Temu Enlists UK Suppliers to Take on High Street Retailers; TikTok Shop Expands Into Spain and Ireland
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Temu Surpasses eBay with 20% Market Share in Australia
Alibaba Reshuffles Leadership in New Commerce Division
TikTok Shop Expands Into Spain and Ireland
Insta360 Mulls Hong Kong IPO Amid Delays in Mainland Listing
Temu Enlists UK Suppliers to Take on High Street Retailers
MINISO's Overseas Sales Soar 41% to Exceed $619 Million in Q1-Q3 2024
Alibaba's Trendyol Seeks $1 Billion to Accelerate Expansion
Temu Sees Slower Growth in Q3 with GMV at $13-14 Billion
Ridge Outdoor Files for Hong Kong IPO
Fonto: Temu Surpasses eBay with 20% Market Share in Australia
Temu has surpassed eBay in total market share for the first time since its Australian debut, according to new data from Fonto. In October 2024, Temu's share of online retail spending rose to 20%, while eBay's dropped to 17%, its lowest point since Fonto began tracking the data. eBay's market share has steadily declined from 43% in early 2022. Amazon remains the dominant player, capturing over 50% of the market. Temu's rise has come at the expense of smaller rivals like Kogan, Catch, and The Iconic, while Amazon maintains customer loyalty.
Alibaba Reshuffles Leadership in New Commerce Division
Alibaba is reshuffling leadership within its New Commerce Division, following the integration of its domestic and international e-commerce platforms. Wu Jia, previously head of Taobao-Tmall User Platform and Alimama, is moving to Alibaba Cloud. Zhang Kaifu, former AI head for the international division, will succeed Wu.
The New Commerce Division now consists of four segments: Taobao and Tmall, international e-commerce (including Alibaba.com, AliExpress, Lazada, Miravia, Trendyol, and Daraz), and two innovative platforms, Idle Fish and 1688. While Taobao, Tmall, and 1688 have expanded internationally this year, Idle Fish remains focused on the domestic market.
Since April, Taobao has targeted overseas growth, with plans to tap into the Chinese communities across 13 countries, including Singapore, Malaysia, Thailand, and Canada.
TikTok Shop Expands Into Spain and Ireland
TikTok is expanding its e-commerce platform into Spain and Ireland as part of its global push to broaden its online shopping presence amid slowing growth and geopolitical challenges.
ByteDance-owned TikTok has been inviting vendors to join its platform in Spain, set to launch in December, with some stores already open for business. The platform will also roll out the "yellow shopping cart" icon in December, allowing influencers to promote products in videos and live streams. TikTok is also encouraging merchants to join in Ireland, though the launch date remains unclear.
This marks TikTok Shop's first European expansion since its UK debut in 2021, following multiple delays. With global revenue growth slowing, TikTok is under pressure to diversify its income sources beyond advertising. Additionally, TikTok has recently introduced a PayLater service in Malaysia, offering customers flexible payment options for in-app purchases.
Insta360 Mulls Hong Kong IPO Amid Delays in Mainland Listing
Insta360, the Shenzhen-based maker of 360-degree cameras and virtual reality devices, is considering an IPO in Hong Kong, after plans for a mainland China listing stalled, according to sources familiar with the matter. The company, backed by investors including IDG Capital and Everest Venture Capital, is eyeing a valuation of at least ¥15 billion ($2.1 billion) in its share sale and is also exploring pre-IPO fundraising options.
Since its founding in 2015, Insta360 has steadily expanded its presence in the smart imaging sector. The company surpassed ¥1 billion ($137.62 million) in revenue in 2021 and doubled it to over ¥2 billion ($275.24 million) in 2022. By 2023, revenue nearly hit ¥4 billion ($550.48 million) , with approximately 80% of sales from international markets including Europe, the U.S., Japan, and South Korea. Today, Insta360's products are available in over 200 countries and regions.
