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The COVID-19 pandemic is still spreading, especially overseas, and the epidemic situation is becoming increasingly severe. Under such circumstances, people are working from home, and the traditional offline retail industry has been greatly impacted, while the cross-border e-commerce industry has gained an opportunity for rapid development. Leckey is one of the cross-border e-commerce companies that has taken advantage of this favorable situation and has soared .
In August last year, due to an unpleasant online survey, the chairman of Lejia Holdings and the fund manager of Ping An Asset Management started a "mutual" debate, which caused an uproar on the Internet. Lejia became famous for a while. I believe that many people paid attention to Lejia as a company after this debate. Just in recent days, Lechuang released its 2020 performance forecast, with impressive results . According to the performance forecast, Lechuang Co., Ltd. achieved operating income of 1.936 billion yuan in 2020, a year-on-year increase of 97.96% , of which the fourth quarter achieved operating income of 717 million yuan , a year-on-year increase of 162% . During the same period, the company achieved attributable net profit of 210 million to 230 million yuan , an increase of 233.44% to 265.19% over the same period last year . So, how did Lechuang achieve such a huge increase in performance compared to last year? Let’s first get to know the company Lechuang. Loctek Ergonomics Technology Co., Ltd. Luchuang Co., Ltd., whose full name is Luchuang Ergonomic Technology Co., Ltd. (hereinafter referred to as Luchuang), was formerly Ningbo Regent Times Electronic Cable Co., Ltd., which was established in March 2002. Its main business focuses on smart office, healthy office and smart home products with linear drive as the core . Lechuang's business scope is very broad. Its product categories include the research and development, manufacturing, and sales of lifting tables, lifting platforms, various new office systems and equipment, functional furniture and components, linear drive equipment; fitness equipment, new flat-panel TV stands, flat-panel TV structural modules, and monitor stands; various new load-bearing devices, precision molds and precision structural parts research and development, design, manufacturing, processing, retail and wholesale, etc. ▲ The picture comes from Lege official website
In fact, the products sold by Loctek are not uncommon on e-commerce platforms, but Loctek officials said that they are not worried about the large number of competing products on e-commerce platforms: "Loctek focuses on ergonomics and healthy office fields. We have always invested more resources in R&D and marketing to occupy both ends of the smile curve, and use strong R&D capabilities and product driving force to expand the market share of Loctek products and Loctek brand, and maintain the leading position in the smart and healthy office industry. In addition, the influence of the Loctek brand, product quality and after-sales service make the company's products more competitive." These points mentioned by Lechuang’s official response to the numerous competitors are also one of the reasons why Lechuang’s performance has achieved such rapid growth. Next, we can continue to understand some of the “secrets” of Lechuang’s rapid growth in performance . Reasons for the rapid growth of Lechuang's performance Combined with the 2020 annual performance forecast released by Lechuang on January 26, we can draw several conclusions about the rapid growth of Lechuang's performance: 1. The market share of linear drive products continues to increase With the continuous upgrading of healthy office and life concepts, the market of linear drive ergonomic products has been maturing, especially in developed countries overseas where linear drive ergonomic products have become more popular. Loctek has always been committed to the development and application of cutting-edge drive system technologies with linear drive technology as its core, providing solutions for healthy office, smart home, medical care, engineering projects and other related fields. 2. Continuous improvement of independent brand business In 2020, cross-border e-commerce sales reached 1.03 billion yuan, accounting for 53.3% of sales, a year-on-year increase of 197%; independent site sales accounted for 27% of cross-border e-commerce sales. In the retail market of ergonomic lift tables, Loctek has extensive and long-term data analysis accumulation and deep user insights based on its own brand sales on the Internet, and has industry-leading and innovative product designs ; Loctek uses OEM for 2B customers in the commercial market for brand promotion, and the company's own brand strategy in the home retail market has been understood and respected by customers in the commercial market; high-quality 2B customers continue to enter, and orders for ergonomic products continue to increase. 3. The concept of healthy consumption continues to deepen, and the penetration rate of healthy consumer products continues to rise As the epidemic has become normalized and the work-from-home boom continues, the concept of healthy consumption has continued to gain popularity, and people are paying more and more attention to the consumption of health-related products. This has contributed to the continued increase in the penetration rate of Lechuang's healthy consumer products, making Lechuang a leader in the smart and healthy office industry. ▲ The picture comes from Lege official website 4. Leading products all have complete independent intellectual property rights As a national high-tech enterprise, Lechuang's products have obtained ISO9001 quality management system and ISO14000 environmental management system certifications and passed UL, GS, BIFMA X5.5, EN957, CE, CB, IEC, IECEE, FCC, PSE, CUL and other certifications. As of the first half of 2020, the company has a total of 878 authorized patent technologies, including 55 invention patents (including 45 Chinese inventions, 6 US inventions, 3 Japanese invention patents, and 1 Australian invention patent). 5. According to Lechuang's performance report, the non-recurring gains and losses in the reporting period mainly include : gains from changes in fair value of foreign exchange forwards, government grants, cash management gains, and donation expenses. It is estimated that the impact of non-recurring gains and losses on the company's net profit in 2020 will be approximately RMB 27 million; the impact of non-recurring gains and losses in the same period last year on the net profit in 2019 was RMB 14.0165 million. The above are some of the reasons why Lechuang’s performance grew so rapidly that the editor learned based on the performance forecast and investigation released by Lechuang. So, what can sellers learn from the aforementioned Levo sales? Strong product development capabilities are a must The reason why Lechuang is not afraid of similar competing products is because it is confident in its strong product development capabilities. With product development capabilities, you can have leading products, and with leading products, you can achieve differentiation from others and occupy a leading position in the market. Building your own brand based on user insights is the key No matter which market you are in, the winners are usually those who know how to conduct market research and build brands. Only products that customers need are "good products" on the market. Only with a brand can you build brand loyalty and win user recognition. Do sellers have any other knowledge about Levo? Welcome to communicate in the comment area~ Statement: When reprinting this article, the title and original text must not be modified, and the source and original link must be retained. |
