On the track of cross-border e-commerce, new entrants can always be seen. Zhenai Meijia, which mainly sells blanket products, is one of the leading enterprises in China, claiming to be the "king of blankets in the world". After it was listed on the main board of Shenzhen Stock Exchange in 2021, investors have been urging it to set up cross-border e-commerce.
According to Hugo Cross-border, Zhenai Meijia has been mainly experimenting with hydropower business in China, such as Douyin, Xiaohongshu, Kuaishou etc. However, according to the latest disclosure of Zhenai Meijia, it has decided to layout cross-border e-commerce and explore the growth possibility of new channels.
01 Arrange multiple cross-border e-commerce channels
The main products of the company are blankets and bedding (kits, quilt cores, pillow cores etc.). At the same time, the company sells a small amount of towels, home clothes, carpets and other textiles and packaging. The export business accounts for 90% of the revenue. In the first three quarters of 2022, Zhenai Meijia's revenue was about 687 million yuan and its net profit was about 89.71 million yuan. According to the statistics of China Wool Textile Industry Association, in the past three years, Zhenai Meijia blanket products have ranked first in the competitiveness ranking of Chinese textile and garment industry enterprises organized by China National Textile Industry Association.
In addition to traditional foreign trade business, Real Aimejia said on the interactive platform on January 21 that it has been sold on Alibaba International website, MadeinChina and 1688 cross-border e-commerce platforms. As for Amazon and other channels, True Love Meijia has not disclosed. Hugo's cross-border search on Alibaba's international site did find products from TRUELOVE, a brand owned by Truelove, such as this 100% polyester home blanket below, priced between $2.50 and $10.
Hugo Cross-border found that in February 2022, an investor also asked whether Zhenai Meijia's existing business involved cross-border e-commerce, but at that time it replied that it did not. According to Zhenai Meijia's 2022 semi-annual report, its online sales revenue was only 2,768.13 yuan.
Therefore, it is not long before Zhenaimei will open its business on cross-border e-commerce platforms such as Alibaba's International site, and it is likely to be in the second half of 2022. For True love beauty home, cross-border e-commerce is a new test of the water business.
01 Arrange multiple cross-border e-commerce channels
The main products of the company are blankets and bedding (kits, quilt cores, pillow cores etc.). At the same time, the company sells a small amount of towels, home clothes, carpets and other textiles and packaging. The export business accounts for 90% of the revenue. In the first three quarters of 2022, Zhenai Meijia's revenue was about 687 million yuan and its net profit was about 89.71 million yuan. According to the statistics of China Wool Textile Industry Association, in the past three years, Zhenai Meijia blanket products have ranked first in the competitiveness ranking of Chinese textile and garment industry enterprises organized by China National Textile Industry Association.
In addition to traditional foreign trade business, Real Aimejia said on the interactive platform on January 21 that it has been sold on Alibaba International website, MadeinChina and 1688 cross-border e-commerce platforms. As for Amazon and other channels, True Love Meijia has not disclosed. Hugo's cross-border search on Alibaba's international site did find products from TRUELOVE, a brand owned by Truelove, such as this 100% polyester home blanket below, priced between $2.50 and $10.
Hugo Cross-border found that in February 2022, an investor also asked whether Zhenai Meijia's existing business involved cross-border e-commerce, but at that time it replied that it did not. According to Zhenai Meijia's 2022 semi-annual report, its online sales revenue was only 2,768.13 yuan.
Therefore, it is not long before Zhenaimei will open its business on cross-border e-commerce platforms such as Alibaba's International site, and it is likely to be in the second half of 2022. For True love beauty home, cross-border e-commerce is a new test of the water business.
| marketing channel |
Online sales |
Direct sales |
direct selling |
| proceeds of business |
2768.13 |
5,840,476.14 |
367,020,992.88 |
| operating costs |
592.28 |
2,733,791.40 |
292,582,229.27 |
| gross profit rate |
78.60% |
53.19% |
20.28% |
| Operating income increased or decreased from the same period last year |
-1798.11 |
-1,248,278.62 |
25,275,753.23 |
| Operating costs increased or decreased from the same period last year |
-5,890.56 |
-1,292,478.24 |
38,179,978.28 |
| Gross profit margin increased or decreased from the same period last year |
120.57% |
9.99% |
-5.28% |
Zhenai Meijia admits that online sales account for a relatively low proportion at present, mainly as the exploration and reserve of the company's future new channels.
