Revenue of more than 2.1 billion in 9 months! Shenzhen Dashao "kills" the siege in the trillion-level track

The 3C track is now a well-deserved "super red ocean" track in the field of cross-border e-commerce.

Even so, there are also big sellers in this field who have successfully broken through the siege in the industry and achieved rising performance with excellent products and flexible marketing strategies.

One of them is the Shenzhen-based Edifier , which has become famous in overseas markets.

The revenue in the third quarter was 766 million, and the revenue this year has reached 2.145 billion

Edifier Company is mainly engaged in the research and development, production and sales of electronic consumer products such as multimedia speakers , headphones, car audio, air purifiers, etc., and was successfully listed on the A-share market in February 2010.

According to the " 2024 Third Quarter Report (Unaudited)" recently released by Edifier (Shenzhen Edifier Technology Co., Ltd.) , in the third quarter of this year, Edifier's operating income reached 766 million yuan , an increase of 13.76% compared with the same period last year; the net profit attributable to shareholders during this period reached 118 million yuan , an increase of 14.6% over last year .

That is to say , Edifier made a net profit of more than 100 million in just three months . Of course, it was not only in the third quarter that it made money.

In the first quarter of this year, Edifier's total revenue increased by 25.08% year-on-year to 679 million yuan; the net profit attributable to the parent was 109 million yuan, an increase of 43.44% year-on-year.

In the first half of this year, Edifier's total revenue reached 1.38 billion , an increase of 16.05% over the same period last year; the net profit attributable to the parent was 220 million , 26.24% more than last year .

With this calculation, from January to September this year alone, Edifier's revenue this year is 2.145 billion , an increase of 15.22% over last year; in the same period, the net profit reached 338 million , an increase of 21.91% over last year.

From this we can see that in terms of net profit alone, if Edifier continues to maintain its current growth trend, there is a high possibility that it will surpass last year's performance.

Edifier's growth is not a flash in the pan . In 2023, Edifier's revenue is close to 2.7 billion - reaching 2.694 billion, an increase of 21.64% over the full year of 2022; the full-year net profit attributable to the parent company is 420 million, an increase of 70.17% over 2022.

Behind these achievements is Edifier's successful expansion in the global market and the enhancement of its brand influence at home and abroad.

According to the official website of Edifier, its products have been sold to more than 80 countries and regions around the world, including Germany, Britain, and France. It has 23 overseas subsidiaries and 56 overseas warehouses. The cross-border e-commerce channels it has opened include Amazon, AliExpress, Lazada, Jumia and other e-commerce platforms and independent sites.

Image source: Edifier independent website

With annual sales of 5.5 million pairs, a university teacher created a listed company

As an already influential overseas brand, Edifier ranks 16th in the "Top 100 Chinese Cross-border E-commerce Brand Influence List (First Half of 2024)".

At the same time, with an annual shipment volume of 5.5 million pairs, Edifier also ranked among the top ten in the global TWS headset rankings.

This achievement is inseparable from the company's research and development and innovation of products and technologies. In the first half of 2023, Edifier's R&D expenses exceeded 65 million; in the first half of this year, the company's R&D expenditure was close to 88 million.

The company’s emphasis on R&D can be traced back to its founder, chairman and president Zhang Wendong.

Before founding Edifier, Zhang Wendong was a teacher at the Department of Automotive Engineering of Beijing Institute of Technology. Influenced by his grandfather, Zhang Wendong had a "speaker dream" since he was a child.

Before founding Edifier, Zhang Wendong and his student Xiao Min (company director and vice president) designed and produced a speaker, totaling nearly 100 units.

After the successful trial of this batch of speakers, Zhang Wendong started his entrepreneurial journey in 1996 with Xiao Min, who had already graduated, and his younger brother Zhang Wensheng (company director and vice president), using 40,000 yuan borrowed from them.

Since its early days, Edifier has insisted on integrating brand design, research and development with large-scale production, ensuring that its technology is independent of others and sales are handled by itself.

After overcoming difficulties one after another, Edifier was finally listed on the Shenzhen Stock Exchange in February 2010. In order to meet the needs of different consumers, the company raised 400 million yuan to expand its product brand and project construction after its listing.

At present, in addition to the core brand EDIFIER, Edifier also owns brands such as "Xemal", "Hecate", and "AIRPULSE", successfully covering the market from low-end to high-end.

Edifier's design and innovation have not only been recognized by the market, but also by the industry. From 2021 to the present, Edifier's products have won many awards, including the German iF Product Design Award, the German Red Dot Design Award, and the American CES Design and Engineering Innovation Award. At the same time, it also has hundreds of valid authorized patents at home and abroad.

Southeast Asia becomes a new "battlefield" for cross-border 3C sellers

Statista shows that the annual revenue of the global consumer electronics market is expected to reach US$1.046 trillion in 2024, of which online sales will account for 33.5%; by 2028, this scale is expected to reach US$1.177 trillion.

At present, North America and Western Europe are still the main "battlefields" for many cross-border sellers, but as time goes by, Southeast Asia, the Middle East and other regions will become new "battlefields" in the future. At present, many 3C sellers have set up shop here, and Edifier is one of them.

The decision to enter the Southeast Asian market is due to the fierce competition in markets such as North America and also because of the large population, young population structure and high Internet penetration rate in Southeast Asia.

Of course, Edifier did not adapt to the Southeast Asian market from the beginning.

Based on the results of market research, Edifier initially adopted a low-price strategy in Southeast Asia, planning to open up the local market through such products. It was found that there were many low-priced and white-label products in the Southeast Asian market, so Edifier did not have an advantage in the local "low-price war".

Subsequently, Edifier decided to focus on the "mid-to-high-end market" through e-commerce platforms such as Shopee and Lazada. Data proves that this approach is feasible. Edifier has successfully established a foothold in Southeast Asia, with sales at the Thailand site increasing by 80% year-on-year, and sales at the Vietnam and Philippines sites increasing by 300% year-on-year. It has also laid out an account matrix on TikTok and cooperated with many KOLs to make the brand known to more Southeast Asian consumers.

In addition to Edifier, other popular 3C brands such as Baseus and Maono, and 3C accessories brands such as Vention also have presence in the Southeast Asian market.

Baseus has achieved a daily order volume of 1,000+ in this market early on;

Vention's GMV in Vietnam, Malaysia and the Philippines increased by 426%, 264% and 160% respectively in the second quarter compared with the previous quarter;

Maono has three products that have been ranked in the top ten best-selling audio category on Shopee; and ranked first in sales of the same type of microphone category in the Philippines.

As competition in the European and American markets becomes increasingly fierce, blue ocean markets such as Southeast Asia have become the new target for many 3C sellers. Of course, it is not only many 3C sellers that go to Southeast Asia, but also many sellers of other categories.

Wang Xin, executive president of the Shenzhen Cross-border E-commerce Association, once said that there are more than 10 million Chinese sellers on the mainstream e-commerce platforms in Southeast Asia, Shopee and Lazada. In addition, with the efforts of emerging platforms such as TikTok, Temu, and SHEIN in the Southeast Asian market, Chinese sellers have become one of the mainstream seller groups in the Southeast Asian e-commerce market.

In the global 3C industry, many Chinese brands such as Edifier are rising strongly. I believe that in the future, Chinese 3C brands will achieve larger-scale expansion and upgrading in overseas markets by relying on their own advantages.

Big Sell

Revenue

Red Sea Circuit