Week #29: ByteDance Finalizes Oladance Acquisition, Valued at $70.24M | TEMU and SHEIN Shipped 900,000 Packages Daily to U.S. in July
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Henglin Home Furnishings' Global Online Sales Soars 240.89% to $236.83M in H1 2024
ByteDance Finalizes Oladance Acquisition, Valued at $70.24M
Zepp Sues Amazwear & Shenzhen KOSPET in the U.S.
Haers Reports H1 2024 Revenue of $195.68M, with 85.91% from Overseas Sales
Carote Nears Hong Kong Mainboard Listing
Hello Tech's 2024 H1 Results: Overseas Sales Hit $150.73M, 93.89% of Total
TEMU and SHEIN Shipped 900,000 Packages Daily to U.S. in July
JD Global Sales Expands to USA, Japan, Singapore, and Malaysia
Alibaba Unveils AI Sourcing Agent to Streamline Global B2B Procurement
SHEIN Rises to 4th in Germany's Apparel Market
Yealink H1 2024 Earnings: Revenue Hits $374.64M, with Net Profits up 32.13% to $191.04M
Henglin Home Furnishings' Global Online Sales Soars 240.89% to $236.83M in H1 2024
Henglin Home Furnishings announced its 2024 half-year financial results, reporting a revenue of $674.26 million in the first half, up 31.86% from last year. However, net profit for shareholders dropped by 16.17% to $30.90 million. The company's cross-border e-commerce pulled in $236.83 million, a huge jump of 240.89% from $167.44 million last year.
Founded in 1998, Henglin specializes in office chairs, sofas and massage chairs. Listed on the Shanghai Stock Exchange in November 2017, the company quickly tapped into the booming cross-border e-commerce trend by starting its international business in 2019, with multiple overseas warehouses and logistics centers established to better reach global customers.
In 2023, Henglin sold nearly 10 million office chairs and about 2 million pieces of upholstered furniture, with total revenue of over $1.12 billion, up 25.78% from the year before. Lately, the company has been building their own cross-border e-commerce brands and now owns brands like Sweet Furniture and Colamy.
Henglin's growth overseas is tied to the booming global online furniture market. Statista reported that in 2023, the global furniture e-commerce market was valued at $236 billion. Business Research Insights says this market will keep growing at an annual rate of 4.41%, expected to reach $381.6 billion by 2028.
ByteDance Finalizes Oladance Acquisition, Valued at $70.24M
ByteDance has officially completed the full acquisition of open-ear headphone brand Oladance (operated by Shenzhen Dashi Future Technology Co., Ltd.), taking 100% control of the company. Industry insiders estimate the deal is valued between $42.14 and $70.24 million, with some reports indicating the purchase price was around $50 million, though the exact figure hasn't been confirmed yet.
Oladance started in 2019 and introduced OWS (Open Wearable Stereo) technology, creating the world's first fully open-ear headphones. The brand was reportedly founded by former Bose engineers. Following the acquisition, all previous investors, such as BA Capital and Lanchi Ventures, have exited.
In recent years, ByteDance has been investing heavily in hardware, especially wearables. It previously entered the VR market by acquiring PICO. The Oladance purchase is seen as another strategic move to enhance its hardware ecosystem. Experts think this move will help ByteDance compete better by using Oladance's technology. Consumers may soon see a new smart audio products combining ByteDance's content ecosystem with Oladanc's innovations.
Zepp Sues Amazwear & Shenzhen KOSPET in the U.S.
Zepp Health has filed a lawsuit in the U.S. against Shenzhen-based companies Amazwear and Shenzhen KOSPET, accusing them of patent and trademark infringement, as well as unfair competition.
Founded in 2013 and based in Hefei, Anhui Province, Zepp Health provides cloud-based health services and makes products like Xiaomi smart bands and scales, along with its own Amazfit series and Zepp smartwatches. Amazfit has become a top-selling brand on Amazon. Listed on the New York Stock Exchange in 2018, Zepp Health was the first company from Anhui Province to go public in the U.S.
