Week #11: Temu Aims to Triple Sales to $60B in 2024｜AliExpress and Cainiao Global Roll out "Special Line for Oversized Parcels" to Major Markets
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Chinese E-Commerce Platforms are Dominating the Market in Vietnam
Shenzhen-Based Top Seller Huakai Yibai Witnesses 53.08% YoY Profit Surge in 2023
AliExpress and Cainiao Global Roll out "Special Line for Oversized Parcels" to Major Markets
Temu Aims to Triple Sales to $60B in 2024
ALIBABA & TEMU's Logistics Partner TWTH Secures Millions of Dollars Investment
TikTok Shop is Poised for Launch in Mexico and Four European Countries
Home Appliance Giant Midea Group Once Again Files for Hong Kong Listing
Home Robotics Brand Roborock's Net Profit Jumped by 95% to $55M in Q1 2024
Chinese E-Commerce Platforms are Dominating the Market in Vietnam
Vietnam's TOP five e-commerce platforms Shopee, Lazada (Alibaba Group), TikTok Shop (ByteDance), Tiki, and Sendo achieved a total sales of $2.8B USD in the first quarter of 2024, up 78.69% YoY, according to a local analyst firm Metric. Meanwhile, 95% online consumers in Vietnam turned to live streaming for shopping during this period, with 78% expressed sheer delight and relaxation while indulging in shopping lives on platforms like TikTok Shop and Shopee.
Vietnam, fueled by its burgeoning population, thriving digital community, and robust economy, is emergying as a formidable player in global e-commerce arena. Projections indicate that by 2024, the market could reach an expressive $14.7B USD, with potential to exceed $23.7B USD by 2029. The Vietnamese e-commerce market is teeming with promise, offering boundless opportunities for future growth, alongside the challenges in infrastructure and logistics networks.
Shenzhen-Based Top Seller Huakai Yibai Witnesses 53.08% YoY Profit Surge in 2023
In 2023, Huakai Yibai recorded a 47.56% YoY surge in its total revenue to reach 910M USD, with its net profit soared to roughly 46.02M USD, up 53.08% from the previous year. The company attributes it to profound shifts and favorable trends shaping the industry, which include the rising penetration of e-commerce, strengthened support from China's policies on cross-border e-commerce, rapid industrial transformation and digitalization.
The company reaffirms its commitment to the export e-commerce sector. With a target of achieving 1.18B USD in annual revenue from this sector by 2024, the company has strategically acquired Tomtop Tech and Haitu Tech to bolster its presence in global e-commerce, seeking synergies in operations and product offerings.
Looking ahead, Huakai Yibai identifies Latin America, particularly Mexico, as a key market for future growth. As per PCMI, Latin America's e-commerce trade volume is projected to nearly double to 923B USD by 2026, presenting significant opportunities for the company.
AliExpress and Cainiao Global Roll out "Special Line for Oversized Parcels" to Major Markets
Alibaba's logistics arm Cainiao, in collaboration with AliExpress, launched the "Special Line for Oversized Parcels" for CHOICE merchants to key markets in Europe and America, including the US, Spain, and France, following its success in South Korea. Currently, this line is applicable for shipments of oversized goods weighing up to 67kg. For those weighing between 2-5kg, the managed logistics routes now span 24 countries.
Since its launch, the daily average volume of oversized cross-border parcels in the US market soared by 10 times compared to March of the previous year. Prior to this development, merchants dealing with oversized or heavy items had to turn to third-party service providers for delivery, which was time-consuming, labor-intensive, and costly. The official oversized logistics routes streamline the fulfillment and bolster the after-sales services with guarantee. Plus, consumers can track logistics updates instantly within the AliExpress app, promising an elevated shopping experience likely to drive more conversions and repeat purchases.
Temu Aims to Triple Sales to $60B in 2024
Temu, TikTok Shop, Alibaba's international arm, and Shein have laid out ambitious targets for their 2024 sales, aiming for growth rates of 233%, 150%, 125%, and 40% respectively. Temu has set a 60B USD sales goal for this year, more than triple the roughly 18B USD it reached in 2023 and the most ambitious sales goal among its Chinese counterparts.
TikTok Shop, following its 20B USD transactions milestone last year, is pushing for a 150% increase, eyeing 50B USD in sales in 2024.
