Annual revenue of nearly 500 million! Amazon's best seller successfully listed on the New Third Board

A forecast previously released by global consulting firm Research Nester shows that the global lighting market will be valued at more than $210 billion by the end of 2024; at the same time, sales of lamps and lighting equipment on Amazon are also on the rise.

There is a big seller on Amazon that originated in East China. It has a global revenue of over 490 million yuan a year by selling lamps, and it has recently completed the achievement of being listed on the New Third Board. This big seller is Ningbo Yaotai Optoelectronics Technology Co., Ltd. (referred to as "Yaotai Shares").

Yaotai shares successfully listed on the New Third Board

On September 24, Yaotai Co., Ltd. issued a "Reminder Announcement on Stock Listing", which mentioned that the company's stock listing and public transfer application has been reviewed and approved by the National Equities Exchange and Quotations, and will be listed for public transfer on the National Equities Exchange and Quotations System from September 25. The release of this announcement has not only broadened Yaotai Co., Ltd.'s financing channels, but also further enhanced its influence in the global lighting market.

According to public information, Yaotai Co., Ltd. is located in Ningbo, Zhejiang Province, and was formerly known as Yaotai Co., Ltd. The company was established in 2006 and is a cross-border brand enterprise focusing on outdoor lighting ; it is mainly engaged in the research and development, design, production and sales of outdoor lighting equipment.

The company has ten subsidiaries at home and abroad, including Hangzhou Youmi, Ningbo Yaoming, European Yaotai, and American Yaotai. In addition to garden lighting, its core products also include smart lighting, solar lighting, and work lighting series. Among them, the sales of garden lighting products reached 264 million, accounting for 54.34% of the main business (2023 performance).

The company's export business covers more than 60 countries and regions including Europe, the Middle East, and Australia , and overseas revenue accounts for more than 95% of the company's total revenue . It is reported that in January and February this year alone , the company's exported lamps were worth 88.95 million yuan, a year-on-year increase of 66.5%. Europe and North America are the company's main markets , with sales reaching 224 million and 206 million yuan respectively in 2023, accounting for 47.37% and 43.64% respectively.

(Screenshot of Yaotai Shares announcement)

In addition to the OMD model, the company also operates its own brands "LUTEC" and "UME" , which adopt a direct sales model. The proportion of the company's business will increase from 40.85% in 2022 to 50.58% in 2023, and the gross profit margin will also increase from 40.32% to 48.13%. At the same time, the company's overall gross profit margin will reach 43.1% in 2023, taking a leading position among other comparable peers.

In addition, the deputy manager of Yaotai Co., Ltd. revealed in a previous interview that the company invests 20 million yuan each year in product innovation and upgrading, and has obtained more than 700 domestic and foreign patents. The work lights, solar lights and other products developed by the company have won the international IF Award and Red Dot Award many times.

The main products are always on the Amazon BS list

In addition to COSTCO and other foreign offline supermarkets, Yaotai's sales channels also include Amazon, SHOPTFY and other e-commerce platforms; in 2023, its online sales reached 115 million, accounting for 23.48%, but in 2022, this channel accounted for only 19.57%. At the same time, when the company's offline business declined by 30% from January to August 2023, its online business grew by 50%.

According to media reports, in the early stage of exploring the possibility of cross-border online sales, Yaotai Co., Ltd. took Amazon, which has both B-end and C-end business forms, as its starting point after investigation, and launched an Amazon online operation team in 2015; the revenue from Amazon reached 4 million US dollars in 2020 and increased to 12 million US dollars in 2022. In addition, after years of hard work, the company's main products have been ranked as the best sellers and Amazon's choice all year round.

After observing LUTEC's Amazon store , the editor found that the products that occupy the "C position" are mostly small lamps priced below $100 . For example, two products with sales of more than 1,000 in the past month are priced at $45.99 (after a 23% discount) and $39.99 (after a 20% discount).

Both products are LED outdoor motion sensor lights. Apart from differences in appearance and brightness, both lamps save up to 88% energy (compared to incandescent lamps of the same brightness). They have a wide sensing angle of 180 degrees and can detect motion within a range of 0 feet to 59 feet. The light duration can be set to 1 minute, 3 minutes or 10 minutes according to user needs.

For the product priced at $45.99, 73% of consumers gave it 5 stars, and 13% gave it 4 stars; for the product priced at $39.99, 71% gave it 5 stars, and 14% gave it 4 stars. According to user reviews, in addition to being easy to install and reasonably priced, both products have the characteristics of good lighting effects and quick response.

On the LUTEC website , after entering the best seller, the first thing that comes into view is several large lamps priced at more than $100 . Among the 19 products displayed on the first page of the product list , only two are priced at $49.99 (one original price and one discounted), and the others are priced between $99.99 and $249.99 (after discount). It can be seen that the company's products are slightly different in different channels.

（ Screenshot from LUTEC website ）

It should be noted that on the LUTEC Amazon store, a British consumer mentioned in a product with more than 4,600 cumulative reviews that the product could not be used due to voltage problems. This also reminds sellers that when planning products and markets, they must consider issues such as product adaptation to the local market .

The global lighting market size may exceed 210 billion

According to a report released last year by global consulting firm Research Nester, the global lighting market is expected to be valued at approximately US$216.45 billion by the end of 2024. At the same time, the growing demand for energy-saving lighting fixtures will drive the growth of the global lighting fixture market.

According to the data released by the General Administration of Customs, in the first half of this year, the export value of lamps, lighting devices and their parts in China was 146.48 billion yuan, a year-on-year increase of 6.6%. Although there was a decline in June, July and August compared with the previous months , the export value of this category in the first eight months still reached 196.7 billion yuan, a year-on-year increase of 2.6% . This shows that Chinese lighting products have great potential in the international market.

However, the export of Chinese lighting products is not without pressure. Industry insiders pointed out that the overall added value of Chinese lighting products is not high, and foreign traders' strategy to win orders is still mainly based on low-price competition . At the same time, the lighting industry in ASEAN, India, Turkey and other places has continuously improved its export capacity by taking advantage of low labor costs and convenient transportation, increasing the overall supply of global lighting products, and bringing pressure to the export of Chinese lighting products.

At the same time, some industry insiders pointed out that in recent years, export lamps are no longer satisfied with the basic function of "illuminating" , but need to provide customers with customized services based on local climate conditions, energy conservation and environmental protection, power supply and other objective conditions.

Taking the European and American markets as an example, in addition to paying attention to design and function, consumers are also influenced by environmental awareness and the trend of intelligence. Energy saving, environmental protection and intelligence of products have also become the purchasing decision factors for consumers. Therefore, when sellers plan their products and markets, they must pay attention to the characteristics of the local market and consumers and implement a "local conditions" strategy.

It is worth mentioning that the hot sales trend of overseas lamps will also be affected by social media such as Instagram and Pinterest . Therefore, while sellers are operating seriously, they also need to pay attention to and make good layout of social media channels in order to better gain market opportunities.

Amazon

Big Sell

Listed on the New Third Board