The giant liquidates! A 3 billion seller announces its withdrawal from cross-border e-commerce

In recent years, the transformation of factories into cross-border e-commerce has been a hot topic. With the intensified competition and the temptation of the vast overseas market, a number of OEM factories have begun to enter the cross-border e-commerce track. However, this road is not easy to follow. Many factories either fail to make it or suffer heavy losses, and some even lose their entire fortunes. In this case, Aiyi Cross-border Home Furnishing is a very successful case.

But recently, this giant, which once strived to achieve annual sales of 3 billion yuan, suddenly announced its withdrawal from the cross-border e-commerce field , which aroused widespread attention in the industry.

*Source: Seller Group - Aiyi Cross-border Trader Lao Ge (Ge Xuguang)’s circle of friends

According to a statement released by Aiyi Cross-border operator Lao Ge (Ge Xuguang) on ​​WeChat Moments, Aiyi Cross-border has decided to completely withdraw from the cross-border e-commerce field and abandon all stores and brands around the world. Even more surprising is that Lao Ge himself also announced that he would leave the industry where he had worked for many years and would no longer engage in any profession related to cross-border e-commerce.

It is understood that although Aiyi Home Furnishing is a newcomer in the cross-border e-commerce industry, it is a veteran in the OEM industry, having been established for 16 years since 2007. Since its establishment in 2018, Aiyi Cross-border has quickly emerged in the cross-border e-commerce field with its high-quality products and unique marketing strategies.

Aiyi Cross-border submitted its first report in 2019, and the results were unexpected. With a team of 5 people and only 2 products, it generated 200 million yuan in operating income in one year. In the following years, it soared all the way, with sales reaching 3.2 billion yuan in 2023.

In 2022, Aiyi launched its own mattress brand MOLBLLY. Although it is a new brand, it has performed very well. The brand's full-channel revenue reached 1.37 billion yuan throughout the year, and in the first quarter of 2023, it increased by more than 70% year-on-year. In the TOP10 of Amazon's mattress category BS list, MOLBLLY occupies two seats, and one of its 10-inch memory foam mattresses has reached the fourth place, becoming a leader in the industry.

However, just when everyone was expecting it to continue to create brilliance, news of its withdrawal came.

As soon as the news came out, sellers started to discuss it on major social media platforms. Some lamented the cruelty of market competition, some expressed regret for Lao Ge's departure, and some were full of expectations for the future of Ai Yi Cross-border.

"3 billion? Disband?"

“It’s scary. I’m just starting out this year.”

"When a whale falls, everything comes to life, and opportunities come for other whales in the group."

* On May 27, Amazon Global Selling officially shared Molblly as a typical case, mentioning that Molblly's annual omni-channel revenue was 1.37 billion yuan, and it was once ranked second in the Amazon mattress category.

Regarding this, an industry insider analyzed that there may be many reasons behind Aiyi Cross-border's withdrawal.

On the one hand, with the intensification of market competition, Aiyi Cross-border may have felt strong pressure from other brands or platforms, resulting in a gradual reduction in its market share.

On the other hand, factors such as adjustments to business strategies, mistakes in product positioning, or difficulties in market expansion may have had a significant negative impact on its performance. The departure of the company's core figure, Lao Ge, has exacerbated the instability within the company, forcing Aiyi Cross-border to make this difficult decision under multiple pressures.

In recent years, the domestic mattress market in the United States has also experienced considerable turbulence. Due to continued inflation and rising labor costs, some star mattress brands such as Purple and Casper have suffered losses one after another, and old companies such as Serta Simmons are also facing the dilemma of bankruptcy and restructuring. This has caused the attitude of domestic mattress companies in the United States to gradually change from "attention" to "hostility" towards emerging overseas brands.

For large furniture products sold on platforms such as Amazon, due to their high investment and high risk, one can lose all the money if one is not careful. As a well-known brand under Aiyi Cross-border, Molblly plays an important role in the field of cross-border e-commerce. However, facing the "hostility" of local American companies and the strict supervision of platforms such as Amazon, Molblly is undoubtedly facing greater competitive pressure.

In general, the withdrawal of Aiyi Cross-border is undoubtedly a heavy blow to the entire cross-border e-commerce industry. But at the same time, it also sounded a wake-up call for us. In today's increasingly competitive market, companies need to always maintain keen insight, constantly review and adjust their strategies and directions to adapt to market changes. In addition, internal management and team building are equally important. Only by ensuring the steady development of these two aspects can companies remain invincible in the fierce competition.