Week #10: Anker Innovations Full Year 2023 Earnings: $2.42B in Revenue with Nearly $100M from Australia | President Biden Signs Bill to Ban TikTok Unless it is Sold
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Ergonomic Furniture Loctek's Net Profit Soared by 189.72%
Home Furnishing Brand Ziel Home Surged 65% in 2023 Net Profit
Shein's Online Marketplace Rolls Out its Self-Operated Model in Mexico & Europe
Temu's Half-Managed Consignment Model Lands in Australia and New Zealand
Chinese Crispy Burger Chain Bingz Secures $50M Investmment
Anker Innovations Full Year 2023 Earnings: $2.42B in Revenue with Nearly $100M from Australia
Smartphone King of Africa Transsion's Revenue Hit $8.6B in 2023
President Biden Signs Bill to Ban TikTok Unless it is Sold
Home Appliance Seller Douhe Electric Tech Secures Millions of Dollars in Financing
Top E-Commerce Seller Sailvan's Revenue on Amazon Reached $797M in 2023
Ergonomic Furniture Loctek's Net Profit Soared by 189.72%
Loctek Holdings released its fiscal report for 2023. In 2023, Loctek achieved revenue of 3.9B yuan (538.48M USD), a 21.61% YoY increase; the company's net profit was 634M yuan(87.49M USD), surging by 189.72%. Loctek's ergonomic products still dominates its revenue, contributing 66.94%, while its overseas warehouse business is on the fast track, now accounting for an increased proportion of 24.38%.
Loctek attributes its performance boost to its ever-enriching product lines, as well as the growing influence of its independent brands ('Loctek Lege' domestically and 'FlexiSpot' overseas). In terms of sales channels, although Amazon remains the primary one, raking in 1B yuan (138M USD) with a 7.78% YoY increase, DTC websites are gaining momentum at a faster pace, boasting the highest per capita spending. The annual report revealed sales through Loctak's DTC websites surged by a significant 16.72% to reach 670M yuan (92.46M USD).
Home Furnishing Brand Ziel Home Surged 65% in 2023 Net Profit
Ziel Home unveiled its annual financial report for 2023. In 2023, the company's revenue stood at 6.07B yuan (827.99M USD), up by 11.34% from the previous year, with net profits soared by 65.08% to 413M yuan(56.99M USD). Referred to as the 'online IKEA' by analysts, Ziel Home made its debut on Shenzhen's Growth Enterprise Market in June 2023 as one of the top sellers in China's home furnishing.
Officially established in 2010, Ziel Home boasts three major brands that include SONGMICS for home furnishings, VASAGLE for stylish furniture, and Feandrea for pet supplies. To date, their products have successfully entered more than 60 countries and regions, including Europe, North America, and Asia, serving over 20 million families worldwide.
Europe emerged as the primary market for Ziel Home in 2023, amounting to a revenue of 3.728B yuan (514.46M USD), a 21.6% YoY increase. Close behind were the North American and Japanese markets. December 2023 marked a significant milestone as their products made the official entry into the North American offline market through HOBBY LOBBY.
Despite stiff competition, Amazon continued to reign as the top sales platform for Ziel Home, generating 4.559B yuan (629.13M USD) with an increase of 11.6% YoY. And the German e-commerce giant OTTO emerged as the second, witnessing an impressive 81% YoY growth, generating 250M yuan (34.5M USD) in 2023.
Shein's Online Marketplace Rolls Out its Self-Operated Model in Mexico & Europe
Fast-fashion giant Shein is breaking new ground with its online marketplace, saying that "through strategic collaborations with renowned global brands and trusted third-party sellers, trend-lovers will now have access to a wider range of product categories".
Following successful trials, Shein's self-operated model will be fully accessible on the company's online marketplace in Mexico and 9 European countries (Germany, Spain, France, Italy, Sweden, Netherlands, Poland, Portugal, United Kingdom), targeting sellers with overseas warehouses and over $2M USD in annual sales.
Through this move, Shein enables sellers to dive deeper into local markets, scale up sales, and skyrocket brand visibility, especially among young shoppers abroad and future trends.
Temu's Half-Managed Consignment Model Lands in Australia and New Zealand
Temu's half-managed consignment service, launched in mid-March, has recently expanded its reach with new sites in Australia and New Zealand. Currently spanning across 9 countries (USA, Canada, UK, Australia, New Zealand, Germany, France, Italy, Spain), Temu gears up to tackle issues concerning delivery timing and packaging constraints, with targeted support and subsidies earmarked to drive the initiative.
This half consignment model allows those merchants with goods outside China to process orders and arrange for fulfilment by themselves. To be more specific:
– Merchants will be in charge of: warehouse management, delivery, and reverse logistics (returns etc.)
– The platform will provide: flexible delivery options, including order stacking
Chinese Crispy Burger Chain Bingz Secures $50M Investmment
Popular Chinese crispy burger restaurant Bingz (Chinese name: 西少爷) has secured angel round funding from American investors at a 50M USD valuation for a planned 300 new stores in the US within the next 5 years. These planned 300 stores are expected to generate $5M USD in annual revenue each and an overall revenue of $1.5B USD annually.
