The "dark horse" of East China's cross-border e-commerce sellers is galloping.
Not long ago, the Zhejiang Provincial Department of Commerce announced a group of well-known Zhejiang cross-border e-commerce export brands, including MOES, REST, TOPENS, oridom, etc., a total of 48. It is hard to imagine that outside of Shenzhen, the capital of cross-border e-commerce, there is actually a place that has nurtured so many cross-border e-commerce brands.
However, this is not without signs. Earlier, Amazon Global Selling China and Caixin Think Tank jointly released the "From New Business Form to New Normal - 2020 China Export Cross-border E-commerce Trend Report", which showed that the Yangtze River Delta region, as a gathering place for traditional manufacturing in China, has the fastest growth rate of sellers in the past five years, and the scale of sellers has increased by 9 times. At the same time, the types of sellers have become more diverse. Not only have many well-known Internet native brands emerged, such as Mobvoi and Anker, but traditional manufacturing companies, traditional foreign trade companies, and traditional well-known brands have also continuously joined the export cross-border e-commerce industry.
The Yangtze River Delta/East China region where Zhejiang is located has many high-quality industrial belts, and also has many excellent factories and integrated industrial and trade enterprises. If these enterprises enter the cross-border e-commerce industry, their development will not be worse than that of trading sellers in Shenzhen, but on the contrary, they will have more advantages. Especially when cross-border e-commerce has entered the stage of intensive cultivation from wild growth, these enterprises have more room to play.
And now is the time when cross-border e-commerce companies and brands in East China are rising.
Many "dark horses" have emerged from overseas markets
In the above list of Zhejiang Province's cross-border e-commerce export famous brands, Wenzhou has 9 high-quality brands on the list. At present, the city has cultivated a total of 20 provincial-level cross-border e-commerce export famous brands, ranking among the top in Zhejiang Province. This article will focus on three of them.
Sensarte: Top sellers in Amazon categories
The kitchen is one of the hottest consumption scenarios. For many overseas consumers, kitchen supplies are not only necessities of life, but also a life attitude and a way to express themselves. Therefore, the scale of the kitchen supplies market has continued to grow over the years, and the epidemic in the past few years has further stimulated this growth.
According to the growth analysis of business research companies, the global kitchenware market is expected to reach $84.02 billion by 2028, with a growth rate of 5.0%. China has always been a major producer and exporter of kitchenware. Data shows that in 2022, China's kitchenware exports accounted for 75% of the global total. In 2023, China's total commercial kitchenware exports alone reached $7.85 billion.
Sensarte is one of the many kitchenware brands that have gone abroad. It mainly deals in non-stick cookware . Its parent company is Zhejiang Shuaishuai Electric Technology Co., Ltd. In 2021 alone, Shuaishuai Electric's non-stick pans sold more than 10 million units worldwide.
Shuai Shuai Electric Appliances has been deeply involved in the cookware manufacturing industry for more than 20 years. Currently, its own-brand products are exported to North America, Europe, Australia, Japan, the Middle East and other regions. Many of its products rank first in various categories on sales platforms and have captured many overseas consumers online.
For example, on Amazon US, as of January 25, Sensarte had 11 products that won the Best Seller label , with the best performing being a non-stick frying pan priced at $17.99. In the Best Seller TOP50 list of kitchen utensils and kitchen catering, the former topped the list and the latter ranked 36th. Sales data showed that in the past 30 days, more than 8,000 units of this product were sold , and the accumulated reviews have exceeded 16,000, with an average rating of 4.6.
Sensarte currently has a store on Amazon. Overall, the sales of its products are very impressive. Take the 11 Best Seller products mentioned above for example, the total sales in the past 30 days have exceeded 20,000 units.
In addition to third-party platforms, Sensarte also has an independent website. However, it is more like the official website of Sensarte than an independent website.
Different from many independent brand websites, Sensarte’s website not only has a “store” section that sells some hot-selling products, but also introduces the brand concept, displays consumer reviews, and shares cooking recipes.
MOES: Fully managed model with 10,000 orders per month
MOES is a comprehensive smart home ecological brand under Wenzhou Morning Electronics Co., Ltd., covering smart wall switches, smart sockets, smart thermostats and related smart home products. MOES stands for "Make Our Electronics Smart". Since the birth of the "MOES" brand, Morning has insisted on being a "long-termist", improving product strength and building a brand moat.
