On the verge of bankruptcy twice! Shenzhen's best-selling wholesale goods turned into high-quality goods and became the first in the category

Of course, not all sellers choose the right track from the beginning. Many people find suitable products after continuous trial and error and finally achieve today's results.

The protagonist of today's article, Neakasa, was on the verge of bankruptcy twice, but finally turned the tide by developing popular pet products. Its experience may be worth learning from for many sellers.

With more than 12,000 reviews on a single listing, Neakasa is going crazy in the pet care market

Neakasa is a brand of Shenzhen Genhigh Technology. At the beginning, Genhigh Technology did not have a clear plan for which track to enter, but simply looked for some products that it thought would be popular to sell, including mobile phone cases, auto parts, smart sockets, recording headphones, etc., covering a wide range of fields.

Before pet care products, Jihai Technology had also tested several popular products, but they were all short-lived and could not bring long-term stable returns. Luck may have played a large role in this.

As early as 2019, Jihai Technology also tried to enter the smart cleaning field and successfully obtained two rounds of financing. However, the good times did not last long. Due to the squeeze of the top brands, the sweeping robots launched by Jihai Technology found it difficult to grab market share. As the financing was slowly exhausted, the plan to enter the smart cleaning industry had to be put on hold.

However, a blessing in disguise, the loss of the smart cleaning market has allowed Jihai Technology to discover opportunities in the pet care market. Initially, Jihai launched a pet groomer for the domestic market. After receiving positive feedback from the market, Jihai quickly chose to launch this product overseas and raised the price.

It is reported that the first pet groomer launched by Jihai in the overseas market is Neabot P1 Pro (later renamed Neakasa ), which is priced at US$169.99.

If you look at this product separately, it is actually a main vacuum cleaner with 6 different accessories to suit different usage scenarios. From this point of view, this product does not have a very high technical content, but it is precisely because of its innovative design that it actually meets the needs of many pet owners that it has won the market's enthusiastic pursuit.

After searching on Amazon, it was found that Neakasa's P1 Pro pet groomer has accumulated more than 12,000 reviews, with an overall score of 4.6 points and 79% of 5-star ratings , which shows that this product has indeed solved the pain points of most users. In terms of sales, data shows that the monthly sales of this single product have reached 10,000+, far exceeding other similar products.

Looking at the Amazon platform alone, Neakasa P1 Pro hair trimmer has been ranked first in the relevant category in 2023. It is no exaggeration to say that this product saved a company.

In addition to Amazon, Neakasa has also set up its own independent website. The brand introduction on its official website reads: The brand's mission is to improve people's quality of life by providing smart cleaning solutions. The current product lines include pet cleaning, floor cleaning and personal care and cleaning.

The homepage of Neakasa's official website still displays Christmas promotion information, with the highest discount reaching 33%. The navigation bar mainly displays new products, holiday discounts, pets and home categories. There are 7 options in the secondary menu of the pet column, which shows how much importance it attaches to the hot-selling category.

Dominating the TikTok Shop, pet care is still a blue ocean

In addition to traditional e-commerce channels such as Amazon, independent websites and Walmart, Neakasa is also very sensitive to emerging traffic pools, including TikTok stores.

According to data from the statistics platform EchoTik, Neakasa 's pet grooming device has sold more than 1,800 units since it was launched in July, with estimated sales of US$272,000 and an estimated gross profit margin of 30%-50%.

The data also shows that this hair trimmer not only ranked among the top 10 products for four consecutive weeks, but also won the title of the product with the highest GMV in September 2023.

Ever since pet grooming devices became popular, Neakasa has been trying to expand into new product categories, such as pet hair dryers and other pet-related products, but sales have been lukewarm.

It is understood that the main way to sell Neakasa hair trimmers on TikTok is through videos. In 30 days, 275 videos were generated, with a sales conversion rate of 1.11% and a GPM (growth per thousand video views) of up to US$175.94.

In addition to selling products through videos, Neakasa is also actively developing influencers to sell products. Data shows that within 30 days, Neakasa 's pet grooming devices had more than 20 cooperating influencers selling products, most of which were small and medium-sized influencers with 10,000 to 100,000 fans, and relatively few influencers with millions of fans.

In addition, entering TikTok can not only expand Neakasa's sales channels, but also enhance its brand image. According to the content posted on its Douyin account, most of them are funny videos of pets. Although the content is not necessarily related to Neakasa's products, it is very consistent with the style of the TikTok platform, and most of the videos have good playback volume.

Of course, Neakasa also shares its own products through its TikTok and shows users how to use the hair trimmer and the effects after use. Combined with the cute expressions of pets, it is easy to gain a large number of fans.

In this type of unboxing video, the brand will focus on introducing a certain advantage of the product. Taking its flagship product, the hair trimmer, as an example, Neakasa will focus on promoting its multi-purpose, low noise, and pet-friendly features to strengthen users' impression of the brand.

Relying on the huge traffic brought by TikTok, Neakasa is moving forward at an astonishing speed, and supporting its progress is the huge market development potential.

It is understood that the pet care market has flourished in recent years and has become a huge industry worldwide. According to the pet industry trend report released by Command Thread in 2022, pet care does not account for the largest proportion of the entire pet track, far less than pet food and pet supplies, but it is the fastest growing area from 2018 to 2022. It is estimated that by 2025, the pet grooming and boarding market will reach US$9.2 billion.

However, although the pet care industry has a bright future, there are certain barriers to entry. Product R&D costs, numerous competitors, and not-so-high profit margins are all potential factors that could bring down sellers at any time.

As a typical case of a company gradually transforming from a general merchandise company to a boutique company, the story of Jihai Technology is undoubtedly worth learning from for many sellers. Although the general merchandise model has long been abandoned by many cross-border practitioners, it must be admitted that it did provide strong financial support for Jihai in the early stages, allowing it to survive until the day of successful transformation.

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