Anker has launched another category that is selling well!

As one of the fastest growing and most promising categories on Amazon, the smart home field has been deeply cultivated by many big sellers, and the market size has continued to grow. It is estimated that by 2032, the smart home market size will reach US$250.46 billion.

What we want to share with you today is: Govee, a smart home brand co-invested by Anker Innovations and founded by the founder of Anker Innovations, went overseas with the lighting category in 2017. It has achieved a compound growth rate of over 300% for three consecutive years. In 2020, its annual sales exceeded US$200 million, and its products are regularly on the Amazon BSR list.

Anker participated in the investment, and Govee jumped into the top 10 of the overseas list

In the recent "2023Q3 TOP30 E-commerce Overseas Brands Social Media Influence List" industrial manufacturing overseas brand list, the new smart home brand Govee successfully broke through a number of big brands and entered the top 9 of the list.

When it comes to Govee, many people may not know it, but if you mention its founder Wu Wenlong, people in the cross-border circle may be more familiar with it.

Wu Wenlong, one of the founders of Anker Innovations and former CTO of Anker, currently owns 4.25% of the shares of Anker Innovations. After participating in the creation of Anker Innovations, Wu Wenlong chose to continue his struggle in the lighting track and founded Shenzhen Zhiyan Technology Co., Ltd. (hereinafter referred to as "Zhiyan Technology") in 2017, which has now achieved success.

In March this year, Anker Innovations planned to increase its capital in Zhiyan Technology with its own RMB funds. After the completion of this investment, Anker Innovations will own 1.26% of Zhiyan Technology's equity. According to the investment ratio given by Anker Innovations, Zhiyan Technology's valuation is expected to exceed 3 billion yuan.

The smart home brand Govee mentioned above is the main brand of Zhiyan Technology, which is located in Nanshan, Shenzhen. Its main products include smart lighting, smart security and smart home. In 2018, Govee products were sold on Amazon US, and now the business has expanded to Canada, the United Kingdom and other sites.

Govee, backed by Anker's founder, can be said to have had a wealth of technological factors and overseas experience since its birth, and its overseas expansion has been smooth sailing.

Data shows that Govee's market share on Amazon continues to increase, with a compound growth rate of more than 300% for three consecutive years. In 2020, its annual sales exceeded US$200 million, beating a number of overseas brands.

On Amazon, Govee has not only entered the Amazon lighting category BSR list many times, but is also the only lighting brand selected in the Prime Day North American best-selling list. It has created the Alexa smart LED light strip, which is the top-selling product in the world. During the Black Friday and Cyber ​​Monday last year, Govee brand sales reached a new high, with sales in the United States increasing by 117% and in Germany by 56% compared with last year.

After securing its place in the smart home field, Govee has also advanced from an unknown to a rising star, gaining fame and becoming one of the fastest-growing digital consumer electronics companies in the United States.

Occupying 80% of Amazon's market share, Govee frequently creates hits

On Amazon, Govee's popular products are mainly classic atmosphere lamps, with product reviews ranging from 4.4 to 5.0, which means that consumers have a high degree of recognition. Among them, the sales performance of the smart lighting product line is the most outstanding. According to SimilarWeb data, Govee's strip lamps have a market share of up to 80% on Amazon.

However, Govee's average customer price was not high at the beginning, with most products priced at around US$20-30. Now, its average customer price is above US$40, and some products are priced as high as US$399. This is related to Govee's increased R&D efforts and attempts at mid- to high-end products.

Compared with domestic consumers, American consumers have a greater demand for ambient lighting, whether it is at parties, outside the yard, in the game room, study, or even in the bedroom.

Govee has taken advantage of the different decoration needs of American consumers, and has been deeply engaged in the "scene adaptation" of smart lamps. It has developed technologies related to controlling atmosphere and color light, and produced customized lamps that meet the needs of different scenes. On the Govee official website, we can also see that it selects lighting products according to the room, such as TV and home theater, courtyard and outdoor, games, etc.

Like most brands, Govee also pursues a dual-channel strategy of Amazon + independent website.

Govee has achieved remarkable results on Amazon, and its independent website is also quite stable. According to SimilarWeb data, the average monthly visits to Govee's independent website are around 2 million, of which 34.78% are direct traffic and 27.06% are organic searches.

In order to increase brand exposure, help brands find target audiences, and ultimately achieve single-volume conversions, Govee's social media homepages used high-frequency topic tags in Q1: They are mainly divided into three categories: Govee brand words (#govee, #goveeai, etc.), smart lighting scene words (#gamergirl, #home, etc.), and industry event words (#goveeces2023, #ces2023).

In fact, the smart home track is not just the lighting category, there are many subcategories with great prospects.

Multiple brands received financing, and the prospect of smart home was optimistic by investors

Relevant data show that the global smart home market will be valued at US$87.98 billion in 2023. By 2032, the smart home sector is expected to climb to US$250.46 billion, with a compound annual growth rate of 12.3%, and has broad development prospects.

The future prospects of the smart home track were once favored by capital, and last year many home furnishing brands received financing.

In February, DTC home furnishing brand Newme completed a multi-million dollar angel+ round of financing. Its products include lamps, small kitchen appliances, and power tools, with independent sites and Amazon stores as its main conversion platforms.

In March, the smart cleaning brand Zhuiguang completed a RMB 100 million Series A financing round, positioning itself as an artificial intelligence brand in the cleaning field, focusing on AI technology research and development, cleaning technology research and development, and production manufacturing, and established three major operation centers in China, the United States and Spain.

In May, the smart home appliance brand EPEIOS completed an angel round of financing of tens of millions of RMB. Its main products are dehumidifiers, ovens, coffee machines, etc. The brand has its own independent website and is also sold on third-party platforms such as Amazon and Rakuten.

In June, the cross-border smart home brand Nuochu Meichuang completed an angel round of financing of tens of millions of yuan, focusing on two major products: smart consumer lighting for home scenarios and smart home appliances. Its main target markets are Japan, Germany, Canada, the United States, and the United Kingdom.

In October, the overseas home furnishing brand Homing Day completed a US$4 million angel round of financing. Its products cover multiple categories including kitchenware, bathroom, and decoration, and have entered the markets of Thailand, Malaysia, and Singapore.

In November, smart home brand Cozyla received a first round of financing of 40 million yuan. Its main product is the smart cloud photo frame, and it mainly targets people with families over the age of 25 in North America.

It is not just the brands listed by the editor, but also some brands that have received financing that have not been written in full. It can be said that in 2022, smart home brands have received capital injections almost every month, which is enough to show that capital is optimistic about this track.

As the "stay-at-home economy" recedes, the innovation and future growth potential of home furnishing brands are attracting more attention from capital, and consumers' demand for products is becoming more diversified. Only by conducting research and development and innovation at the right time can a company occupy a place in the smart home track.

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