With a revenue of tens of millions in two years, will it be the next Anker?

Meta data shows that the global 3C market has shown a steady growth trend in the past three years, with a compound annual growth rate of 3.4%. It is expected that the market size will reach US$406 billion in 2023.

The most competitive track is also the most promising track.

As the market cools down and the consumption sector continues to be sluggish, 3C is one of the few industries that remains hot. In the previous "China Cross-border E-commerce Brand Influence List (2023/10)" list, the 3C category took the lead, with the largest number of brands on the list, more than 30.

On the one hand, many sellers say that it is becoming increasingly difficult to make money, while on the other hand, hot money is pouring in. Cross-border companies specializing in 3C products such as data cables and power banks have successively stepped out of the circle and rung the bell. It can be said that the charm of 3C products has far exceeded national boundaries.

Especially in the field that Anker Innovations focuses on, the market is "not very big, nor very small", and the shallow-sea products that the super giants don't look down on, from electronic accessories to wireless headphones, their demand is still strong, and the track products are booming, even driving a group of players to rush into the market.

At present, in addition to a number of 3C big sellers such as Anker Innovations and UGREEN Technology, which enjoy a certain degree of popularity and market share overseas, there are also some seed players that are rising. This article starts with categories such as data cables, power banks, mobile phone cases, and headphones, and analyzes more possibilities of this track through multiple seed brands.

We can also look forward to: Who will be the next Anker in the 3C track?

Cross-border business in a data cable: CableCreation single product sold more than 300 million

A data cable is half of the cross-border history. Data cables, one of the three lucky treasures of cross-border transactions, can be sold at several times the price on Amazon due to their advantages such as low value, light weight and high demand. The seemingly traditional and cheap small business once made the first batch of cross-border e-commerce sellers earn a lot of money and also attracted the attention of top capital.

When talking about data cables, we have to mention UGREEN Technology, which started out with data cables. It took half a year for its single-day sales on Amazon to exceed 20,000 US dollars. Now, UGREEN Technology has become a 3 billion-level 3C seller. Anker Innovations also developed a data cable that can "pull a car", and filmed a video demonstrating the data cable pulling a car, which accidentally went viral on the Internet.

In addition to the leaders in the data cable category such as UGREEN Technology and Anker Innovations, the brand CableCreation mentioned below is also a seed player in the data cable category.

CableCreation entered the overseas market with a data cable and successfully made a name for itself. Its entry model is quite similar to that of UGREEN Technology.

In 2011, a group of dream-filled post-90s and post-00s founded Shenzhen Wanka Technology Co., Ltd. (hereinafter referred to as "Wanka Technology"), which focuses on the research and development of smart hardware and electronic products. The company's sales are based online, and 90% of its revenue comes from cross-border e-commerce.

Avoiding the categories where many 3C products were rising in popularity during the entry period, Wanka Technology chose to enter the overseas market in 2015 through the brand CableCreation (Yisheng) with the data cable segment.

While focusing on digital cables, CableCreation is also focusing on digital peripheral accessories. Its product line covers USB cables, adapters, audio cables, conversion heads, etc., which are suitable for multiple scenarios including audio and video, mobile phones and tablets, and are highly recognized by audio engineers, musicians and other groups.

Facts have proved that inconspicuous small accessories can also achieve good results. The overseas sales of data cables alone have reached more than 300 million yuan. At present, CableCreation stores have hundreds of products, and the sales price is not high, with an average price of 13 US dollars. There are almost no BS products, but there are many products that can be sold. The sales of products in the past month are mostly in the range of 100-2000.

Taking the power cord of the TV below as an example, it has a score of 4.7, 4707 ratings, a unit price of US$10.99, and sales of 2K+ in the past month, making it a very popular product on Amazon.

With its excellent products, CableCreation was selected into the Amazon China Top 100 Overseas Brands List in 2019. On the one hand, it relies on research and development to create excellent products, and on the other hand, Wanka Technology has also established a sales network in the cross-border e-commerce track.

Around the CableCreation brand, Wanka Technology has created a brand cluster of consumer electronic accessories products, such as PowerLot, which focuses on power supplies, Dockteck, which focuses on expansion docks, and IKITS, which focuses on smart accessories. These products have reached 30 countries and regions around the world, and these products have good sales on Amazon.

