485As the domestic market becomes increasingly saturated, going global has become an important way for many enterprises to break through market bottlenecks.Shenzhen UGREEN Technology Co., Ltd. (referred to as "UGREEN Technology") is a successful example among them.
Recently, UGREEN Technology was successfully listed on the ChiNext board of the Shenzhen Stock Exchange,with an IPO market value exceeding 18 billion yuan.
What has UGREEN Technology done?
01
Started with "a single data cable", gradually building a product matrix
UGREEN Technology was founded in 2012 and is a manufacturer of digital peripheral accessories, originating from Longhua District, Shenzhen.
The company initially broke market conventions with a "data cable", launching TV HD cables of 1.8 meters and mobile phone cables of 1 meter, which were different from the common products on the market. This data cable quickly opened up the market, enabling UGREEN Technology to achieve initial success.
Subsequently, the company gradually expanded its product line to cover digital peripheral accessories such as stands and multi-port chargers, and launched cross-category products such as TWS earphones and data storage servers.
According to the latest prospectus, UGREEN Technology's operating income increased from 2.738 billion yuan in 2020 to 3.839 billion yuan in 2022, with a compound annual growth rate of 18.42%. In the first half of 2023, operating income was 2.121 billion yuan, and the full year is expected to reach 4.803 billion yuan, a year-on-year increase of 25.09%.
02
Grasping both online and offline, focusing on multi-channel
UGREEN Technology has balanced advantages in sales channels, building a global sales network through online B2C models such as Tmall and JD.com, online B2B models such as JD.com self-operated stores, as well as offline distribution and direct sales models. Domestic and overseas revenues are relatively balanced. In 2022, domestic and overseas revenues accounted for 55.09% and 44.91% respectively.
The company's direct sales customers are mainly corporate clients, while distribution customers are regional distributors, adopting a buyout distribution model to provide flexibility for the sales end. Domestic offline sales are gradually increasing, accounting for 31.2% of total sales; overseas offline channels are still in the early stages, accounting for 20% of overseas sales.
In addition, UGREEN Technology's success is also inseparable from its precise content marketing and social media strategies. The company introduces product usage tips through blogs and promotes a positive and healthy lifestyle.
On Facebook and Instagram, they collaborate with various bloggers to share real product usage experiences and enhance brand credibility.
On the TikTok platform, UGREEN Technology showcases the use of products in real scenarios through short videos, attracting a large amount of attention. By combining with popular challenges and trends, they further increase brand exposure.
This two-way strategy of content and community has enabled UGREEN Technology to accumulate a large number of fans on social media and enhance its brand influence.
Image source: TikTok
03
Focus on R&D, innovation and supply chain in parallel
UGREEN Technology started as an OEM factory. Facing fierce market competition, they understood the importance of independent innovation.
Therefore, in recent years, UGREEN Technology has been increasing its investment in R&D. From 2020 to 2022, the compound growth rate of R&D expenses was 38.83%. At present, UGREEN Technology and its subsidiaries own 862 domestic patents and 614 overseas patents, including 19 invention patents, 270 utility model patents, and 1,187 design patents.
On the production side, UGREEN Technology has formed a model with outsourced production as the mainstay and self-production as a supplement. The main self-production capacity is handled by Haiying Zhilian and Zhize Technology.
In terms of the supply chain, it mainly relies on outsourced production. Outsourced production accounts for about 80% of the total output, while self-production capacity only accounts for about 20%. Although the core processes are still handled by its own factories, this approach may lead to production cycles and product quality being limited by the production capacity and management level of suppliers.
Therefore, UGREEN Technology is still continuously optimizing its supply chain system, strengthening cross-functional and cross-organizational cooperation to ensure high quality, low cost, and fast delivery as market competitive advantages. The company will form good cooperative relationships with upstream and downstream supply chain partners to achieve coordinated development of the industrial chain.
In summary, through precise market positioning and continuous product innovation, UGREEN Technology has already secured a place in the global 3C electronics market. It is believed that in the future, the company will continue to explore new market demands and continuously launch lightweight, portable, and efficient electronic products to provide a better experience for global users.
For other brands hoping to enter overseas markets, UGREEN Technology's successful experience also provides valuable reference:Innovation is the core, content marketing and community operation are key driving forces.
