In July, the super-selling Savi Times, known as the "Amazon hit-making machine", landed on the capital market. Its stock price doubled on the first day of its IPO, which was once applauded by industry insiders. Now, in the good news after its listing, Savi Times's performance is still strong among the many listed hits, and many brands have entered the list of overseas brands' social media influence together with SHEIN, which makes people sigh: a hit has to be a hit.
Revenue and profit both increased, and Savitech spent 100 million yuan in dividends
In the first three quarters of this year, most big sellers performed poorly, with both revenue and profits showing a downward trend. Only a small number of big sellers achieved profitability, and Savi Times was one of the best.
In the first three quarters, revenue exceeded 4 billion yuan, reaching 4.374 billion yuan, a year-on-year increase of 30.27%; net profit was 223 million yuan, a year-on-year increase of 41.71%. Both revenue and profit increased, and the growth rate exceeded that of the first and second quarters. The report card handed in by SDIC in the third quarter can be described as satisfactory.
It is worth noting that on the day of the release of the third quarter report, Savi Times also released an "Announcement on the Special Dividend Plan for Returning Shareholders", that is, based on the company's total share capital of 400,100,000 shares, a cash dividend of RMB 2.50 (including tax) per 10 shares will be distributed to all shareholders, with a total cash dividend of RMB 100,025,000.00 (including tax). This amount is equivalent to nearly half of the net profit, which shows the generosity of Savi Times.
Looking back to the beginning, when many sellers learned about Savi Times, it was still a period of cross-border e-commerce, when the market was still thriving and gold was everywhere. At that time, Savi Times did not choose the easiest 3C track, but chose the clothing track with higher gross profit margins, started by creating a hot-selling model through store group distribution, and made a lot of money on Amazon.
However, with the increase in e-commerce penetration and the influx of sellers, the market has turned from blue to red. Savi Times has also realized the indisputable fact that only refinement and branding can create stronger competitiveness. In 2016, it began its branding transformation and incubated its own brand.
By the end of 2022, Savitech has incubated 63 brands with revenue exceeding 10 million yuan. Among them, 21 brands have revenue exceeding 100 million yuan, and 6 brands have revenue exceeding 1 billion yuan. Many products of multiple brands including Avidlove and Ekouaer are among the top five in Amazon's BSR sub-categories.
In the cross-border e-commerce arena, it is not easy to successfully build a brand, and the fact that Savi Times can own multiple influential brands at the same time shows its profound internal strength.
2020 was a relatively glorious year for Savi Times. The number of new products developed exceeded 10,000, and the rate of explosive products was 2.65%. The opportunities brought by the epidemic enabled Savi Times to create an annual revenue of 5.253 billion yuan and a net profit of 451 million yuan.
However, there is another reason why Savitech is vigorously developing its brand, which is to cure Amazon addiction.
On the same list as SHEIN, two brands of Savitech are very popular
With the precedent of huge sales of Youkeshu and other products, Savi Times, which owns more than 600 Amazon accounts, is also worried about the recurrence of account blocking incidents, with a large number of stores being blocked. So they try to deepen user impression through brand building, so as to increase revenue from other channels such as independent sites.
As of the first half of this year, Savi Times' stores have been streamlined to 430, and its business categories have expanded from advantageous categories such as clothing and accessories to multi-category and multi-brand matrix development such as department stores and home furnishings, sports and entertainment, and digital automobiles and motorcycles. Its brand strategy layout is in full swing.
In the "2023Q3 BrandOS Overseas Brand Social Media Influence List" recently released by OneSight, cross-border e-commerce giants such as SHEIN, Temu, AliExpress, ZAFUL, and Banggood are all on the list, and two major brands under Savi Times are also on the list, namely the underwear brand Avidlove and the home wear brand Ekouaer. The cumulative sales of these two brands in the past three years have exceeded 1.5 billion.
As it owns multiple influential brands, Savi Times also has its own methodology for creating hit products.
Avidlove focuses on sexy lingerie, which is displayed visually with sexy pictures. While emphasizing the brand word #Avidlove, it also emphasizes the self-expression of consumers. Topical tags such as #babydoll and #girlpower are also its key content. Ekouaer focuses on home clothes, and often uses videos to show the comfortable wearing experience of home clothes, mainly guiding consumers' loyalty to the brand and emphasizing the brand word #ekouaer.
Although one focuses on underwear and the other focuses on home wear, from a larger clothing classification perspective, both belong to the general underwear category, and they are working together to capture the United States, the world's largest underwear consumption market.
By continuously publishing posts with purchase links on social media platforms and setting up social media matrices such as Facebook, we can increase user stickiness and achieve the ultimate goal of selling products.
But owning multiple billion-level brands does not mean that Savi Times has successfully achieved brand transformation. Instead, after years of brand development, Savi Times found itself more dependent on Amazon.
Heavy reliance on Amazon brings many concerns to Savi era
For a long time, Savi Times' sales channels have included e-commerce platforms such as Amazon, Wish, eBay and Walmart, but Amazon has always been its main sales channel.
From 2019 to 2022, the sales revenue of Savitech on Amazon accounted for 68.33%, 70.12%, 85.55% and 88.93% of the total revenue respectively. The increase in the sales revenue from Amazon has gradually revealed the hidden worries behind Savitech.
The revenue and share of its independent station have gradually declined, from 799 million yuan in 2020 to 140 million yuan in 2022, and the share has also dropped from 15.21% to 2.98%. The revenue data of the independent station has declined exponentially, in other words, the operating effect is average, and the branding development of Savi Times is mainly based on the Amazon channel.
Although Savi Times has survived the wave of account bans by relying on its own logistics system, if individual accounts among hundreds of accounts violate the rules, the remaining accounts will be at risk. This may also be a major reason why Savi Times is streamlining its stores.
On the other hand, Anker Innovations, a 3C seller that made its fortune on Amazon , can be said to be a model of successfully getting rid of Amazon dependence. From 2017 to 2019, Anker Innovations' Amazon revenue accounted for a very high proportion of its total revenue, at 80.36%, 73.37%, and 70.25% respectively.
But now, this situation has changed as Anker Innovations continues to deploy multiple channels. Even though Amazon is still the largest source of its revenue, it only accounted for 55.95% of Anker Innovations' revenue in 2022, only about half, and its revenue share in 2021 was only 54.66%. Other income mainly comes from independent stations, Walmart, eBay, AliExpress and other channels.
For Savi Era, if it wants to completely get rid of its dependence on Amazon, continue to sail, and achieve growth, perhaps going public is just the beginning of a new challenge. Savi era Net Profit Amazon |
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