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As the growth of cross-border e-commerce slows down in 2022, China's cross-border industry is undergoing an iterative process from low-end supply to higher-value brand supply . Currently, more and more Chinese companies have joined the new journey of brand expansion overseas, leveraging e-commerce platforms such as Shopee to make their mark internationally. Shenzhen Duocai Industrial Group (hereinafter referred to as "Duocai") is undoubtedly one of the best companies that stands out among the many surfers going out to sea. Su Haixia, general manager of Shenzhen Duocai Technology, mentioned: "Duocai was founded in 1994 and started preparing for the brand's overseas expansion as early as 1998. The German branch established in 1999 undertook the brand operation in the entire European region. It can be said that it is a pioneer in the export of Chinese computer accessories industry ." Currently, Delux, a brand under the Colorful Group, has achieved remarkable results in the cross-border e-commerce industry . Relying on dealers to platform brand management Professor Zeng Shiqiang, a Chinese management guru, once mentioned in an interview that manufacturing is the foundation of the country: " Manufacturing is not easy, it is hard work and there are big risks, but industry is the foundation of the economy. " Since its inception, Duocai, which embraces the spirit of patriotism, has taken industrial concepts as its foundation and subsequently expanded into other businesses. "Our group's business now includes the operation of science and technology parks, real estate and investment companies, all of which are centered around industry," said Su Haixia, general manager of Shenzhen Duocai Technology. Under the real industry, there are many businesses. In the cross-border market, Duocai initially chose the model of being represented by overseas distributors . "In the early days of cross-border business, we were actually just the manufacturer who authorized dealers to sell the products," said Li Guodong, director of the Colorful Cross-border E-commerce Division. But in recent years, with the explosion of cross-border e-commerce dividends, more and more Chinese factories have chosen to transform and build their own "moat" with technology and brands , and the overseas strategy of Duocai Group has also changed. Li Guodong said: " For agents , they only need to be responsible for selling goods. Good products will continue to be sold, and bad products will be directly eliminated. They can open up the market with their cross-border experience. But for us, the brand side , this irregular and unregulated operation direction is not very conducive to product brand promotion and understanding of the market audience." Based on this, in order to obtain feedback on product upgrades and iterations and seize the initiative in brand development , Duocai Group chose to start brand management on a third-party platform with huge traffic. Up to now, except for the African market, Duocai Technology has a presence in all global markets outside Africa: among them, in the Southeast Asian market, Duocai has achieved remarkable results on Shopee, the local leading e-commerce platform. Rely on these two methods to dominate Southeast Asia NO.1 Consumers: Research to understand needs and value product experience "In terms of products, we will conduct in-depth research on our customers to guide the research and development direction of each next generation of products," said Li Guodong . Su Haixia, general manager of Shenzhen Duocai Technology, also said: " The domestic and overseas promotion directions are different , and the understanding of this product term is also different. So if it is a vertical mouse, the current market share is mainly in China, and if it is ergonomic equipment, the share is mainly overseas." This can also be seen from the direction of Duocai's product research and development. President Su once mentioned that Duocai chose ergonomics because it saw the demand for this type of product from overseas customers. "Our products have different forms for users in Asia, Europe and America, but most of them can be taken into account," Mr. Su added. In the Southeast Asian market, Duocai also conducted market research before opening the Shopee online platform. "Through some comparisons provided by our partners, such as the Philippines, Thailand, Malaysia and Vietnam where our agents are doing relatively well, we have conducted detailed calculations of the population portraits in these markets . Compared with China, the age group in Southeast Asia tends to be younger," said Fu Hongan, deputy director of Colorful Cross-border .
