As an evergreen category, consumer electronics products appear more frequently in buyers' shopping carts, and sales continue to rise. Some sellers who started to do 3C categories early made a lot of money in the heyday of dividends.

However, with the growing maturity of the consumer electronics industry , buyers ' requirements for the quality and performance of consumer electronics products have increased . Quality, branding, and high-tech content have become the development trends. The competition in the industry has become more and more fierce, but there are still some Outstanding.

Lvlian Technology recorded 1.8 billion yuan in half a year

Lvlian Technology is located in Shenzhen, the main gathering place for cross-border sellers. The products initially sold were mainly data cables, and in the following years, it gradually expanded to multiple categories including transmission, charging, audio and video. In June this year, Lvlian Technology also submitted a prospectus to the Shenzhen Stock Exchange, which attracted the attention of many people in the industry.

In the recently updated prospectus, Lvlian Technology disclosed the overall performance in the first half of 2022. In the first half of this year, Lvlian Technology’s half-year revenue was 1.803 billion yuan, with an average annual compound growth rate of nearly 30% in the first three years, and a net profit of 130 million yuan.

It is not difficult to find that its performance growth is inseparable from the increase in sales of its five major products and overseas platforms. Several major products rank ahead in the list of mainstream platforms and are well-known overseas. Benefiting from this, the company's total overseas revenue in the first half of 2022 was 840 million yuan, and online revenue accounted for more than 84% of 706 million yuan.

The main third-party platforms for its overseas sales are Amazon, AliExpress, Shopee, Lazada, etc. Under the background that more companies are gradually transforming from "manufacturing overseas" to "branding overseas", Greenlink Technology's own brand "UGREEN" has successively entered Amazon's multi-country sites, and its main products have continued to be selected as the best-selling products on the Amazon platform.

At present, the main overseas online sales platform of Lvlian Technology is Amazon. The main sales sites include sites in Europe and North America . The specific sales amount of each platform has increased from January to June this year. Its main business income is as high as 580 million yuan in sales on Amazon, accounting for 33% of online platform revenue. The average sales on AliExpress, Lazada, Shopee exceed 37 million yuan.

As far as the German site and the US site are concerned, the product share and ranking also increased. As of December 31, 2021, its audio cable products, docking station products, and mobile phone charger products accounted for 6, 6, and 5 of the top 50 best-selling products on the Amazon Germany site, with the highest ranking. between the second and seventh.

On the Amazon site in the United States, its card reader products and hard disk box products account for 5 and 4 of the top 50 best-selling products respectively, with the highest ranking between the fifth and the eighth.

Combined with relevant data, in the first half of this year, transmission products accounted for the largest proportion of the sales of Lvlian Technology, accounting for 35.47% of the main business income, and the half-year sales amounted to 638 million yuan. Charging, audio and video products ranked second and third, with 433 million yuan and 429 million yuan respectively, accounting for 24.04% and 23.85% of the main business income. Mobile peripheral products were 189 million yuan, accounting for 10.52%. Storage products accounted for the smallest proportion, at 4.73%, with a half-year sales of 85.11 million yuan.

After opening the relevant platforms it sells, you will find that the overall evaluation of its products is good, and the performance, appearance and use of the products are the focus of praise. The overseas market ranking and brand influence of Lvlian Technology's products have contributed to the core competitiveness of Lvlian Technology. On this basis, boost the company's sales revenue gradually increased. According to the current growth rate, there will be new breakthroughs in many data of Lvlian Technology this year. However, the consumer electronics industry where Lvlian Technology is located has gathered many powerful sellers.

3C categories continue to rise, and powerful sellers gather

In recent years, the innovation speed of global consumer electronics products has accelerated, and the penetration rate has also continued to increase. The consumer electronics industry has developed rapidly and formed a huge industrial scale. In overseas markets, the market for high-end consumer electronics products is mainly concentrated in developed countries and regions such as Europe and the United States. Emerging markets such as Southeast Asia and Africa are also close behind.

According to relevant statistics, the market size of the global consumer electronics industry reached USD 931.5 billion in 2014. It has grown steadily since 2015. Last year, the market size of the industry reached 1.1 trillion US dollars. Based on this growth rate, it is estimated that it will grow to 1.2 trillion US dollars in 2027. The market continues to release dividends.

However, among the 3C category sellers in the industry, Lvlian Technology has many strong competitors. For example, Anke Innovation, the head seller of cross-border e-commerce, as well as the old-fashioned Haineng Industry, Pinsheng Electronics, Belkin, etc., mainly involve products such as chargers, mobile power supplies, headphones, wireless audio, etc., and the products of several companies. Both enjoy a high reputation in overseas markets.

Comparing the data of several companies in the first half of this year, Anker Innovation's leading edge is still prominent, and it occupies a relatively stable market share on platforms such as Amazon. From January to June 2022, Anker Innovation's revenue was 5.887 billion yuan, and its net profit was 576 million yuan. Another veteran company, Haineng Industrial, had a revenue of 1.22 billion yuan and a net profit of 187 million yuan . Several of them had outstanding performance.

In addition to sales capabilities, R&D capabilities are also the main competition point in the current 3C category industry. In the first half of this year, among several companies, Anke Innovation’s R&D expense ratio was the highest at 7.61%, Haineng Industry was 4.78%, and Lvlian Technology was 4.62%. Although the R&D expense rate of Lvlian Technology is lower than that of Anker, it is not difficult to observe the company's data in recent years, and its R&D capabilities are also leading in the industry.

Based on the data of the past three years, the cost of Lvlian Technology is on the rise, and the research and development cost has increased from 6.489 million yuan in 2019 to 160 million yuan in 2021 . In the first half of 2022, the R&D expenses will reach 83.22 million yuan, and the number of R&D personnel will exceed 560, accounting for one-fifth of the company's total employees. The technology of various categories is also becoming more mature, and the double overweight of talents and technology has become an important guarantee for its performance growth.

It is worth noting that due to changes in market demand, Lvlian Technology has recently focused more on higher-end products, such as portable power banks, thus moderately reducing the investment in new mold openings for other categories of products. On a recruitment platform, Lvlian Technology is recruiting energy storage power supply engineers. It can be seen that the "transfer" of key products mentioned by the company is gradually advancing. The change to higher-end products has added new impetus to the company's subsequent performance growth.

In addition to the company's performance, its listing progress has also attracted the attention of industry insiders. As we all know, under the hot capitalization track, many companies are lining up for listing, and Greenlink Technology has also seized this opportunity. Currently, Lvlian Technology is in the "inquired" status on the Shenzhen Stock Exchange, and the Shenzhen Stock Exchange has issued the second round of review and inquiry letters. If it is successfully listed in the future, it may open up another world in overseas markets.