Products sold for billions! Shenzhen 3C sellers ranked first in the world

In recent years, as global consumers' demand for electronic products and related accessories continues to grow, the 3C digital accessories track has continued to be hot.

It is understood that the global 3C digital accessories market size will reach approximately US$102.8 billion in 2023, and will continue to expand at a compound annual growth rate of 8.7% in the future.

Many cross-border e-commerce sellers have also targeted this high-growth, high-profit, and high-potential track and are actively accelerating their overseas expansion. In addition to the well-known top sellers such as Anker Innovations and UGREEN Technology, many domestic sellers have become leaders in their own subcategories by virtue of their own product advantages.

In 1.7 years, the revenue increased dozens of times, and Shokz took the first place in the world!

Driven by the high demand for 3C digital products, many headphone brands have risen and gained a place in the fiercely competitive overseas market. Shokz is one of them.

Shokz is a brand of Shenzhen Shokz Technology Co., Ltd. Founded in 2011, the company focuses on acoustic technology innovation and is committed to the research and development and application of open binaural acoustic technologies such as bone conduction, and applies the technology to multiple series of products such as outdoor sports and swimming. Shokz's product line is mainly divided into three series: fitness travel series, swimming triathlon series, and endurance sports series. The products are centered around different usage scenarios such as running cross-country, cycling, business office, and underwater, and have successively launched headphone series such as OpenRun, OpenFit, OpenComm, and OpenSwim.

(Photo source: Shokz official website)

Shokz has a number of independently developed core technologies, such as bone conduction technology, directional sound field technology, bone-air dual unit technology, sound leakage slaying technology, etc. As of 2024, Shokz ranked first in the world in the global open-earphone invention patent rankings with 1,408 patent applications disclosed, a number far exceeding other competitors.

It is worth mentioning that Shaoyin also pays great attention to the waterproof performance of its products. It has patents for protection technologies at different levels, such as IP68, IP67, IP55 and IP54, enabling its products to adapt to the needs of different sports and environments.

The biggest feature of Shokz's earphones is that they are not inserted into the ears, and can be listened to in an open manner. The product mainly uses bone conduction technology. The speaker of the earphone transmits sound vibrations through the skull. There are transducers on both sides of the earphones, which can convert audio signals into mechanical energy or vibrations. The sound can be transmitted directly to the inner ear through the skull, bypassing the eardrum. This means that users can listen to music normally without plugging the earphones into their ears, and can also perceive the surrounding environment at the same time, which is safer when doing outdoor sports.

Moreover , Shokz optimizes the distance and angle of the sound source relative to the human ear to control the distribution of sound pressure in the space, so as to achieve the directivity of a specific space, reduce sound leakage and ensure the privacy of listening. In addition, a triple composite vibration system is set up in the speaker to make the low frequency stronger, the three frequencies more balanced, and the sound quality higher.

After years of development, Shokz has firmly established itself as a market leader in the global bone conduction headphones and professional sports headphones.

By the end of 2021, Shokz has accounted for 70% of the global bone conduction headphone shipments in overseas markets, with business in more than 60 countries and regions around the world. At present, Shokz has settled in multiple Amazon sites including the United States, Canada, Japan, and Europe. In December 2023, on an Amazon open-ear headphone best-selling list, the top four were from the same brand - Shokz.

According to data from global consulting firm Sullivan, in 2023, sales of Shokz's sports headphones reached 4.35 million units, and sales of its open-ear headphones reached 5.2 million units, both ranking first in global sales of their category products.

From 2016 to 2023, in just 7 years, Shokz's revenue has increased dozens of times.

In 2016, Shokz's sixth-generation product, Trekz Titanium, was launched. The technology and craftsmanship of this product were recognized by the market, bringing the first major explosion in the company's performance. That year, the company achieved a revenue of approximately 100 million yuan.

In 2020, Shokz's revenue reached approximately 1.5 billion yuan.

In 2021, the company's revenue doubled to approximately 3 billion yuan.

In 2022, Shokz's revenue continued to accelerate, reaching approximately 6 billion in revenue.

