Anker invested 40 million yuan in Shenzhen and the smart home product sold well. It continues to be popular!

The epidemic has brought huge challenges to the majority of cross-border sellers, but it has also made the stay-at-home economy soar. The home furnishing category under the stay-at-home economy has ushered in a new development trend. When home furnishings are covered with a smart coat, the future of the blue ocean market belonging to sellers is also bright.

With huge potential for profit, industry leader Anker Innovations has invested RMB 40 million in Zhiyan Technology.

Anker Innovations invests RMB 40 million in Zhiyan Technology

As a well-known seller in the industry, Anker Innovations' every move has attracted much attention. Some time ago, Anker Innovations released its 2020 financial report. The impressive data made many sellers in the industry envious.

The strong will become stronger. Anker Innovations is expanding its scale while developing itself. Yien.com learned that Anker Innovations recently issued an "Announcement on Overseas Investment and Related Transactions". The content of the announcement is as follows ↓

In order to further expand the company's business layout, improve the overall quality of the company's investment projects, enhance the company's comprehensive competitiveness, and achieve the company's strategic goals for industrial development, Anker Innovations Technology Co., Ltd. plans to increase the capital of Shenzhen Zhiyan Technology Co., Ltd. with its own funds of RMB 40 million. After the completion of this investment, the company will hold 1.257317% of the equity of Zhiyan Technology.

According to public information, Zhiyan Technology was established at the end of 2017 and is headquartered in Nanshan District, Shenzhen. It is a high-tech enterprise specializing in the research and development of smart home products and upstream and downstream supply chain optimization . Its mission is to promote the intelligence of home life and it is committed to creating smart hardware equipment with extreme light and shadow effects and supporting service supply.

The company's smart hardware brand Govee continues to maintain an extremely high market share on the Amazon platform, with a compound growth rate of over 300% for three consecutive years.

I believe that most of the friends in Shenzhen have heard of the name of Shenzhen Zhiyan. As a big seller in the cross-border circle, its annual revenue is also very gratifying. Anker Innovations also disclosed Zhiyan’s revenue data for 2019 and the first half of 2020 in this investment announcement, as shown in the figure below↓

As can be seen from the above figure, Zhiyan Technology's operating income in 2019 was 422 million yuan, and its operating income in the first half of 2020 was as high as 527 million yuan.

This revenue is already enough to beat many sellers in the industry. I believe that Anker Innovations chose to invest in Zhiyan because it valued its strong revenue capabilities and the development prospects of smart home products.

In addition, Zhiyan Technology has also achieved very outstanding achievements - Alexa smart LED light strips are ranked No. 1 in global sales, the only lighting brand selected in Amazon Prime Day North American best-selling list, and has 6 million loyal users .

Anker Innovations said that this investment in Zhiyan Technology may bring certain investment returns to the company and will help further expand the company's diversified business layout.

Unlimited potential! Global smart home consumer spending will grow to $5501 billion in 2023

Data shows that from 2018 to 2023, the global smart home consumer expenditure will have a compound annual growth rate of 10%, and will grow to US$5,501 by 2023 .

Taking the United States, Japan and the United Kingdom as examples, the penetration rate of the US smart home market reached 32% in 2018. It is estimated that by 2022, the total value of Japan's smart home market will reach US$7.2 billion, the total value of the UK smart home market will double to US$5.8 billion, and the Indian smart home market will reach US$6 billion.

The vast space for making money makes smart innovative products one of Anker Innovations' main revenue categories in 2020. The editor learned that in 2020, Anker Innovations' smart innovative products achieved operating income of 3.059 billion yuan, an increase of 102.63% compared with the same period in 2019. By continuously increasing investment in product research and development and continuously launching innovative products, Anker Innovations' smart innovative product revenue has increased significantly, accounting for 32.71% of total operating income , an increase of 10.02 percentage points compared with the same period in 2019.

It is understood that Anker Innovations' smart innovation products mainly include "Eufy" brand smart home products and smart home security products, as well as "Nebula" brand home projector products and other new categories of products. Smart home products mainly include smart sweeping robots, handheld and portable vacuum cleaners, smart switches, light bulbs and sockets and other smart products ; smart home security products include smart wireless security cameras, smart door locks, smart doorbells, smart home cameras and other smart products.

According to Amazon's real-time ranking data on December 31, 2020, many Eufy brand sweeping robot products ranked first in sales in the Amazon Japan category, and ranked second and third in sales in the Amazon United States category respectively .

In its 2020 financial report, Anker Innovations stated that in the field of smart innovative products, the company will continue to deepen the application and innovation of artificial intelligence + Internet of Things technologies, and more effectively integrate the layout of smart home, smart security, and entertainment audio and video products into the daily life scenes of families and consumers. In this category, it will continue to launch epoch-making innovative products and explore new categories and new brand building opportunities.

The home furnishing category has been popular for so long and is still popular!

Smart home is an organic part of home. If smart home is a rising star in making money, then the entire home category is a "good money-making category" that will last for a long time.

According to foreign media reports, the online penetration rate of the home furnishing industry increased to 35% in 2020, while the online penetration rate was only 23% in 2019. In the past decade, the annual growth rate of the industry has generally remained between 1% and 3%, and this year's growth rate of 12% is truly outstanding.

Data shows that in February 2021 alone , Americans spent $11.3 billion on home furnishings and home decoration, a year-on-year increase of 12%.

In a good environment, many sellers said that home furnishing products are really good. One seller reported that the epidemic has caused the home furnishing category to be very popular from last year to this year. In December last year, he sold more than 10,000 pieces of home winter gloves! The seller believes that the current events have created heroes!

The home furnishing category has huge potential, but it also means fierce competition. So how can sellers in the home furnishing category stand out from the many competitors?

Based on the household goods reference suggestions given by Amazon Global Store, the editor summarizes the following key points:

1. Collect product pain points from consumer feedback and make improvements to existing products.

2. Materials that use recycled materials will be more popular with consumers.

3. It is recommended that sellers provide more personalized options in terms of materials, patterns (colors and patterns), styles, and sizes, and offer competitive prices while controlling costs.

4. Conduct consumer research. Consumers in the five European countries have slightly different preferences for the same product, so it is recommended that sellers customize product designs based on the preferences of customers in different regions.

5. Look for niche categories and pay more attention to small categories that have grown rapidly in recent years. You can consider whether to enter based on dimensions such as market capacity, growth rate, and product difficulty coefficient.

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