Morning Electronics is a typical integrated industry and trade seller. Currently, its main platforms include Alibaba International Station, Amazon, AliExpress, and WISH. It also has its own independent brand website. Its products are exported to dozens of countries and regions in America, Europe, Asia, and the Middle East.
Morning Electronics' cross-border e-commerce journey began in 2017, when it entered AliExpress by chance. Since then, its performance has grown rapidly. By 2020, its performance on AliExpress had increased nearly 3 times, making it the top seller in the smart home industry on the platform.
Now that the "full trusteeship model" is in full swing, MOES also accepted the full trusteeship invitation from AliExpress in March last year. This has opened up more windows for order growth for its products. Currently, the orders generated under this model have steadily grown from thousands of orders per month to tens of thousands of orders per month.
Not only that, during the Black Friday and Double 11 promotion months last year, the order volume of MOES's fully managed stores increased nearly 6 times, and new temperature-controlled products were sold out as soon as they were launched. On the first day of Double 11, the fully managed warehouse was sold out.
Morning Electronics pays attention to brand strategy layout and has also made great efforts in product research and development, with its annual investment in molds exceeding one million. It now holds more than 40 domestic and international trademarks and a number of national product invention patents.
MOES also opened a store on Amazon, with a wide variety of products, including more than 50 search results on the US site. Although no products have received the Best Seller logo, the overall evaluation is high, and most of the links are 4 stars or above.
In addition, similarweb shows that the average monthly visits to MOES's independent website are about 168,000, and the top four countries of traffic sources are the United States, Australia, Turkey and Vietnam. From the perspective of traffic source channels, natural search accounts for 61.76% of the website traffic, and users mainly enter the website by searching for the brand word "MOES", and 29.05% comes from direct visits to the website, which shows that MOES has a certain brand awareness.
Social media is an important channel for expanding brand voice. In this regard, MOES focuses on two channels: Youtube and Reddit, accounting for 54.48% and 34.77% respectively.
BELLIVERA: Blooming on multiple platforms
For more than a decade, China has been the world's largest clothing producer and exporter, accounting for more than half of the world's textile and clothing production and more than 30% of global clothing exports . From January to December 2023, China's cumulative exports of textiles and clothing amounted to US$293.642 billion, of which textile exports amounted to US$134.498 billion and clothing exports amounted to US$159.145 billion.
SHEIN is a pearl born from such a resource background. In addition, Savitech, which successfully listed on the A-share market last year, and Zibuyu, which was listed in Hong Kong, are all big sellers from the clothing industry.
Clothing is a large category with fierce competition. Those who can gain a foothold in it are all strong enough. BELLIVERA's parent company Wenzhou Geshan Clothing Co., Ltd. is one of them.
Initially, the company was engaged in OEM, but later it started to design and develop its own products and launched its own brand. Founded in 2013, Geshan Clothing mainly deals in the export of washed leather clothing, windbreakers, cotton-padded clothes, children's clothing and other men's and women's clothing, and its products are exported all over the world.
The company has formed a sales structure dominated by cross-border e-commerce sales of its own brands. Currently, BELLIVERA has laid out multiple online channels, including the mainstream Amazon, WalMart, eBay, ShopStyle, Poshmark, etc., which are rarely involved by sellers. It can be said that it has blossomed in all aspects.
Judging from Amazon, the overall selling price of BELLIVERA's related products is not high, ranging from US$30 to US$105. The relatively expensive down jackets only sell for US$60 to US$90, and the highest price is only US$105.
The product with the most reviews is a fleece jacket priced between $56 and $70, which has received more than 8,000 reviews, with more than 70% of consumers rating it 4 stars or above. Many consumers believe that the product they purchased is worth the money.
From this we can see that owning a factory still brings certain advantages to BELLIVERA in online sales, such as more competitive prices.
Now BELLIVERA is working hard to move forward. It has not only embraced the live streaming sales method, but also started live streaming sales on Amazon to expand sales. It is also frequently active on platforms such as Youtube, Pinterest, and Facebook to expand its brand voice.