In 2023, Shokz Headphones' revenue in China exceeded 1 billion, and global product sales exceeded 5 million units.

With its strong product and R&D capabilities, Shokz has successfully transformed from an OEM to an independent brand, becoming a leader in the field of bone conduction headphones. In the future, Shokz will continue to innovate in technology, explore new markets, continue to enrich its product line, and move towards a revenue of 10 billion yuan.

2. Annual shipment of 90 million units! Baseus products are sold out all over the world

In addition to Shokz, another company that is accelerating in the 3C digital accessories market is Baseus Technology.

Founded in 2011, Baseus Technology is mainly engaged in the design, development, sales and production of mobile digital products. Its products mainly include mobile phone charging devices, Bluetooth headsets, etc. After 13 years of development, Baseus Technology's business has expanded from a single mobile phone accessory to the fields of electronic products such as charging, audio, and car accessories, expanding more than 20 categories and more than 3,000 SKUs. Now it has formed multiple product series such as Baseus mobile accessories, Baseus car products, Baseus music, Baseus games, and Baseus home appliances.

(Picture source: Baseus Technology official website)

Baseus Technology's products have covered more than 100 countries and regions around the world, with the brand reaching more than 6 billion people and annual sales exceeding 90 million units. Baseus Technology has opened up a variety of overseas channels, including not only the global e-commerce platforms we are familiar with, but also its own retail website, as well as national agents, offline stores, etc. In addition, Baseus Technology has established stable cooperative relationships with many well-known brands such as OPPO, Huawei, and Navitas. In the sluggish market environment in the past few years, Baseus Technology's performance has maintained rapid growth and is at a leading level in the industry.

As its business expanded rapidly, Baseus Technology also gained favor from the capital market.

On April 21, 2023, Baseus Technology completed a round A financing of hundreds of millions of yuan. This was the first time the company had conducted external market financing in its 12 years of establishment, demonstrating the capital market's confidence in Baseus Technology .

On December 11, 2023 , Baseus Technology announced the completion of a RMB 100 million A+ round of financing, led by Shenzhen Capital Group, followed by Jianfa Emerging Investment, Gaorong Capital, and Yuexiu Industry Fund . This round of financing will further accelerate the company's new product development and overseas market construction .

Why was Baseus Technology able to quickly capture the market and take a leading position in the 3C digital accessories market?

This is inseparable from its strong product strength and technological advantages. Baseus Technology has self-developed charging technology and audio TWS self-developed technology, including BPS Baseus smart charging technology, BCT Baseus heat dissipation technology, BHP Baseus hybrid technology, Baseus self-developed BSC smart dual-link technology, DCLL Baseus dual-channel low-latency technology, BRC Baseus instant flash charging, etc.

As for the company's winning formula, He Shiyou, the founder of Baseus, said in an interview with the media that Baseus developed in stages. The first stage was design-oriented, with innovations in design and quality satisfaction to establish consumers' initial awareness of the brand.

The second stage requires deep innovation in design and technology to forge unique product power.

In the third stage, Baseus began to create popular products, formed a mature brand matrix, and condensed consumers' brand awareness of Baseus.

The formulation and implementation of phased goals have made BASEUS achieve today’s great results.

3. Focus on the audio track! EDIFIER Edifier sells nearly 2.7 billion products a year

With the increasing demand for high-quality audio equipment among consumers and the rising trend of using portable audio equipment, the audio equipment track has ushered in new opportunities to go overseas . Edifier, a brand focusing on audio equipment, has performed particularly well in overseas markets.

Shenzhen Edifier Technology Co., Ltd. was founded in 1996. It is a professional audio equipment company. The company has a professional team from product creativity to industrial design, product research and development, large-scale production, and independent marketing. Its products cover hundreds of models in several categories such as home audio, professional audio, car audio, headphones and microphones. The company has vigorously expanded its overseas market and has registered international trademarks in more than 80 countries and regions such as Germany, the United Kingdom, and the United States. It has established a global sales network and its business in international e-commerce channels such as Amazon has grown rapidly.

