Canada Shuts Down TikTok Office Over National Security Concerns; Kwai Launches E-Commerce Platform in Brazil
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Kwai Launches E-Commerce Platform in Brazil
Canada Shuts Down TikTok Office Over National Security Concerns
Temu Ranks 4th Among Switzerland's Top 10 Online Shopping Platforms
Aukey Goes Public on Hong Kong Stock Exchange
Trendyol to Invest $2 Billion in Gulf Region Over Next 3 Years
Chinese Brands Dominate Nearly 50% of Japan's TV Market in 2024
DJI Moves Beyond Drones to Robotic Vacuums and More
Midea Posts $44.41B Revenue and $4.41B Profit for Q1-Q3 2024
Kwai Launches E-Commerce Platform in Brazil
Recently, Kwai launched its e-commerce platform Kwai Shop in Brazil, integrated with its short video network, which boasts approximately 60 million users in the country. The Kwai Shop allows users to complete their purchasing journey directly within the app, just like TikTok's social e-commerce which combines content and commerce.
Since 2019, Kuaishou has invested over $1.22 billion in Brazil and plans to deepen its e-commerce presence. Since Kwai Shop's trial run in late 2023, orders have jumped by 1,300% in 2024, with electronics, home goods, and beauty products among the top sellers. Around 70% of Brazilian small businesses are now using social platforms, including Kwai, to build their market presence.
Canada Shuts Down TikTok Office Over National Security Concerns
Canada has ordered TikTok to cease its business operations by the end of 2024, citing national security concerns related to the app's Chinese ownership. The decision follows a year-long review and mandates ByteDance, TikTok's parent company, to dismantle its Canadian operations, though access to the app will remain unaffected.
Innovation Minister François-Philippe Champagne emphasized that the move is based on security advice from national agencies and aims to mitigate risks associated with ByteDance's presence in Canada. Canadians are urged to adopt strong cybersecurity practices and be mindful of how their data is handled on foreign platforms.
In response, ByteDance criticized the order, asserting that the shutdown would harm local jobs and operations, and announced plans to challenge the decision in court. The company confirmed that TikTok will remain accessible for users in Canada. Despite restrictions, TikTok's advertising and business remain strong, with ByteDance's international revenue reportedly hitting $17 billion in the first half of the year, up 60% from last year.
Temu Ranks 4th Among Switzerland's Top 10 Online Shopping Platforms
A recent study reveals that Chinese platforms Shein, Temu, and AliExpress rank among Switzerland's top 10 most popular online shopping sites. Amazon leads the market, attracting 10.5% of regular shoppers, followed by local Galaxus at 9.0% and Germany's Zalando at 8.4%. Temu holds the fourth spot with 4.6%.
E-commerce now accounts for 17.3% of Switzerland's retail sector, with revenues increasing by 20.8% over the past three years and expected to exceed €19 billion ($20.37 billion) this year. Over half of online purchases are made via smartphones.
Aukey Goes Public on Hong Kong Stock Exchange
On November 8, Shenzhen-based top seller Aukey was officially listed on the Hong Kong Stock Exchange. In its prospectus, Aukey identifies itself as a platform specializing in furniture and home goods, marking a strategic shift from its previous focus on consumer electronics and power tools. The latter now contributes just 9.1% of revenue, down from 29.4% in 2021, while home products have surged to account for 75.9% of total sales, up from 41% in 2021.
Aukey's growth in home goods owes much to its strengthened logistics network. In 2020, the company acquired Western Post to address high shipping costs and slow delivery times for large items. Since then, Aukey has rapidly expanded its logistics capabilities, with Western Post now operating 27 warehouses globally, totaling over 5.5 million square feet. As a result, logistics expenses have fallen from $359.21 million in 2021 to $258.96 million in 2023, a reduction of over $100 million. Additionally, in the first quarter of 2024, logistics costs declined from $85.21 million to $77.41 million year-on-year.
Trendyol to Invest $2 Billion in Gulf Region Over Next 3 Years
Trendyol, Turkey's largest e-commerce platform, plans to invest $2 billion in the Gulf region over the next three years. Backed by Alibaba, Trendyol operates across all six GCC countries, with rapid growth in Saudi Arabia, its second-largest market.
At the Future Investment Initiative in Riyadh, Trendyol President Çağlayan Çetin announced the company reached $1 billion in GMV in its first year in Saudi Arabia, with a million daily active users. "We are investing heavily in infrastructure and local talent," Çetin said, noting that the company is bringing its tech, warehousing, and logistics expertise to the region. Trendyol also employs 500 people in Saudi Arabia.
The company recently partnered with Saudi Arabia's Cenomi Group to operate an online fashion and lifestyle marketplace across the Gulf. Expansion into the region is a key growth strategy for Trendyol.
Chinese Brands Dominate Nearly 50% of Japan's TV Market in 2024
In a market analysis with BCN, The Nikkei examined the shift in Japanese market share among TV brands since the introduction of flat-screen technology in the early 2000s. From January to September 2024, Chinese brands captured nearly 50% of the Japanese TV market. Hisense, now the owner of Toshiba's former TV brand REGZA, led with a 40.4% share, followed by Sony at 9.7%, China's TCL at 9.5%, and Panasonic at 9.0%. Since July, Chinese brands have consistently held more than half of the market.
As OLED and large-screen options gain popularity, Japanese consumers are placing less emphasis on screen quality and size, contributing to a decline in average flat-screen prices. Both Japanese and Chinese manufacturers are rolling out mini LED LCD TVs, with Sony and Panasonic focusing on premium models, while Chinese brands offer a balance of quality and affordability to attract Japanese buyers.
DJI Moves Beyond Drones to Robotic Vacuums and More
DJI, known for its dominance in the drone industry, is reportedly planning to enter the robotic vacuum market as part of its broader strategy to diversify and drive further growth. Sources cited by LatePost reveal the company's intention to expand beyond drones, marking a significant shift in its business approach.
In 2016, DJI founder and CEO Frank Wang predicted that the drone market would eventually slow, projecting a revenue ceiling of around $2.78 billion for the company. At that time, DJI had achieved a remarkable 60% growth in revenue, nearing $1.39 billion. By 2018, DJI had forecasted that drones would contribute 50% of its revenue by 2023, with imaging products and new business lines each accounting for 25%.
Beyond drones, DJI has ventured into various sectors since 2014, launching products such as action cameras, professional gimbals, and portable power sources. Some of these products leverage drone technology, such as visual recognition for driver assistance, while other ventures, including educational coding robots and high-end e-bikes priced at $501.22, highlight DJI's broad expansion strategy into new markets.
Midea Posts $44.41B Revenue and $4.41B Profit for Q1-Q3 2024
In the first three quarters, Midea reported $44.41 billion in revenue and $4.41 billion in net profit, up 9.57% and 14.37% year-on-year, respectively. Its Q3 revenue stood at $14.16 billion, up 8.05%, while net profit grew 14.86% to $1.52 billion. With revenue exceeding ¥100 billion RMB ($13.92 billion) per quarter, Midea is set to surpass its 2023 performance, achieving 85.73% of last year's total revenue and 94.01% of net profit in just three quarters.
Midea's September IPO on the Hong Kong Stock Exchange, the largest in three years, will boost its international growth, particularly in technology, distribution, and logistics. Its overseas online sales surged 50% in Q3, with Amazon Prime Day sales rising over 35%. Meanwhile, China's home appliance exports grew 21.8% year-on-year, with a 9.5% increase in September exports.