In 10 years at Amazon, the brother and sister built a listed company!

On October 18, Shenzhen Qian'an Technology Co., Ltd. (hereinafter referred to as "Qian'an Technology") issued a "Reminder Announcement on Stock Listing", stating that the application for stock listing and public transfer has been reviewed and approved by the National Equities Exchange and Quotation Company, and will be listed for public transfer on the National Equities Exchange and Quotation System from October 21, 2024. The securities abbreviation is Qian'an Technology and the stock code is 874600.

In other words, Qian'an Technology is officially listed.

In ten years, the brother and sister became Amazon's super sellers

Few people pay attention to this seller. Is he a new cross-border star? No, he is just low-key. After all, he is a super seller who has been established for more than ten years and has an annual revenue of billions.

It can be seen from the public transfer statement disclosed by Qian'an Technology that its annual revenue in 2022 and 2023 will reach 1.539 billion yuan and 1.4 billion yuan respectively, and the net profit attributable to the parent company's shareholders will be 26.4973 million yuan and 96.4260 million yuan respectively. After deducting non-recurring gains and losses, the net profit attributable to the parent company's shareholders will be 22.3061 million yuan and 91.4096 million yuan respectively. The profit increase is very large.

This is a seller who has been running in the cross-border track for 14 years.

According to information, in 2008, He Ding served as deputy general manager of the American company of Zebao Group, a cross-border super-seller at the time. After leaving the company, he used his experience in cross-border e-commerce work to establish Qian'an Technology in August 2010.

At the same time, He Ding started a business with his sister He Wen.

It is reported that He Wen has worked in Qian'an Technology since 2010, from executive director and general manager to director and deputy general manager of Qian'an Technology. According to shareholder information, He Ding has become the largest shareholder of Qian'an Technology with 43.56% of the shares. Although He Wen is only the fourth largest shareholder (holding 11.21% of the company's shares), the siblings signed a "Concerted Action Agreement" and together hold 54.77% of the company's shares. The actual controllers of the company are He Ding and He Wen.

After more than a decade of cultivating overseas markets, Qian'an Technology, led by the brother and sister, is facing an increasingly broad market. It is not rooted in a single product field, but has long been rooted in the four major fields of digital electronics, art creation, home garden, and sports and outdoor. Its products are sold to many markets around the world, including North America, Europe, and Asia. Now, with its impressive performance, it is listed on the New Third Board .

Although Qian'an Technology also conducts B2B sales through offline exhibitions, Alibaba International Station, JD.com and other channels , the revenue share of this business has always been low, and was less than 5% in 2022 and 2023.

Like most cross-border sellers, Qian'an Technology focuses more on B2C business. The sales revenue achieved through this sales model in 2022 and 2023 reached 1.492 billion yuan and 1.347 billion yuan respectively, accounting for 96.94% and 96.22% respectively, both exceeding 95%.

Can cross-border sellers avoid Amazon? Very few. Especially the earlier batch of cross-border B2C sellers, they can hardly escape the law of "Amazon is really good".

On Amazon, Qian'an Technology's markers are a hot item. For example, one of its listings has received about 18,000 reviews since its launch, with a rating of 4.8 stars. Its total sales in September exceeded 6,000 units . Many other listings had sales in the thousands in September, and such results are not limited to certain months.

In the TOP40 BS list of Amazon's "Drawing Markers" category, Qian'an Technology's listings occupy 8 seats .

Although the sales volume in September was "only" 1,000+, it has received over 34,000 reviews since its launch , with a rating of 4.8 stars. It has also been marked as "Amazon's Choice" and "Overall Pick". A Bluetooth speaker priced at US $36.99 under Qian'an Technology has become a frequent visitor to the BS list in the "Portable Bluetooth Speakers" category on Amazon.

There are well-known European and American brands in front, such as Apple and Beat, and dark horse brands such as Soundcore (a brand under Anker), Shokz, and Edifier in the back, but Qian'an Technology still has a small piece of the Bluetooth headset market on Amazon.

According to the search, a Bluetooth headset priced at US$39.99 produced by Qian'an Technology has received over 28,000 reviews, with sales exceeding 1,000 units in September . The listing is also on the BS list of the corresponding category on the platform.