(Picture from: Edifier official website)

When exploring overseas markets, Edifier chose Southeast Asia as its first stop. Because the Southeast Asian market has a large population, a high proportion of young people, and a high Internet penetration rate, there is a very high demand for 3C electronic products. Edifier entered the Southeast Asian market with mid-to-high-end products, which formed a sharp contrast with local white-label products.

In the Southeast Asian market, Edifier achieved rapid growth on the Lazada platform, with sales increasing by millions of yuan in just half a year, and its products also ranked very high in big promotions.

Edifier has also entered the Amazon platform, achieved rapid business growth, and steadily improved user reputation. It has also set up localized teams in multiple markets around the world to deeply understand local culture and consumer needs and continuously optimize products.

Edifier has launched differentiated products for different market segments, forming a diversified brand matrix including "EDIFIER", "Xemal", "HECATE" audio, "Volona", "Hua Zai" and the professional Hi-Fi audio "AIRPULSE".

In order to promote the brand, Edifier actively operates on social platforms such as Instagram, Facebook, YouTube, and TikTok to maintain a high frequency of interaction with consumers. It also cooperates with overseas Internet celebrities to further deepen the brand's influence through KOL promotion and user-generated content .

In order to expand the brand 's layout in overseas markets, Edifier also acquired the Japanese electrostatic headphone brand STAX and invested in the American flat headphone brand Audeze .

With its unique product positioning, excellent operation management and innovative marketing strategies, Edifier has achieved rapid business growth in overseas markets, especially on e-commerce platforms such as Amazon, where user reputation has steadily improved . Some of Edifier's products, such as R1280DBs and S1000W, are very popular on the Amazon platform and have been listed on the Best Seller list of related categories .

Faced with complex and severe situations and numerous risks at home and abroad, Edifier has demonstrated its ability for sustainable development and the company's performance has maintained a steady growth trend.

In 2023, Edifier's performance was very impressive, with both revenue and net profit achieving double-digit growth.

In 2023, Edifier's operating income reached RMB 2.694 billion, a year-on-year increase of 21.64%. The company's rapid revenue growth was driven by core products such as headphones and speakers, as well as a significant increase in export revenue.

In 2023, Edifier's net profit attributable to shareholders of listed companies reached RMB 420 million, a year-on-year increase of 70.17%. The rapid growth of net profit reflects the company's efforts in product structure optimization, cost control and market expansion.

In the first half of 2024, Edifier achieved operating income of 1.38 billion yuan, an increase of 16.05% compared with the first half of 2023. The company's net profit attributable to the parent company was 220 million yuan, an increase of 26.24% compared with the same period last year.

During this period, Edifier actively expanded its product matrix and launched a number of new products, including Comfo Fit Ⅱ, Comfo Solo, X Fit, Comfo Clip and other OWS headphone products, as well as multimedia speakers N300 and the high-end new product STAX SPIRIT S10, which introduced the flat unit into the TWS field for the first time to achieve flat unit noise reduction.

Edifier's achievements are inseparable from the company's continuous investment in R&D. The company has been focusing on the development of audio products for many years and has a comprehensive and stable core R&D team including product ID concept design, circuit design, speaker design, structural design, etc., and has formed a set of technical solutions that can organically combine the artistic modeling of ID concept design with the acoustic system, reasonably adjust and match the power amplifier circuit and speaker, and optimize the product with high cost performance. In addition, many products of its own brand EDIFIER have repeatedly won the Red Dot Design Award, IF Product Design Award, and CES Product Design and Innovation Award.

Edifier has achieved a breakthrough in the fierce market competition and opened up a new growth path through precise market strategies and strong product strength. In the future, Edifier plans to further enhance its competitiveness in the global audio equipment market, meet the diverse needs of consumers, continue to expand overseas markets, and strengthen the construction of online and offline channels.

4. SmallRig has made a comeback with its photography accessories products, with annual sales of 1 billion!

Small photographic accessories also hold huge business opportunities. SmallRig’s annual sales have exceeded 1 billion thanks to its photographic accessories products.

