Net profit of 200 million in half a year! Shenzhen's best-selling VeSync sales soar

As one of the huge industry tracks in the cross-border e-commerce market, home appliances have not only attracted a number of big players to enter the market, but also a new category is quietly emerging and has achieved remarkable results. In addition to Shenzhen's big seller VeSync, which has a revenue of US$199 million, Roborock Technology, which focuses on smart small home appliances, has also seen an increase in revenue and profit.

VeSync's half-year revenue is $199 million, with North America contributing the most

Under Amazon's account ban wave, the performance of many well-known sellers has been affected to varying degrees. However, VeSync, one of the major cross-border home appliance sellers, does not seem to have been affected by Amazon's account ban wave. Its revenue and net profit have been growing steadily, which is really gratifying.

According to the financial report, VeSync's operating income in the first half of 2021 was US$199 million , an increase of 54.2% compared with US$129 million in the same period of 2020; its net profit was US$32 million , an increase of 42.3% compared with US$22.5 million in the same period of 2020.

Calculated based on the current exchange rate, VeSync's net profit of US$32 million in the first half of the year is equivalent to approximately RMB 206 million .

From a market perspective, the North American market is VeSync's largest revenue source, with revenue of $160 million , followed by the European market with $33 million and the Asian market with $6 million. In comparison, although the revenue of the European and Asian markets is far less than that of the North American market, compared with the data in 2020, the growth of the two markets has nearly doubled.

Judging from the financial report data, VeSync's revenue and net profit have achieved good growth. It is not easy for VeSync to achieve such excellent results when the performance of many big sellers has declined due to Amazon's account ban.

Regarding the growth in net profit, VeSync stated that its own brands Levoit (air purifier) ​​and Cosori (smart air fryer) were one of the important reasons driving its profit growth.

Among them, the company's own brand Levoit is labeled as the best-selling air purifier in the United States and is also VeSync's largest and most profitable brand. After the epidemic, people's attention to health and healthy food has driven the growth of its brand Cosori. Some products under the brand are on the Amazon BestSeller list, and the current reviews have exceeded 50,000 .

In addition, the revenue that VeSync has generated through its VC account on Amazon North America should not be underestimated. According to financial report data, VeSync earned $134 million through its VC account in the first half of 2021, up 69.5% from $79 million in the same period of 2020.

As for the future outlook, VeSync said that it will gradually build its brand product ecosystem, has developed its applications, will continue to optimize its product portfolio, and will drive its performance growth through various channels. In contrast, VeSync's diversified operations, brand ecosystem building, doubling of R&D expenditures, and equity incentives within the company are constantly driving its progress. For sellers, the successful strategy of selling high-quality products is also worth learning from.

With one million units sold in half a year, Roborock Technology's revenue reached 2.348 billion

Earlier, Ecovacs, a major smart home appliance seller, announced its revenue data for the first half of the year, with operating income of 5.359 billion yuan and net profit of 850 million yuan. Now, Beijing Stone Century Technology Co., Ltd. (hereinafter referred to as Stone Technology), the company that owns Roborock, the big brand of Amazon's sweeping robot, has also announced its half-year financial report.

Data shows that in the first half of 2021, Stone Technology's operating income was 2.348 billion yuan, an increase of 32.19% compared with 1.776 billion yuan in the same period of 2020, and its net profit attributable to the parent company was 652 million yuan. Compared with Ecovacs' revenue data, although Stone Technology's revenue is less than half of Ecovacs, its net profit is far more than half of Ecovacs , which is enough to show Stone Technology's profitability.

Relevant data shows that during the reporting period, Roborock Technology sold a total of 1.23 million sweeping robots, with sales revenue of 2.261 billion yuan. In addition, as Roborock Technology is continuously expanding its overseas business, its profitability has gradually improved. According to the financial report data, its overseas revenue was 1.255 billion yuan, a year-on-year increase of 124.14%.

Stone Technology is a company focusing on the research, development, production and sales of smart cleaning robots and other smart appliances. It mainly produces smart sweeping robots, handheld vacuum cleaners and commercial cleaning robots . Its products are sold in overseas markets mainly through Amazon, its own websites and other platforms to the United States, Europe and Southeast Asian markets. With its high cost-effectiveness, it has gained a large number of loyal fans overseas.

Earlier, Stone Technology started out with sweeping robots and was criticized by the outside world for its single product. However, Stone Technology has expanded its product line to multiple product lines, such as handheld vacuum cleaners and commercial cleaning robots, and its sales channels have also expanded to the B2C and B2B markets. This diversified layout is undoubtedly driving the progress and development of Stone Technology.

Stone Technology's own brands account for as much as 98.23%

According to Stone Technology, the significant increase in its revenue is due to a variety of factors, including new product research and development and listing, expansion of overseas sales channels, product marketing, and the control of the epidemic. Under the influence of this series of factors, Stone Technology's revenue and net profit have both increased significantly.

In addition, financial report data shows that the proportion of Roborock's own-brand sales is increasing rapidly , from 9.63% in 2017 to 98.23% in the first half of 2021. Judging from the data, Roborock's own-brand strategy is undoubtedly successful, and its revenue is growing steadily while improving its independence.

All of this is inseparable from Stone Technology's increased investment in research and development. Financial report data shows that in the first half of 2021, Stone Technology's R&D expenditure reached 199 million yuan, an increase of 89.77% year-on-year. In addition, the proportion of its company's R&D personnel is also increasing, currently accounting for 58.64%, or 464 people.

However, Roborock Technology's R&D investment accounts for only 8% of its total revenue , which is still a big gap compared to the high proportion of a number of major home appliance sellers. If sellers want to gain a foothold in the small home appliance market, R&D investment is undoubtedly an important part.

Judging from the data in recent years, the small household appliance market has developed very rapidly, especially the new categories represented by sweeping robots. Not only has the growth rate been obvious, but the development has also been extremely rapid. It has not only attracted a number of big sellers to join the market, but also driven the performance growth of big sellers such as Ecovacs.

However, for the small appliance market, sweeping robots are a new species after all, and their market size, target audience, and future development direction are all unknown. Sellers who want to enter this category must also be mentally prepared and take one step at a time, from product research and development to market development, and then to future brand building and product sales. Only by being cautious can they achieve considerable results.

In general, with many sellers vigorously developing their own brands, the traditional distribution method seems to be no longer effective. At present, many big sellers are adjusting their strategies and shifting to a more refined direction, from simply selling goods to building their own brands in order to stand longer in the cross-border circle.

Shenzhen big seller

VeSync

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