A weight-bearing sandbag that can be used for wrists and ankles has been a long-term hot seller since it was launched on Amazon. A single listing has accumulated more than 19,000 reviews. Its total sales in September exceeded 9,000 units , and it also became the TOP1 product in the platform's "Strength Training Wrist & Ankle Weights" category BS list.

The bicycle lock, priced at $14.99, received nearly 10,000 reviews after it went online , with sales exceeding 5,000 units in September , ranking second on Amazon's BS list in the "Bike Chain Locks" category.

There are many product listings with such outstanding achievements as the ones mentioned above, which shows that all categories of Qian'an Technology are "blossoming" on Amazon, and its revenue is the best proof of this.

In 2022 and 2023, more than 90% of Qian'an Technology's revenue will come from Amazon, reaching 1.465 billion yuan and 1.296 billion yuan respectively, accounting for 95.22% and 92.56% .

In other words, Qian'an Technology has a serious problem of excessive concentration on a single platform, namely, Amazon dependence.

Judging from the net profits of many big-selling products in the past, this may not be a good thing. The wave of account bans in 2021 directly or indirectly caused the death of many big-selling products, and some are still recovering from the pain.

If Qian'an Technology is unable to maintain a good cooperative relationship with Amazon in the future, or if there are major adverse changes in Amazon's sales policies, charging standards, etc., or if its operating conditions on Amazon are not as expected and it fails to expand other effective sales channels in a timely manner, it is conceivable how negative the impact will be on its operating performance.

For example, if Amazon determines that Qian'an Technology has engaged in improper sales on the platform, the latter will be fined or even have its store account directly closed. In this case, the money that the store should have received but has not yet been deducted by the platform will not be able to be recovered.

Among Qian'an Technology's accounts receivable (i.e. uncollected amounts) at the end of 2022 and 2023, the Amazon platform ranked first, at RMB 42.71 million and RMB 46.50 million respectively, accounting for 84.97% and 84.82% of its total accounts receivable.

Qian'an Technology still has a large amount of inventory in Amazon warehouses, which may also be seized.

If Amazon's market share decreases due to market competition, changes in business strategy or changes in the local political and economic environment, and Qian'an Technology fails to adjust its sales channel strategy in a timely manner, it may also have a negative impact on sales.

Because of the losses caused by over-reliance on Amazon, many big sellers are now starting to adopt a "multi-platform, multi-market" development strategy. In addition to Amazon, Qian'an Technology has also deployed leading third-party e-commerce platforms such as AliExpress and eBay, but at present, relying on independent brand websites for multiple brands under its umbrella may become a new path.

Multiple brands are growing together, and the natural traffic of independent stations is increasing steadily

He Ding , the founder of Qian'an Technology, deeply understood the importance of brand due to his experience working at Zebao . Although he was essentially engaged in "distribution", he established multiple brands with foresight at the very beginning of his business to plan and manage different categories, and also built independent websites for different brands.

iClever

In 2010, the first year that Qian'an Technology was founded, the brand iClever was created. Since then, iClever has been continuously optimized and integrated into a digital electronics brand. Its products include children's headphones, keyboards and mice, etc.

On Amazon, many iClever products are hot sellers. For example, a pair of children's headphones received nearly 1.2 reviews for a single listing, with sales exceeding 7,000 units in September, ranking 12th on Amazon's "On-Ear Headphones" category BS list.

By using other platforms to gradually increase the brand's visibility and influence, Google Trends shows that since the brand was launched, search popularity has continued to rise globally, reaching its first search peak in 2015 and has maintained a high level of search popularity since then, reaching its peak in July this year.

With green as the main theme, iClever's independent website is full of childlike fun as soon as it is opened. The product navigation bar clearly divides the products into noise-canceling headphones, open headphones, earmuffs and other products, and also sets up a BS list of products on the homepage.

Judging from the data of the independent site, Similarweb pointed out that the number of visits to the iClever independent site in September was "only" 52,800, and the average monthly visits in the past three months was 57,000. Compared with similar websites with tens of millions of visits, it seems not enough. But in fact, its traffic mainly comes from natural search and direct search. This traffic channel proves that iClever already has a certain brand awareness in the market .

Ohuhu

Emphasizing youth activities, Ohuhu, a brand focusing on the cultural and artistic fields under Qianan Technology, was born in 2014. In the past ten years, Ohuhu has closely followed consumer needs, created professional quality products, and carved out a niche in the overseas market survival battle .

