From a loss of one million to a billion-level sales! A young man from Xiamen made a comeback against the odds

In recent years, the cross-border e-commerce industry has entered a stage of rapid development. In this wave, many sellers are keen to capture the pulse of the market.

Xiamen Fractal Technology seized the market opportunity, entered the market quickly, and developed into a billion-level seller on Amazon, firmly occupying a place in the overseas market.

1. A young man from Xiamen borrowed 100,000 yuan to start his own business, and it became a billion-dollar seller on Amazon!

Xiamen Fractal Information Technology Co., Ltd. was established in 2012. The company focuses on cross-border e-commerce retail, cross-border e-commerce services, cross-border B2B and other fields. Its main business is very broad, covering information technology consulting, Internet sales, software development, information system integration and retail and wholesale business of multiple commodity categories.

At present, Fractal Technology already has several independent brand product series in the outdoor field, and has been widely welcomed by middle and high-end consumers in Europe and the United States .

Fractal Technology's outdoor brand has consistently topped the Best Seller list on Amazon's North American platform , with its products receiving over 10,000 positive reviews .

After years of development, the company's business has expanded from the outdoor field to multiple categories such as gardens and homes. In each sub-segment, Fractal Technology has 4-5 very competitive independent brands.

In just three years, Fractal Technology developed into a billion-level seller on Amazon and became one of the first billion-level sellers on Amazon in Fujian.

Why has Fractal Technology been able to quickly break into overseas markets?

This story begins in 2011.

At that time, Sun Meng, the founder of Fractal Technology, graduated from Xiamen University with a degree in software engineering. After graduation, he joined a foreign trade company.

After getting involved in the cross-border e-commerce industry, he felt the industry's development potential and decided to resign and start his own business.

In 2012, he borrowed 100,000 yuan from his former boss as the company's start-up fund and founded Fractal Technology with his classmates from Xiamen University .

Fractal technology did not have a smooth journey in its early stages of development.

Due to the limited funds of the company, there is no way to carry out large-scale marketing and brand building like those big companies . Therefore, they chose to start with the market segmentation and focus the company's main business on the development and sales of sports- related products .

However, the poor sales of a sports product dealt a heavy blow to Fractal Technology .

At that time, Fractal Technology launched a sports eyewear product with a price comparable to that of well-known American brands . The reason for the high price was that the company invested a lot of money in product packaging and art design. However, the company's overall strength was unable to support the construction of a higher-end brand, resulting in the product being unsalable. It took three years to clear the inventory , and the company lost millions.

(Image source: Fractal Technology)

This product setback also made Fractal Technology realize the importance of controlling market risks. Sun Meng concluded that before shipping a product, it is important to control the turnover rate. If necessary, the frequency of shipments can be increased , and small quantities can be shipped more frequently. For slow-selling products, if they are competitive in the market, new products can be considered for re-promotion, while products without market competitiveness should be cleared in time.

With the experience of this product failure, Fractal Technology pays more attention to brand building and refined operations .

Therefore, the company began to build its own independent brand. Fractal Technology has brought together a group of industry expert technicians and designers who have profound professional knowledge and practical experience. Through continuous technological innovation and talent training, Fractal Technology continuously improves the team's work experience and technical level to maintain its competitiveness in the industry.

At the same time, Fractal Technology also conducts brand publicity and promotion through various channels such as social media, search engine optimization, content marketing, etc. to enhance brand awareness and influence in the market.

Fractal Technology has also made various innovations in its operating model. The company pays great attention to the analysis and application of data, and will use data analysis to guide the development of new products and the formulation of sales strategies . At the same time, Fractal Technology has also strengthened cooperation and communication with suppliers to ensure the stability and efficiency of the supply chain.

After several years of hard work and accumulation, Fractal Technology has achieved good market performance in the cross-border e-commerce market, expanded into multiple categories, and assembled a number of highly competitive independent brands to form a powerful brand matrix.

With the continuous expansion of business and overseas markets, Fractal Technology's sales began to grow rapidly .

In 2013, Fractal Technology successfully became one of the first billion-level Amazon sellers in Fujian.

In 2023, Fractal Technology's annual sales reached 300 million yuan , doubling its sales .

2. Fujian's cross-border e-commerce has a strong momentum of development, helping companies to accelerate their overseas expansion!

When Fractal Technology mentioned its successful experience, one point was that it relied on the local supply chain advantages in Fujian.

Fujian 's developed manufacturing industry provides Fractal Technology with abundant raw materials and production capacity , which helps the company maintain its competitiveness in cost control and product quality. Fractal Technology fully utilizes the advantageous resources of Fujian's manufacturing industry and continuously improves and optimizes its product portfolio .

In addition, Fujian Province has promoted the modernization of the industrial chain and supply chain and created a new "645" industrial system, providing a good industrial environment and development opportunities for companies such as Fractal Technology. Through this plan, Fractal Technology has strengthened its collaborative supporting capabilities with the local industrial chain and improved the level of industrial base manufacturing.

Relying on the local supply chain advantages in Fujian, Fractal Technology has achieved new breakthroughs in overseas markets through a variety of measures, including utilizing manufacturing resources, participating in the modernization of the industrial chain, enhancing innovation capabilities, joining industrial clusters, cooperating with supply chain service giants, applying digital platforms, and developing green and intelligent supply chains.

Fujian is a traditional foreign trade province with a solid industrial foundation and perfect supporting conditions. It has 27 industrial clusters with a value of 100 billion yuan. Fujian-style 3C products (computers, communications and consumer electronics), shoes, clothing, bags, furniture, craft accessories, electromechanical motors, outdoor sports and other products have become popular categories for Fujian sellers to export across borders. In terms of cities, Putian, Fuzhou, Xiamen, Quanzhou and other places have formed advantageous industrial clusters, and each industrial belt is very powerful when taken alone.

Relying on Fujian's local advantages, Fujian sellers are surging overseas, and Fujian's cross-border e-commerce export data has been rising.

The editor learned from the Fujian Province Cross-border E-commerce Development Conference held on December 23 that from January to November this year, the export transaction volume of Fujian's cross-border e-commerce reached 162.446 billion yuan, a year-on-year increase of 22.3%, and the export value ranked among the top four in the country. Fujian has become one of the fastest-growing cross-border e-commerce import and export centers in the country. Fujian's 3C products, shoes, clothing, bags, home furniture, craft accessories, electromechanical motors, outdoor sports and other products have become best-selling categories in the international market.

In the wave of globalization, many Fujian enterprises have explored new paths for overseas development, adapted to the changing international environment, accelerated their overseas expansion, and achieved new breakthroughs in overseas markets.

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