It is understood that the blanket export of Zhenai Meijia adopts direct sales mode, which can be divided into three ways: the first way is to realize direct sales through ODM mode; The second is to achieve direct sales in OEM mode; The third is to achieve direct sales of private brand export mode. According to the 2022 semi-annual report, the revenue generated by direct sales reached 360 million yuan.
02 Focuses on the Middle East, North Africa and other markets
Our country has the world's most complete industrial chain and the highest production processing matching level, become the production base of the world felt, and the production of felt
mainly used for export, the domestic sales share relatively small. According to preliminary statistics, in 2021, China produced and exported 260 million blankets of various types, with exports of about 2.28 billion US dollars, accounting for about 60% of the global blanket trade.
In terms of market area, Chinese blankets are mainly exported to Africa and Middle East countries, accounting for about 60% of the market share. They are mainly medium and low grade products. The product structure is polyester blankets, cotton blankets, polyester blankets and polyester blended blankets.
On the one hand, people in the Arab region have the habit of using blankets as bedding to keep warm. In Arab countries, blankets can be used not only as bedding, but also as bedding and decoration supplies. It is customary to send blankets as gifts for marriage, childbirth, death of relatives or festivals.
Moreover, West Asia and North Africa and other Arab regions are mostly dry desert areas, tropical or subtropical desert climate, extreme water shortage, drought and desertification, and carpet dust storage function is very outstanding, dust will not fly on the carpet, not only purify the air and beautify the environment. At the same time, because blanket products are more resistant to dirt, they are easier to clean than other products, and can be used in a wider range of scenarios. Therefore, there is a great demand for blankets in the Middle East. Moreover, due to the scarcity of water resources in Arab countries, blankets are not washed in daily life and are mostly used as disposable consumer goods. The local people replace blankets frequently.
Therefore, the blanket products of Jinaimei Family are more easily recognized by consumers in the Middle East, Africa and other markets, and the market scope is still expanding. Although the European and American markets are one of the markets with the largest demand for blankets in the world, they have become "emerging markets" for home textile enterprises such as Zhenai Meijia, because the European and American countries mainly import medium and high-grade blankets. However, due to the continuous improvement of the technology of the European and American textile import restrictions, the pressure of export enterprises is gradually increasing.
Main Markets& Product(s)
|
Main Markets |
Total Revenue(%) |
|
Mid East |
33.08% |
|
South Asia |
13.85% |
|
North America |
11.54% |
|
Domestic Market |
6.92% |
|
Africa |
6.15% |
|
Eastern Europe |
5.38% |
|
South America |
5.37% |
|
Northern Europe |
4.62% |
|
Eastern Asia |
3.85% |
|
Southern Europe |
3.85% |
|
Southern Asia |
3.08% |
As can be seen from the "trade ability" of Alibaba International website, in terms of revenue, Zhenai Meijia accounts for the largest proportion in the Middle East, as high as 33.08%, followed by South Asia, North America and other regions.
However, in terms of market area, Zhenai Meijia is also trying to expand. Dacron blanket as a very cost-effective home and leisure products has gradually improved its position, and the consumption demand area has gradually expanded. It is reported that at present, Zhenai Meijia's customers in Europe, America and Southeast Asia have increased their orders for polyester blankets, and show a good growth momentum, which is expected to become a new important market for the company in the future.
According to Hugo Cross-border, the location of Zhenai Family in Zhejiang has certain advantages for its export business. The export loading port of its subsidiary Zhenai Blanket and Zhenai Meijia Blanket is generally Ningbo Port. The two companies are about 3 hours' drive from Ningbo Port, which is closes to the shipping port, which is conducive to saving transportation cost and ensuring timely delivery.
Zhenai Meijia disclosed that the current order in hand is sufficient, in the future will adhere to the multi-market, multi-customer, multi-channel marketing strategy, and with the help of online and offline channels, constantly improve the proportion of emerging markets such as Europe and the United States and domestic market, in addition, through the development of cloud blanket, carpet and other new products to expand incremental customers.
Post time: Feb-17-2023
