-commerce has been included in the Government Work Report for nine consecutive years.

In fact, since 2020, the country has successively introduced a package of policy measures, including 10 measures to stabilize foreign trade growth and formulated 50 specific task lists, to fully support the healthy and sustainable development of the cross-border e-commerce industry in many key areas such as customs declaration procedures, warehousing and logistics services, bonded area system, tax operations, business supervision, and foreign exchange payments.

From a Spark to a Wildfire

Cross-border e-commerce has developed from a niche industry in the beginning to a popular industry known to everyone. From being unique to Shenzhen to flourishing all over the country, "a spark has already started a prairie fire."

According to Qichacha data, there are 33,900 cross-border e-commerce related companies in China . In the past five years, the number of registered cross-border e-commerce related companies in China has increased year by year.

In 2017, my country added 3,071 new cross-border e-commerce related companies, a year-on-year increase of 2.03%.

In 2018, 3,204 new companies were added, a year-on-year increase of 4.33%.

In 2019, 3,985 new companies were added, a year-on-year increase of 24.38%.

In 2020, 6,313 new companies were added, a year-on-year increase of 58.42%.

In 2021, 10,900 new companies were added, a year-on-year increase of 72.20%.

In terms of regional distribution, Guangdong ranks first with 9,291 cross-border e-commerce related enterprises, followed by Zhejiang and Shandong with 3,836 and 3,207 respectively, followed by Anhui, Fujian, Henan and other provinces.

In terms of city distribution, Shenzhen has 3,300 cross-border e-commerce related companies, ranking first. Guangzhou and Haikou have 849 and 376 companies respectively, ranking the top three. Then there are Qingdao, Hangzhou, Weihai and other cities.

According to Analysys International, in 2018, more than 85% of China's cross-border e-commerce companies had annual sales of less than US$2.5 million, and only 2.25% of large sellers had annual sales of more than US$10 million. This data shows that cross-border e-commerce is now a gathering place for small and beautiful businesses, but from "small and beautiful" to "large and comprehensive", many small and medium-sized enterprises can still give people a broader imagination space.

The path that big sellers have taken is also the journey that many cross-border sellers are about to embark on; the development trajectory of big sellers is also a microcosm of many cross-border sellers.

Savi

science and technology

Cross-border e-commerce