Repeatedly on Amazon BS list, vertical category sales made 280 million in one year

In the cross-border circle, there are many cross-border e-commerce sellers whose performance suddenly changed after listing. After entering the capital market, the performance cards handed in are still impressive, which can be regarded as excellent representatives. Recently, cross-border e-commerce sellers have successively released their 2023 financial reports and the first quarter of 2024 financial reports, and Taotao Automobile, which just entered the A-share market in March last year, performed well.

Earned 280 million a year

The financial report shows that in 2023, Taotao Automobile's operating income was approximately 2.144 billion yuan, a year-on-year increase of 21.44%; the net profit attributable to shareholders of the listed company was approximately 280 million yuan, a year-on-year increase of 36.09%.

The first quarter of this year continued to improve. The financial report shows that in the first quarter of 2024, its revenue was about 520 million yuan, a year-on-year increase of 49.06%; the net profit attributable to shareholders of the listed company was about 50.87 million yuan, a year-on-year increase of 45.89%.

According to Yien.com, there are three reasons for this achievement:

First of all, backed by the "Yongwu Jin" trillion-yuan hardware industry belt, it has a favorable location advantage. The raw materials needed for production can be purchased nearby, reducing circulation links. In addition, its complete business system, operating framework and independent production of core components enable it to effectively control costs and provide the market with cost-effective products.

Secondly, in 2017, two years after the company was founded, Taotao Bicycles had already started selling on Meiya.com, and then expanded its online channels to platforms such as Walmart, Newegg, and eBay, and even established 7 independent sites ( 4 for the VELOZ brand and 3 for the GOLABS brand ). As we all know, compared with the supplier model, the profit margin of online retail is much higher. According to the financial report data, its overall gross profit margin in 2023 was 37.60%, an increase of 1.85 percentage points from 35.75% in 2022.

Third, after years of construction and development, all-terrain vehicles and motorcycles have formed their own brands "TAO MOTOR" and "RIVAL", and electric scooters and electric balance bikes have formed their own brands "GOTRAX" and "FLUXX". And brands can be premium.

In today's cross-border e-commerce market, the living space left for sellers is getting narrower and narrower. Sellers like Taotao Vehicle Industry, which rely on the advantages of the industrial belt and focus on vertical categories, are emerging. Its current products include all-terrain vehicles, electric scooters, electric balance bikes, electric bicycles, electric golf carts, off-road motorcycles, etc.

Among them, electric scooters have the largest sales share and the highest revenue, with sales of 718 million yuan in 2023, accounting for 33.49% of the total revenue. The second is all-terrain vehicles, with sales of 620 million yuan, accounting for 28.93% of the total revenue. The third is electric balance bikes, with sales of approximately 300 million yuan, accounting for 13.79% of the total revenue.

Repeatedly listed on Amazon BS list

The vast majority of Taotao Bicycle Industry's online revenue is generated through Amazon and independent sites. For example, in the first half of 2022, these two channels accounted for more than 90% (155 million yuan) of the total online revenue of 172 million yuan.

Among all online channels, Amazon has the highest sales revenue. For example, in the first half of 2022, it sold 104 million yuan, accounting for 60.14%, and in 2021 it also sold 184 million yuan, accounting for 51.83%.

However, it can be clearly seen from the above table that before 2021, Taotao Auto's main source of online revenue was not Amazon, but independent sites. For example, in 2020, its independent site revenue was 154 million yuan, accounting for 71.97% of its online revenue, while Amazon's revenue was only more than 50 million yuan, less than one-third of the independent site. Why did the revenue from Amazon suddenly surge in 2021?

The prospectus shows that mainly due to the continuous improvement of its marketing channels, in 2021, Taotao Automobile established a cross-border e-commerce team (Shenzhen Baike) in Shenzhen, which is responsible for the operation of the Amazon platform. With the continuous maturity of Amazon's online sales channels in the United States, Canada, Japan, etc., as well as the continuous increase in customer traffic and the continuous enrichment of product types, sales revenue has also increased. Among them, the sales of the three major sites in Canada, the United States, and Japan were 123 million yuan, 60.2581 million yuan, and 7.9580 million yuan, respectively.

Boosted by sales, Taotao Motorcycles has become a frequent visitor to the BS list. Among them, the electric scooter brand "GOTRAX" has performed well and has been selected as Amazon's "Amazon Best Seller" and "Amazon's Choice" best-selling products for many times, and once ranked in the top ten of the sales list of similar products. In terms of specific products, many electric scooter products such as H600 and H853 have long been at the forefront of similar products in the sales rankings of the Meiya site.

Not only that, the electric balance bike, as one of the classic products, also performed well. In 2023, among similar products on the Meiya station, the sales volume of electric balance bike related products ranked among the top three, and its sales performance was outstanding during the "Black Friday" and "Cyber ​​Monday" periods, with both sales volume and sales revenue ranking among the top.

In fact, it’s not just Amazon. Taotao Motors’ electric balance bikes have also performed exceptionally well at Walmart. Not only have they been on the platform’s annual product recommendation list homepage for three consecutive years, their product series have also won the annual sales championship in the electric balance bike category for two consecutive years.

Electric bike sales double

Under the concept of green environmental protection, the electric bicycle ( E-Bike) market has been very lively in recent years. Many overseas brands have emerged in this 100 billion track, such as Aventon, Urtopia, Tenways, etc. Even DJI, the dominant player in the field of drones, has come up to get involved.

In the cross-border circle, big sellers such as Anker Innovations also heard the news and recruited product experts, motion control algorithm engineers and other professionals to share the pie.

Faced with such business opportunities, Taotao Bicycles certainly cannot sit still. As one of the three major new products that it focuses on , Taotao Bicycles' electric bicycle sales will double to 165 million yuan in 2023 , accounting for 7.69% of its operating income, a year - on-year increase of 111.11% .

During this period, it continued to extend and expand its electric bicycle products. On the basis of the existing urban commuting, folding, cruising, snow and other series, it added three new categories: mountain, cargo and hunting, accurately meeting consumers' personalized needs in multiple dimensions such as leisure and entertainment, daily commuting, outdoor sports and competitive challenges, and further enhancing product competitiveness.

Currently, its two independent electric bicycle brands, DENAGO and GOTRAX, have entered the US market and achieved full coverage of online and offline sales channels.

Among them, DENAGO brand electric bicycles are mainly sold through high-end dealers and independent sites , and GOTRAX brand electric bicycles are mainly sold through large chain supermarkets, third-party e-commerce platforms such as Amazon , and independent sites .

Electric bicycles have set off a craze in the global market. Currently, sales are mainly concentrated in the European and American markets, and manufacturing is mainly concentrated in China, with Chinese manufacturing accounting for more than 90% of the market share.

According to QYResearch statistics , the global electric bicycle market size will reach US$7.656 billion in 2023 , and is expected to reach US$7.838 billion in 2024 and US$8.932 billion in 2030, with a compound growth rate of 2.2% from 2024 to 2030. With this market size, Taotao Bicycles will probably have a lot of room for growth.

Taotao Car Industry