The scenery is unique! This hot seller is on the market

Recently, many Shenzhen sellers have been blocked one after another, and they are in a gloomy mood; but on the other hand, the sellers who have not been affected by the blocking trend have taken another step forward, and the scenery is unique. It is reported that Zi Buyu, one of the largest cross-border sellers in China, has submitted an application for listing and plans to go public in Hong Kong; at the same time, Shenzhen seller Saiwei has also restarted its IPO and continued its journey to listing.

Hangzhou Damazibuyu applies for listing on the Hong Kong Stock Exchange

On June 30, the Hong Kong Stock Exchange disclosed that Zibuyu Group Co., Ltd. submitted an application for listing on the Hong Kong Main Board. Huatai International and ABC International are the joint sponsors.

Zibuyu is a cross-border e-commerce giant from Hangzhou. Founded in 2011, it is one of the largest cross-border e-commerce companies in China. In 2018, the GMV of all sales channels exceeded 1 billion yuan; in 2020, the GMV exceeded 2 billion yuan.

This big seller started to enter the cross-border business in 2014. Like many sellers in the industry, it has deployed multiple e-commerce platforms such as Amazon, Wish, AliExpress, eBay, etc., and also developed its own independent station channels.

According to the prospectus, from 2018 to 2020, Zibuyu's operating income was 1.318 billion, 1.429 billion and 1.898 billion yuan respectively, and the corresponding net profits were 80.01 million, 81.10 million and 113 million yuan respectively.

1. Shoes and clothing categories are selling well

This big seller mainly sells self-designed fashion apparel and footwear products, incorporating relevant fashion elements into new product designs and conducting market research based on sales data and consumer preferences on different platforms.

From 2018 to 2020, the revenue generated by Zibuyu's clothing products accounted for 85.1%, 80.3% and 70.5% of the total revenue in the same years respectively; the revenue from footwear products accounted for 14.5%, 17.9% and 21.1% of the total revenue in the same years respectively.

2. Layout of third-party platforms and independent sites

According to Frost & Sullivan, Zibuyu ranked third in terms of GMV of apparel and footwear products sold through third-party e-commerce platforms in 2020; Zibuyu ranked first among all platform sellers in China's cross-border e-commerce export B2C apparel and footwear market in terms of GMV generated in North America in 2020. This is definitely a big hit in the category!

Zi Buyu has set up both third-party platforms and independent websites, and the proportion of its sales through Amazon and independent websites is constantly increasing.

As of December 31, 2020, Zibuyu has designed and sold more than 2,500 best-selling products. It has cultivated 151 brands, including 20 popular brands, with annual sales exceeding RMB 10 million. Currently, 453 of its clothing and footwear products are ranked in the top 100 of Amazon's best-selling list, and there are 3,232 best-selling products on Wis.

In addition to third-party e-commerce platforms, the company established its own website in 2018. Since then, sales have increased significantly. From 2018 to 2020, the sales GMV of its own website increased at a compound annual growth rate of 680.0%.

3. Gross profit margin is as high as 60%

The company's gross profit margin has been above 60% for three consecutive years . From 2018 to 2020, the company's gross profit margin was 66.5%, 69.8%, and 72.6%, respectively. The net profit margin was 6.1%, 5.7%, and 6.0%, respectively.

Compared with previous performance, Zibuyu achieved a substantial increase in gross profit, and the company also mentioned that it was due to the expansion of Amazon business operations and self-operated websites. Through Amazon, it targets high-end customers with strong spending power and earns higher gross profit through independent websites.

4. Amazon sales are growing rapidly

From 2018 to 2020, the company's revenue generated through sales on Amazon accounted for 23.6%, 31.5% and 32.4% of the total revenue, respectively, showing a gradually increasing trend.

As of the end of May this year , Zibuyu's business growth and gross profit increased significantly compared with the same period in 2020. Its sales through Amazon grew rapidly.