Compared with UGREEN Technology, CableCreation both started with data cables and later expanded to power banks and other products. But the difference is that UGREEN Technology has switched from OEM to brand building, and currently still adopts the strategy of outsourcing production as the main and independent production as the supplement, with domestic and overseas revenues accounting for almost half each; CableCreation has always taken the path of independent research and development and branding, and has built its own brand matrix, and 90% of the company's revenue comes from cross-border.

In the 3C industry, which is characterized by high product volume, competitive R&D, and high marketing, CableCreation's development model is obviously slightly better. However, CableCreation still has a long way to go to catch up with the leaders. In 2021, UGREEN's revenue from transmission products exceeded 1 billion yuan, several times that of CableCreation.

The ceiling of the power bank industry: SHARGE achieved a revenue of tens of millions in two years

When it comes to power banks, many people will subconsciously think of Anker Innovations. Seeing many girls complain that power banks are clumsy and ugly, and it is like carrying a brick when going out, Anker Innovations developed a lipstick-shaped mini power bank. Once it was launched on the market, it became popular on the entire Internet and became Anker Innovations' first product with sales exceeding 100 million, making Anker Innovations the number one power bank on Amazon.

To date, charging products still account for Anker Innovations' largest source of revenue. Of the 14.251 billion yuan in revenue in 2022, charging products accounted for 48.25%, reaching 6.876 billion yuan.

After Anker Innovations, SHARGE, a leader in the category, has also been frequently popular and is hailed by industry insiders as the ceiling of the power bank industry.

SHARGE, a company specializing in power banks, chargers and data cables, was founded in 2020 and is currently located in Longhua District, Shenzhen. It is affiliated to SHARGE Technology (Shenzhen) Co., Ltd. Its core team members are mostly from domestic giants such as Gree, DJI, and Meizu. Just from a starting point alone, it is far superior to a number of cross-border brands.

In February 2020, SHARGE tried crowdfunding overseas. After that, almost every major product launched by SHARGE was crowdfunded, and the crowdfunding goal was exceeded. So far, the total amount of SHARGE's crowdfunding has exceeded 2 million US dollars. In addition, industry insiders revealed that SHARGE's revenue has exceeded 10 million yuan in the two years since its establishment.

Crowdfunding goals have been exceeded time and time again, and SHARGE's overseas development has also reached new heights.

On Amazon, the average sales volume of each SHARGE product is in the hundreds, and the ratings are generally 4.6 stars. After three years of being online in the United States, SHARGE has become the top-selling brand of power products in the $200 price range on Amazon's US site. On the independent site, SHARGE's total traffic in the past three months has been close to 1.5 million.

Different from similar products on the market, SHARGE gives people the feeling of unique and creative appearance design, mainly in cyberpunk style, with characteristics such as large capacity and high power, and the product price is relatively high, mostly in the range of US$19.99-199.99.

In 2021, SHARGE launched the most expensive power bank in history. The deluxe version has a capacity of 25600mAh, is equipped with 100W gallium nitride fast charging Pro, and has four 3C1A interfaces. It is sold at a price of up to 1,600 yuan.

In addition, some sellers who have purchased this product also gave it extremely high praise, saying "It is better than any other power bank I have ever bought. After purchasing it, I probably won't look at any other power bank in the next five years." It was once considered by industry insiders to be the ceiling of power banks.

But the characteristics of the consumer electronics industry are well known. Technology iterations are frequent and they are born and die quickly. The launch of a new generation of products may even kill the previous generation of products overnight. Nokia mobile phones are a typical example.

As a benchmark in the power bank field, Anker adopts a multi-brand strategy and has formed a charging brand with Anker as the core, smart innovation brands with Eufy and Nebula as the main brands, and a mid-to-high-end audio brand matrix represented by Soundcore.

If SHARGE only deals in vertical categories and has a single technological accumulation, it is possible that its ability to resist technological changes in the industry will be greatly weakened and the life of the company will be trapped in the category cycle.

In the early stage, SHARGE opened up the US market through crowdfunding. In the later stage, if it wants to retain and attract new users, it needs to work hard on product research and development. As the saying goes, if you don't advance, you will retreat. With the dazzling array of similar products on the market and the stimulation of endless new brands, SHARGE also needs to work hard on products, technology and management.

