Well-known cross-border import e-commerce Onion Group submitted an IPO application, with clothing, shoes and bags being the most popular

According to reports, according to documents from the U.S. Securities and Exchange Commission, Onion Group, a well-known domestic cross-border import e-commerce company , submitted an IPO application. AMTD Group, Huatai Securities, Ross Capital, Tiger Brokers, and Huasheng Capital are all underwriters of this IPO.

The company plans to use 50% of the net proceeds from the offering to develop its own brands and brand partnerships, 20% to expand marketing and distribution channels; 15% to enhance its technological capabilities; and 15% for working capital and other general corporate purposes, including potential strategic investments and acquisitions.

The main businesses of Onion Group include global brand incubation and cross-border direct e-commerce. The prospectus shows that the company has 4,001 brands on its platform, including 86 brand partners that directly cooperate with the company, providing 23 categories of products including beauty, maternal and child care, food and beverage, fast fashion and health. As of December 31, 2018, 2019 and 2020, 5.5 million, 10.3 million and 15.8 million orders were processed, respectively.

The prospectus shows that Onion Group's revenue in 2018, 2019 and the first six months of 2020 was RMB 1.805 billion, RMB 2.851 billion and RMB 3.811 billion, respectively. Its net profit increased steadily from -0.95 billion in 2018 to RMB 103 million in 2019, and then to RMB 208 million in the first six months of 2020.

It's not just Onion. Affected by the epidemic, the scale of the cross-border e-commerce market shrank in 2020. However, with the improvement of relevant policies and regulations, the cross-border e-commerce market will continue to improve. Under the foreseeable long-term trend of economic recovery and consumption upgrading, China's overseas shopping users will continue to grow, which further highlights the development potential of the import cross-border e-commerce market.

Data from iiMedia Research shows that in 2021, 47% of China's import cross-border e-commerce users prefer to buy clothing, shoes and bags, while those who prefer beauty and personal care, food and beverages, and electrical appliances and digital products account for 43.3%, 39.9% and 37.9% respectively. Next, 32.2% of users prefer to buy nutritional health products, 29.9% of users prefer to buy sports and outdoor products, and those who prefer home furnishings, maternal and child products, and pet supplies and food account for 28.2%, 26.8% and 15.8% respectively .

import

E-commerce platform

Cross-border e-commerce market