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Driven by national policies and market demand, cross-border e-commerce has maintained a high growth momentum in recent years. And on this basis, it also achieved double-digit growth in 2021. Data shows that China's cross-border e-commerce exports reached 1.44 trillion yuan in 2021, an increase of 24.5%. Since the beginning of 2022, the cross-border e-commerce market has been active, demonstrating the booming popularity of this new foreign trade format. It is understood that in addition to Savi Times, which responded to questions from the Shenzhen Stock Exchange due to its suspended IPO, China's Hangzhou cross-border e-commerce company Zibuyu Group Limited (hereinafter referred to as "Zibuyu") also recently submitted a listing application to the Hong Kong Stock Exchange again. With revenue exceeding 2.3 billion, Zibuyu once again submitted an application for listing It is learned that on March 7, according to the Hong Kong Stock Exchange, the cross-border e-commerce Zibuyu Group once again submitted a listing application to the Hong Kong Stock Exchange, intending to be listed on the main board of Hong Kong, with Huatai Hong Kong and ABC International Financing as joint sponsors. Cross-border navigation , with annual sales exceeding 2 billion, Zibuyu hits the market for the second time! #Amazon##Cross-border headlines#Cross-border e-commerce video account ▲ Video account focuses on cross-border navigation
According to the prospectus, from 2019 to 2021, Zibuyu's revenue reached 1.429 billion yuan, 1.898 billion yuan, and 2.347 billion yuan, respectively, and its net profit reached 81.109 million yuan, 114 million yuan, and 201 million yuan, respectively. Among them, the revenue from apparel and footwear products accounted for 98.2%, 91.6%, and 97.5%, respectively. It is also worth noting that the debt-to-asset ratio of Zibuyu Group's assets has continued to decline in the past three years, reaching 86.4%, 73.2% and 63.4% respectively. It is not difficult to see from the above data that during the massive wave of account bans on Amazon last year, Zibuyu’s business not only did not decline, but it can even be said to have increased. It was learned that Zi Buyu had submitted an application for listing as early as June 30, 2021, but it became invalid due to the expiration of the application. ZiBuYu's second submission of an IPO application is undoubtedly a testament to its confidence in the company's development prospects. So, why does Zibuyu have such great confidence? Let's take a brief look at its development history. The development history of Zibuyu Zibuyu was founded in April 2011 and focuses on the sales of clothing and footwear products through third-party e-commerce platforms such as Amazon, Wish, and Aliexpress. In 2013, it transformed and entered the cross-border e-commerce B2C business and launched its listing plan in 2017. Since its establishment, Zibuyu has developed rapidly. The company's total sales reached 150 million yuan in 2013-2014 and exceeded 400 million yuan in 2014-2015. Its overall export volume ranks among the top three in Hangzhou's foreign trade clothing category. As of the end of 2021, Zibuyu has cultivated more than 200 brands, of which 64 are popular brands with annual sales exceeding RMB 10 million. Every year, Zibuyu is able to design and launch more than 10,000 new clothing items. Currently, there are more than 200 OEM suppliers cooperating with it. The information submitted by Zibuyu also shows that based on the GMV of clothing and footwear products sold in 2020, it ranked third among all platform sellers in China's cross-border export B2C e-commerce clothing and footwear market, with a market share of 0.4%. If measured by GMV generated in North America in 2020, Zibuyu ranks first among all platform sellers in China's cross-border export B2C e-commerce apparel and footwear market, with a market share of 0.5%. At present, Zibuyu has become one of the largest cross-border e-commerce companies in China. Although their listing structures are different, as cross-border sellers in the same clothing category, Zi Buyu and Savi Times are destined to have a "battle" in the end. So, what are the chips that Zibuyu has in this "war"? What implications do these chips have for cross-border sellers? The following will explain them one by one. Zibuyu’s “competitive chips” Data-driven, building a brand matrixZi Buyu has always believed that products are the core elements driving the company's development. Therefore, it adopted the "independent design + factory OEM" model for operation. By the end of 2020, more than 90% of its products were independently designed by the company. Due to the obvious seasonality and relatively short life cycle of clothing categories, Zibuyu has established a huge database for this purpose. As of the end of 2020, the product design database has accumulated approximately 41,796 clothing and footwear models and 51,801 fabric and auxiliary material samples. Through this design database, Zibuyu has successfully built its own brand matrix. Dellytop, a women's clothing brand launched in 2015, ranked in the top two of Amazon's best-selling products in the same category in 2020; Runcati, a casual men's clothing brand launched in 2017, ranked in the top three of Amazon's best-selling products in the same category as of December 2021... Data from the prospectus shows that as of the end of 2021, the company has cultivated 64 popular brands with annual sales exceeding RMB 10 million. Deeply cultivate channels and walk on two legs Since 2014, Zibuyu has focused on strengthening cooperation with third-party e-commerce platforms, including Amazon, Wish, Aliexpress, etc. These mature third-party e-commerce platforms enable Zibuyu to quickly penetrate overseas markets at a lower cost and increase its brand exposure. In addition, with the rapid increase in the number of cross-border e-commerce sellers, the competition for traffic from third-party e-commerce platforms has become increasingly fierce. Therefore, in addition to cooperating with third-party e-commerce platforms, Zibuyu is also focusing on establishing a large independent self-operated website, combining its own digital supply chain advantages to adjust marketing strategies in a timely manner according to market conditions. From this, it is not difficult to see that Zi Buyu has been moving forward on the important road of deepening its channels, focusing on building a two-legged model of "third-party platform + self-operated platform". The revelation of “competitive chips” to sellers 1. Build a brand database unique to sellers Thanks to the massive amount of data accumulated, Zi Buyu has been able to make product decisions that are more in line with future trends and products that are more in line with consumer preferences, enabling the company to grow rapidly. A tree that can be embraced by two people grows from a tiny seed; a nine-story tower starts from a pile of earth. Although it takes a long time to build a database as large as that of Zibuyu and SHEIN, it is undoubtedly a wise move for cross-border sellers who want to expand their brands overseas to build a database unique to their own brands. 2. Reduce the “dependence” on third-party e-commerce platforms With the rapid increase in the number of players in the cross-border e-commerce industry, sellers on third-party e-commerce platforms are facing the dilemma of "internal and external troubles" (including intensified competition, low-price spiral, tightening of platform policies, etc.). Reducing the "dependence" on third-party e-commerce platforms has become an issue that cross-border sellers urgently need to pay attention to. According to the data disclosed by Zibuyu, Zibuyu's revenue mainly comes from sales channels on third-party e-commerce platforms such as Amazon and Wish. For example, from 2018 to 2020, more than 80% of Zibuyu's revenue came from third-party e-commerce sales platforms, while revenue from operating websites contributed less than 20%. Although Zibuyu's development is balanced and its profit growth is stable, it is clear that the company is "over-reliant" on third-party e-commerce platforms. One of the uses of the funds raised from Zibuyu's IPO is to establish a large-scale independent self-operated website in order to form a high barrier to distance itself from latecomers and improve the company's control over channels. The two sessions were held a few days ago, and more support policies conducive to the cross-border e-commerce industry were proposed, indicating that the favorable wind for the cross-border e-commerce industry has not stopped. It is a golden age for Chinese brands to go global. I wish all cross-border sellers can seize the new trend of digital trade and find their own way to expand their brands overseas.
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