(Image source: SmallRig official website)

SmallRig was officially founded in Shenzhen in 2013. Starting from camera support products, the brand has developed into a global niche brand covering four major product lines: camera support and stabilization, smartphone support and stabilization, lighting and control systems, and imaging power supplies, as well as a one-stop live studio solution. Its products are widely used in live broadcasting, VLOG, short videos, documentaries and other fields, and its market share ranks first in multiple categories in the global imaging accessories market.

In terms of sales channel selection in the cross-border e-commerce field, SmallRig mainly uses independent platforms SmallRig and Coollcd, supplemented by third-party B2C and B2B platforms such as eBay and Amazon.

After years of development, SmallRig has realized an ecological layout of the entire imaging scene, from cameras to smartphones, to lights, power supplies, tripods, etc., with users in 160 countries around the world.

Now SmallRig's products rank quite high in sales in the imaging equipment category on Amazon, and the organic traffic of the independent site also shows a steady growth trend.

According to the BS ranking data released by Amazon , many of SmallRig's products continue to rank among the top in the imaging equipment category; and have long been at the top of the list in the "Professional Video Stabilizers" subcategory.

Why was SmallRig able to quickly capture the market and gain a leading position?

First of all, SmallRig has strong product power.

In the early days of the company's development, SmallRig designed a dedicated expansion frame for mirrorless cameras to address the problem that the 5D2 universal expansion frame was too large, thus becoming the world's first company to produce a dedicated expansion frame for a camera.

In 2018, SmallRig launched its first stabilizer accessories, represented by the DJI Ronin S expansion accessories.

In 2019, SmallRig launched its first iPhone mobile phone kit, building a product ecosystem that is highly coordinated with smartphones.

From 2020 to 2021, SmallRig launched a number of ecological products, achieving the extension of imaging scene categories.

It is worth mentioning that SmallRig pays great attention to user needs. Most of its products are optimized and innovated based on user complaints and feedback, including but not limited to the fixing clamps for camera cables, buttons for handle operation, and steering of external monitors.

In addition, SmallRig's senior users and enthusiasts can directly participate in product design by sending suggestions through social media and email, and thus understand the modification steps in the new product development process.

Currently, SmallRig has more than 700 SKUs, produces an average of 1.5 new products per day, and updates 300-400 products annually.

On the other hand, SmallRig's supply chain is also very advantageous.

During its development, SmallRig has formed an agile supply chain of "fast manufacturing" with "small batches, multiple batches, high frequency and multiple categories".

SmallRig has two self-built factories, located in Shenzhen and Dongguan. At the same time, it has also deployed 30-40 manufacturing partners in the Yangtze River Delta and Pearl River Delta regions to respond to subtle changes in the supply chain. The agile supply chain not only helps the company develop in 160 countries around the world, but also forms basic global market expansion and global fulfillment capabilities.

As a leader in the category, SmallRig has been on many overseas lists, such as OneSight's "2023Q3 TOP100 Overseas Brands Social Media Influence List", Cailianshe Science and Technology Innovation Board Daily and New Consumer Daily jointly released the "2023 New Consumption Force - Annual Brand List". Among the top 20 products on the Meiya professional video stabilizer category BS list, Smallrig occupies 8 seats, and its product also ranks first.

SmallRig said that in 2024, the company's business will still maintain a growth of more than 45%. It will plan new products based on scenarios and add electric and intelligent functions. In terms of the market, it will explore emerging markets such as Southeast Asia, and conduct more refined management and operation of channels.

In general, driven by the popularization of consumer electronic products, accelerated technological iteration and diversified consumer demands, the global 3C digital accessories market continues to develop in a positive direction. According to market research institutions, by 2025, the global 3C digital accessories market is expected to reach US$1.5 trillion.

The future development of the 3C digital accessories market will be a diversified, intelligent and sustainable process. For sellers who have already entered the 3C digital accessories track, if they want to achieve long-term development in overseas markets, they must focus on their own products, build their own market competitiveness in many aspects such as brand and channels, adapt to market changes, and maintain their advantages in the fierce market competition.

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