Week #33: Indonesia Bans Temu, Citing Threat to Local Small Businesses | Shein Founder Holds Pre-IPO Meetings in London Amid Regulatory Hurdles
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Indonesia Bans Temu, Citing Threat to Local Small Businesses
Florasis Debuts in Europe with Paris Counter
Haier Smart Home H1 Overseas Revenue Reaches $10.04B, Over 50% of Total Income
Carote Debuts on HKEX, Closes 58% Up with HKD 4.9B Market Cap
Aukey Updates Prospectus, Advances HKEX Listing
Shein Founder Holds Pre-IPO Meetings in London Amid Regulatory Hurdles
EU High-Tech Imports Reach €478B in 2023, One-Third from China
Hisense Home's Overseas Appliance Sales Soar 36.91% to $2.10B, 37.43% of the Total
Indonesia Bans Temu, Citing Threat to Local Small Businesses
Indonesia is maintaining its ban on Temu over concerns that its operations could disrupt the country's small, and medium enterprises (SMEs), according to Communications and Informatics Minister Budi Arie Setiadi. The global marketplace, operated by PDD Holdings, the parent company of the prominent Chinese retailer Pinduoduo, has sparked vigilance among Indonesian authorities following its recent entry into Southeast Asia's largest economy.
Temu's model, which emphasizes direct sales from factories to consumers, conflicts with Indonesia's trade regulations mandating an intermediary or distributor, according to Isy Karim, the Trade Ministry's director-general of domestic trade. On Tuesday (Oct. 1), Minister Setiadi stated that the government's stance is to protect the economy and society from potential harm. "Temu will not be allowed to operate here as it poses a risk to the economic interests of Indonesian MSMEs. We will not allow it," he told iNews.
Further complicating its entry, the Ministry of Cooperatives and SMEs reported that Temu has attempted to register its business three times since September 2022. Fiki Satari, Special Staff for Creative Economy Empowerment at the Ministry of Cooperatives and SMEs, noted in August that Temu's registration for trademark rights had been denied, as a similar business name was already registered. And Temu's application became a topic after the company appeared at the 2024 E-commerce Expo held on Sep 24 and 25 in Greater Jakarta.
Florasis Debuts in Europe with Paris Counter
Florasis, a leading Chinese beauty brand, has made a strong push into international markets, even earning a spot on Kantar BrandZ's 2022 "Top 20 Global Chinese Brands."
Florasis' international journey began in July 2019 when it partnered with Shopify. In 2020, it joined TikTok, among the first Chinese brands on the platform. By 2021, Florasis was available on Amazon Japan, and later that year, its official DTC site launched with support for logistics across multiple countries, allowing it to reach over 40 regions.
In 2022, Jeffree Star, a leading U.S. beauty influencer, endorsed Florasis, driving a surge in its international popularity and sales. In 2024, Florasis took a significant step into Europe by partnering with LVMH's DFS, launching its first counter at Paris' Samaritaine. By October 6, 2024, Florasis had garnered 1.2 million followers and 6.8 million likes on its main TikTok account.
Haier Smart Home H1 Overseas Revenue Reaches $10.04B, Over 50% of Total Income
Haier Smart Home posted a strong first-half performance with revenue of $19.23 billion, up 3.03%, and a net profit of $1.48 billion, up 16.3%. The company's growth is due not only to its high-end market strategy but also to its aggressive international expansion.
In the first half of the year, Haier Smart Home achieved overseas revenue of $10.04 billion, marking a 3.7% increase. Revenue grew in South Asia, Southeast Asia, and the Middle East/Africa by 9.9%, 12.4%, and 26.8%, respectively, with overseas business now accounting for over half of the total income.
Since 2021, Haier Smart Home's international revenue has outpaced domestic sales in both volume and growth rate. By 2023, its overseas revenue reached $10.04 billion, making up almost 52% of total income. In North America, GE Appliances, which Haier acquired, is the fastest-growing U.S. home appliance brand for the second year in a row. In Japan, Haier is the leader in the major appliance sector, and in Europe, Fisher & Paykel, a Haier brand, has led growth for eight consecutive years.