Temu Enlists UK Suppliers to Take on High Street Retailers
Temu is ramping up its challenge to UK high street retailers by recruiting local suppliers. Previously, the platform only offered goods from Chinese suppliers, with delivery times of up to two weeks. Under its new "local" initiative, UK-based products can be delivered in one to two days, posing a fresh threat to traditional retailers.
The UK-sourced items—primarily bulky goods like furniture, tents, winter coats, and kitchen appliances—are often too costly to ship from China. To support this push, Temu has hired executives from eBay and plans to expand its UK team with a London office.
With over 12 million active users in the UK, Temu's rapid rise, fueled by aggressive social media ads and rock-bottom prices, has caught the retail industry off guard. The platform now boasts more UK users than Amazon or eBay, according to Sensor Tower data.
MINISO's Overseas Sales Soar 41% to Exceed $619 Million in Q1-Q3 2024
In late November, MINISO published its Q3 2024 financial results, reporting a 19.3% increase in quarterly revenue to $621.71 million and a 39.8% growth in overseas revenue to $248.96 million. The company's gross profit margin reached a record 44.9%, up 3.1% from last year. Adjusted net profit (Non-IFRS) stood at $94.96 million, with a net margin of 15.2%. For the first three quarters of 2024, MINISO's total revenue rose 22.8% to $1.69 billion, while overseas revenue surpassed $619.29 million, up 41%.
As of September 30, 2024, MINISO operated 7,420 stores globally, with a net increase of 859 stores in the first nine months. Overseas store and TOP TOY growth surpassed the total number of additions from the previous year. The company now operates in 112 countries and regions, with flagship stores and IP partnerships driving its overseas growth. MINISO has secured collaborations with over 150 renowned IPs, including 6 of the top 10 and 9 of the top 20 global IP licensors.
Alibaba's Trendyol Seeks $1 Billion to Accelerate Expansion
Sources say that Trendyol, Alibaba's Turkish e-commerce platform, is seeking to raise approximately $1 billion to fuel its growth. The company is reportedly in early talks with potential investors, with a formal fundraising round likely to launch as early as Q1 next year. Both Trendyol and Alibaba have declined to comment. In August 2021, Trendyol secured $1.5 billion in funding, which valued the company at $16.5 billion.
Temu Sees Slower Growth in Q3 with GMV at $13-14 Billion
Pinduoduo's latest earnings report revealed that its transaction services, including revenue from Temu, generated ¥50 billion ($6.88 billion) in the third quarter. However, the growth decelerated sharply from 234% in the previous quarter to 72%, falling short of market expectations by ¥3 billion ($412.64 million).
Temu, Pinduoduo's cross-border e-commerce platform, is also showing signs of slower growth. The platform's GMV for Q3 reached $13 to $14 billion, with a quarter-on-quarter growth of around 15%, down from 50% in the previous quarter.
Despite the slowdown, Temu is pressing ahead with its global expansion strategy and plans to lease an entire floor at Cainiao's Hong Kong eHub, aiming to establish a key export hub for its air freight operations.
Ridge Outdoor Files for Hong Kong IPO
Ridge Outdoor International Limited, based in Hangzhou, Zhejiang, filed its IPO application with the Hong Kong Stock Exchange on November 15, 2024.
As a leading manufacturer of outdoor fishing gear, Ridge provides end-to-end OEM/ODM services, including design and manufacturing of hardware, accessories, bags, and tents. The company acquired the British carp fishing brand Solar in 2017, and Solar's sales have since tripled by the 2024 fiscal year (ending June 30). Ridge's primary markets are Europe, Mainland China, and North America.
From fiscal years 2022 to 2024, Ridge's revenue was $124.96 million, $85.60 million, and $70.46 million, with gross profits of $23.95 million, $20.64 million, and $19.40 million, and net profits of $14.04 million, $10.87 million, and $8.53 million, respectively. According to Frost & Sullivan, Ridge was the largest global fishing gear manufacturer by 2023 revenue, with a 20.4% market share. The top five manufacturers held 38.2% of the market share.