Annual sales of 4.4 billion! Sold 25 million Amazon orders

In an era when the extensive distribution model is gradually being replaced by the boutique route and more and more cross-border merchants are embracing the trend of branding, Yibai Network, as a distribution player, is like an "outlier". It has laid out a massive SKU and account matrix but is still operating well, and its performance is rising all the way.

After being acquired by Huakai Holdings, Yibai Network has further emerged. Huakai Yibai recently disclosed its 2022 financial report. Thanks to the addition of Yibai Network, its performance has achieved a significant leap compared with the previous year.

It is learned that according to the latest financial report released by Huakai Yibai, its revenue in 2022 was 4.417 billion yuan, an increase of 112.88% over the previous year; the net profit attributable to shareholders of the listed company was about 216 million yuan, a surge of 347.39% compared with the successful turnaround in 2021. Among them, the subsidiary Yibai Network's revenue reached 4.344 billion yuan and its net profit was 288 million yuan, completing the performance bet for four consecutive years.

  ▲ The picture comes from Huakai Yibai’s announcement

At present, Huakai Yibai mainly conducts cross-border export e-commerce business through its holding subsidiary Yibai Network, and sells its products on third-party platforms such as Amazon, eBay, AliExpress, Cdiscount, and Walmart.

As a cross-border company focusing on the pan-category model, Huakai Yibai covers multiple categories including home gardening, health and beauty, 3C electronics, outdoor sports, etc. Through the development strategy of intelligent drive + digital operation, it realizes efficient operation of each link from development to sales to give full play to the advantages of pan-category business.

  ▲ The picture comes from Huakai Yibai’s announcement

But at the same time, under the theme of refined transformation, Huakai Yibai also tried to go out of the traditional boutique market and take a distinctive boutique route. After more than a year of exploration, it has initially formed four major product lines: cleaning appliances, household appliances, pet supplies, and lamps. Compared with the general product business, the boutique business has fewer SKUs and a higher sales unit price. In 2022, Huakai Yibai's boutique business has 338 SKUs on sale and a sales unit price of 327.84 yuan.

Looking back at 2021, Huakai Yibai's sales volume was only about 2 billion yuan, and its profit was even in a loss-making state. The reason why it was able to achieve a leap-forward growth within a year is mainly due to two reasons.

First, Yibai Network, a subsidiary, relies on the parallel strategy of "general products + boutiques + Yimai ecological platform" and continues to cultivate the Amazon platform with its independent research and development and efficient inventory management capabilities. As of 2022, Yibai Network has achieved sales revenue of 3.48 billion yuan on Amazon, accounting for 78.79% of total revenue. The number of Amazon stores has accumulated to 777, and the total number of orders has reached 25.0128 million.

Second, the external environment faced by the cross-border e-commerce industry in 2022 has improved significantly, including Amazon's relaxation of storage capacity restrictions, a sharp drop in shipping prices, and the industry's destocking is nearing its end. Benefiting from this, Huakai's cost pressure has also been alleviated to a certain extent, and its gross profit margin and net profit margin have improved significantly compared with 2021.

Entering 2023, Huakai Yibai's performance is still showing a good trend of stability and improvement. In the first quarter, it achieved revenue of 1.379 billion yuan, an increase of 47.44% over the same period last year; the net profit attributable to shareholders of the listed company was 76.1085 million yuan, an increase of 119.20% year-on-year.

  ▲ The picture comes from Huakai Yibai’s announcement

On the other hand, Yibai Network, according to public data, opened 777 Amazon stores during the reporting period, covering more than 100 subcategories, and launching more than 300,000 SKUs each year. Faced with such a huge product scale, how did Yibai Network stand out in the environment where the distribution model is gradually declining?

The essence of its development is nothing more than the three key words: low price, high efficiency and data-based operation .

1. Low price: high-quality and low-priced consumer services

Yibai Network's low-price strategy is not to strive for the lowest price in the industry, but to take the relatively low price of good quality and low price as its business goal. That is, to ensure the quality, timeliness and after-sales service of the product, and to take the lowest price reflected by the combination of the three as the goal, to provide consumers with the most cost-effective shopping experience.

In terms of quality, Yibai Network pioneered the industry's general product business operation improvement department, formed a professional engineering team, and conducted a full inspection of each product upon receipt and storage, and controlled the quality of the raw materials and production process of hot-selling products. In terms of timeliness, Yibai Network made data-based decisions and provided more products to consumers in the form of platform warehouses. For self-delivery orders, it ensured that the products were delivered as quickly as possible by improving warehousing and logistics efficiency.

2. Efficiency: Independently developed information system

Consumers have different needs and platform policies are unpredictable. Therefore, only efficient operations and services can respond to consumer needs and adapt to policy changes in a timely manner.

To this end, Yibai Network relies on information systems to achieve massive operations. Its self-developed Yibai Cloud information system covers all aspects from product development, procurement, warehousing and logistics, sales and customer service, completing the systematization of the entire business chain, thereby achieving efficient operation of procurement, supply and marketing of general product business.

3. Intelligent Operation: Technology Empowers Every Link

In view of the characteristics of the general product business with multiple products, multiple platforms, multiple accounts, multiple brands and multiple channels, Yibai Network uses data-driven operations to achieve sales of the general product business. From product development and procurement and stocking on the supply side to price management, advertising, logistics and delivery on the sales side, all decisions are made based on data, and the results of data analysis are used as instructions to carry out work in various links.

At present, it has established a professional data management department, which is equipped with high-end talents proficient in mathematics, statistics, computers, etc., and is specialized in data analysis for each module of the general product business, providing operational solutions for execution of each module.

In summary, what distinguishes Yibai Network from ordinary distribution sellers is that while actively exploring emerging markets and vigorously expanding the scale of SKUs, it achieves efficient and accurate distribution through data management and self-developed information systems. Therefore, it can seize opportunities in adversity and stand out among a group of distribution players.