Many products entered Amazon Best Sellers, East China sales were strong, and revenue reached nearly 3 billion in half a year

The epidemic lockdown has led to people spending more time at home, driving the growing demand for home decoration and other products. There is no shortage of news of home decoration sales in China. But for European and American consumers, garden decoration is also a very important part, and the sales of related sellers have also increased. Jiangsu's big seller Greebo is one of them.

Half-year revenue is nearly 3 billion yuan, and the revenue and profit of big sellers are increasing year by year

Greebo (Jiangsu) Co., Ltd. (hereinafter referred to as "Greebo"), had its IPO accepted on May 21 last year. On September 30, the listing review was suspended due to expired financial information. The review was resumed after the financial information was updated on October 15. On March 23 this year, Greebo updated its prospectus and continued to strive for listing.

Greebo's main products are new energy garden machinery, including lawn mowers, grass trimmers, cleaning machines, hair dryers, smart lawn mowing robots, smart riding lawn mowers, etc. Its revenue mainly comes from overseas sales, with business covering many countries and regions around the world, and it has established many overseas subsidiaries. The US market accounts for the largest share, while the European market share has declined, mainly because the demand from European customers has declined while the demand from North American customers has increased significantly.

Since 2009, Greebo has successively established brands such as greenworks and POWERWORKS. In particular, the greenworks brand has a high degree of popularity and reputation in Europe and the United States, and many of its products have achieved both good sales and good reputation.

Greebo's overseas sales adopt a combination of online and offline models. In addition to the company's official website, Greebo also has a presence on mainstream European and American e-commerce platforms such as Amazon, Lowe's, Homedepot, Walmart, and Costco. With the development of the e-commerce market, Greebo's sales share in e-commerce channels has also shown a sustained and rapid growth .

Offline, in the North American market, the company's products have been successfully sold in Lowe's, the world's second largest home decoration supermarket, Wal-Mart, the world's largest retail supermarket, and Costco in the United States; in the European market, they have been sold in Leroy Merlin, the largest building materials supermarket in Europe, and Bauhaus, the second largest building materials supermarket in Germany. Some of them are sold through dealer channels, but the proportion is relatively small.

From 2018 to 2020 and the first half of 2021, Greebo's operating income was approximately RMB 3.11 billion, RMB 3.73 billion, RMB 4.29 billion, and RMB 2.88 billion , respectively, and its net profit was RMB -140 million, RMB 150 million , RMB 570 million, and RMB 360 million , respectively . Both revenue and profit are increasing year by year .

Overall, Lowe's accounts for the majority of Greebo's revenue , accounting for 48.08%, 57.22%, 50.79% and 28.59% of sales revenue from 2018 to 2020 and the first half of 2021. Affected by Lowe's business adjustments, in the first half of 2021, Lowe's accounted for 28.59% of the company's revenue, down 35.54% from the same period in 2020.

On the other hand, Greebo's sales on the Amazon platform have increased significantly . On the one hand, this is due to Greebo's increased investment in e-commerce, while the downstream demand for new energy garden machinery continues to grow. On the other hand, the overseas epidemic has also prompted consumers to increase their demand for shopping on Amazon and other e-commerce platforms. The company is still continuing to increase its investment in e-commerce channels, and it is expected that sales revenue on Amazon will continue to grow.

Greebo's business is mainly divided into private label business, supermarket brand business and ODM business. In its rapid development process, the company's private label business has made an indelible contribution, and private label has always been one of Greebo's main business lines.

Greenworks 's own brands contribute more than half of its revenue , making it a great company

Data shows that in 2020 and January-June 2021, the sales revenue of its own-brand products accounted for more than 50%, namely 54.05% and 56.53% respectively, becoming Greebo's main source of income.

It is understood that since 2009 , Greebo has successively established multiple brands such as greenworks and POWERWORKS . Among them, although the key brand greenworks experienced intellectual property disputes in the first half of 2021, this did not affect its "money-making" performance in all aspects .

Public data shows that Greebo's greenworks brand products rank among the top three in the US new energy garden machinery market share .

It is worth noting that according to relevant statistics, in the field of outdoor power equipment in North America, the market share of new energy garden machinery has increased from 13% in 2019 to 27% in 2010. The future development prospects are broad, which also provides a large market space for Greebo's future development.

In terms of online sales, Greenworks brand lawn mowers, hair dryers and other products are always the best sellers on the Amazon platform , and their sales and user reputation are at the forefront of the market. It also provides the company's own brand or supermarket brand products to well-known supermarkets in Europe and the United States , such as Walmart , Lowe's, and Costco .

In fact, the reason why Greebo's own brand has performed so well is mainly because the company has increased its R&D investment in many aspects. After foreseeing the broad market prospects, Greebo began to cooperate with online channels and gradually expanded its market share. At the same time, the company is also well aware of consumer needs.

In the face of fierce market competition, product innovation and technological innovation have become the key for major companies to break through the existing "bottleneck", and Greebo is no exception. It has established an ecosystem with lithium battery packs as the core and innovatively developed multiple battery pack power platforms.

The benefit of this is that after consumers purchase multiple greenworks products, they can use the battery packs of different products interchangeably, which not only reduces the cost of use for consumers, but also increases their favorability towards the brand.

The company has also developed several smart products, including smart lawn mower robots and smart ride-on lawn mowers. Its lithium-ion commercial zero-turn lawn mowers and all-terrain vehicles won the US PTIA Professional Tool Innovation Award in 2018 and 2019.

In addition, continuous investment in R&D and design is also an important magic weapon for the company's development. According to the prospectus, at the end of the reporting period, the company had 928 global R&D and technical personnel , 1,024 domestic and foreign patents, including 84 invention patents. The localized operation team established in foreign countries such as the United States, Canada, and Russia has more than 250 people, and market management is more efficient.

Under the influence of comprehensive factors, Greebo's development has pressed the "accelerator".

It is not difficult to find that in recent years, major companies preparing to go public have been continuously increasing their own brand building, product research and development, and innovation, which are also the core competitiveness of enterprises. As some industry insiders said, technology and innovation are the evergreen trees of enterprises, and rushing for success will only be short-lived . Good companies all make their own products and channels ......

Although large and medium-sized enterprises have obvious competitive advantages in the above competitive factors, if small enterprises and sellers stand still and always maintain the status quo, the development "bottleneck" will come sooner, and they may even face the risk of being eliminated by the market. Therefore, sellers can make new attempts on the basis of steady development and good products.

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