Net profit of 5 million a day, this smart home is making a fortune!

With revenue of 8.2 billion in 9 months, the financial report of smart home sales is out!

Recently, smart home giant Ecovacs released its third-quarter financial report for 2021. Data showed that from January to September this year , Ecovacs' revenue reached 8.244 billion yuan, a year-on-year increase of 99.04%; the net profit attributable to shareholders of the listed company was 1.33 billion yuan, a year-on-year increase of 432.05%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 1.215 billion yuan, a year-on-year increase of 639.04%.

With an average daily net profit of nearly 5 million yuan, Ecovacs, as one of the world's earliest service robot developers and manufacturers, has been continuously deepening its research and development in the field of smart home robots for many years while increasing its investment, which is reflected in the newly released third-quarter financial report.

It is reported that in the third quarter of this year, Ecovacs' revenue was 2.886 billion yuan, a year-on-year increase of 65.82% ; the net profit attributable to shareholders of the listed company was 480 million yuan, a year-on-year increase of 307.4% ; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 400 million yuan, a year-on-year increase of 456.38%.

It is not difficult to see from the financial report that the main reason for the increase in the company's revenue in the third quarter and the first three quarters was the significant growth in operating income from the Ecovacs brand household service robots and Tineco brand smart life appliances businesses ; and the substantial increase in net profit attributable to shareholders of listed companies was also due to the growth in revenue and the increase in gross profit margin of the Ecovacs brand household service robots and Tineco brand smart life appliances businesses.

In other words, the main driving force of Ecovacs' growth still comes from its two own brands , Ecovacs and Tineco . It is precisely because of the continuous increase in gross profit margin and net profit margin of these two own brands that the company continues to maintain its leading position in the industry.

After the wave of self-banning began, many big sellers started to save themselves, and some "bystanders" once again recognized the situation and deeply realized the importance of persisting in innovation and improving product quality. They began to focus on development and innovation and continued to increase investment in research and development.

As a leader in the industry, Ecovacs has also achieved this. The financial report shows that Ecovacs' R&D investment in the first three quarters was 331 million yuan, a year-on-year increase of 53.41%. It is precisely because of the increased investment that the company's domestic and overseas markets have developed rapidly, showing a rapid growth trend.

Ecovacs has increased its investment in AI algorithms, human-computer interaction , and sensors , and launched the Deebot X1 series of all-round sweeping and mopping robots in September this year. The single product sales and market share have remained firmly in first place , becoming this year's industry hit and achieving outstanding results.

It is worth mentioning that public information shows that Ecovacs has begun to lay out a new track and advance into the service robot track.

It took Ecovacs only a dozen years to go from obscurity to the leading enterprise in the industry. A careful study of Ecovacs' financial reports shows that Ecovacs' investment in research and development has increased almost year by year, and technological research and development has indeed boosted Ecovacs' development.

Ecovacs' growth rate is one of the fastest in the industry. At the same time, the company has firmly and long-term chosen to pursue technological research and development. This is undoubtedly the most critical point.

Multi-platform operation becomes popular? Aoji and Paton turn to this platform

Under the multiple influences of account suspension, platform payment of VAT, policy changes, and logistics, sellers are in a particularly difficult situation. Not only have their years of hard work been washed away, but their main brands have also been cut in half. Many sellers have already realized that you cannot put all your eggs in one basket and have chosen to find new ways out.

Walmart has become a new way out for many sellers. For example , the well-known big-selling brands Mpow, Aukey, Tacklife, and Ravpower have all opened stores in Walmart, which means that big sellers such as Aukey and Patson have expanded their sales business to the Walmart platform.

Relevant data shows that since Walmart opened to international sellers in March this year, more than 5,000 Chinese sellers have chosen to join, accounting for more than 10% of all new sellers on Walmart. For sellers, whether Walmart is their best way out remains to be studied. After all, this is no longer an era of making quick money, and sellers need to consider multiple aspects and operate different platforms in compliance with regulations.

The dual layout of brand independent website and Amazon has also become another way out for many sellers. When most sellers were affected by the Amazon account suspension earthquake, many independent websites were not affected and achieved remarkable results, which made many sellers very excited.

As a light luxury DTC overseas brand founded in 2015 , Lilysilk belongs to Nanjing Best Network Technology Co., Ltd. Unlike general sellers fighting in the clothing category, Lilysilk mainly focuses on silk products, including bedding and home clothing, etc., mainly targeting urban white-collar workers in the United States and the United Kingdom aged 35-50, and its products are priced between US$50 and US$200.

In terms of platforms, Lilysilk adopts a dual layout strategy of independent website and Amazon, of which the independent website accounts for more than 60%. The total traffic of its independent website in the past six months is about 6.15 million. When Amazon first banned the account in May, Lilysilk 's traffic reached a peak of 1.2 million.

Another shoe brand, Crocs, was repeatedly reported to be on the verge of bankruptcy after its "hole shoes" became popular around the world in 2007. However, its current performance has surprised many people in the industry, who lamented that Crocs has survived.

Crocs' financial report data shows that its revenue in the second quarter reached 640 million US dollars, an increase of 93.3% compared with the second quarter of 2020. Americas, as Crocs' main battlefield, increased by 135.6% year-on-year to 405.7 million US dollars. In addition, its market value has been growing rapidly from the beginning of the year to the end of September, with an increase of 149.44% .

The reason why Crocs can still achieve an increase in performance is, on the one hand, thanks to the epidemic, and on the other hand, it has laid out many e-commerce sales channels, especially developing Amazon and independent brand websites at the same time. According to the data, in the second quarter of this year, Crocs' DTC sales increased by 78.9% year-on-year to US$333 million.

It is reported that Crocs has established official websites in more than 20 countries around the world and localized independent websites. The United States is its largest official website with more than 6 million monthly traffic. On Amazon, many of its basic hole shoes are on the Amazon Best Sellers list.

In today's ever-changing cross-border e-commerce environment, we don't know what changes may occur in the future. But sellers can choose the operation method that suits them according to their actual situation. At the same time, they must also remember not to touch the platform's red line. No matter which platform they choose, compliance operations come first.

Big Sell

Ecovacs

Financial Report