The rise of the “DTC brand aggregation” e-commerce model! Is Amazon’s position as the global e-commerce leader unstable?

As Shein and Anker become popular around the world, more and more investors are eyeing Chinese cross-border e-commerce companies with large sums of money. However, these investors only bring checks, not brand development strategies. Faced with the social reality of long-tail brand communication, the "DTC brand aggregation" e-commerce model is quietly rising , shaking Amazon's position as the global e-commerce hegemon .

On August 10 , an Amazon third-party brand acquisition company ambitiously stated in a tweet posted on its official Twitter account that they are preparing to enter China in the near future and described how they will conquer the Asian market. The article proposed that "DTC brand aggregation" can provide a new way for Chinese cross-border e-commerce sellers to expand their scale in the European and American markets , break free from Amazon 's constraints, and better control consumer data.

The company is a D2C brand aggregator. On their official website, they say their responsibility is to incubate, build, acquire and grow brands around the world. These brand aggregators acquire promising e-commerce brands and achieve operational synergies between different brands through their own retail strategy experience . After taking off in the United States, Europe and Southeast Asia, they are eyeing the Chinese market .

The company's founder and CEO said in an interview that the group plans to acquire "dozens" of brands in China in the next few years . To this end, they raised $240 million in funds and announced that they would use $300 million from their balance sheet to acquire companies. The recent financing will not be the last round, and other financial instruments may be used in the future.

The high-spirited founder believes that VCs and DTC brand aggregators are not direct competitors in the process of finding brands to invest in : “There are tens of thousands of sellers in China who have generated considerable revenue on Amazon. I think VC is suitable for some of them, and the DTC brand aggregation model is only suitable for some of them. But because of the huge base, this ‘some’ is still a very, very large number. ”

Amazon has been in trouble recently, making many Amazon sellers anxious. At this critical moment, the B2C brand aggregation model and the brand aggregators behind this model may represent another way out.

Cross-border e-commerce market