What is Club Factory? Club Factory Review

ClubFactory is a big data product selection service platform focusing on export e-commerce. It provides hot-selling items from eBay, AliExpress, Wish, and Amazon, supports drop shipping, and provides product data packages for free to help merchants quickly select products, distribute goods conveniently, and purchase with confidence.

Transformation from "2B" to "2C"

Club Factory is a cross-border e-commerce B2C platform launched by Hangzhou Jiayun Data Technology Co., Ltd. in 2016. The company has launched the cross-border e-commerce data service provider Baokuanyi, which is a third-party big data analysis platform for B-end customers of export cross-border e-commerce. By crawling data from eBay, Amazon, AliExpress, Wish and other websites, it obtains the sales volume, purchase price and selling price of non-standard commodities such as clothing and home furnishings, and also provides drop shipping services.

Due to the long payment period in the B-end market and the big data of long-tail non-standard products accumulated over the years, Club Factory transformed and entered the C-end market in 2016. The product categories of Club Factory platform include clothing, shoes, jewelry, home decoration, handbags, beauty products, gadgets and electrical appliances.

Platform data

Daily order volume exceeds 80,000 and continues to grow rapidly;

Club Factory’s average customer spending is $6-8;

2.2 million+sku;

2 million suppliers settled in;

The monthly GMV of the entire platform is hundreds of millions of yuan;

MAU is 20 million;

Customer sources: Facebook, Instagram and other social media;

India's first free delivery platform with no minimum amount limit;

Bollywood stars shoot commercials and increase advertising investment;

Marketed in 26 countries;

The number of APP downloads ranked top 5 in the local area;

The main products are Chinese non-standard products and mid- and low-end products.

Operational Model

Club Factory adopts a lighter platform model and does not stock its own products.

Pingzhan connects with small and medium-sized manufacturers and wholesalers upstream, and provides unified pricing, people-goods matching, customer service, overseas logistics and other services.

After overseas buyers place an order, the system will automatically match suppliers who can ship the goods, and can automatically filter through key information such as fabrics and styles to select the products with the highest cost-effectiveness and the most favorable prices.

Suppliers send goods to the platform warehouse through domestic logistics. The platform is responsible for quality inspection and packaging and sending them overseas. Local third-party logistics is used. The logistics time of this model will be longer, but the platform’s main feature is low-priced products, and consumers are more tolerant of logistics speed.

Focus on Southeast Asia and the Middle East markets

Club Factory did not try to conquer mainstream cross-border e-commerce markets such as Europe and the United States, but instead focused on developing emerging markets such as Southeast Asia and the Middle East.

The following figure is a comparison of Club Factory's iOS download rankings in various countries on February 11, 2018. It can be seen that Club Factory ranks highest in India, followed by Qatar, UAE, Bahrain, Oman and Kuwait:

Platform Activities

Club factory launched the platform's "Shopping Week" event in September 2018. The promotion lasted for 6 days, from September 15th to September 20th. During the event week, products were discounted and users shared their shopping experiences on social media. They could also get mobile phone cases or coupons as rewards.

Technical Strength

Club Factory independently developed a supply chain management system and an artificial intelligence-based algorithm for matching people and goods.

The logic behind this is similar to that of Toutiao: the more goods are sold, the more the system knows about people and suppliers.

When selecting products, Club Factory uses crawler big data to capture what overseas users like to buy, and then searches and analyzes the products that users are most likely to like among the massive SKUs. Suppliers are screened based on their qualifications, production capacity, and past history. In terms of matching people and goods, multi-dimensional recommendations are made based on user preferences to achieve a thousand faces for a thousand people, and accurate information matching is used to improve conversion rates.

Development History

-Club Factory was founded in 2015. Its initial flagship product was "Baokanyi", a third-party big data analysis platform for B-side customers of cross-border e-commerce export. By crawling data from websites such as eBay, Amazon, AliExpress, and Wish, it obtains the sales volume, purchase price, and selling price of non-standard products such as clothing and home furnishings.

-In August 2016, the mobile APP Club Factory was developed and efforts were made in the C-end market, dedicated to selling China's non-standard products and mid- and low-end products overseas.

Financing

In March 2015, it received millions of RMB in angel round financing from investors including ZhenFund and IDG Capital.

In November 2016, it received a round A financing of tens of millions of RMB, led by Frees Capital and followed by IDG Capital Zhen Fund.

In March 2017, it received US$20 million in Series B financing from BAI Bertelsmann Asia Investment Fund.

In February 2018, the overseas e-commerce platform Club Factory announced the completion of a US$100 million Series C financing round, with investors including IDG Capital, BAI (Bertelsmann Asia Investment Fund), Kunlun Capital, ZhenFund, Frees Capital, etc.