Zibuyu Group Co., Ltd. (hereinafter referred to as 'Zibuyu') successfully listed on November 11, 2022. The company plans to issue 29.25 million H shares, of which 90% will be international offerings and 10% public offerings, with an additional 15% being over-allotment rights. The issue price per share is HK$7.86, raising a net amount of approximately HK$198 million.
During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.
Investment highlights
-
The company is one of the largest cross-border e-commerce companies in China, focusing on selling clothing and footwear products through third-party e-commerce platforms. It ranks first in terms of GMV for clothing and footwear products sold through third-party e-commerce platforms in North America;
-
The company's design team is highly capable, with rich design experience. With the support of a powerful database and big data analysis, they can quickly identify trends and meet changing customer needs; -
The company has rich experience in digital management and supply chain integration; -
The company has a strong proprietary brand and outstanding brand incubation capabilities; -
The company has efficient e-commerce operation capabilities; -
The company's management team is experienced and dedicated.
According to the Frost & Sullivan report, in terms of GMV generated on third-party e-commerce platforms in 2021, the company:
-
In the North American market, it is China's number one cross-border export B2C e-commerce enterprise for clothing and footwear; -
It is the third largest cross-border B2C e-commerce enterprise in China, specializing in apparel and footwear; -
The second-largest cross-border e-commerce B2C apparel and footwear company in China on the Amazon platform, operating globally.
Overview of China's Cross-border E-commerce B2C Market
The scale of China's cross-border export B2C e-commerce market is huge and continues to expand steadily. According to a Frost & Sullivan report, based on 2021 GMV, the overall market size of China's cross-border export B2C e-commerce market was approximately RMB 2.7384 trillion, of which 74.5% came from platform sellers and 25.5% from self-operated websites. In 2021, the top five participants in China's cross-border export B2C e-commerce market accounted for about 6.5% of the total market share.
According to a Frost & Sullivan report, the market scale of platform sellers in China's cross-border export B2C e-commerce market increased from RMB 721.1 billion in 2017 to RMB 2 trillion in 2021. It is expected that it will continue to grow steadily to RMB 4.0139 trillion by 2026, with a compound annual growth rate of 14.5% from 2021 to 2026.
根据沙利文报告，自营网站于中国跨境出口B2C电商市场所占市场规模由2017年的人民币2,034亿元增加至2021年的人民币6,983亿元，预计到2026年将进一步增加至人民币14,910亿元，2021年至2026年的复合年增长率为16.4%。
The main third-party cross-border e-commerce platforms include Amazon, eBay, Global Express and Wish. According to a Frost & Sullivan report, in 2021, these four platforms together accounted for approximately 10.6% of the global total e-commerce platforms by GMV. The total GMV generated from third-party platform businesses on these four platforms increased steadily from $240.1 billion in 2017 to $518.8 billion in 2021, and is expected to reach $935.2 billion by 2026, with a compound annual growth rate of 12.5% from 2021 to 2026.
Among these four e-commerce platforms, Amazon holds the largest market share, accounting for approximately 70.9% of the total GMV generated by third-party platform businesses of these four third-party e-commerce platforms in 2021; followed by eBay, Global Express, and Wish, accounting for approximately 16.8%, 9.3%, and 3.0% respectively. As one of the most active participants as major third-party cross-border e-commerce platforms, Chinese sellers generated $228.7 billion in GMV in 2021 from major third-party cross-border e-commerce platforms (i.e., Amazon, eBay, Global Express, and Wish), accounting for 44.1% of the total GMV generated by all platform sellers from these e-commerce platforms in the same year.
Overview of the Cross-border E-commerce Apparel and Footwear Market for B2C in China
The cross-border B2C e-commerce industry in China is categorized by product category, including consumer electronics market, apparel and footwear market, home products market, outdoor sports goods market, and others. Among these markets, the consumer electronics market, apparel and footwear market, and home products market are the three largest. The cross-border B2C e-commerce apparel and footwear industry in China (including the apparel market and footwear market) is an important part of the Chinese cross-border B2C e-commerce market. General apparel products include coats, dresses, shorts, pants, vests, jackets, tops, and women's shirts. General footwear products include sports shoes, outdoor shoes, casual shoes, formal shoes, and footwear accessories.