Bingz is proactively gearing up to achieve this goal. Currently, construction is underway for a centralized factory in San Diego, ensuring top-notch product quality and consistent supply across North America. Furthermore, Bingz plans to inaugurate 10 brand-owned stores in California by 2025, with the first expected to open in the final quarter of this year.
Anker Innovations Full Year 2023 Earnings: $2.42B in Revenue with Nearly $100M from Australia
Anker Innovations, a global leader in mobile charging and consumer electronics, has released its latest financial report for the year 2023. The report highlights a positive year for the company, with a total revenue of 17.5B yuan (2.42B USD), a 22.8% increase from the previous year.
The company is expanding its sales solutions towards its omnichannel strategy and achieved significant growth with its own online sites. Anker now boasts six major brands, including Anker, Soundcore, Eufy, Nebula, Ankerwork, and AnkerMake, that cover a wide range of product categories. In 2023, the DTC sites of these six brands increased their combined revenue by 83.87% to 1.24B yuan (171.13M USD).
Moreover, Anker Innovation's global presence is evolving, with North America's share declining below 50% while Europe and Japan witnessed intensified efforts. Particularly noteworthy is their performance in Australia, where revenues in 2023 are poised to hit nearly 100M USD.
Smartphone King of Africa Transsion's Revenue Hit $8.6B in 2023
Transsion Holdings, one of the world's top five smartphone makers based in Shenzhen, disclosed its fiscal report for the last year. The company's revenue in 2023 achieved 62.3B yuan (8.6B USD), marking a solid 33.69% surge from the previous year with the company's overall mobile phone shipments hitting about 194M units. According to IDC data, the company snagged a notable 14.0% slice of the global mobile phone market in 2023, securing the third spot globally among mobile phone giants.
Notably, Transsion dominated the African smartphone arena with a commanding market share exceeding 40%. Across South Asia, the story is no different: Pakistan, Bangladesh, and India witnessed Transsion's smartphones reigning supreme, with market shares of over 40%, over 30%, and 8.2% respectively.
Presently, Transsion's lineup boasts the popular TECNO, itel, and Infinix brands. And the company mainly target emerging markets worldwide such as Africa, South Asia, Southeast Asia, the Middle East, and Latin America.
President Biden Signs Bill to Ban TikTok Unless it is Sold
President Joe Biden signed a bill into law that would ban TikTok nationwide if it's not sold within nine months. TikTok's deadline for sale has been set for January 2025. Under the new legislation, that time period could potentially be extended to a full year.
In response, TikTok claimed it as an unconstitutional law and announced its plans to challenge the law in court. "We believe the facts and the law are clearly on our side, and we will ultimately prevail," a company spokesperson said in a statement. TikTok CEO Show Zi Chew posted a video response saying, "Rest assured, we aren't going anywhere."
With a staggering 170M US users and an estimated revenue of 16B in US during 2023, even the sale of TikTok's U.S. operations alone would fetch an exorbitant price tag that only giants like Microsoft, Meta, and Alphabet could afford, though they might face regulatory hurdles. Sources say ByteDance would rather shut down TikTok than sell it.
Home Appliance Seller Douhe Electric Tech Secures Millions of Dollars in Financing
Douhe Electric Tech secures strategic financing worth millions of dollars. The funds will be allocated to brand building, product innovation, supply chain optimization, and digital infrastructure.
Founded by former Midea team in 2014, Douhe started with the supply chain and now specializes in the development, manufacturing, and distribution of environmental and kitchen small appliances, such as dehumidifiers, heaters, and ice makers. Douhe conducts sales both online and offline globally. Besides its proprietary brands, it also manages renowned international labels such as Whirlpool and serves as an OEM for numerous global brands.
According to Shang Chao, Chairman of Douhe Electric Tech, self-branded sales currently contribute to 90% of total revenue, mainly from Amazon. Notably, their flagship product, air purifiers, achieved nearly 100M yuan(13.8M USD) in sales within its first year of launch on Amazon, ranking second in its category, with revenue reaching hundreds of millions yuan last year.
Top E-Commerce Seller Sailvan's Revenue on Amazon Reached $797M in 2023
Amazon's top seller Sailvan released their fiscal report for 2023. The company's revenue soared by 33.70% to 6.56B yuan (906.13M USD).The company sells high-quality and individuality to global consumers through third-party e-commerce platforms such as Amazon, Walmart, eBay, Wish, and vertical category self-operated websites such as SHESHOW and Retro Stage. With a diverse product lineup primarily divided into apparel and accessories, alongside miscellaneous items, the company has carved a niche for itself in global e-commerce.
The apparel and accessories segment maintained rapid growth, achieving 4.671B yuan (644.81M USD), a YoY increase of 41.49%, accounting for 71.17% of the company's total revenue. Also noteworthy is the dominance of North America in its sales landscape, contributing 89.87% to the total in 2023, followed by Europe at 7.64%. Amazon reigns supreme as the company's prime B2C channel, capturing 88.32% of the total revenue, trailed by Walmart and its proprietary websites at 4.08% and 2.77%, respectively.