Zepp's Q2 2024 results show revenue of $40.6 million, down 56% year-over-year, with a gross margin of 40.3% compared to 22% last year. The company reported a net loss of $10.8 million for the quarter, up slightly from last year's $10 million loss. The defendants, Amazwear and KOSPET, also perform well on Amazon with their smartwatches under the brands AMAZTIM and KOSPET.
Haers Reports H1 2024 Revenue of $195.68M, with 85.91% from Overseas Sales
Haers has released its first half 2024 financial results, reporting a revenue of $195.68 million, up 48.68% from the previous year, with net profits jumping by 182.41% to $18.12 million. Most of this came from overseas sales, which accounted for 85.91% of the total at $168 million, a 54.53% increase from last year.
Haers credits its growth to a solid overseas strategy, especially its OEM business. In January, Haers announced that its SIGG brand will supply custom water bottles for athletes and volunteers at the 2024 Paris Olympics. In March, its Journey series won the prestigious German iF Design Award.
As one of the most influential manufacturers and brands in China's water bottle and thermos industry, Haers exports to over 80 countries. Over the past 20 years, Haers has expanded its product range to include everything from stainless steel and titanium thermoses to smart water bottles made from various materials like glass, aluminum, and plastic.
Carote Nears Hong Kong Mainboard Listing
Carote has cleared the approval process with the Hong Kong Stock Exchange and could soon debut on the mainboard. Founded in 2007 and based in Hangzhou, China, Carote has emerged as one of the fastest-growing kitchenware brands globally. Since launching its own brand in 2016, the company quickly gained a strong foothold in key markets like China, the U.S., Europe, Southeast Asia, and Japan.
Initially focused on OEM services for overseas brands, Carote shifted to ODM in 2013, designing and developing custom cookware for international retailers. As of March 2024, Carote operates 51 self-owned stores across 22 online platforms in 20 regions, with offerings includes over 1,800 SKUs from cookware to kitchen appliances.
According to its prospectus, Carote's revenue from 2021 to Q1 2024 was $94.82 million, $108.02 million, $222.37 million, and $70.66 million, respectively. The company's net profit for the same periods was $4.45 million, $15.31 million, $33.29 million, and $12.43 million. Revenue grew by 72.34%, and profit increased by 58.32% in Q1 2024.
Hello Tech's 2024 H1 Results: Overseas Sales Hit $150.73M, 93.89% of Total
Hello Tech has reported its 2024 half-year result. The company pulled in $160.42 million in revenue, up 24.02% from last year, with net profit skyrocketing by 242.70% to $10.23 million. Overseas sales were the big winner, bringing in $150.73 million, representing 93.89% of the total and growing by 30.10%. Growth was especially strong in the U.S., where sales jumped by 38.17%, while Japan saw a 51.13% increase.
Established in Shenzhen in July 2011, Hello Tech specializes in lithium battery energy storage and solar products. The company's leading brands are Jackery and Geneverse, with portable power stations being its core products. In 2024, portable energy storage contributed 81.62% of the total revenue, while solar panels made up 17.43%.
By June 2024, Hello Tech had 21 DTC websites up and running globally, reaching over 50 countries. With products available at over 10,000 retail locations, including Costco, the company aims to boost its brand visibility and expand its market share. Hello Tech plans to hit 100 countries in the next three years.
TEMU and SHEIN Shipped 900,000 Packages Daily to U.S. in July
Data from ShipMatrix reveals that in July alone, TEMU and SHEIN shipped around 900,000 packages per day to the U.S., largely taking advantage of the "de minimis" rule to keep prices low and attract more shoppers. But now, with U.S. lawmakers and customs cracking down on this rule, the future looks uncertain.
Nate Skiver, founder of parcel consultancy LPF Spend Management, noted that any disruptions to package volumes would significantly impact smaller and regional carriers in the U.S. Alan Amling, a professor at the University of Tennessee and a former exec at UPS, added that only TEMU and SHEIN have enough volume to seriously affect shipping companies' performance.