Alibaba's overseas division, home to AliExpress and Lazada, targets 85B to 90B USD in sales, promising a growth rate of 125%.
Shein has outpaced Inditex Group, the parent company of Zara, in revenue last year by making 45B USD and is chasing 40% growth to 63B USD in 2024.
ALIBABA & TEMU's Logistics Partner TWTH Secures Millions of Dollars Investment
Guangzhou-based TWTH International Logistics Co.,Ltd. completed a Series B financing round amounting to millions of dollars. This investment will be dedicated to further enhancing the company's digital delivery platform for global supply chain and upgrading its customer service for large-items abroad.
Founded in 2008, TWTH is committed to minimizing export costs of logistics from China to US. The company's services include Sino-US ocean freight LCL Door-to-Door service, air freight Door-to-Door service, ocean freight FCL Door-to-Door service, international express service, CNRAM and other international freight services. With six overseas warehouses in five US cities and pickup centers across the country, TWTH has become a full-chain logistics service provider for multiple cross-border e-commerce platforms such as Alibaba and Temu.
To streamline customs clearance and last-mile delivery, the company has obtained US customs clearance license, allowing for clearance before arrival and immediate delivery upon reaching port. According to Xie Shengwei, the Chairman of TWTH, their air freight typically takes 5-10 days, with the fastest delivery possible within 3 days; sea freight, on the other hand, can take up to 12 days, but once it reaches a US port, last-mile delivery can be achieved within the same day or the next.
TikTok Shop is Poised for Launch in Mexico and Four European Countries
The year 2023 saw TikTok Shop's remarkable performance across global markets. During last year, TikTok Shop's proprietary stores in Indonesia, Thailand, the Philippines, Vietnam, Malaysia, the US, and the UK amassed 13.8B USD in GMV, with $11.86B USD from Southeast Asia and $1.95B USD from the UK and the US.
TikTok is gearing up to introduce TikTok Shop services in Spain, Italy, Germany, France, and Mexico, marking another significant expansion in global e-commerce landscape. TikTok's latest figures reveal a user base of 142M in the EU, a notable increase from 135.9M reported in October the previous year. Among EU countries, Germany, France, and Italy emerge as the key markets, each boasting over 20M users. Also noteworthy is TikTok's massive user base of 170M in the US, with the European and American markets constituting roughly one third of its total user count.
Home Appliance Giant Midea Group Once Again Files for Hong Kong Listing
Midea Group, China's biggest home appliances manufacturer, has once again filed its prospectus for a listing on the Hong Kong stock market, offering updated financial data up to the end of 2023. The prospectus reveals that the company has surpassed the 51.29B USD milestone in revenue, with a net profit of 4.67B USD, reflecting growth rates of approximately 8% and 13% respectively.
Positioned as a global frontrunner in technology-driven smart home appliances, Midea Group's overseas revenue exceeded 20.79B USD in 2023, with business spanning across more than 200 countries and regions. Bolstered by 17 R&D centers and 21 major production bases worldwide, Midea Group aims to surpass 40B USD in overseas sales revenue by 2025, securing a 10% global market share and striving for leadership in Southeast Asia while targeting a top-three position in North America.
Home Robotics Brand Roborock's Net Profit Jumped by 95% to $55M in Q1 2024
Roborock unveiled its financial report for the first quarter of 2024. In Q1 2024, the company's revenue surged by 58.69% to 260M USD, with its net profit hit roughly 55M USD, up 95.23% from the previous year. As a global leader in ultra-intelligent home robotics, the company is committed to innovation in researching, developing, and producing home cleaning devices, particularly robotic, cordless, and wet/dry vacuum cleaners.
Previously, at the end of March, Roborock disclosed the annual report for 2023, boasting an annual revenue of 1.2B USD—a solid 30.55% increase YoY—with a net profit of 280M USD, up by 73.32%. Primarily focusing on key markets in the US, Europe, and the Asia-Pacific region, the company has established a global distribution network with offices strategically located in the US, Japan, the Netherlands, Poland, Germany, and South Korea.
Roborock is now making its presence online, leveraging platforms like Amazon, Home Depot, Target, Bestbuy, and Walmart to amplify its product reach, enhance market penetration, and elevate customer service standards.