East China becomes a rising star in China's cross-border export e-commerce
Wei Jianguo, former vice minister of the Ministry of Commerce and vice chairman of the China Center for International Economic Exchanges, believes that China's cross-border e-commerce will become the fastest growing sector in the world in the next five years, and will form a three-legged pattern with general trade and processing trade in China's exports.
In this process, cross-border e-commerce companies in East China will definitely occupy an important position.
Although cross-border e-commerce in East China started late, it has developed rapidly and has a very significant growth momentum. Relevant data show that in 2022, China's cross-border e-commerce import and export volume will be 11 trillion yuan, with East China accounting for more than 1 trillion yuan, accounting for more than 50%. Nearly 40% of the country's 165 cross-border e-commerce comprehensive pilot zones are located in East China.
The East China region includes Shandong Province, Jiangsu Province, Zhejiang Province, Anhui Province, Jiangxi Province, Fujian Province, and Shanghai. It has a relatively large territory, and each region has its own unique political, economic, and cultural characteristics. The product features are also very distinct and it has strong competitive advantages.
This provides a good environment for the development of the cross-border e-commerce industry. Data shows that as China's main foreign trade export region, cross-border e-commerce transactions account for more than 60% of its total foreign trade exports. In the process of rapid development of cross-border e-commerce, East China is gradually becoming the main body of cross-border e-commerce development.
There are two main characteristics of cross-border e-commerce in East China: First, small and medium-sized enterprises are relatively active. There are a large number of industrial clusters in East China, especially in Jiangsu and Zhejiang, and a considerable number of factories choose to start new sales through cross-border e-commerce.
Second, most sellers take the boutique route because the products they sell are usually produced by their own factories or surrounding factories.
Third, the product categories are mainly small commodities, such as clothing accessories, daily consumer goods, small household appliances and other lightweight and portable goods.
As a major province in East China, Zhejiang's cross-border e-commerce industry is well-known in the region. As the leading industrial belt gathering place in East China, it gathers a large number of Chinese cross-border e-commerce sellers, including leading cross-border e-commerce companies, including Aosen E-commerce, Lechuang Holdings, and TAG Heuer. Among them, Aosen E-commerce's revenue exceeded 3.4 billion yuan in 2020, and Lechuang Holdings' revenue reached 3.208 billion yuan in 2022.
According to examinechina, Zhejiang is the most diversified province in China and ranks first in the list of China's top 100 industrial clusters. There are at least 36 industrial clusters, and important manufacturing areas are mainly concentrated in Ningbo, Jinhua, Hangzhou, Wenzhou, Taizhou and Shaoxing. For example:
Electronic products from Ningbo. Ningbo is known as the capital of small household appliances. Cixi City in Ningbo is one of the most important electrical appliance manufacturing bases in China. As many as 40% of Cixi's exports are small household appliances.
Shoes, machinery and packaging in Wenzhou. Wenzhou is a famous footwear production base. In Lucheng, where the footwear industry is most concentrated, there are more than 2,000 shoemaking-related enterprises. In 2022, the total industrial output value of enterprises above designated size reached 11.36 billion yuan, the annual output has exceeded 600 million pairs, and the annual output value reached 23 billion yuan. The Wenzhou Yueqing electrical appliance industry cluster has more than 6,000 varieties and more than 25,000 models, accounting for 65% of the national market, and is often called the "China Electronics Capital".
Plastic, porcelain and rubber products from Taizhou. Taizhou is famous for its porcelain, plastic and rubber products. Plastic chairs, boxes and containers are mainly made of PVC, ABS and PP. Daily-use products such as gloves, kitchen accessories and coasters are made of rubber. Sunglasses and eyeglass frames are also popular products in Taizhou.
Textiles and umbrellas in Shaoxing. Shaoxing is a textile manufacturing base. Parts of Shaoxing specialize in a variety of textile products. The manufacturing center of Chinese (traditional and modern) umbrellas is Shangyu. Shangyu produces about 500 million umbrellas per year, accounting for 1/3 of the world's production. Zhuji's hosiery products account for 70% of China's production and 1/3 of the world's production.
