Sales of 700 million in one year! Niche brand successfully breaks through the circle overseas

While all major brands are embracing the single economy and pet economy, a niche brand has discovered a business opportunity that has been overlooked by everyone else.

Niche brands explore potential business opportunities

Although the fertility rates in many countries around the world are currently sluggish, parents who already have children are very clear about spending money on their children.

However, having said that, parents often have to go through strict screening when choosing products for their children, and any potential risks will be directly passed over. This has led to a lack of diversity in the children's products market in the past few years, with almost no other smart products except children's electronic watches.

Faced with such market conditions, a niche brand Yoto discovered potential business opportunities hidden therein.

According to information, Yoto is a screenless smart speaker brand designed specifically for children. By providing rich audio content, Yoto can effectively promote children's imagination and creativity while avoiding the various hazards that screens may cause to children.

In a situation where the relevant product market was almost blank, Yoto immediately captured the hearts of parents as soon as it was launched. Data shows that Yoto's sales in 2022 have exceeded the 100 million US dollar mark, equivalent to more than 700 million yuan.

In addition, Yoto's product repurchase rate is surprisingly high. On average, one out of every four people who buy Yoto speakers will choose to repurchase, which is enough to prove its strong product power.

At present, Yoto has laid out multiple sales channels including Amazon and independent websites, and has achieved quite good results.

In terms of product line, Yoto's core products include the home smart speaker Yoto Player and the portable small speaker Yoto Mini.

A search on Amazon revealed that in addition to selling smart speakers, Yoto also sells various audio cards that are compatible with its speakers. These small cards support a considerable portion of Yoto's sales and also explain the reasons behind its extremely high repurchase rate.

Take one of the audio cards as an example. Information shows that the price of this small card is about 9 US dollars, and the sales volume in the past month has reached more than 1,000. In addition, Yoto has also launched a combination purchase package for audio cards, which further pushed up the unit price of the product.

In addition to Amazon, the independent website is another major sales and marketing center for Yoto.

Yoto’s Marketing Strategy

For a DTC brand, the role of an independent website is sometimes greater than that of a third-party e-commerce platform such as Amazon.

According to Similarweb data, Yoto's independent website received 4.179 million visits per month, of which direct and organic traffic accounted for 79.62% . In terms of market, the US market ranked first in traffic share, reaching 68.17%.

Yoto’s marketing strategy has played an important role in achieving such a high proportion of organic traffic .

According to information, Yoto has currently deployed multiple social media platforms including Instagram, Facebook, Youtube and TikTok, and has accumulated a certain number of fans.

As of now, Yoto has accumulated 74,000, 170,000 and 40,000 followers on Facebook, Instagram and TikTok respectively.

Among them, although Yoto has the least number of fans on TikTok, the growth momentum of fans on this short video platform is the strongest among several platforms.

In addition to producing its own video content, Yoto also actively seeks out suitable KOLs for collaboration. Its main target influencers are mostly mother and baby influencers or parenting bloggers.

Through the dissemination and endorsement of these professional bloggers, Yoto quickly became a leading brand in the relevant field and gained a large number of loyal user groups.

In order to further enhance the stickiness between fans and broaden the brand's revenue source, Yoto has also launched a monthly subscription service of $9.9. Users only need to spend less than $10 to receive two new stories pushed regularly by Yoto every month.

On the other hand, although Yoto has been focusing on children-related products since its inception, it has begun to consciously transform into a lifestyle brand in the past two years, trying to launch products for user groups of all ages.

In order to achieve a successful transformation, Yoto has contacted many giants in related fields offline to seek cooperation, including industry leaders such as Warner Music Group, Universal Music Group and Disney.

In the capital market, Yoto's business model has also been sought after by hot money. Data shows that Yoto speakers have gone through two rounds of financing, with funds reaching 20.5 million US dollars, making it a hot brand in the relevant track.

However, as a brand mainly targeting children, Yoto also faces some potential risks.

Are children's products prone to recall? Even leading brands are not immune

As we all know, overseas markets are often particularly strict in quality inspections of children's products. Therefore, among the many product recall announcements, a considerable number are children-related products.

Yoto was not spared.

In December last year , a children's speaker produced by Yoto that was popular on platforms such as Amazon and Target was urgently recalled by the CPSC due to fire hazards.

It is understood that this product is sold with a charging cable but no adapter or charger. The lithium battery inside may overheat and catch fire, posing a threat to the user's personal safety and property. Fortunately, no accident reports have been received for this product.

As a result, Yoto's brand image suffered a significant blow, and its revenue was also affected to a certain extent. Fortunately, Yoto finally handled the crisis properly.

This case can also serve as a reminder to many brands that want to develop children's products. If they want to enter this market, product quality is of paramount importance.

Otherwise, no matter how good the marketing is, one accident will instantly wipe out all the previous efforts.

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