▶ Video account attention cross-border navigation Recently, Amazon founder Bezos sent two tweets to criticize Biden, saying that Biden’s announcement of controlling inflation by taxing the rich is misleading, and the two should not be confused. The poor group is the most harmed by inflation.
From Bezos and Biden's "head-pulling", we can also see that European and American countries are currently facing a severe inflation crisis, and rising prices and costs have also led to a decline in consumer purchasing power. According to Salesforce data, online orders in the first quarter of this year fell 12% year-on-year. Faced with challenges such as inflation and repeated epidemics, many sellers have recently fallen into the predicament of sluggish traffic and declining order volumes, and cross-border giants are also facing development bottlenecks. The myth of high growth is shattered? SHEIN's growth rate has dropped sharply! SHEIN, known as the mysterious unicorn of fast fashion, has been increasingly high-profile in the past year. It is learned that SHEIN's monthly app downloads have exceeded Amazon from February to April, and its market value has reached 100 billion US dollars. In addition, its market share in the United States exceeds 50%. According to foreign media reports recently, SHEIN's revenue reached US$16 billion in 2021, but the annual growth rate slowed to 60%, which is a sharp drop compared to the astonishing 250% growth rate in 2020. In the first half of 2021, SHEIN's expansion momentum was strong, with rapid growth, reaching a growth rate of 264%. However, this also led to a decline in driving force in the second half of the year, resulting in lower-than-expected growth, which continued into the first quarter of this year. What are the reasons for the sharp slowdown in SHEIN's growth? 1. The epidemic disrupted the supply chain In just five years, SHEIN has rapidly risen from an unknown Chinese fashion company to a global fashion giant. The reason why SHEIN can enter the US market faster than others is that it has a solid supply chain guarantee. However, the recent resurgence of the domestic epidemic has disrupted its production and logistics operations in the southern provinces. The supply chain concentrated in Shanghai is the key to SHEIN's rapid delivery and production of thousands of new products every day. However, due to the tense epidemic prevention and control, SHEIN now faces a huge risk of supply chain paralysis. 2. US legislative threats and rising costs Another advantage of SHEIN's rapid rise is that its product pricing is lower than that of its competitors. However, not long ago, the United States drafted a new customs tariff to strengthen the constraints on foreign companies. The new legislation will exempt imported goods worth less than $800 from tariffs, taxes and other fees. Once implemented, it may pose a huge threat to SHEIN's position in the US market. Relevant data shows that a part of the young consumer group may be leaving SHEIN. Although SHEIN invited popular artists as brand ambassadors during the epidemic, according to research by Similarweb, SHEIN's website traffic in the United States tripled in the first eight months of 2021, but fell to low double-digit growth by the end of 2021. Compared with a year ago, web traffic in April only increased slightly by 8%. SHEIN's growth bottleneck actually reflects the current dilemma faced by the cross-border e-commerce industry. Thanks to the epidemic and the surge in consumer demand, the cross-border industry led traditional exporters with a growth rate of 40% in 2020. However, last year, the growth rate slowed to 24.5%. Today's cross-border industry is more standardized, but also more unstable and challenging. As a result, many cross-border companies have entered a painful period of reduced profits and increased risks. However, judging from SHEIN's growth trend, data in all aspects have been steadily increasing in recent times, and it may break through the bottleneck and usher in a new round of recovery. In addition, a cross-border retailer that provides logistics services to SHEIN also recently announced its financial data for 2021. With cash dividends of nearly 400 million in two years, Shenzhen Dashang continues to strive for listing! Not long ago, the Shenzhen Stock Exchange suspended the listing review of Shenzhen Dama San Tai Shares because the issuer and the sponsor updated their financial information and took the initiative to apply for suspension of the listing review procedure. Recently, San Tai Shares issued a prospectus, launching another attack on the IPO. It is understood that Santai Co., Ltd. is a comprehensive enterprise integrating cross-border e-commerce retail and cross-border export logistics services. According to the prospectus, Santai Co., Ltd.'s revenue in 2021 was 2.266 billion yuan, and its net profit was 157 million yuan. Compared with 2020, its revenue increased, but its net profit declined to a certain extent. ▲ The picture comes from the announcement of Santai Shares However, from the perspective of Santai Co., Ltd.'s cash flow management, its net cash flow from operating activities in 2021 was 73.0873 million yuan, and 261 million yuan in 2020, which is relatively stable. In the past two years, its cash dividends have reached 380 million yuan. Overall, as a popular and well-known brand, Santai shares achieved quite impressive results in 2021. The success of Santai shares can be traced back to its business model. Santai’s main product categories include five categories, such as hobbies, furniture and life, and its operating platforms almost include mainstream cross-border platforms such as Amazon and eBay . The multi-channel and multi-brand layout strategy has shared the risks to a certain extent. ▲ The picture comes from the announcement of Santai Shares Unlike other cross-border companies that focus on the research and development of their own-brand products, Santai Co., Ltd. is more concerned with the research of cross-border retail efficiency , using digital intelligence and IT technology to build product selection and development, logistics and warehousing and other models. ▲ The picture comes from the announcement of Santai Shares 1. Product selection and development: relying on big data As a major distributor of general merchandise, Santai shares currently has 670,000 SKUs on sale, with nearly 100 subcategories . To this end, Santai shares has gradually transformed from the initial general merchandise distribution to fine merchandise distribution, adopting a product selection strategy based on big data analysis. For new product development, Santai Co., Ltd. connects to overseas third-party e-commerce platforms through technical interfaces to obtain multimodal features such as search trends and product sales, and at the same time combines relevant data from operations and supply sides for tracking and development; for already developed sub-new products, it independently develops product portraits and sales forecasting models to derive the future market layer and profit matrix of the products and make operational decisions. 2. Refined supply chain management and digital product procurement Santai Co., Ltd. has developed systems such as procurement early warning and supplier management, as well as algorithm models such as the optimal economic order quantity, and has achieved systematic management of the entire supply chain process and refined management of key process nodes. Its procurement management system connects with procurement e-commerce platforms such as 1688 through API interfaces to establish data transmission channels, and can automatically collect product information based on stocking needs. 3. Efficient inventory management and flexible logistics options The warehouse management system developed by Santai Co., Ltd. helps it to manage inventory efficiently and accurately. No manual processing is required from order download to delivery of goods, and the status of each SKU can be monitored in real time and timely feedback can be provided. In terms of logistics channels, its transportation center system is organically connected to the warehouse management system. In addition to its own logistics business modules, it also integrates global logistics cooperation information and automatically configures the best logistics solutions based on the commodity data imported from the sales end. In the current environment where the distribution model is gradually becoming outdated, the reason why Santai Co., Ltd. can develop steadily is that, like Yibai Network, it relies on high-tech research and development and a digital business model. However, San Tai shares are also facing challenges and risks such as rising logistics costs, repeated epidemics, and changes in local policies. Do you think San Tai shares can be successfully listed? Welcome to leave a message in the comment area~
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