Clothing and digital security in Hangzhou. Hangzhou is not only a tourist city, but also a major clothing distribution center. Hangzhou Sijiqing, like Guangzhou Shisanhang, is the largest clothing wholesale market in the country. Qiantang New District and Binjiang District are important gathering places for Hangzhou's clothing industry. There are many clothing companies, supply chain companies and related companies here. In addition, Hangzhou's digital security output value accounts for 55.5% of the total output value of the national security industry. Its main video surveillance products occupy nearly half of the global market.
Yiwu in Jinhua is known as the world's "small commodity capital". In the wholesale market here, you can find a variety of small commodities such as holiday decorations tools, accessories, toys, artificial flowers, stationery, etc.
In recent years, in order to encourage enterprises to use cross-border e-commerce to go overseas, Zhejiang has successively introduced a number of policies and measures and provided "real money" support.
For example, in early 2023, the "Implementation Opinions of the Hangzhou Municipal People's Government on Accelerating the High-quality Development of Cross-border E-commerce" was issued. Enterprises are encouraged to build independent sites to promote the overseas expansion of Chinese brands. Enterprises that use independent sites to carry out cross-border e-commerce export business will be given a one-time financial support of no more than 2 million yuan.
Industrial development depends on talents, and the Hangzhou Municipal Government has also taken this into consideration. In 2019, in order to cultivate new forms and models of cross-border e-commerce and vigorously develop the digital economy, the Hangzhou Municipal Government issued the "Implementation Opinions on Accelerating the Development of Cross-border E-commerce", encouraging universities and cross-border e-commerce platforms to carry out cross-border e-commerce talent training, and providing a one-time financial support of no more than 1 million yuan.
More Chinese brands are being seen by the world
When it comes to fashion in the United States, which brand do you think is the biggest retailer? H&M or ZARA? You would never have thought that in 2021, the most popular brand in fast fashion sales, surpassing all competitors with a 28% market share, is SHEIN.
On January 15, market analysis agency data.ai released its latest "2024 Mobile Market Report", which showed that SHEIN surpassed a number of e-commerce platforms and once again won the championship in global shopping app downloads in 2023. According to people familiar with the matter, SHEIN's revenue in 2023 will exceed US$30 billion and its profit will reach US$2.5 billion.
SHEIN's success is no accident.
In recent years, the overseas share of Chinese brands has continued to increase. A study commissioned by Google and conducted by Ipsos showed that from 2018 to 2021, the awareness of Chinese brands in overseas markets increased by 4.9%, and the purchase intention increased by 1.4%. At the same time, Kantar BrandZ's "China Overseas Brand Builders 2023" also reported that this year, the reputation of Chinese companies' "going out" has been improved due to improvements in product research and development, and they have won the hearts of foreign consumers by providing products that meet the needs of foreign consumers.
In this process, the rapid development of cross-border e-commerce has fostered more independent brands, moving from "Made in China" going overseas to "Chinese brands" going overseas.
Today, Chinese brands going overseas are showing the following trends:
First, strong brands survive and thrive. This is particularly evident in SHEIN and Temu. Temu has been online since September 2022 and has entered nearly 50 countries. It has been downloaded more than 300 million times worldwide. Temu has currently set a GMV target of US$30 billion for 2024, more than double the estimated GMV for 2023. SHEIN's annual GMV in 2022 was US$29 billion, and it had been established for ten years at that time. In other words, Temu will complete SHEIN's ten-year journey in more than two years.
Second, the rise of home furnishing brands. At present, in addition to native cross-border e-commerce brands such as Zhiou Home Furnishing and Lege Holdings, local brands such as Gujia Home Furnishing and Nature Home Furnishing are collectively "looking west". In addition, from previous reports by Yien, we can also see that Amazon has gathered a lot of Chinese home furnishing brands, such as the home textile brand Bedsure, the mattress brand MOLBLLY, and the furniture brand Homary.
Third, brand localization is becoming more mature. Today, localization has become a ubiquitous buzzword. Clarifying the brand image and localizing products with a brand strategy that fits the culture of the target audience is the key to the success of Chinese brands overseas. In 2020, the domestic cosmetics brand Floasis plans to launch a new product line overseas. In order to achieve product localization, Floasis leveraged the power of social media and marketing influencers. Before the launch, it produced a makeup tutorial video using Florasis products for @meredithduxbury, a Weibo celebrity with 200,000 followers. The first video quickly went viral, with more than 5 million people exposed to the content . |
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