As for the online platform entering the Southeast Asian market, Duocai chose Shopee, which is well aware of the pain points of local consumers and has the advantage of being a home court in Southeast Asia . According to data.ai, in the second quarter of 2022, Shopee still ranked first in monthly active users/usage time of Southeast Asian shopping apps. With the help of Shopee's deep understanding of local users and the market, and through market guidance and sales data feedback, Duocai successfully created its own hit products. "From the perspective of ergonomics, there are two models that are basically our current best-sellers, one is the M618Mini , and the other is the M618C , which are two series," said Fu Hongan . "Based on the younger consumers in the Southeast Asian market, in order to meet market demand, we have made six color schemes, giving the buyer market great choice." Li Guodong pointed out that Duocai's direction is more about centered around a relatively large market group to understand their needs and solve their pain points, so as to determine the product direction for our next generation and the future . This is also Duocai's current advantage. NO.2 Operation: Refined layout and closed loop of off-site traffic "We believe that refined operations can help us better deliver our products to target consumers in need, or better help target consumers find our products," said Fu Hongan . Based on this, Duocai has adopted a refined layout operation approach in its brand operation on the Shopee platform. Taking the M618DB , a hit product created by Duocai on the Shopee Thailand site in 2021 , as an example, Fu Hongan mentioned : "At that time, our M618DB product had completed the preliminary layout and product research and development, and hoped to become a hit during the promotion period." While Shopee has on-site operational support such as advertising optimization, coupon discounts , etc., its colorful and refined operations also take into account off-site operations. "At that time, we adopted a method of online live broadcast in Thailand, and then to create a closed-loop sales loop," Fu Hongan recalled. "It happened that Shopee Thailand's 99 big promotion event happened at that time. We created a closed-loop for this product on YouTube, Facebook and the official website about half a month in advance, including coupons, large-scale promotional methods, etc. We wrote all the copywriting, and then we provided support and closed-loop management on the streaming media to prevent the traffic from running in vain ." Finally, M618DB lived up to expectations and successfully achieved a big boom during the 99 promotion. "After this successful experience, we will be more professional than other sellers in the refined operation of products," Fu added. The pace of global layout has never stopped It is learned that the annual sales growth rate of the Latin American e-commerce market is as high as 30% , and online retail accounts for 5% of the overall retail. It is one of the fastest growing and most promising e-commerce markets in the world. In an interview with Duocai, Li Guodong, director of Duocai's cross-border e-commerce division, also mentioned: Currently, whether it is Brazil, Chile, Colombia or other markets, overseas demand in the entire Latin American market is extremely hot. "In fact, we had already made arrangements for the Latin American market last year. One is Meikeduo and the other is Shopee. We have sites in Brazil, Colombia and Mexico. Judging from the current market feedback, the Brazilian site has achieved better results. " Fu said. Regarding the main platforms for Duocai’s layout in the future, Li Guodong also said: “ From our own perspective, from last year to now, the overall market trend of Shopee is better than Lazada, so our overall resources will be more inclined to Shopee . Next, Meikeduo, Amazon Brazil and Shopee Brazil will all be our main sites.”
According to data.ai, the total time spent by Brazilian buyers on the Shopee app also remains at the top of the rankings, and Shopee is still the number one shopping app in Brazil in terms of average monthly active users. It is foreseeable that in the process of Colorful's conquest in Brazil, Shopee will be able to make good use of its advantages in cost-effectiveness, localization strategy and marketing to help sellers sell their brands . However, up to now, Duocai still has some concerns about the "last mile" and warehousing issues in the Latin American market. In addition, due to the low demand for ergonomic mice in the Latin American market, Duocai's refined operations in the Brazilian market have not been completely successful. However, Fu Hongan mentioned that they have a high preference for gaming products . "The pain points, demands and directions of each market are different . In Southeast Asia, our ergonomic product line may account for 70% to 80% of the market, but in Latin America, our ergonomic mouse and gaming mouse products may each account for half," Fu added. Summarizing the successful experience of Duocai's overseas expansion, it is not difficult to find that Duocai has always taken industry as its foundation, consumer demand as its center, adhered to refined operations, and continuously developed and upgraded brand products. In addition, the support and promotion of the platform also gave Duocai a lot of room for development. In the future, when the cross-border industry moves towards a higher stage of brand overseas expansion, there will be more brave "wave breakers" in China, and the colorful overseas expansion experience will undoubtedly be a valuable asset to them. |