Although this brand also has home garden supplies such as garden planting and home storage, its main products are markers, watercolor paints, brushes, picture albums , easels and other painting products . Its painting products have also become cross-border leaders in the corresponding field.

Just talking about its marker pen category, it has been selling like hot cakes on various Amazon sites for many years. The annual sales of this single product was once close to US$90 million. Ohuhu also once became the overseas brand with the largest online market share.

A search using the keyword "ohuhu" on Amazon's US site shows that among the 15 related terms, "ohuhu alcohol markers", "ohuhu markers", and "ohuhu brush markers" are becoming increasingly popular , while the hot search rankings of " ohuhu alcoholmarkers brush andfine tip " and "marcadores ohuhu" have risen by 30,000 places compared to last week .

On Amazon's US and European sites, Ohuhu's markers almost always top the best-selling list in their sub-categories.

According to Amazon's Global Store Opening Report , in 2021 , Ohuhu began to focus on the Indian site . In just one year, it became the top 5 in the sub-category of Amazon India . It also increased its original annual revenue of US$300,000 in the Indian market to US$1.36 million, and its annual sales directly quadrupled.

Opening Ohuhu 's independent website , the page is obviously much more refined than iClever, and the products are also more abundant.

From the information in the navigation bar, we can see that it is divided into three categories: marker pens, painting products, and hot-selling products. There are more detailed product guides under the marker pens and painting products columns.

It is worth noting that the Ohuhu independent site can also be browsed in different markets, such as the United States, Europe, Australia, Brazil, Mexico, etc.

Similarweb pointed out that the number of visits to Ohuhu's independent website reached 265,800 in September , and even reached nearly 330,000 in July. From the source of traffic, the proportion of natural keyword searches reached 45.81%, and the proportion of brand words reached 88% , and the natural traffic increased significantly.

Sportneer

Focusing on sports and outdoor activities, in 2016, Qian'an Technology established a sports and fitness equipment brand, focusing on strength training equipment, outdoor products, cycling products, etc., and then entered a segmented product market.

Compared with the other three brands, Sportneer's development is slightly weaker, but on Amazon, the brand also has many hot-selling products, and even occupies a high position in the BS list of subcategories all year round.

From the perspective of the independent site, the official website of this brand is clearly set up, and the navigation bar is divided into hot-selling products, fitness, cycling, outdoor, etc. Among them, strength trainers and smart weight scales are set up under fitness products, and the strength trainer column has more detailed product guides. There are more products in the cycling and outdoor columns.

In addition, Qian'an Technology also pays attention to updating some popular science posts on fitness, diet, and outdoor cycling on this brand's independent website, but the latest article stops in October 2021.

The number of visits to the independent site is also the least impressive among several brands. Similarweb pointed out that in the past three months, the average monthly visits to the Sportneer independent site were only 12,500. Fortunately, direct traffic accounted for 34.71%, and natural searches accounted for 51.37%. Brand words are its most popular search keywords , followed by compasses, bicycle trainers, camping sleeping mats, etc. under the brand.

Tribit

Similar to iClever, Tribit is also a brand focusing on the field of digital electronics, and its main product series include Bluetooth speakers, headphones, etc.

Opening Tribit's independent website, we can see that it has a stronger sense of fashion than the other three brands. Based on the relative concentration of products, the product navigation bar is relatively simple and is divided into two categories: speakers and headphones. The speaker column is also subdivided according to different series.

In addition, this brand's independent website also has a Tribit product review content, which mainly consists of influencers sharing their use of Tribit products on social media platforms such as YouTube.

Judging from the independent site traffic data, Similarweb pointed out that in the past three months, the average monthly visits to Tribit's independent site reached 122,300, of which the visits in August reached 131,900. Singapore (26.49%), the United States (19.71%), India (11.07%), the United Kingdom (4.31%), and Germany (3.39%) were its top five traffic sources.

The main traffic source of tribit.com is organic search traffic, accounting for 48.32% , while direct visits rank second with 41.27% . From the perspective of social media platforms, Reddit ( 49.7% ), Youtube ( 31.41% ), and Instagram ( 12.43% ) are the top three traffic sources .

Whether it is Ohuhu, Tribit, Sportneer, or iClever, it can be seen that the brand names are ranked highest in the traffic keywords of their independent sites, which shows that the brand influence is increasing day by day. The gradual increase in independent site traffic also means that more and more consumers are beginning to intend to select and purchase products from the brand's official website. Although it is a long road, in time, these brand independent sites may become important revenue channels for Qian'an Technology.

