Shein Reports $2 Billion in 2023 UK Sales; Indonesia Overtakes the U.S. to Become the World Leader in TikTok Users
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Shein Reports $2 Billion in 2023 UK Sales
Alibaba's Lazada Targets $100 Billion GMV
Experts Forecast Temu to Generate $354 Million in Hungary This Year
Ziel Home's Revenue on OTTO Surges 97.11% to Reach $26.12 Million in H1 2024
CenoBots Secures Tens of Millions in Pre-A Funding
SwitchBot Dominates Japan's Online Smart Home Market
OQQ Achieves $5.19 Million in GMV During TikTok Shop Super Brand Day
Indonesia Overtakes the U.S. to Become the World Leader in TikTok Users
Hansong Advances in IPO
Temu Expands to Vietnam and Brunei
Shein Reports $2 Billion in 2023 UK Sales
Shein, the online fast-fashion retailer, reported a revenue of £1.55 billion ($2 billion) in the UK for 2023, according to a filing made public on Tuesday. This figure represents a 38% increase over the company's previous report covering a 16-month period ending in December 2022, as Shein gears up for a highly anticipated public listing in London.
The UK stands as Shein's third-largest market, following the United States and Germany, based on estimates from GlobalData. However, the company maintains a relatively modest presence in the region, with the British division expanding its workforce by just 19 employees in 2023, bringing the total to 33 by year-end. Shein’s wage expenses for the year amounted to £2.5 million ($2.73 billion), accompanied by a tax payment of £5.7 million ($6.23 billion).
Significant milestones for Shein in 2023 included the launch of pop-up shops across the UK and the establishment of a new office in Manchester, located in northwest England.
Alibaba's Lazada Targets $100 Billion GMV
Alibaba's Lazada is aiming to achieve $100 billion in GMV across Southeast Asia by 2030. To reach this goal, the platform is partnering with luxury brands like Armani and Dolce & Gabbana to reinforce its position in the market. This shift marks a new direction for e-commerce, emphasizing exclusive, high-margin products over simple price competition.
At an internal meeting in July, Lazada's CEO Dong Zheng announced that the company recorded positive EBITDA for the month, marking its first monthly profit in 12 years. To enhance the experience for both merchants and users, Lazada introduced QOD (QRIS on Delivery) in Indonesia last year, allowing users to scan a QR code for payment upon delivery if they don't have cash on hand.
Experts Forecast Temu to Generate $354 Million in Hungary This Year
Temu has quickly taken the top spot in Hungary's online retail scene. In the first quarter of 2024 alone, Temu processed about 1.5 million orders. By mid-2024, that number is expected to hit 4 million and could exceed 10 million by the end of the year. Experts predict Temu could make 130 billion forints ($354 million) from the Hungarian market this year, putting it ahead of the 13 largest Hungarian e-commerce platforms, which together are expected to make 157 billion forints ($428 million).
Data from 2023 shows Hungary's top 15 e-commerce companies recorded a total market size of 543 billion forints ($1.48 billion), with first-half 2024 revenues reaching 671 billion forints ($1.83 billion). Hungarian consumers spent a total of 140 billion forints ($382 million) on foreign e-commerce platforms from January to June, with Temu capturing a 35% market share, totaling 50 billion forints ($136 million) in sales.
Ziel Home's Revenue on OTTO Surges 97.11% to Reach $26.12 Million in H1 2024
Ziel Home is growing rapidly on OTTO. In 2022 and 2023, its revenue on OTTO was $19.49 million and $35.30 million, respectively, growing 80.99% year-on-year. The growth momentum is still strong, with revenue hitting $26.12 million in the first half of 2024, 74% of last year's total, a significant 97.11% year-over-year increase.
Revenue from OTTO now makes up 5.04% of Ziel Home's main business income, making it the company's second-largest channel after Amazon and the fastest-growing B2C platform. Over two and a half years, Ziel Home's total revenue on OTTO has reached $80.91 million.
In 2019, OTTO opened up to third-party sellers, and in 2020, it began inviting select Chinese sellers. Only 75 Chinese sellers could join in 2023, with OTTO's CEO saying there might be only about 50 invites in 2024. As of May, OTTO had 6,500 sellers, and around 300 were Chinese last year.
CenoBots Secures Tens of Millions in Pre-A Funding
CenoBots, a company specializing in commercial cleaning robots, has secured tens of millions in pre-A funding, pushing its total valuation to over a billion RMB.
CenoBots was founded by Wang Gang, a former Alibaba vice president and chief scientist of its AI lab. Originally focused on window-cleaning robots, the company shifted its focus to floor-cleaning robots. During its angel funding, it secured investments from top firms like Hillhouse and Lightspeed China Partners, with a valuation close to $100 million.
