Selling hundreds of millions! Niche categories are popular overseas

Selling hundreds of millions! Niche categories are popular overseas

Against the backdrop of increasingly fierce competition in the global market, the overseas expansion of niche brands is gradually becoming a unique new business trend with huge potential.

 

Different from the mass market, niche brands usually focus on specific segments. They have emerged in overseas markets with accurate user insights, innovative product designs and in-depth brand stories. These brands not only meet the increasingly diversified and personalized needs of consumers, but also successfully win loyal user groups and considerable market share through differentiated competitive strategies.

 

Many niche brands have broken through the limitations of traditional cognition, attracted the attention of overseas consumers with innovative products and marketing strategies, and achieved outstanding results in their respective fields.

 

1. A small flashlight generates hundreds of millions of revenue!

 

The seemingly ordinary Olight flashlight has brought hundreds of millions of revenue to Olight Technology.

 

Olight was founded in 2007 and is affiliated to the Olight Technology Group. It has long been focused on the research and development and production of high-end mobile lighting equipment. In the past decade of development, Olight has mainly produced portable lighting fixtures. Its product line is rich and diverse, covering outdoor flashlights, EDC flashlights, tactical lights, atmosphere lights, headlamps, bicycle lights and various peripheral accessories. The main target consumer group is outdoor enthusiasts.

 

In the early days of going overseas, Olight mainly relied on agents for overseas sales. However, due to limited brand awareness, it was often at a disadvantage in negotiations with American agents, resulting in suppressed prices and purchase volumes, and performance growth faced challenges.

 

In order to get rid of its dependence on agents, Olight officially launched its cross-border e-commerce business in 2015, choosing Amazon as its first overseas destination. However, at that time, Chinese sellers on the Amazon platform were experiencing explosive growth, and Olight's brand voice was drowned out by many competitors.

 

Faced with this dilemma, Olight decisively changed its strategy, committed to brand building, and decided to build an independent website to enhance its brand influence. Subsequently, Olight's senior management went to the United States to establish a subsidiary and set about building a brand independent website.

 

(Image source: Olight official website)

 

What was relatively smooth was that not long after the independent website went online, Olight received an order worth US$100,000, finally opening the door to the overseas market.

 

By 2021, Olight's annual revenue has exceeded 100 million yuan.

 

In 2023, Olight's annual revenue jumped to 1 billion yuan, with overseas sales accounting for as much as 99%.

 

In 2024, Olight's revenue continued to grow, with sales reaching RMB 1.207 billion in the first three quarters alone, and the proportion of overseas sales remained stable at around 99%.

 

It is worth noting that in the course of Olight's development, it has received strong support from multiple rounds of financing. In 2021, Olight received its first round of A financing of 30 million yuan; in January 2023, it successfully obtained nearly 100 million yuan in round B financing. These funds provide a solid guarantee for Olight to continue product innovation and market expansion.

 

In 2023, Olight Technology started A-share IPO guidance and completed its B round of financing in early 2024. This series of actions not only indicates that Olight has firmly established its foothold in the global market, but also means that it has taken a crucial step towards the capital market.

 

Why has Olight been able to gain a dominant position in the market?

 

Olight flashlights are based on innovative design and are multifunctional. For example, the Arkfeld Pro flashlight integrates three light sources: white light, ultraviolet light, and green laser, which can meet the lighting needs of different scenarios. This multifunctional design greatly improves the practicality of the product and makes Olight stand out in the fiercely competitive market.

 

In terms of lighting endurance, Olight flashlights use efficient circuits and high-quality batteries, which ensure that the flashlight can provide long-term stable lighting from a hardware level. In addition, some flashlights have strong battery compatibility and can adapt to batteries of various specifications, providing users with more choices. For example, Olight M20 is compatible with lithium batteries of various specifications, and Olight S10-Ti is perfectly compatible with CR123A and RCR123A batteries, allowing users to choose the appropriate battery type according to their actual needs.

