38-year-old woman started Amazon, selling 4.2 billion in one year

After 10 years of hard work in markets such as Europe, America, and Southeast Asia , she successfully landed her overseas business on the Hong Kong stock market, and now has achieved annual sales of 4.2 billion yuan.

Shenzhen's big sellers made a net profit of 560 million yuan overseas in one year

On March 25, Amazon's home appliance giant and big seller Shenzhen VeSync Technology Co., Ltd. ( VeSync , hereinafter referred to as "Chenbei Technology" ) announced its full-year results for 2023.

According to the financial report, in 2023, Morning North Technology's annual revenue reached US$586 million (equivalent to more than RMB 4.2 billion), and its gross profit was approximately US$274 million , an increase of 19% and 93 % respectively compared to 2022. The gross profit margin was approximately 46.9% , an increase of approximately 18 percentage points from 2022 (approximately 29.0%) .

In terms of net profit, Chenbei has turned losses into profits. In 2022, it lost $16.27 million, but last year it made a net profit of $77.48 million (equivalent to RMB 560 million), reaching its highest level in history .

In terms of channels, Morning North Technology has always been mainly online, especially Amazon. Last year, its revenue on Amazon reached US$457 million , and in 2022 it was US$410 million, an increase of 11.2%.

That is to say, the Amazon channel alone accounts for 78% of Morning North Technology's revenue, but earlier, this figure was higher.

Since disclosing various data in the prospectus in its IPO, Chenbei Technology's "Amazon addiction" has been criticized.

According to the prospectus of Morning North Technology , more than 90% of Morning North Technology's revenue came from Amazon before 2020. In terms of cooperation with Amazon , Morning North Technology not only has the Seller Central ( third-party seller ) model that most sellers cooperate with , but also the Vendor Central ( Amazon self-operated ) model.

The bulk of its revenue on Amazon increasingly comes from VC stores. The prospectus shows that from 2017 to 2019, the proportion of VC store revenue of Morning North Technology in Amazon channel revenue soared from 8.4% and 28.6% to 50.8% .

By 2020, the revenue of Morning North Technology 's VC store reached US$233 million , more than twice that of its SC store ($102 million).

From 2021 to 2022, the revenue of its VC stores reached US$339 million and US$405 million respectively, while that of SC stores was only US$74.74 million and US$5.35 million. Although the specific revenue data of the two models were not announced in the 2023 financial report, Morning North Technology stated that most of the revenue of the Amazon channel came from the VC model.

Obviously, Chenbei Technology is increasingly dependent on VC stores. Judging from the gross profit from sales channels, the VC model has indeed brought it a faster profit growth, with revenue increasing from 8.4% in 2017 to 66% in 2019 .

It is worth noting that in recent years, Morning North Technology seems to be interested in reducing its dependence on Amazon .

The 2023 financial report shows that Morning North Technology's sales performance in non-Amazon channels has been greatly improved. Last year, its non-Amazon channel revenue was US$129 million, while in 2022 it was only US$79.44 million, an increase of 61.2% .

Morning North Technology is also actively developing offline channels around the world:

In North America, Morning North Technology has entered more than 11,000 stores of mainstream retailers, with Walmart channel revenue increasing by more than 150% compared to 2022;

In Europe, it has entered nearly 2,400 mainstream supermarkets in more than 20 markets including Northern Europe, Spain, Hungary, Germany, etc., totaling 3,200 stores, a year-on-year increase of 300% compared with 2022;

In Asia Pacific, it has entered more than 1,400 mainstream supermarkets in Singapore, Malaysia, Thailand, Japan and the Middle East, bringing the total number to about 1,900.

Compared with most big sellers, Chenbei Technology's offline channels are very extensive, which may also be due to the popularity of its brand in many parts of Europe and the United States.

38-year-old female boss started her own business, and her three brands ranked first in multiple markets

In 2012, Morning North Technology launched the small appliance brand Etekcity in the United States , designing and producing small appliances such as kitchen scales, outdoor kerosene lamps, and sockets , with Amazon as the channel. In 2016, Morning North Technology launched two more brands, Levoit and Cosori .

Today, these three brands have become the core brands of Chenbei Technology, managing different home appliance product lines.

For example, Etekcity focuses on user weight and body fat management, health monitoring, and personal care, and its products include weight scales, kitchen scales, luggage scales, infrared thermometers, etc.

Levoit focuses on the home environment, and its products include air humidifiers, vacuum cleaners, aromatherapy machines, etc.

Cosori focuses on kitchen appliances, and its products include air fryers, ovens, electric kettles, etc.

Generally speaking, the development of multiple brands under a major brand will always have different market performances. However, the three brands under Chenbei have all achieved impressive results in their respective categories.

Last year, Levoit was still the best performing brand of Morning North Technology, with annual revenue reaching US$327 million, an increase of US$50.7 million compared with 2022. Morning North Technology said that this was mainly driven by the increase in revenue from air purifiers and air purifier filters.

Statistics from NPD Group show that Levoit's air purifiers have continued to expand in sales and revenue in the U.S. market, and in 2023 even accounted for approximately 28.6% of the U.S. market share in the sub-category, an increase of approximately 5.6 percentage points compared to the same period in 2022 , ranking first in the U.S. market for two consecutive years .

Levoit's air humidifiers have grown from the number one in terms of sales market share on the Amazon site to the number one in the U.S. market , accounting for approximately 22.7% of the market share.

Cosori contributed $196 million to Morning North Technology in 2023, an increase of $28.9 million or 17.4% from 2022. It is reported that this is mainly because Cosori's air fryer performed well in the European market last year, and the sales of ovens also increased by nearly 70%.

GfK data shows that Cosori air fryer continues to maintain the first place in sales share in the Spanish and Norwegian markets, accounting for approximately 31.5% of the Spanish market share and approximately 43% of the Norwegian market share respectively, and its sales share in the Hungarian and Swedish markets is already among the top three.

At the same time, in 2023, Cosori air fryer ranked high in all major Amazon European sites , and its sales in the Asian market also reached US$ 29.8 million , an increase of 83% year-on-year from 2022 .

Cosori dried fruit machine and electric kettle also ranked first in sales share on Amazon .

Etekcity had relatively small revenue of "only" $61.35 million, but it was a significant increase from $4.77 million in 2022, with revenue increasing by approximately 31.5%, mainly due to a $6.7 million increase in sales of its body scale products.

According to statistics from Morning North Technology, Etekcity body scales, kitchen scales, luggage scales, infrared thermometers, etc. ranked first in sales share on the Amazon.com .

The main categories have taken the first place in many markets . Chenbei Technology also stated that in addition to evergreen products such as air purifiers, air humidifiers, and air fryers, the revenue of other products under its brand has also continued to increase, and the proportion of its total revenue has also continued to increase.

Founded in Shenzhen in 2011, the leader of MorningNorth Technology is a rare woman in the cross-border e-commerce industry and even in the entire business circle.

When she founded Chenbei , Yang Lin was only 38 years old. She had many years of experience studying and starting a business in the United States , and had experience in small home appliances and electronic products trading business . Perhaps it was this background experience that made her choose small home appliances as the entry point to enter the overseas market.

After ten years of deep cultivation overseas, Yang Lin led Morning North Technology to the Hong Kong stock market in 2020. Although the stock price has fallen since then and its revenue and net profit have also suffered setbacks, its brand is still widely recognized overseas, which enabled it to turn losses into profits and achieve a net profit of over US$77 million last year.

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