Week #21: TikTok's Downloads Surge Beyond 80 Million in Early 2024 | Temu Now Operates in 73 Countries and Regions
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Shein Pledges to Invest $271M in UK and Europe ahead of Potential IPO
Alibaba's Trendyol Hits 335 Million Sales in Turkey H1 2024
DJI Shakes up E-Bike Scene with New Launch
Etekcity Rakes in $4.5 Million on TikTok in Three Months
TikTok's Downloads Surge Beyond 80 Million in Early 2024
Huakai Yibai Completes TOMTOP Acquisition
Ex-Shein Japan Head Raises Seed Funding for Kagu E-commerce
Temu Now Operates in 73 Countries and Regions
Shein Pledges to Invest $271M in UK and Europe ahead of Potential IPO
Shein announced a $271 million investment over the next five years in the UK and Europe, addressing criticism of its business model that relies on flying inexpensive clothing and accessories directly from factories in China to consumers worldwide.
The company, which is contemplating a potential listing in London, currently sources some of its apparel from Turkish factories, although approximately 5,400 suppliers, primarily located in Guangzhou, China, produce the majority of its products.
Shein disclosed plans to allocate $54.47 million for potential investments in R&D or pilot production facilities in Europe or the UK. The funds will also support initiatives aimed at helping regional brands and designers expand their reach through Shein's marketplace.
"One of the goals in our sustainability journey is to achieve a fully circular economy by 2050," said Caitrin Watson, Shein's director of sustainability. "To meaningfully reduce emissions in the fashion industry, we need to not only minimize our own waste but collectively eliminate the concept of waste altogether."
Alibaba's Trendyol Hits 335 Million Sales in Turkey H1 2024
Trendyol, the Turkish e-commerce powerhouse under Alibaba Group, reported impressive sales figures for the first half of 2024. Over 300,000 sellers on Trendyol sold a staggering 335 million products. Skincare items topped the list, followed by women's fashion, kitchenware, and food & beverages. Women accounted for 67% of the purchases, with those aged 25-35 being the most active shoppers. Major cities like Istanbul, Ankara, and Izmir saw robust sales in women's clothing and skincare products.
High early-year temperatures boosted sales of air conditioners and swimwear. Automotive accessories, tech products, and home textiles also experienced growth. The demand for gourmet and organic products persisted, driven by health-conscious consumers, with herbal teas and coffee products remaining favorites.
Shopping trends varied across Turkey. In the Marmara and Central Anatolia regions, there was a surge in cosmetics and personal care products, while clothing and footwear led sales in the Mediterranean, Aegean, Black Sea, Eastern Anatolia, and Southeastern Anatolia regions. Cities like Bursa, Kocaeli, and Aydın emerged as key shopping hubs.
DJI Shakes up E-Bike Scene with New Launch
DJI, known for its drones and cameras, wowed Eurobike 2024 attendees with the launch of its Avinox Drive System and Amflow eMTB bike. The Amflow PL, arriving this fall, features a lightweight carbon frame and adjustable rear suspension. As the e-bike market surges, projected to hit $46.04 billion by 2026, DJI's entry could disrupt current market leaders like Bosch and Brose, spurring innovation and competition.
Etekcity Rakes in $4.5 Million on TikTok in Three Months
Etekcity, under the Vesync umbrella, saw $4.48 million in sales on TikTok USA over the past three months. The Etekcity Food Nutrition Scale was a standout, making up 75.71% of total sales with 105.8K units sold, bringing in $3.3918 million. Vesync, established in Shenzhen in 2013, designs small home appliances under brands like Etekcity, Levoit, and Cosori, selling in over 100 countries, including key markets like the US, Canada, UK, and Germany.
In 2023, Vesync's revenue reached $586 million, a 19% increase from the previous year, with gross profit jumping 93% to $274 million. Amazon contributed significantly with $457 million in revenue, an 11.2% YoY growth. Vesync also operates on Walmart, Lotte, Home Depot, Wayfair, and other platforms. Statista projects the global small home appliances market to hit $254.3 billion in 2024, with a 4.6% CAGR from 2024 to 2029.
TikTok's Downloads Surge Beyond 80 Million in Early 2024
The "TikTok E-commerce Data Report for the First Half of 2024" by Shoplus shows TikTok's global monthly downloads averaged 81.73 million, a 6.6% rise from last year, hitting 86.7 million in May. Despite looming bans, TikTok thrived in the US with over 170 million monthly users, growing its market share from 15.4% in January to 20.8% in June. Southeast Asia also flourished, with Thailand leading at $3.78 billion in sales, and Indonesia, Vietnam, and the Philippines all seeing over 20% GMV growth across categories.
Huakai Yibai Completes TOMTOP Acquisition
Huakai Yibai, a major seller based in Shenzhen, has officially taken over TomTop Tech after its restructuring. This merger is set to create powerful synergies, making both companies stronger together.
In 2023, Huakai Yibai's diverse product range included about 1.04 million SKUs with an average order value (AOV) of $14.73, up 17.43% from last year. TomTop, with over 10,000 stores, offers hundreds of thousands of SKUs and an AOV above $27.53. Huakai Yibai relies on Amazon for over 70% of its revenue, while TomTop's Amazon sales are less than 50%, indicating a broader sales approach. This acquisition will help Huakai Yibai reduce its reliance on Amazon.
Both companies offer complementary product portfolios. TomTop covers sectors like consumer electronics, home goods, and automotive accessories, with brands such as GOOLSKY and ANSELF. Huakai Yibai's offerings include home and garden products, automotive accessories, industrial supplies, and health products. TomTop's expertise in brand operations will enhance Huakai Yibai's strategic capabilities.
Ex-Shein Japan Head Raises Seed Funding for Kagu E-commerce
Sam Liu, former Head of Japan at Shein, kicked off his entrepreneurial journey by founding Kagu E-commerce in Shanghai on May 20, backed by major seed investments from top Asian VCs. Specializing in cross-border e-commerce, Kagu E-commerce focuses on selling furniture and home goods, primarily targeting Japan.
The startup team includes experts from Byte and other cross-border industries. The new funding will help expand product lines, enhance the user experience, and bolster team capabilities with the vision of offering premium home products to global consumers.
Kagu E-commerce plans to extend its product range to more countries and regions next year, providing a broader selection of home goods. The company will continue to refine the shopping experience through technological advancements and improved operations, aiming to build a world-class international platform for home goods.
Temu Now Operates in 73 Countries and Regions
In the "BrandZ 2024 Top 50 Chinese Global Brands" list, jointly released by Google and Kantar, Temu made a strong debut, ranking eighth overall and second among e-commerce platforms. In less than two years since its launch, Temu has expanded its reach across Asia, Europe, North America, Latin America, Africa, and Oceania.
Similarweb reports that by the end of 2023, Temu's monthly total visits had reached 467 million, with its web and mobile traffic soaring over 700% YoY. Among websites with over 10 million monthly visits, Temu was second only to OpenAI. In June, Temu.com saw 519 million visits, with an average of 522 million visits per month over the past three months.
Additionally, Similarweb's data indicates that Temu's traffic is no longer dominated by the US. In June, the top five traffic sources for Temu were Japan (26.15%), the US (17.56%), Germany (6.62%), France (4.79%), and Poland (4.78%).