In order to improve Amazon's performance, the company's design team has developed new categories of products such as outdoor clothing, men's yoga clothing, infant clothing and children's clothing. The selection of products meets the needs of people in the post-epidemic era, so it is no wonder that sales have been steadily increasing.

In addition, the company has cultivated more products that rank among the top 100 best-selling products on Amazon , which will lay the foundation for future growth.

Zibuyu mainly sells its products through mainstream third-party platforms and its own websites , and its customers cover more than 80% of countries and regions in the world . In 2020, major sales revenue from the United States and Europe accounted for a total of 92.5% of its revenue.

Big seller SREV restarts IPO

At the end of last year, Suntech's application for an IPO on the Growth Enterprise Market was accepted; in early April this year, Suntech's IPO was suspended because the financial information recorded in the IPO application documents had expired and needed to be supplemented. The latest news is that Suntech completed the update of financial information on June 29 and has restarted its IPO.

Saiwei said that the company is a technology-driven export cross-border brand e-commerce company. Its main products cover four major categories, including clothing and accessories, department stores and home furnishings, sports and entertainment, and digital automobiles and motorcycles. It owns multiple brands including Ekouaer, Avidlove, Homdox, Coocheer, and ANCHEER.

In 2020, Savi's revenue was 5.25 billion yuan and its net profit was 550 million yuan. The revenue share of the above-mentioned major categories was 47%, 21%, 19% and 7% respectively, and clothing accessories contributed nearly half of the sales.

Savi is worthy of being a best seller in the industry.

During the reporting period, Savi incubated 32 private brands with revenues exceeding 10 million yuan, accounting for 72.75% of the company's merchandise sales revenue during the reporting period. Among them, 13 brands including homewear brand Ekouaer, menswear brand Coofandy, underwear brand Avidlove, and sports equipment brand ANCHEER had operating revenues exceeding 100 million yuan during the reporting period, accounting for 64.03% of the company's merchandise sales revenue during the reporting period.

Based on the strategic considerations of building a brand matrix and developing multi-category businesses, Savi adopted the multi-account store operation model that is more common in the cross-border e-commerce industry. It operates multiple stores on third-party e-commerce platforms such as Amazon, Wish, eBay and Walmart, and sells through vertical category self-operated websites such as SHESHOW and Retro Stage.

In the prospectus, Savi disclosed the latest number of accounts:

As of the end of last year, Savi had a total of 661 Amazon stores in the United States and other regions , 357 Wish stores, 293 eBay stores, 24 Walmart stores, and 70 other stores, totaling 1,405 stores, a decrease of nearly 1,000 stores from 2,361 stores at the end of 2019.

In this regard, Savi stated that the company has adopted a branding strategic transformation, changing its business model from the previous non-brand model to a branded model. On the premise of ensuring the stability of the company's business operations, it will gradually and reasonably reduce the number of stores on third-party e-commerce platforms.

Savi has the most Amazon stores, and most of its revenue comes from Amazon, and the proportion is increasing year by year. In terms of brand influence, as of June 2021, many products from brands such as Avidlove, Ekouaer, Coofandy, and ANCHEER are among the top five in the Amazon Best Sellers sub-category.

In the special risk warning, Savi mentioned the risk of high concentration on the Amazon platform.

During the reporting period of the prospectus, Suntech's sales revenue on the Amazon platform was RMB 1.36 billion, RMB 2 billion and RMB 3.7 billion, respectively, accounting for 60.50%, 68.33% and 70.12% of its main business revenue, respectively, which is a relatively high proportion.

Savi also mentioned the risk of store closures:

If in the future third-party e-commerce platforms such as Amazon, Wish, eBay and Walmart determine that the company's multi-account store operation model has no reasonable business reasons and violates the registration and operation policies of such platforms, or modify the registration and operation policies of their platform stores to restrict the multi-account store operation model, thereby resulting in a large number of the company's stores on third-party e-commerce platforms being closed, the company may face the risk of a substantial decline in operating income and profit scale, which will have a significant adverse impact on the company's overall operating performance.

Hot sale, listed, Savi, Zibuyu