Although there is still a big gap in revenue compared to Anker, SHARGE was once favored by the industry and was considered to have great development prospects.

The Hermès of mobile phone cases: CASETiFY's independent website traffic exceeds Anker, with annual sales of 3 million pieces

In 2022, mobile phone shipments dropped sharply, and Huawei's chill blew directly on the face of cross-border e-commerce. Among them, the most direct ones were the mobile phone peripheral product suppliers that were deeply tied to Huawei, and the first cross-border e-commerce mobile phone case stock, JMET, was the first to bear the brunt.

You should know that JMET was listed on the Shenzhen Stock Exchange thanks to its large purchase volume of Huawei mobile phones, becoming the "No. 1 Chinese mobile phone case stock". Its own brand of mobile phone cases, X-Doria, is sold on Amazon and often ranks among the Best Sellers.

However, after JMET, there is another rising mobile phone case brand, that is CASETiFY.

Some time ago, a new symbol of the rich became popular on a social platform: iPhone without a case. Below this video, a comment received tens of thousands of likes, which directly put an end to this competition: "What if my phone case is CASETiFY, how will you respond?"

As a luxury product among mobile phone cases, CASETiFY is famous for its expensive mobile phone cases and is called "Hermes among mobile phone cases" by netizens. The prices of its products are mostly between 300 yuan and 800 yuan. Taking the iPhone 14 Pro as an example, the price of an ordinary mobile phone case is more than 400 yuan, and if it is a co-branded model, the price is about 600 yuan. The minimum price of a mobile phone chain is 289 yuan.

CASETiFY may look international at first glance, but it is actually a genuine Hong Kong brand. Founded in 2011, it is a fashion lifestyle brand under Shell Play Co., Ltd. and is also the world's first and largest brand of personalized electronic accessories.

At the beginning of its establishment, CASETiFY focused on the three regions of Europe, America, Japan and South Korea. Among them, the United States is its main battlefield, and more than half of its product sales come from the US market.

With its co-branded products with well-known IPs and personalized customization services, CASETiFY became famous on overseas social media soon after entering the US market, and also began to get involved in other electronic accessories. Today, its product line covers electronic product protective cases, straps and chains, protective films, watch straps, chargers and charging cables, etc.

On Amazon, CASETiFY's sales volume averages 100 units, and occasionally the product is sold out. On its independent website, CASETiFY's natural traffic reaches 5445k, exceeding Anker's natural traffic of 4652.27k. However, in comparison, CASETiFY's search volume on Amazon is relatively inferior, at 112,000.

It is understood that CASETiFY sells more than 3 million mobile phone cases per year. In the more than ten years since its establishment, CASETiFY's annual revenue has maintained exponential growth and continued profitability. As early as 2021, CASETiFY's annual sales exceeded 100 million US dollars.

Also selling mobile phone cases, CASETiFY has been popular overseas for more than a decade and shows signs of further development.

The emergence of CASETiFY seems to break the European and American aesthetics that JMET has labeled as tough guy style. As we all know, JMET is mainly practical, simple, mechanical, and tough, and pays more attention to the anti-fall and waterproof functions of the product. It is completely different from CASETiFY's colorful and design-conscious mobile phone cases.

On the sales side, the two also have different targets. JMET mainly relies on big sellers such as Huawei, playing more of a supplier role. In 2019, Huawei's purchases from JMET once accounted for 45.57%. CASETiFY, on the other hand, is directly targeting C-end consumers, mainly using C-end sales channels such as Amazon and independent sites, and its main customer base is Apple and Samsung series products.

It can be said that although the two focus on the same categories, their styles and routes are very different. However, it is precisely this difference that may make sellers who will delve into such products in the future aware of more different development routes.

Bluetooth headsets that are popular as soon as they are released: HAYLOU has continuously created many popular models

In the past, people used to carry a mobile phone, wallet and keys with them when they went out. Now, the three things they carry with them have gradually become mobile phones, headphones and keys. From January to April 2023, the online sales volume of TWS headphones reached 14 million pairs, and the market share increased to 67%.