 

Olight always puts product innovation and quality first. Each product must go through a rigorous testing process. Because of this, it has won the widespread trust of users around the world. Take its popular product Arkfeld Pro as an example. With the dual advantages of "practicality + high appearance", it won the 2024 Red Dot Award. In addition, Olight has also established an internal PK mechanism and used the "dry goods method" to ensure that each new product can accurately meet the actual needs of users from multiple dimensions such as technical level and market recognition.

 

In addition to the advantages of the product itself, Olight also provides a variety of accessories and expansion options, such as extended tactical pressure switches, gun clips, filters, etc. Users can choose suitable accessories for expansion and upgrade according to actual needs. This personalized customization service also increases users' loyalty to the Olight brand.

 

Social media promotion has played a vital role in the development of Olight.

 

Olight has precisely targeted the specific group of EDC (Every Day Carry) and outdoor enthusiasts, and has successfully entered the niche circle by developing in-depth cooperation with KOLs on YouTube and Facebook, publishing a large number of product reviews, unboxing videos, and usage scenario demonstrations. For example, by cooperating with professional accounts such as Best Damn EDC, Olight has rapidly increased the brand's popularity by leveraging their powerful influence.

 

In terms of social media operations, Olight adopted a localized operation strategy. Inviting local people to shoot product reviews and usage scenario videos greatly enhanced the emotional resonance between the brand and local users. At the same time, by showing the outstanding performance of flashlights in extreme environments, the brand attracted young user groups with highly impactful visual effects, further enhancing the brand's influence on social media.

 

2. Ohuhu markers win the niche market! Hot overseas

 

In the niche field of painting tools, Ohuhu has rapidly risen with its high-quality products. With the continued growth of the global painting tools market, Ohuhu's sales have reached nearly RMB 400 million in just one year, demonstrating its strong market competitiveness.

 

Ohuhu is affiliated to Shenzhen Qian'an Technology Co., Ltd. (hereinafter referred to as "Qian'an Technology"), which was founded in 2010 and is headquartered in Shenzhen. It was founded by He Ding, an American returnee with a background in computer science and e-commerce. Based on the professional background advantages of the founder, Qian'an Technology has focused on the Amazon platform since its inception, accurately grasping and successfully seizing the bonus period of cross-border e-commerce development.

 

Qian'an Technology owns several well-known brands, Ohuhu is one of them. Ohuhu was officially established in 2014, mainly launching a series of painting supplies such as markers, watercolors, and brushes. With the high quality of its products and continuous innovation, the brand quickly emerged in the overseas market and occupied a leading position.

 

(Image source: Ohuhu official website)

 

Since its establishment in 2014, Ohuhu has actively promoted its global layout and established sales channels in many Amazon sites such as the United States, Europe, Japan, Canada, India, Australia and the Middle East.

 

Among them, Ohuhu's marker pen products ranked first in market share in the painting tool category on Amazon's US and European sites, and also performed well on the Indian site, jumping into the top five on Amazon's Indian site in just one year.

 

In 2023, Qian'an Technology's overall operating income reached RMB 1.4 billion. This year, the annual sales of Ohuhu brand markers approached US$90 million, successfully becoming the domestic brand with the largest overseas online market share.

 

Ohuhu has been able to stand out in the fierce market competition mainly due to the following key factors:

 

The Ohuhu team has a keen insight into the market. They noticed that traditional painting tools are difficult to meet the stringent requirements of young people for color and creative experience. At the same time, combined with the trend of continued growth in the global painting tool market, the team decisively entered this field. Ohuhu targets artists, students, and painting enthusiasts with a strong desire to create. Based on the characteristics of this group of people who pay great attention to product quality and details, the product is designed and created.

