Couple starts successful business in new market!

Outside of the red ocean markets of Europe and the United States, more sellers choose to expand into new markets, and now a number of sellers have stood out in the "younger version of North America" ​​market.

A couple started a business in a new market and made over 40 million in 2 years

In the cross-border circle, the Latin American market has never been as frequently on the hot search list as North America and Europe, but it does not mean that there are no Chinese sellers who have delved into it and successfully found the code to wealth.

Shenzhen Cikun Technology Co., Ltd. (hereinafter referred to as "Cikun Technology") is one of the representatives conquering Latin America. In 2018, pregnant mother Lily and her husband founded Cikun Technology, first entering the European and American markets with lamps, and then synchronizing the products to the Mexican site for testing.

It was precisely this test that allowed Lily to discover the secret to wealth in the Latin American market.

During the test period, the lamps performed well in the Mexican site, increasing from a dozen orders a day to an average of more than 100 orders a day. "The market competition is small, the advertising cost is low, but the profit margin is large," Lily officially set up a Mexican site in 2020 under such circumstances, and even placed the company's focus here.

The fact is obvious. On the first Prime Day after the launch of the Mexican site, the site brought the company hundreds of thousands of yuan in net profit. That year, the three sites in Europe, North America and Mexico contributed a total of about 40 million yuan in sales to the company. Currently, the Mexican site has become the company's pillar market, contributing 70% of the company's profits.

By comparison, it is not difficult to find that the European and American markets have been developed for a long time and are relatively saturated. In addition, major sellers are competing with each other, making it difficult for small and medium-sized sellers to earn high profits.

The Latin American market is different and has yet to be explored. The local population is clearly showing a young trend, with 67.46% of the population in the golden age range of 15 to 64 years old. Local consumers do not like to save money, which also means they have higher purchasing power.

Moreover, influenced by the regional culture of North America, the best-selling products in Latin America have a high degree of overlap with the popular products in the North American market, and are known as the "younger version of North America."

Amazon data shows that in the first eight months of 2024, the top 20 product categories sold by Chinese sellers in the United States had more than 80% overlap with the top 20 categories in Mexico and Brazil.

This also means that sellers can expand their successful experience in North America to Latin America. However, unlike North America, consumers in the Latin American market have their own preferences, and sellers can make local adjustments, such as Mexicans are sensitive to prices and Brazilians value product quality.

Mexican consumers are very sensitive to prices. Taking the lamps of Cikun Technology in the previous case as an example, products priced between 500-800 pesos will be more popular, and they will prefer lamps with traditional and retro designs.

Benefiting from the popularity of the concept of healthy living, local consumers also have a strong demand for 3C products. Not only smart phones and smart watches, but also wearable fitness products such as Bluetooth headsets are especially popular among local young consumers.

Moreover, the local consumer population is still growing. It is estimated that by 2026, there will be 340 million e-commerce consumers in Latin America, exceeding the total population of the United States, with Brazil and Mexico leading the way.

Industry insiders have reported that due to the underdeveloped manufacturing industry, the offline retail industry in Latin America is not perfect, and it is difficult to meet the demand for electronic products and daily necessities, while the e-commerce market also needs to fill the gap. It is not difficult to see that the Latin American e-commerce market still has a lot of room for development.

For sellers with limited resources and funds, it is not only easy to get started with emerging sites, but also they can rely on the advantages of the supply chain to deliver products and gain profit growth. Data shows that most of the cross-border goods in Latin America currently come from China and other places, of which China accounts for more than 60%.

More and more sellers are rushing to the blue ocean market of Latin America. As of the second quarter of this year, the total number of active Chinese sellers on Amazon Latin America has increased by 80%. Many small and medium-sized sellers choose to test the Latin American market. Soon after opening stores in Brazil and Mexico, the number of product orders began to grow steadily.

She won the sales champion for two consecutive years and successfully expanded to Latin America

MyWinni, which mainly deals in fashion and home furnishing brands, stands out from the Latin American market under such circumstances.

I remember that when I read One Hundred Years of Solitude, there was a lot of writing about how Latin Americans love parties and gatherings, and all kinds of entertainment activities are almost non-stop. This also laid the groundwork for the fashion apparel to be favored by local consumers.

MyWinni mainly makes dresses and party clothes. In 2020, a girl born in the 1990s entered the Latin American market with a team of less than 30 people. She did not choose Amazon first, but chose Meikeduo, which is second only to Google in Latin America, and launched sites in Mexico and Chile.

Understanding local consumption habits and the local people's enthusiasm for fashion, MyWinni has maintained an annual GMV growth rate of 100% in the fashion category . This year , its sales have increased by 2.5 times . Currently, MyWinni has won the sales champion in the category for two consecutive years.

At the same time, the fashion category in Latin America is still growing significantly. It is expected that by 2027, the category will exceed US$60 billion, second only to consumer electronics.

In Latin America, fashion is not just a simple collection of clothes and accessories, but also a way to show your attitude towards life. They are more inclined to buy Bohemian, new rock and roll and retro series of clothing.

In line with the local entertainment activities, bright and colorful clothing will be more favored by local consumers. Red dresses, yellow swimsuits and other tight and sexy clothing have become a regular in their wardrobes.

With the support of consumption capacity and market potential, more and more sellers are taking root in Latin America and eventually breaking through successfully.

In 2022, Qingdao Leishen Technology, founded in 2014, settled in the Meikeduo Mexico site and has become Meikeduo's Top 1 cross-border laptop brand seller .

It is understood that the company is invested by Haier Group and mainly produces four major products, including gaming laptops, gaming desktops, gaming monitors, and peripherals. It is known as the first stock in gaming equipment. In the first three quarters of this year, the company's revenue was 2.007 billion yuan and its parent company's net profit was 18.1632 million yuan.

In 2023, Shenzhen Huafurui Technology tried the waters in Latin America with its smartphone brand CUBOT, and became the sales champion in the Mexican site category after only one month on the shelves . Its products mainly include smart wearables, smartphones, etc.

It is not difficult to see that Latin America is becoming another choice for countless sellers to expand overseas with its fast-growing e-commerce market, strong online shopping demand and strong purchasing power. However, it should be noted that due to the large number of local traditional festivals, consumer shopping is highly seasonal, and the favorite shopping categories in different places are different, so sellers need to launch various products online in a targeted manner.

Latin America

Mexico

Meikeduo