According to a Frost & Sullivan report, driven by the development of online sales channels and the improvement in customer revenue levels, the market share of apparel and footwear in China's cross-border export B2C e-commerce market increased steadily from 17.4% in 2017 to 27.4% in 2021 based on GMV. It became the largest component of China's cross-border export B2C e-commerce market in 2021 and is expected to further grow to 33.2% by 2026.
The market for cross-border export B2C e-commerce of apparel and footwear in China has witnessed significant growth in recent years and is expected to continue growing in the coming years. According to a Frost & Sullivan report, the market size of China's cross-border export B2C e-commerce apparel industry increased from RMB 122 billion in 2017 to RMB 607.9 billion in 2021, and it is predicted that it will reach RMB 1486.3 billion by 2026, with a compound annual growth rate of 19.6% from 2021 to 2026. At the same time, the market size of China's cross-border export B2C e-commerce footwear industry increased significantly from RMB 38.8 billion in 2017 to RMB 142.4 billion in 2021, and it is predicted that it will reach RMB 341.3 billion by 2026, with a compound annual growth rate of 19.1% from 2021 to 2026.
Driven by the continuous development of information technology and the penetration of third-party payments, customers from all countries around the world can access e-commerce platforms and online stores, and search for their ideal products based on a large amount of product information displayed online. The United States, Canada, Germany, France, the United Kingdom, Italy, and Spain have always been major markets for China's cross-border export B2C e-commerce in the apparel and footwear industry (measured by retail sales value).
According to a Frost & Sullivan report, from 2017 to 2021, the retail sales value of apparel products sold through e-commerce channels to major countries increased from $988 billion to $1389 billion. Among these major countries, the United States generated the highest retail sales value, followed by Germany and the United Kingdom. Specifically, the retail sales value of apparel products sold through e-commerce channels to the United States increased from $576 billion in 2017 to $877 billion in 2021.
From 2017 to 2021, the retail sales value of footwear products sold through e-commerce channels to major countries increased from $22.9 billion to $33.7 billion. According to a Frost & Sullivan report, similar to the apparel product market, the United States also brought the highest retail sales value in these major countries, followed by the United Kingdom and Germany. Specifically, the retail sales value of footwear products sold through e-commerce channels to the United States increased from $13.1 billion in 2017 to $21.6 billion in 2021.
Competitive landscape of the cross-border B2C e-commerce apparel and footwear market in China
According to a Frost & Sullivan report, as the largest component of China's cross-border export B2C e-commerce market, the Chinese cross-border export B2C e-commerce footwear and apparel market accounted for approximately 27.4% of the market share in terms of GMV in 2021. Based on the GMV generated through third-party e-commerce platforms in 2021, the top five participants in the Chinese cross-border export B2C e-commerce apparel and footwear market collectively accounted for about 1.8% of the market share, among which Zibuyu ranked first with a market share of about 0.7%.
According to a Frost & Sullivan report, ranked third among all platform sellers in the B2C e-commerce apparel and footwear market for cross-border exports from China by GMV of products sold through third-party e-commerce platforms in 2021, Zibuyu accounted for 0.4% of the market share in the RMB 596.5 billion market.
According to a Frost & Sullivan report, among all Amazon sellers in the Chinese cross-border export B2C e-commerce apparel and footwear market in 2021, Zibuyu ranked second in terms of GMV generated through Amazon, with a market share of 1.0%.
Frost & Sullivan has extensive research experience in the e-commerce industry and has assisted well-known enterprises in successfully listing on capital markets. Successful listings include: Blibli (BELI.IDX), Starbox (STBX.NASDAQ), GCT.NASDAQ, Youhe Holdings (2347.HK), YesAsia (2209.HK), Hua Xin Holdings (8442.HK), Shangjin International (2528.HK), Taobao International (6110.HK), Baby Tree (1761.HK), SECO.NASDAQ, Barbie Bebe (8297.HK), JME.NYSE, VIPS.NYSE, and others.
Recommended Reading
01. Frost & Sullivan Assists PT GLOBAL DIGITAL NIAGA in Successful Listing in Indonesia (BELI.IDX)
02. Frost & Sullivan assisted Starbox in successfully going public in the US (STBX.).NASDAQ)
03. Frost & Sullivan assists Dajian YunCang in successfully going public in the US (GCT.NASDAQ)
05. Frost & Sullivan assists Zherli Holdings in successfully listing on the Hong Kong Stock Exchange (2209.HK)