 

Ohuhu's products have great competitive advantages in the market. Taking markers as an example, the brand provides a rich variety of color specifications, including 120 colors, 216 colors, 320 colors, etc., and even developed as many as 481 colors. These markers are not only suitable for paper, but can also be easily colored on a variety of materials, showing excellent gradient effects and strong visual impact, and can be easily mastered whether it is professional painting or daily graffiti. In addition, Ohuhu has also launched segmented products such as watercolor sets and multi-color painting tools to meet the diverse needs of different users and fill market gaps. In 2024, its nylon axe alcohol marker series won the Red Dot Design Award, the American Muse Design Gold Award and the French Design Award, and was highly recognized by the international market.

 

In terms of sales channels, Ohuhu has not only deployed platforms such as Amazon, independent sites, and TikTok Shop, but also built an account matrix on multiple mainstream social media platforms such as Instagram, TikTok, YouTube, and Facebook. In view of the characteristics of different platforms and the attributes of user groups, Ohuhu has carefully planned and launched diversified content. By cooperating with KOLs and KOCs in the field of painting, Ohuhu has achieved rapid growth of the brand. For example, in cooperation with Gawx Art, an artist with 2.11 million fans on YouTube, interesting video content attracted a large number of fans. At the same time, cooperating with a large number of KOCs to release unboxing videos and user experiences further expanded the brand's influence among young users.

 

Ohuhu has developed a marketing strategy tailored to the market characteristics of different regions, thereby occupying a dominant position in the local market. In the European and American markets, the brand has launched a high-end painting tool series, such as double-headed markers and professional watercolor sets. With its high-quality products, it has won the trust of consumers and has topped the painting tool category for many years.


In emerging markets such as Southeast Asia and India, Ohuhu has launched low-end and mid-range painting tools that meet local market needs. Taking the Indian market as an example, Ohuhu generated sales of $1.36 million in its first year of entry and successfully ranked among the top 5 sales on Amazon India.

 

3. YesWelder dominates Amazon

 

In the welding machine category on Amazon, YesWelder has performed very well and has long been at the top of the list. It occupies six seats in the top ten sales list, demonstrating its strong market competitiveness.

 

YesWelder was founded in 2018 and is headquartered in Wenzhou, China, focusing on the research and development, manufacturing and sales of welding equipment. The company's core business covers welding machines, welding helmets and related accessories, and its products are widely used in industrial production and home scenarios.

 

(Image source: YesWelder official website)

 

With more than ten years of OEM experience in welding products, the founding team has accumulated deep technical strength for foreign brands. Faced with the shrinking profit margins of B2B business, the team decisively transformed and established its own brand YesWelder, dedicated to providing cost-effective welding solutions for welding enthusiasts and entry-level users.

 

Initially, YesWelder mainly provided product processing services to foreign welding machine brands as an OEM manufacturer. With the changes in the market situation and the need for its own brand development, YesWelder gradually transformed into a brand directly facing consumers, selling its products through e-commerce platforms such as Amazon.

 

In recent years, YesWelder has actively promoted brand building, using strategies such as social media and content marketing to vigorously enhance brand awareness and strengthen consumer loyalty to the brand.

 

Since its establishment in 2018, YesWelder's sales performance has been rising. In 2021, its GMV reached 300 million yuan, and in 2022, it exceeded 500 million yuan, achieving nearly doubling growth.

 

In 2024, its electric welding machine Flux-135 Pro sold more than 6,000 units on Amazon US in the past 30 days, with cumulative sales of up to US$900,000, ranking first on the MIG Welding Equipment list.

 

YesWelder was able to quickly expand into the market and gain consumer recognition, mainly due to the following aspects:

 

The company conducted in-depth market research and found that traditional welding machine brands had a gap in the C-end market. Therefore, it positioned itself as a "home tool" and launched multifunctional, cost-effective welding machine products to meet the diverse needs of home repairs, DIY projects and handcraft enthusiasts. YesWelder's product price is only one-fifth of that of traditional brands. For example, its three-in-one welding machine costs less than $500, but it is not inferior in terms of functionality and has a variety of welding functions, which greatly reduces the threshold for home users.