When it comes to wireless headphones, a number of cross-border big sellers have a say. 3C big sellers represented by Anker, Aoki, and Zebo have successively laid out the wireless headphone category. There have also been dark horses such as Shokz, 1MORE, and Soundcore that have emerged one after another and occupied the headphone market share below 1,000 yuan.

The wireless headset market has entered a fiercely competitive stage. HAYLOU, with its more affordable prices, has also emerged from the emerging market amidst the fierce competition.

In 2015, Dongguan Liesheng Electronic Technology Co., Ltd. (hereinafter referred to as "Liesheng Technology") successfully created the consumer electronics brand HAYLOU, whose products include wireless audio, smart wearables, IOT and other categories.

But many people may not know that it is also one of the earliest companies in the Xiaomi ecological chain. Once launched, it has strong independent research and development and supply chain capabilities. The total investment at the beginning of its establishment has reached 9.6 million US dollars. With strong financial strength and excellent corporate structure, Liesheng Technology has also invited a group of top engineers and product equipment experts. At present, the company has obtained more than 100 technical patents.

Unlike many big sellers who set their sights on the mature European and American markets as soon as they go overseas, HAYLOU regards Southeast Asia and Latin America as its main battlefields for overseas expansion, and has successively entered platforms such as Amazon, AliExpress, Lazada, and Shopee.

Relying on its strong R&D and supply chain capabilities, HAYLOU successfully created several hit products soon after it went online, with shipments of single products exceeding 10 million units. As soon as a new product was launched, orders exploded. HAYLOU is also a frequent visitor to the top three sales list of Lazada categories, and ranks among the top three in global Bluetooth industry shipments.

And it is not targeting the mid- and low-end market (the thousand-yuan headphone market) that most sellers have conquered, but the low- and medium-consumption student group. It positions its products at the younger generation, with prices mostly ranging from 100 yuan to 400 yuan. This has also made HAYLOU capture a large number of young consumer groups as soon as it was launched.

HAYLOU was once considered by industry insiders as a model for Chinese brands going overseas. Even in the sluggish market in 2020, HAYLOU still grew against the trend in overseas markets. It is understood that Liesheng Technology invests heavily in R&D, with R&D personnel accounting for more than 60% of the company and more than 10% of the company's revenue going into R&D.

HAYLOU's road to success can be said to be traceable, as it did not join the crowd in the popular markets of Europe and the United States, but instead sought opportunities in blue ocean markets such as Southeast Asia .

eMarketer predicts that Southeast Asia and Latin America will become the top three markets in terms of global e-commerce growth in 2023, and Southeast Asia will be the global e-commerce growth champion for the third consecutive year . With such a growth rate, HAYLOU's future market dividends cannot be underestimated.

However, the life cycle of headphones is shorter than that of other electronic products, with a new hit product appearing every three months on average. In the future, HAYLOU's product selection capabilities will also be very demanding, especially the market's demographic attributes, user portraits, cultural characteristics, religious beliefs, etc.

Conclusion:

From data cables to power banks, to mobile phone cases, earphones, and even mobile phone holders and small ornaments, it can be said that in the 3C accessories industry, there are products that merchants cannot make, only things you can't think of.

Taking mobile phone accessories as an example, relevant institutions predict that the global mobile phone accessories market will reach 314.8 billion US dollars in 2028. Earlier, Global Info Research also reported that the scale of the mobile phone case industry will reach 22.5 billion US dollars. It can be seen that small businesses can also create big companies, and small demands can also give birth to big industries.

As smartphones become a part of people's lives, the mobile phone accessories market has greater room for development. Before Apple launches new products, many consumers will take the lead in placing orders for mobile phone accessories, which is enough to show the prospects of the mobile phone accessories market.

In 2021, there were nearly 490,000 mobile phone accessories-related companies in my country, of which nearly 70% were established in recent years, with the majority in Guangdong Province.

In the future, with the popularization of the digital media era, people's dependence on 3C products will increase significantly. It is estimated that by 2026, the global consumer electronics market share will reach US$1,135.72 billion, and products including mobile phone accessories, headphones, audio and video and other accessories, computer accessories and home appliances may become hot-selling categories in the industry. Relevant sellers can also seize the opportunity to overtake.

Anker

CableCreation

SHARGE