Carote Debuts on HKEX, Closes 58% Up with HKD 4.9B Market Cap
Carote Co., Ltd., officially debuted on the Hong Kong Stock Exchange's main board on October 2, 2024. Closing its first trading day at HKD 9.15 ($1.18) per share—up 58.3% from the IPO price—Carote now boasts a market cap of HKD 4.9 billion ($630 million).
Established in 2007, Carote initially provided OEM services to overseas brands but shifted in 2013 to focus on ODM, creating custom cookware for global brands and retailers. In 2016, Carote launched its own line of cookware products, branded as CAROTE.
By September 14, 2024, Carote had expanded its online presence to 48 stores across 19 regions. In 2023, Carote ranked in the top five online cookware brands in major markets: fourth in China, second in the U.S., third in Western Europe, second in Southeast Asia, and third in Japan.
Financially, Carote reported revenue of $95.71 million in 2021, $108.90 million in 2022, and $224.46 million in 2023. Its revenue in Q1 2024 rose 72.2% year-over-year to $71.32 million, with revenue from its own brand jumped from $40.13 million in 2021 to $195.68 million in 2023, a CAGR of 120.7%. In Q1 2024, the revenue from its own brand grew 82.6% year-over-year to $63.81 million.
Aukey Updates Prospectus, Advances HKEX Listing
Aukey updated its IPO prospectus on October 4, moving closer to listing on HKEX. On September 29, China's Securities Regulatory Commission issued a filing notification for Aukey's overseas listing.
Established in 2010, Aukey offers high-quality furniture and home products under brands like ALLEWIE and IRONCK. In 2023, 11 of its brands surpassed 100 million RMB ($14.18 million) in GMV, placing Aukey fifth in the global B2C home market and first among Chinese exporters.
Aukey sells through platforms like Amazon, Walmart, and Wayfair in the U.S. and Europe. Frost & Sullivan data shows Aukey ranks first on Amazon USA across six product categories, including bed frames and pantries.
Financially, Aukey brought in $1.29 billion in 2021 and $1.23 billion in 2023. After returning to profit in 2022, its net profit in 2023 jumped 133.2% to $73.73 million. The company saw a 16.9% revenue increase for this year's first four months, with net profit almost doubling to $26.80 million.
Shein Founder Holds Pre-IPO Meetings in London Amid Regulatory Hurdles
Shein's reclusive founder, Sky Xu, recently held informal meetings in London with investors ahead of a potential London IPO, according to sources familiar with the matter. Xu's presence underscores Shein's intent to secure regulatory approvals from both China and the UK. Accompanied by senior finance officials, Xu's discussions centered on Shein's growth trajectory rather than IPO details, with sources noting an official listing might occur early next year if approved.
Shein, valued at $66bn during its latest funding, initiated IPO plans late last year, initially targeting New York but redirecting to London following resistance from U.S. regulators. Now headquartered in Singapore, Shein awaits Chinese regulatory approval to proceed with its overseas listing, as authorities reportedly expressed concern over the company's reduced ties to China, where it retains extensive manufacturing and operations staff, sources said.
EU High-Tech Imports Reach €478B in 2023, One-Third from China
According to EU Statistics Bureau, the EU imported high-tech goods worth 478 billion euros ($524.97 billion) in 2023, with exports totaling 461 billion euros ($506.29 billion), a slight dip from the previous year.
Plus, about a third of these high-tech imports, totaling 155 billion euros ($170.23 billion), were from China. Electronics and electronic devices made up the bulk of the imports from non-EU nations, where China is a major partner. Additionally, computers, office equipment, and pharmaceuticals each made up 15% of high-tech imports, primarily sourced from China and the United States.
Hisense Home's Overseas Appliance Sales Soar 36.91% to $2.10B, 37.43% of the Total
Hisense Home Appliances Group has released its financial statement for the first half of 2024. The company's revenues during the period reached $6.90 billion, marking a 13.27% year-on-year rise, while net profit increased by 34.82% to $243.89 million. The strong growth was particularly driven by its overseas business.
The report mentions that Hisense leveraged the visibility from international sports events to boost its sales abroad. In the first half of the year, the company's sales of major appliance outside China rose to $2.10 billion, growing 36.91% and accounting for 37.43% of total revenue. And its new European R&D team tailored products to local needs, raising air conditioner sales by 26.8%, while air conditioner sales in the ASEAN region surged by 60.28%, thanks to local demand.