 

At the same time, YesWelder pays attention to product design and user experience. The products are simple and convenient to operate. For example, the star product MP200 integrates welding and cutting, and can be used almost out of the box. In addition, the company also attaches great importance to the construction of the after-sales service system, providing users with considerate after-sales service, further improving user satisfaction and brand loyalty.

 

In terms of sales strategy, YesWelder initially relied on the Amazon platform for sales, and gradually transformed to a DTC model, establishing an independent brand official website to gain more consumer data and provide space for brand stories and user interactions.

 

YesWelder has also made precise arrangements on social media , establishing deep connections with users through diversified content such as pictures, texts, and short videos. The company encourages users to upload and share welding works completed using YesWelder welding machines, further promoting the establishment and development of the brand community and forming a close connection between the brand and users. These strategies have jointly promoted the rapid development and sustained growth of YesWelder in the welding machine market.

 

4.xTool counterattacks in the niche track!

 

Another brand, xTool, also has outstanding market performance.

 

Since officially entering the consumer laser equipment market in 2021, xTool has long been at the top of the list. On Amazon US, xTool's flagship model, the laser engraving xTool D1, has topped the category sales list many times.

 

(Image source: xTool official website)

 

xTool's parent company Makeblock was founded in 2013 and initially focused on the education field, providing STEAM educational robots and related products. It is worth noting that the founders, marketing and core operations teams of its xTool brand all originated from Anker Innovations. Faced with the business transformation needs brought about by the "double reduction" policy in 2021, Makeblock established the xTool brand and officially entered the consumer-grade laser equipment and 3D printing market.

 

The xTool brand is positioned in the high-end market, with product prices ranging from US$1,499 to US$4,399. By using advanced materials and the latest technology, it has successfully established a high-premium, high-quality brand image. At the beginning of the brand, xTool launched the world's first xTool M1 cutting machine with integrated blade and laser cutting functions, raising more than US$2.6 million on the Kickstarter crowdfunding platform, ranking first in the laser crowdfunding amount that year.

 

In 2023, xTool launched the desktop multifunctional CO2 laser cutting machine xTool P2, which showed strong market appeal. Within one month of overseas pre-sale, the deposit payment amount reached millions of US dollars, and the sales volume exceeded 200 units within only one hour on the day of listing.

 

In the first half of 2024, xTool's development momentum remains strong, with revenue growth exceeding 90% and profit growth exceeding 80%.

 

The rapid growth of xTool is mainly attributed to the following aspects:

 

First, the company chose to avoid the fierce domestic market competition and focus on overseas markets where brand awareness was still blank, thereby gaining a broader space for development.

 

Secondly, xTool adopts a high premium strategy, creating high-quality, high-performance laser engraving and cutting equipment through product differentiation and high R&D investment, thereby enhancing brand premium capabilities. The company focuses on technological innovation and product development, and continuously launches new products with differentiated competitive advantages to meet users' needs for efficiency, precision, ease of use, etc., while improving product durability and stability.

 

In addition, xTool has a rich product line, covering everything from desktop laser equipment to laser automotive machines, including the D series, M series, P series, F series, S series and other series to meet the needs of users at different levels.

 

The company adopts a multi-channel sales model, combining online e-commerce platforms with offline physical stores to promote its products to a wider range of consumer groups. At the same time, it focuses on brand building and enhances brand awareness and influence by participating in international exhibitions and holding offline activities.

 

xTool has a significant influence on social media, and YouTube and Facebook have brought a lot of traffic to its independent website. Through the rich independent website content construction, xTool has successfully conveyed its brand concept and core values, further enhancing the brand's influence in overseas markets.

 

With precise market positioning, differentiated strategies, technological innovation and brand building, xTool has achieved remarkable results in its overseas expansion, achieving rapid revenue growth and sustained high growth trends.

 

In the future, xTool is expected to continue to maintain its strong growth momentum and provide more high-quality laser engraving and cutting tools to overseas users.

 

 


Niche categories

Overseas Brands

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