Foreign media pay attention to Chinese companies’ “going to sea”: world-class consumer brand “reserve” emerges
China News Service, June 9th. According to a report by Nikkei Chinese.com on the 9th, in overseas markets, consumer product brands originating from China have been emerging in the past two years. The common denominator of these emerging companies is that they are not in China, but to achieve growth with young people from Japan, the United States and Europe. Combining China’s substantial consumer goods supply chain and online sales model, a new growth model is being born.
According to reports, the Chinese style According to an internal report of the investment (VC) institution Qicheng Capital in April, some Chinese consumer goods brands that are exploring overseas markets have begun to make profits in 2020.
Qicheng Capital is a venture capital institution focusing on the consumer goods field. In its report, a company that develops clothing business and a company that develops electronic product business are listed as successful cases.
According to reports, a Chinese brand was born in 2014 whose main business is to sell Chinese clothing to European and American markets through cross-border e-commerce. Fashion for young people is 20% to 50% cheaper than competitors. The operating company is headquartered in Nanjing, Jiangsu Province, and its operating income will increase to 1 trillion yen in 2020.
Another company is Brands of small accessories such as mobile phone chargers and earphones. The operating company was established in Changsha, Hunan Province in 2011 and will be listed on the Growth Enterprise Market of the Shenzhen Stock Exchange in August 2020. More than 98% of the company’s operating income comes from outside China.
The report analyzes the background of the emergence of Chinese companies similar to the above from three stages. They are: first, the Chinese brand group that purchases goods from China’s domestic supply chain and sold through domestic e-commerce was born from 2010 to 2012; second, Amazon and other European and American e-commerce companies expanded their purchases from the Chinese supply chain from 2013 to 2018; Third, after 2019, powerful brands will be born.
The report pointed out that, first of all, With the continuous emergence of brands purchased from China’s domestic supply and sold through domestic e-commerce, the quality and price competitiveness of consumer products supplied by the “World Factory” in China have been strengthened. Then, with the help of European and American e-commerce companies to expand procurement in China’s supply chain, they have accumulated global design capabilities and sales models. After experiencing these, Chinese talents launched brands that can compete overseas and developed into powerful brands.
The report analyzes that due to the full use of China’s supply chain and the Internet, the time to build a brand is extremely short. The report believes that China is likely to grow a world-class consumer product brand, and “the reserve team of Chinese brands is constantly emerging.” In addition, furniture and baby products are also listed as potential areas.