Shein Growth Slows to 23% Amid Temu Threat; Three Cities in Guangdong Rank Among Top Five for Amazon Sellers
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Shein Growth Slows to 23% Amid Temu Threat
Dreame Opens First Physical Store in U.S.
TikTok Hits 150.5M Monthly Active Users in Europe
Trendyol Expands in Middle East with New Riyadh and Dubai Offices
Pop Mart Q3 2024 Overseas Revenue Grows 440%-450%
SmartScout: Three Cities from Guangdong Rank Among Top Five for Amazon Sellers
Ecovacs Sales Revenue in Europe Up 42% for H1 2024
Chervon Holdings Projects $100M Profit for Q1-Q3 2024, Up Over 300% YoY
Shein Growth Slows to 23% Amid Temu Threat
Online retailer Shein's revenue growth has decelerated to 23% in the first half of this year, down from 40% in the previous year, as reported by The Information on Tuesday, citing sources familiar with the matter. This slowdown occurs as the company gears up for a highly anticipated listing in London.
The decline in growth aligns with increased competition from Temu, a Chinese bargain shopping platform that has gained significant traction in the U.S. market in recent years. According to the report, Shein's profit plummeted by more than 70%, landing just below $400 million in the first half of this year, while revenue for the same period reached $18 billion.
Dreame Opens First Physical Store in U.S.
On October 19, Dreame opened its first U.S. physical store in the upscale Westfield Century City area in Beverly Hills, Los Angeles. Dreame's founder, Yu Hao, said, "Launching flagship stores in premier locations worldwide is a key strategy for Dreame's high-end branding. And our next U.S. store will be at Ontario Mills."
Dreame has been ramping up its U.S. presence lately. On September 14, it opened its first pop-up store at Arcadia Mall in L.A. On October 9, Dreame held its first product showcase in New York, featuring core products across its lines, including the X40 Ultra robot vacuum, H14 floor cleaner, Pocket hair dryer series, and Z10 Station vacuum cleaner.
During North America's 2024 Amazon Prime Day, Dreame hit $11.13 million in GMV across online marketplaces, up 102% year-on-year, with 14,000 units sold. Dreame saw record-breaking results on multiple U.S. platforms, with sales on its own site up by 760%.
TikTok Hits 150.5M Monthly Active Users in Europe
TikTok has released its latest audience and staffing figures for the EU as part of its Digital Services Act (DSA) disclosure. The platform now boasts 150.5 million monthly active users in Europe, an increase of 8 million since the last report. While user growth in the region is not rapid, averaging 1.3 million new users per month, it is steadily rising. Key markets for TikTok in the EU include Germany, France, Italy, and Spain, each with over 20 million users.
Globally, TikTok's leading markets currently are the U.S. with 170 million users, followed by Europe with 150 million, Indonesia with 130 million, Brazil with 100 million, Mexico with 77 million, and Vietnam with 70 million. Together, these regions account for approximately 70% of TikTok's global user base.
Trendyol Expands in Middle East with New Riyadh and Dubai Offices
Trendyol, the Turkish e-commerce platform owned by Alibaba Group, announced its plan to expand its operations in the Middle East, with new offices set to open in Riyadh and Dubai in the next few weeks. The company aims to hire 50 employees for these locations and establish a dedicated warehouse in Saudi Arabia. Currently, Trendyol has over 500 employees for its regional warehouses and intends to onboard more local SMEs from the Gulf region by the end of the year, adding to the 650 international brands already on its platform.
Since its launch in the Gulf, Trendyol has drawn in over 3 million customers, with peak monthly orders surpassing 1 million, 80% of which come from Saudi Arabia. The platform sees around 600,000 daily visitors, and its app has been downloaded over 13 million times in the region.
Pop Mart Q3 2024 Overseas Revenue Grows 440%-450%
On October 22, Pop Mart released its Q3 2024 financial statement, reporting a year-over-year revenue jump of 120%-125%, with growth in Hong Kong, Macau, Taiwan, and other overseas regions soaring by 440%-450%. In Q3 2023, Pop Mart generated about $224.44 million in revenue, suggesting that its Q3 2024 revenue could be around $490.97 million.
In the first half of 2024, Pop Mart's IPs that generated over 100 million yuan ($14.03 million) in revenue included MOLLY ($109.70 million), THE MONSTERS ($87.95 million), SKULLPANDA ($80.66 million), DIMOO ($53.03 million), CRYBABY ($48.96 million), Hirono ($34.37 million), Zsiga ($17.25 million), and HACIPUPU, which was close to $14.03 million.
Driven by strong overseas growth, Pop Mart's stock price surged 13.48% at opening on October 23 and later soared as high as 20.88%, bringing its market cap to over HKD 100 billion ($12.87 million). Since the beginning of 2024, Pop Mart's stock has hit new record highs, rising by almost 300%.
SmartScout: Three Cities in Guangdong Rank Among Top Five for Amazon Sellers
SmartScout, an Amazon data company, released a list of top cities for Amazon sellers by numbers, with three cities from Guangdong Province making the top five: Shenzhen (1st), Guangzhou (2nd), and Dongguan (4th).
SmartScout's SellerMap tracked Amazon seller numbers around the world, and Guangdong and Fujian showed up as major hotspots for cross-border e-commerce, with cities like Putian (3rd), Xiamen (7th), Quanzhou (11th), and Foshan (18th) also making the top 20.
Despite these stats, SmartScout's data may underestimate the actual number of Chinese sellers. Many sellers based in Shenzhen and Guangzhou register their stores through local subsidiaries or as entities in the U.S. or EU, meaning the actual number of Amazon businesses from China is likely much higher.
Ecovacs Sales Revenue in Europe Up 42% for H1 2024
In the first half of 2024, Ecovacs achieved overseas revenue of $182.36 million, up 11% from the previous year. Its high-end brand TINECO saw overseas revenue grow by 32%. In mid-2023, Ecovacs announced its new global headquarters in Singapore, officially operational as of October. By the end of 2023, Ecovacs' overseas revenue had grown 25.76% year-over-year to $914.89 million, with gross profit margins climbing by 7.16% to 51.81%.
Ecovac' mid-year report also noted a significant 42% increase in sales revenue in the European market for the first half of 2024. The W2 OMNI, their first wireless window-cleaning device, and an upgraded lawn-mowing robot tailored for overseas preferences also performed strongly, with lawnmower sales alone up 185.9% in revenue and 252.1% in volume.
Chervon Holdings Projects $100M Profit for Q1-Q3 2024, Up Over 300% YoY
Nanjing-based Chervon Holdings recently announced a strong earnings forecast, projecting a net profit of approximately $100 million for the first three quarters of 2024, a surge of over 300% from $23 million in the same period last year.
In its half-year financial statement, Chervon stated plans to expand its sales network, aiming for coverage across both high-end and mass markets to establish itself as an innovation leader in electric tools and outdoor power tools. FLEX, one of Chervon's brands, has also revealed plans to launch over 60 new products. In May, it acquired FLEX Scandinavia AB to expand into the Swedish and Scandinavian markets.