TEMU and SHEIN's growth hasn't just boosted demand for UPS but for other logistics companies as well. TEMU ships through FedEx, USPS, and smaller couriers, while SHEIN handles returns via UPS or USPS. Andrew Townsend from SpeedX pointed out that cross-border e-commerce is the key driver of last-mile delivery growth.
JD Global Sales Expands to USA, Japan, Singapore, and Malaysia
JD Global Sales recently expanded its operations into four new countries—USA, Japan, Singapore, and Malaysia — with the main goal of breaking even. JD is banking on traditional events like Black Friday to drive order growth. The business is planning to continue its expansion into European, North American, and Oceanian markets.
JD has been pushing its international efforts, focusing on building warehouses and logistics in Europe, Southeast Asia, and North America. With Global Sales now in play, JD's international business is divided into five parts:
Ochama: JD's new retail business in Europe, launched in January 2022, with operations in the Netherlands, Germany, Belgium, and France, providing pickup lockers and delivery options.
Global Sales (HK, Macau, Taiwan): Sells JD's own and third-party goods to Hong Kong, Macau, and Taiwan.
Global Sales (Overseas): Sells JD's own and third-party goods to overseas markets, including the U.S., Japan, Singapore, and Malaysia, with plans for more expansion into Europe, North America, and Australia.
JD International: JD's B2C import business.
International Logistics: A key focus of JD's international strategy.
Additionally, JD Global Sales announced in February 2024 that it would be expanding to 24 European countries. JD has also invested in Vietnam's B2C platform Tiki in 2017 and Southeast Asian travel unicorn Traveloka in 2020.
Alibaba Unveils AI Sourcing Agent to Streamline Global B2B Procurement
At the CoCreate 2024 summit in the U.S. on September 5, Alibaba.com unveiled an AI Sourcing Agent for global buyers. This AI-driven system integrates generative AI across the entire procurement process, simplifying workflows and enhancing the overall experience.
Thanks to the efficiency boost from AI, robust logistics fulfillment, and increased investment in overseas markets, B2B trade on Alibaba.com is surging. Just five days into the platform's peak season "September Procurement Festival," order volume shot up 69% year-over-year.
Zhang Kuo, President of Alibaba.com, also announced a collaboration with Mastercard to launch a co-branded credit card, offering better financial services for B2B transactions. Additionally, a partnership with shipping giant Maersk will offer global customers more reliable and cost-effective bulk shipping services.
SHEIN Rises to 4th in Germany's Apparel Market
GlobalData's 2028 German Apparel Market report highlights that fashion leader SHEIN has quickly climbed the ranks to become Germany's fourth-largest clothing brand, and it's expected to move up another spot by 2024.
The report also notes the continued growth of Germany's fashion market, which returned to pre-pandemic levels in 2023. Footwear and accessories sales jumped by 11.5% and 16.2%, respectively. From 2023 to 2028, the German apparel market is forecasted to grow by 14.2%, reaching €68.2 billion ($76.04 billion).
Currently, ZARA, C&A, NIKE, and SHEIN lead the market, with both SHEIN and ZARA consistently gaining more market share. GlobalData predicts that SHEIN will surpass NIKE by 2024. Although H&M remains one of the leading brands, it has seen a steady decline in its market share, which is likely to continue through 2024.
Yealink H1 2024 Earnings: Revenue Hits $374.64M, with Net Profits up 32.13% to $191.04M
Yealink has released its first-half 2024 earnings. The company reported $374.64 million in revenue, marking a 30.50% rise from last year, with net profits surging 32.13% to $191.04 million.
Yealink, founded in 2001 and headquartered in Xiamen, specializes in integrating hardware and platforms for office solutions, offering products such as desktop communication devices, conference systems, and cloud office solutions. With over 90% of its products sold overseas, Yealink announced plans to gradually shift part of its supply chain abroad in the second half of the year to expand further into global markets.
The company's robust growth is driven by steady improvements across its core product lines. In the first half of 2024, revenue from conference products jumped 51.27% to $133.45 million, while cloud office terminals grew by 29.29% to $28.09 million. Desktop communication devices continued to be the primary revenue driver, reaching $212.11 million, a 20.26% increase.