Leading sellers on the footwear racetrack platform relied on Amazon and Wish to achieve rapid growth.
Zibu Yu was founded in Hangzhou in 2011 and is currently one of the largest B2C clothing and footwear cross-border e-commerce companies in China. The company mainly sells products through third-party e-commerce platforms such as Amazon and Wish, and its products are sold to 80% of countries and regions around the world. Zibu Ju has established a rich brand matrix, including various private brands for different types of products. By the end of 2020, the company had cultivated 151 brands, 20 of which were popular brands.
In 2018-2020, Zubu's revenue increased from 1.32 billion yuan to 1.90 billion yuan, CAGR was 20.0%, net profit increased from 80.1 million yuan to 110 million yuan, CAGR was 19.3%, and the three-year net interest rates were 6.1%, 5.7%, and 6.0% respectively.
There is still room for improvement in the penetration rate of overseas e-commerce, and there is plenty of room to go overseas on the clothing and footwear circuit. The penetration rate of overseas e-commerce is far lower than that of China, and there is still a lot of room for improvement in the future. China's cross-border B2C e-commerce market is huge and expanding rapidly. The platform seller model and the self-built website model have advantages and disadvantages. Clothing and footwear are an important part of B2C e-commerce for cross-border exports from China, and the scale of GMV is growing rapidly. Needless to say, it is leading the market position among sellers on clothing and footwear cross-border export platforms. GMV ranked first in the North American market, and GMV ranked third in all overseas markets.
Design+supply+marketing is the core, driving business growth on three wheels. The design team includes a front-end fashion research team and a back-end product design team. The front and back ends cooperate to create synergies. The company has set up a product design database to make the design process fully data-driven. The company also uses a small order return model to improve feedback efficiency, reduce inventory costs, and increase the number of SKUs and the speed of new products. On the supply chain side, it goes without saying that various digital tools such as ERP, SCM, GMS, etc. are used to empower the supply chain, improve supply chain efficiency and control operating costs. At the same time, it closely cooperates with various suppliers to keep a close eye on inventory management and quality control. In terms of marketing, the company has built a diverse product matrix, incubated many best-selling brands and popular products, and cooperated with diversified marketing methods through omni-channel e-commerce operations.
Future outlook: category expansion, supply chain upgrade & independent station construction. First, it goes without saying that the current category structure is dominated by women's clothing, men's clothing, children's clothing, and shoes. In the future, more categories such as sportswear, underwear, and home improvement products will be expanded to further enrich the product portfolio. The company will continue to improve the data-driven product design process, enrich the database of patterns, fabric accessories and popular elements, introduce AI technology, conduct big data analysis of fashion trends and elements, and further optimize digital design system algorithms. Second, the company will continuously upgrade the digital supply chain to improve operational efficiency. The company will continue to optimize the supplier management system, adjust the regional layout of the supply chain, gradually shift from China to Southeast Asia, and then achieve a global layout and increase the construction of overseas supply chains. Furthermore, as the company continues to expand in size, the advantages of independent websites compared to the platform seller model will become more obvious. The company will increase investment in independent site operation, increase brand awareness, better analyze user portraits, and enrich marketing methods.
Risk warning: Changes in the operating policies of overseas e-commerce platforms such as Amazon and Wish; increased industry competition; tariff risks; macroeconomic policy risks; significant appreciation of the RMB exchange rate.