Brand aggregation, also known as "roll-up," is a way for brand aggregators to grow by integrating smaller but promising businesses and operating them as a whole. After developing in the United States, Europe, and Southeast Asia, players in this industry have set their sights on Amazon's Chinese sellers.
Peter Chaljawski, founder and CEO of Berlin Brand Group ( BBG), said they are the latest companies in the industry to enter China. BBG is recruiting dozens of employees in Shenzhen and plans to acquire dozens of brands in the next few years, which will enrich their existing product portfolio. The company currently has 14 own brands and 20 acquired brands.
BBG is no stranger to China. They have always relied on Chinese manufacturers to produce products. Until now, 90% of the company's products are still made in China. The company's current business is mainly selling products on Amazon and other places, mainly including home music and electronic equipment, home fitness, kitchen appliances, gardening products, etc.
BBG hopes to help Chinese consumer goods expand in the United States and Europe. They can help brands improve their sales methods on Amazon and help merchants open the door to the European market. In Europe, BBG has a 12,000 square meter distribution center and nearly 20 online stores , getting rid of its dependence on Amazon. At the same time, BBG has built algorithms that track millions of products and hundreds of thousands of sellers to help run the business .
BBG said it is in talks with some Chinese brands, but cannot disclose their names yet. At the same time, BBG has raised $240 million from commercial banks and other channels, plus the $300 million it announced earlier this year, giving BBG a total of $540 million to acquire and operate these companies.
There are many companies in the industry that are of the same size or even larger than BBG. Thrasio, based in the United States, has completed a $1.2 billion Series C financing to expand its "roll-up" business, with a company valuation of several billion dollars. Chaljawski said that BBG is likely to conduct equity financing in the near future to attract investment and value the company.
In addition to BBG and Thrasio, other companies in the same space include Brands, which launched its own roll-up business earlier this year with $150 million in funding.
However, since brand aggregation is an emerging market and most of the companies in the industry are start-ups, this industry has the same risks as other emerging industries. Brands need to consider carefully when cooperating. Amazon Transnational Capital Chinese Sellers |
<<: Amazon destroys millions of products, logistics and warehousing become new problems?
>>: Halfords online sales surge 110% to £580m
Lively was founded in 2016 and is an American lin...
East Japan Railway Company, commonly known as JR E...
Amazon and other global websites crashed At aroun...
Cross-border e-commerce is full of intrigue! Is c...
PickFu is a platform for obtaining consumer feedba...
<span data-docs-delta="[[20,"Feed.biz"...
PostFinance is the banking subsidiary of the Swis...
<span data-docs-delta="[[20,{"gallery"...
the-rushing-hour is committed to innovation and hu...
With the wave of global e-commerce development, i...
WeloveShopping is an online shopping store or web...
On Monday, a well-known Amazon seller consultant ...
Wings International Logistics (Shenzhen Wings Inte...
This year, Amazon's wave of account bans has ...
Myipp is a professional product selection tool for...