Create high-quality products and increase gross profit margin with main SKUs

With clear positioning of consumption scenarios and consumer groups, Qian'an Technology focuses on four major areas, implements boutique model operations with four major brands, and creates advantageous categories with market competitiveness.

Judging from the SKU data of major categories as of 2023, Qian'an Technology has a total of 7 main SKUs for digital electronic products . Last year, these main SKUs brought it 199 million yuan in revenue, and other SKUs had a total revenue of 230 million yuan.

There are 5 main SKUs for art creation products , which will bring in revenue of 227 million yuan in 2023, and other SKUs will have a total revenue of 118 million yuan.

There are 7 main SKUs in the home and garden product category , which brought Qian'an Technology a revenue of RMB 78 million last year, and the other SKUs had a total revenue of RMB 232 million.

There are 8 main SKUs for sports and outdoor products . In 2023 , Qian'an Technology brought in 112 million yuan in revenue, and other SKUs had a total revenue of 191 million yuan.

The company clearly distinguishes between primary and secondary SKUs, makes timely adjustments to product structure, appropriately increases operations and sales investment in SKUs with higher gross profit margins, and cuts SKUs with poor performance. In the past two years, Qian'an Technology's comprehensive gross profit margins were 34.56% and 39.86% respectively .

The increase in gross profit margin has driven an increase in Qian'an Technology's net profit, with net profit in 2023 increasing by 263.91% year-on-year compared to 2022 .

These are also due to the significant results of brand building. Qian'an Technology mentioned in the public transfer instructions that the popularity and influence of brands such as Ohuhu have increased, leading to an increase in brand premium and gross profit margin, thereby increasing profits.

Indeed, through more than ten years of accumulation, the market influence and brand awareness of Ohuhu, Tribit, Sportneer, iClever and others have continued to increase.

For example, the Ohuhu brand won the Zhejiang Province Cross-border E-commerce Export Famous Brand in 2021, became one of the top 100 Amazon Chinese overseas brands , and entered the overseas brand social media influence list many times. Its marker products were rated as the EBRUN Global Good Products in 2023, and the brand sales and sales volume ranked among the top in Amazon's painting pen products. Its number of fans and exposure on the Instagram platform have rapidly increased from 89,300/1.167 million times in 2020 to 174,900/6.14 million times in 2023.

Many audio products under the Tribit brand have won many awards including the German Red Dot Design Award (Red Dot), the Hannover Industrial Design Award (iF), and the Japanese VGP SUMMER Award; many training equipment under the Sportneer brand are often on the Amazon best-selling list of similar products; many children's headphones under iClever have been rated as Amazon best-sellers and have won the French Design Award (FDA).

From the perspective of brand awareness, Google Trends data shows that their global search popularity has begun to grow since their birth, especially Ohuhu, which has remained high in recent years. Although iClever has declined, it is relatively stable.

The premise of all these outstanding achievements is the well-received product quality, and these are inseparable from Qian'an Technology's investment in research and development.

Data shows that in 2022 and 2023, Qian'an Technology's R&D expenses were 23.86 million yuan and 20.07 million yuan respectively. As of the end of 2023, it had a total of 51 R&D personnel, accounting for 14.29% of the company's total number of employees .

For audio equipment, painting pens, and sports equipment, Qian'an Technology has established standard R&D laboratories and assembled a team of IT professionals with excellent professional skills, rich development experience, and outstanding innovation capabilities.

For example, the XBass enhancement technology developed by Tribit Audio Laboratory makes the audio processing of related products fuller and more realistic, bringing users a high-quality user experience.

The brand's XSound Go Bluetooth speaker won the Best Speaker Award from top technology media Wirecutter, and the StormBox Micro Bluetooth speaker won the "CNET 2020 Editor's Choice" award from the well-known American technology media CNET.

In the children's headphone product line, Qian'an Technology uses self-developed safety volume control technology to protect children's hearing through a three-degree volume limiter and has won the French Design Award ( FDA).

From 0 to 1, Qian'an Technology has put in years of hard work and has stood firm in the test of time by relying on the brand power of its products . Now, its core brand reputation and sales are soaring . In the future, Qian'an Technology may go further on the road of boutique brands .

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