Anker vigorously develops the domestic market! Cross-border sales are accelerating the process of getting rid of platform dependence

Under this wave of rectification by Amazon, some sellers had their accounts blocked due to non-compliance. Of course, many sellers were not affected. Big sellers like Anker and Levo, which we are familiar with, were not affected in this wave of account blocking. By being prepared for danger in times of peace, big sellers whose accounts have not been blocked are accelerating their efforts to get rid of their dependence on platforms such as Amazon.

The shadow of account suspension has not yet dissipated, but for cross-border e-commerce, this setback has also made the entire industry realize the importance of compliance. Sellers who have been suspended are also actively seeking new business channels, and sellers who have not been suspended are also taking frequent actions.

The editor learned that among these big sellers that have not been banned, Anker Innovations has achieved very good results in the first half of the year. Now, Anker Innovations wants to vigorously develop the domestic market, and other big sellers have also begun to deploy other channels ...

Anker Innovations plans to vigorously develop the domestic market

Some time ago, Anker Innovations held its first press conference in China in Shenzhen and disclosed its plans for the Chinese market. Yang Meng, the company's founder and CEO, said that Anker Innovations' current revenue share in the Chinese market is still 2%, while other large consumer electronics companies usually have a revenue share of 15%-20% in the Chinese market. For this reason, Anker Innovations has increased its investment in the Chinese market since last year.

"If you want to be a mature global enterprise, you must have the Chinese market." Yang Meng said, so Anker Innovations will bring more of its products to the Chinese market this year. It is reported that Anker Innovations' Anker Nano 20W, a product that tried out the waters in the Chinese market last year, has always maintained the first place in the charger category on JD.com and Tmall.

It can be seen that when domestic Taobao and Tmall sellers are turning to Amazon, Anker Innovations has begun to vigorously develop the domestic market. As for how Anker Innovations performs in the domestic market, it remains to be verified by time.

Lechuang expects revenue of 3.029 billion in 2021, a year-on-year increase of 56.10%

As a big seller in Zhejiang, Lechuang has always been a stable player. In the first half of this year, Lechuang's operating income was 1.397 billion yuan, a year-on-year increase of 120.68%, and its net profit was 84.0027 million yuan, a year-on-year increase of 23.25%. Among them, the company's independent website sales increased by 366.42% year-on-year, achieving revenue of 255 million yuan.

It has to be said that the performance of Leckey's independent site in the first half of this year was still very impressive. Leckey stated in its research report that Amazon + independent site are blooming on both fronts, and the independent site is experiencing explosive growth. The company's Flexispot brand maintains its leading position in the category on the Amazon platform.

Lechuang is also one of the few big sellers that has not been affected by the account closure. Lechuang shares said in an institutional survey that Amazon's closure has no impact on the company. The company has always been operating in compliance with regulations. This matter is good for compliance operations and purifying the competitive environment. Only by being honest with consumers can we go further.

The sellers affected in this wave of account closures are more or less heavily dependent on the platform, so that they have no ability to fight back when they are "abandoned" by the platform . However, Lechuang did not rely particularly on independent websites and the Amazon platform itself, but adhered to the principle of "a good iron must be forged by its own tools." It is reported that Lechuang continued to increase its R&D investment in the first half of the year. During the reporting period, the company's R&D investment was 54.9103 million yuan, a year-on-year increase of 134.57%.

In the latest research report, Lechuang stated that macroeconomic factors in 2021 had a significant negative impact on the company's profitability, but the company's revenue was still in a state of rapid growth. The company's private placement was approved on July 19, and its ROE exceeded 20% in 2020. The implementation of refinancing will further boost the company's rapid development.

Lechuang Holdings expects the company's revenue to be 3.029 billion/4.262 billion/5.763 billion in 21/22/23, a year-on-year increase of 56.10%/40.69%/35.23%;

The estimated net profit is 197 million/306 million/538 million, a year-on-year decrease of -9.47%/55.69%/75.71%.

The recent high freight rates have become a hot topic, and LOGO has also made a lot of efforts to reduce costs and increase efficiency. LOGO said in its semi-annual report that it has purchased seven self-owned warehouses in the core hub port areas of the United States , a total of 14 warehouses worldwide, with a total area of ​​148,000 square meters. In the second half of the year, it will invest in large-scale warehouses and automated warehouses in Pennsylvania and Georgia, and it is expected that the global overseas warehouse area will reach 260,000 square meters by the end of 2021.

As cross-border big sellers, both follow the principle of "not putting all eggs in one basket". Anker Innovations' approach is to accelerate its layout in the domestic market, while Leckey is to increase its R&D efforts, and one of Morning North's important measures is to focus on offline channels.

Chenbei is focusing on offline channels and expects to have more than 5,000 offline stores by the end of the year

As a well-known seller in the cross-border circle, the news that Morning North Technology successfully went public last year is also very encouraging. One seller said: "In Shenzhen, almost no cross-border people don't know about Morning North Technology."

According to Tonghuashun Finance, Chenbei Technology recently stated that it would "strengthen offline channels and maintain rapid growth". With excellent online business, offline business must also be synchronized. Chenbei said that the company is actively carrying out offline channel expansion strategy, and it is expected that there will be more than 5,000 offline stores by the end of 2021. In September this year, it will invest in shopping platform advertising to cooperate with the development of offline channels.

With the cooperation of online sales and offline stores, Chenbei Technology's performance will continue to grow. In this research report, Chenbei Technology expects the company 's operating income in 2021-2023 to be US$5.0, US$7.1 and US$1.01 billion, respectively, a year-on-year increase of 43.2%, 42.6% and 41.9%, respectively, and net profit to be US$76.49 million, US$108 million and US$157 million, respectively, a year-on-year increase of 39.8%, 41.2% and 45.2%, respectively.

In the first half of this year, Chenbei Technology's growth rate in the three major markets was also very fast. Chenbei said that the growth rates of the North American market, European market and Asian market in the first half of the year were 46%, 96% and 124% respectively .

In the semi-annual report released not long ago, we can also see the excellent performance of Morning North Technology in the first half of the year. The financial report shows that VeSync's operating income in the first half of 2021 was US$199 million, compared with US$129 million in the same period of 2020, an increase of 54.2%; its net profit was US$32 million, compared with US$22.5 million in the same period of 2020, an increase of 42.3%.

In addition, this year's shipping prices are indeed unbearable for a number of sellers, and even big sellers cannot escape this clutches. Chen Bei said that shipping freight rates will be the main influencing factor in the second half of the year. Due to the company's peak shipping periods and advance stocking, the annual gross profit margin level will be affected by shipping market freight rates.

At a meeting a few days ago, the chief financial officer of Morning North Technology said: "China's industrial dividends and the channel changes brought about by the Internet only provide the necessary conditions for the birth of the brand. The rest is to return to the origin of the brand. There is no shortcut."

The essence of e-commerce is brand and product. If you blindly pursue the profits brought by illegal operations, the risk is still very high. Under the trend of compliance, making good products is the top priority!

Summarizing some of the actions of big sellers such as Anker Innovations, Levo and Morning North, we can find that if sellers want to grow bigger and stronger, they must not only operate in compliance with regulations, but also adhere to brand strategies. Instead of relying on platforms, it is better to rely on themselves!

Cross-border e-commerce

Amazon

Anker Innovations