The big seller Aoji took action and invested in a category

After the account blocking incident, Aoki kept a low profile and there was little news about it. However, this month, Aoki made a big move and jointly established a new cross-border e-commerce company with Zhejiang Yongqiang to sell outdoor leisure furniture and products in the US market.

Also this year, Zhongyi Co., Ltd., an outdoor home furnishing company, received a new round of financing worth hundreds of millions of yuan. In the outdoor industry with a huge user base in Europe and the United States, there are still huge business opportunities.

Aoji invested in a new company, mainly engaged in outdoor furniture

Zhejiang Yongqiang recently issued an announcement, saying that it has decided to jointly invest with Aoji Technology to establish a company mainly engaged in cross-border e-commerce business. Aoji subscribed to a registered capital of 7.5 million yuan, accounting for 75%; Zhejiang Yongqiang accounted for 25%, subscribed to a registered capital of 2.5 million yuan.

Aoji and Zhejiang Yongqiang need to coordinate their respective resources and advantages to enable the joint venture to develop outdoor leisure furniture sales business in the US market and conduct omni-channel sales. According to the division of labor, the new company will have an executive director and general manager appointed by Aoji to be responsible for company operations, product realization, corporate strategy, etc., which can give full play to Aoji's operational capabilities; in addition, there will be a supervisor appointed by Zhejiang Yongqiang.

At present, the new company Shenzhen Aoqi Technology Co., Ltd. has completed industrial and commercial registration. The legal person is Zhao Yidan, with a registered capital of 10 million yuan. The business scope includes retail of computer software and hardware and auxiliary equipment; sales of electronic products, etc.

For Zhejiang Yongqiang, this investment is to further enrich and improve its layout in the field of outdoor leisure home furnishings while maintaining the normal operation of its main business, which will help accelerate the company's industrial upgrading, improve competitiveness, and hope to establish new business growth points.

Aokee is obviously very optimistic about the outdoor home furnishing track. In addition to jointly establishing a company with Zhejiang Yongqiang, it also participated in the capital increase of Ningbo Lanyi Kuowei Technology, a subsidiary of Zhejiang Yongqiang, and subscribed to Lanyi Kuowei's newly added registered capital of RMB 2.5 million with RMB 2.5 million, holding 25% of Lanyi Kuowei's equity.

Zhejiang Yongqiang is a leading company in the field of outdoor furniture in China. It has strong R&D capabilities and manufacturing genes, and covers sales channels such as large chain supermarkets, brand owners and e-commerce platforms, which complements Aoji's cross-border e-commerce operation advantages. The cooperation between the two is likely to create a new growth curve, and this attempt is also what Zhejiang Yongqiang needs.

Zhejiang Yongqiang has a rich outdoor product line and covers a wide range of products, including leisure furniture, parasols, swings, tents, stoves, outdoor kitchens and other series . However, in the first three quarters of this year, its operating income fell by 44.09% and its net profit fell by 43.22%, with the decline in the third quarter being particularly large. The company explained that the reason for the decline in revenue was the high inflation in Europe and the United States, the decline in demand for outdoor leisure furniture, and the cancellation of some customer orders.

In fact, despite the decline in industry prosperity this year, most consumers in Europe and the United States are keen on outdoor activities, and the market will return in the long run. Aojie and Zhejiang Yongqiang are optimistic about the long-term returns, which led to this cooperation.

Cross-border financing is generally less popular this year, but some outdoor companies have made further progress. In July this year, Hangzhou Zhongyi Industrial Co., Ltd. announced the completion of a Pre-IPO round of financing of over 100 million yuan, which was jointly participated by institutions such as GF Qianhe. The company specializes in the design, research and development, manufacturing and sales of outdoor leisure furniture and products. Its products are positioned in the global mid-to-high-end market, and it has also accumulated a large number of users in developed countries such as Europe, the United States, Australia and New Zealand .

Outdoor activities remain popular, and demand for sub-categories increases

Outdoor sports have a long history in Europe and the United States, and the market size is the largest in the world. Europe has a mild climate and is known as the "home of outdoor sports", with a huge user base. The United States is one of the countries with the most mature development of outdoor sports in the world. According to data from the U.S. Bureau of Economic Analysis, the outdoor leisure industry created an economic output of US$788 billion in 2019, accounting for 2.1% of the country's GDP, and is also one of the largest economic industries in the United States.

There are many subcategories of outdoor products, including clothing (clothes, pants and socks), shoes (mountaineering shoes, trekking shoes, rock climbing shoes, alpine boots, etc.), backpacks (mountaineering bags, travel bags, cycling bags, backpacks, etc.), equipment (tents, sleeping bags, pads, curtains, furniture, etc.), accessories (rock points, ice spikes, glasses, watches, GPS, stoves, lamps, knives, ropes, locks, trekking poles, helmets, crampons, safety belts, etc. ), and equipment (bicycles, boats, paragliders, etc.).

This high-value area cannot be ignored. Which sub-categories have greater potential?

1. Outdoor clothing

The popularity of outdoor sports first drives the growth of the outdoor clothing market. Market research firm Technavio predicts that from 2022 to 2027, the global outdoor clothing market will grow by US$5.5977 billion, with a compound annual growth rate of 5.58%.

North America will account for 34% of the global market growth during the forecast period . The regional market is expected to witness strong demand growth owing to the growth of the outdoor sports industry and the rising incidence of obesity and diabetes.

2. Outdoor cooking equipment

As the disposable income level of American residents increases, their investment in developing backyards, gardens and outdoor spaces continues to increase, and their preference for outdoor cooking equipment is rising. In 2022, the US outdoor cooking equipment market grew significantly, with a valuation of $15 billion. The market is expected to continue to rise, reaching $46 billion by 2028, with a compound annual growth rate of 25% during the forecast period.

Among them, the demand for lightweight portable cooking equipment for outdoor activities such as camping, hiking, and picnics has increased significantly. The market favors cooking equipment with Wi-Fi functions, and many companies use smart technology to control and monitor temperature and set timers for cooking different foods. In addition, the millennials' love for pizza has increased the demand for ovens for outdoor cooking, and the demand for barbecue ovens and grills in the maritime industry has also increased significantly.

3. Outdoor furniture

Outdoor furniture can improve the comfort and fun of outdoor activities. Last year, the global outdoor furniture market size reached US$48.4 billion, and it is expected to grow from US$50.73 billion in 2023 to US$72.80 billion in 2030, with a compound annual growth rate of 5.30% during the forecast period.

In Europe and the United States, the demand for outdoor seating and reclining chairs has increased significantly, and zero-gravity reclining chairs are becoming more and more popular. At the same time, consumers prefer products that are easy to transport and carry, such as modular outdoor furniture. In addition, high-end furniture for decorating outdoor spaces continues to be launched, and the demand in the European market will grow significantly in the next few years.

There are also abundant outdoor products industry belts in China. For example, jacket production is mainly in Jiangsu, Fujian, Zhejiang and other places . Sanmen County, Taizhou, Zhejiang is one of the jacket industry belts ; Ningbo, Zhejiang and Danyang, Jiangsu are the main production bases for outdoor leisure products such as tents . In addition, a number of outdoor leisure product manufacturers have also been born in Anhui, Jiangxi, Henan, Sichuan and other places.

Sellers can take advantage of the supply chain and choose to attack.