Shenzhen sold 4.3 billion in half a year

Big sellers have released their semi-annual report forecasts one after another, and those with strong earning power are still seeing huge sales ...

Savi Times sold 4.3 billion in 6 months

On the evening of July 18, Suntech Power released its performance forecast for the first half of this year, stating that it expects to achieve operating income of 4.15-4.25 billion yuan in the first half of this year, an estimated increase of 49.66%-53.26% over the same period last year .

From the profit perspective, SDIC's profitability in the first half of this year was relatively good, with a net profit of 228 million yuan to 248 million yuan, an increase of 51.64% to 64.94% from 150 million yuan in the first half of 2023 ; non-net profit was 202 million yuan to 222 million yuan, an increase of 41.84% to 55.88% from 142 million yuan in the same period last year.

Suntech Power said that in the first half of the year, non-recurring gains and losses are expected to have an impact of approximately RMB 26 million on the company's net profit .

By continuing to deepen the brand's overseas development strategy, increasing brand incubation efforts, improving brand operating efficiency, and expanding brand development channels, there is no doubt that Savi Times' revenue and profits are continuing to grow.

From the perspective of the brand matrix, Savi Times has a rich brand portfolio and has achieved many outstanding results in the market.

As early as June last year, its three leading clothing brands, Coofandy, Ekouaer and Avidlove, had accumulated sales of more than 1.5 billion yuan respectively, and sports and fitness brand Ancheer also achieved such sales results.

In the first half of 2023 alone , the revenue of the above four brands increased by 35.11% compared with the same period in 2022 , contributing 54.77% of the revenue to Suntech.

Among other brands that are being incubated, more than 20 have achieved cumulative sales of over 100 million yuan, and more than 70 emerging brands with sales of tens of millions are gradually occupying the market.

Throughout 2023, the annual sales of Coofandy, a men's clothing brand, and Ekouaer, a home wear brand under Savi Times, exceeded 1 billion yuan for the first time with an impressive growth rate; the annual sales of the underwear brand Avidlove exceeded 500 million yuan; the annual sales of ANCHEER, Zeagoo, COBIZI, Hotouch, Arshiner, and Vivi brands exceeded 100 million yuan.

In terms of brand influence, as of December 2023, many products from brands such as Coofandy, Ekouaer, and Avidlove still rank among the top five Amazon Best Sellers in their sub-categories .

Such market performance has also made many securities institutions optimistic about Savitech, and they have made optimistic forecasts for its revenue in the next few years. For example, Guohai Securities estimates that in 2024 and 2025, Savitech's annual revenue will reach 8.481 billion yuan and 11.077 billion yuan, respectively .

Apparel brands account for too much

It is worth noting that Savi Times does not have multi-faceted development. Although it has incubated several leading brands, most of them are clothing brands.

For example, among its four billion-level top brands, three are clothing brands; among its 20+ mid-tier brands, women's clothing, children's clothing, plus-size women's clothing, underwear, etc. are still the main ones .

In 2023, among the top five brands of Savi Times, there is only one non-apparel brand, ranking fourth, namely the sports and fitness brand ANCHEER, which brought in sales of 231 million yuan last year, but compared with 2022, it fell by 13.4%.

Looking at the other four clothing brands on the list:

1. The sales of men's clothing brand Coofandy reached 1.455 billion yuan, an increase of 58.63% over 2022;

2. Homewear brand Ekouaer sold 1.286 billion yuan, a year-on-year increase of 41.90% in 2022;

3. The sales of underwear brand Avidlove were 629 million yuan, an increase of 33.43% over 2022;

4. Women's clothing brand Zeagoo grew the fastest, with sales reaching 228 million yuan , up 85.14% year-on-year in 2022 .

That is to say, among the five leading brands of Savi Era , only ANCHEER's revenue declined year-on-year.

From the perspective of its total revenue classification, the apparel category brought 71.17% of the revenue to Savi Times last year, reaching 4.671 billion yuan, an increase of 41.49% over 2022 ; while the revenue of non-apparel categories was 1.736 billion yuan, only about one-third of the apparel category, accounting for 26.45% of the overall revenue, and the increase was only 19.48%.

Specific brand data for the first half of this year has not yet been released, but judging from the long-term development trajectory, the apparel category is still the main force of Savi Times.

At the same time, according to Google Trend data, the global search popularity of many clothing brands under Savi Times is not low.

In February 2022, Coofandy began to attract consumers' attention and the first small search peak appeared. After that, the brand seemed to fall into silence. Seven months later (September 2022), the brand began to continue to receive attention and ushered in the second small search peak. From March to December 2023, Coofandy's search popularity remained high and reached the peak many times.

Judging from the trend chart, Coofandy’s search popularity cycle starts in February of each year, just after the Chinese New Year, and has maintained a high level since then.

In addition, by comparing the search popularity of Coofandy, Ekouaer, Avidlove, and Zeagoo, it can be found that the trends of the four brands are almost the same.

At present, although Savi Times has the sports and fitness brand ANCHEER, the outdoor tent brand COBIZI, and the E-Bike brand Vivi, in terms of business volume, the clothing category with a very high return rate and a low threshold is still the top priority.

Multi-channel layout is difficult to implement

In addition to the relatively concentrated categories, Savi Times also has a certain degree of dependence on the platform.

In addition to Amazon, Savi Times has also established third-party e-commerce platforms such as Walmart, as well as self-operated websites for vertical categories such as Retro Stage, and even built independent websites for its own brands.

But the identity of " Amazon's clothing giant " has not changed over the years.

Last year, Savitech's sales revenue through Amazon channels reached 5.77 billion yuan, accounting for 88.32% of total revenue.

Since the "account blocking wave", big sellers have actively expanded multiple channels to get rid of the dependence on a single platform. Savi Times also said that due to factors such as Amazon's "account blocking wave" and Amazon's fee increase, some industry participants have shrunk their scale. At the same time, the supervision of platforms such as Amazon has become stricter, which has brought certain business risks.

However, its "de-platforming" measures have had little effect, with its revenue on Amazon in 2023 even increasing by 32.47% compared to 2022.

Although its revenue from Walmart and eBay increased by 139.74% and 32.07% year-on-year respectively, the two channels combined only accounted for 4.8% of total revenue; its own website also accounted for only 2.77%, which was a drop in the bucket.

The number of Amazon stores has been continuously reduced, but this channel still accounts for 90% of the revenue. The top brands rely on Amazon even more. It is conceivable that in the future, Savi Era may be constrained by the platform.

It is understood that Savi Times is currently actively exploring other platforms and has not given up the promotion of its independent site. However, the brand has been deeply rooted in Amazon for many years. If it wants to completely get rid of this big tree at once, it cannot just be done by spending money.

With deep ties to the platform, although Suntech Power, which went public last year, delivered a fairly good revenue performance, its stock price has fallen from a peak of 53.02 yuan per share to a low of 21 yuan per share since its listing .

It was only listed on the Shenzhen Stock Exchange in July last year . However, in just one year, the market value of Suntech Power Holdings Co., Ltd. plummeted from 21.2 billion yuan at its peak to a low of 8.4 billion yuan .

As of the close of Friday, the share price of Suntech Power was 22.93 yuan per share, with a market value of 9.174 billion yuan.

In its first year of listing, Suntech Power's performance was not bad, but it was not optimistic in the capital market.

The low threshold of the category, the shallow brand moat, and the strong dependence on a single platform are all market doubts. In order to respond to these doubts, Savitech may have a lot to do ...

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