SwitchBot Dominates Japan's Online Smart Home Market
Statista reports that SwitchBot led Japan's online smart home market with a 26% share in 2023, ranking as a Best Seller in its category across Amazon's global sites. Founded in 2015 under Shenzhen-based Woan Home Technology, SwitchBot integrates research, manufacturing, and sales in smart home devices, with its headquarters in Shenzhen and branches in Hong Kong, the U.S., and Japan.
In 2020, its Curtain robot, a smart curtain controller, debuted on Kickstarter, raising $678,000—over 33 times its target—and gained the platform's endorsement. Besides curtain controls, SwitchBot has ventured into smart thermostats, switches, locks, and cleaning robots, catering to various home needs.
Japan has been a central focus for SwitchBot from the very beginning. Statista reports Japan's smart home market was valued at $7.934 billion in 2023, expected to double to $15.84 billion by 2028 with an annual growth rate of 10.67%, making it one of the largest smart home markets worldwide.
OQQ Achieves $5.19 Million in GMV During TikTok Shop Super Brand Day
From September 17 to 23, OQQ racked up $5.19 million in GMV during the TikTok Shop Super Brand Day, a growth of over 200% than before. For six days of the event, OQQ held the top sales spot across the entire platform. According to data from Tabcut, OQQ's total GMV on TikTok has reached $37.43 million, with total sales hitting 1.43 million units.
Based in Hangzhou, OQQ started its overseas journey in 2009. The brand was officially registered in 2019, and by 2021, it began to see a rise in orders, building its own factory and taking full control of its supply chain before joining TikTok in 2022. OQQ first made waves in the European and American markets through Amazon, where its snug yoga bodysuits quickly caught on, even topping the Best Sellers list on Amazon in the U.S.
Indonesia Overtakes the U.S. to Become the World Leader in TikTok Users
Statista reported that by July 2024, Indonesia has emerged as the country with the most TikTok users in the world, with nearly 157 million users and over 100 million daily active users, making up about 40% of the population. A huge 65% of those users are between 18 and 34 years old.
This figure surpasses that of the United States, which ranks second with around 120.5 million users, and Brazil in third place with about 105.3 million TikTok users. In contrast, Mexico ranks fourth with 77.3 million users, while Vietnam comes in fifth with 65.6 million users.
Tabcut's data indicates that in September 2024, TikTok Shop Indonesia achieved a GMV of $552 million, with the Muslim fashion category contributing roughly $45.4 million, 8.22% of the total GMV. The Muslim Fashion category has established itself as a major hit on TikTok Shop Indonesia, maintaining a consistent third-place ranking among all product categories for the past six months.
Hansong Advances in IPO
Hansong Tech (Nanjing) Co., Ltd. has recently made new strides in its IPO journey for the ChiNext board. On September 29, the company submitted its latest prospectus to the Shenzhen Stock Exchange. The company first submitted its IPO application in June 2023, aiming to raise 1 billion RMB ($141.21 million).
The latest figures reveal that from January to June 2024, Hansong generated over $95.88 million in revenue and over $15.82 million in net profit, up 21% and 38% from last year, respectively. The company expects a big boost in its overall performance for 2024, exceeding the average growth rate of around 3% in the Chinese audio electronics market over the last five years. From 2021 to 2023, Hansong's revenues were $143.89 million, $195.72 million, and $145.59 million, with net profits of 14.97 million, $26.83 million, and $19.20 million, respectively.
Established in 2003, Hansong specializes in audio devices, home Hi-Fi systems, and smart audio solutions, which are widely used in smart homes, education, e-sports, and automotive audio. The company has built long-term partnerships with various renowned global audio brands, including NAD, Bluesound, Snap One, Sonance, JBL, McIntosh, Sonus Faber, and B&W. A significant portion of Hansong's business comes from overseas, with foreign revenue accounting for 96.14%, 95.02%, and 98.01% from 2020 to 2022.
Temu Expands to Vietnam and Brunei
Temu has officially launched in Vietnam and Brunei, bringing its total sites in Southeast Asia to five. The Vietnam site is still being refined; currently, it only offers an English interface and supports credit card payments, without accepting local digital wallets. For logistics, it has partnered with Ninja Van and Best Express only. However, compared to the Malaysia and Philippines sites, the delivery time for Vietnam is relatively quicker, taking about 4 to 7 days, while the others can take 5 to 20 days.
Temu began its foray into the Southeast Asian market over a year ago, starting with sites in the Philippines and Malaysia before entering Thailand in July of this year. The recent expansions into Vietnam and Brunei signify a further push in the region. As of now, Temu operates in 82 countries and regions worldwide.