Specialist
Former manager at Anker Innovations Technology Co Ltd
Agenda
- Anker Innovations (SHE: 300866) – development stages in the North America market, advertising investment, strategies for development and operations, inventory turnover and settlement models
- Development of Anker Innovations in the North America market – revenue scale from 2018 to Q1 2021, growth trends, category structure, major competitors, market share, development opportunities and limitations
- Online vs offline channels – channel structure and system, sales performance across channels, marketing strategies, average revenue per customer, repurchase and return rate trends
Questions
1.
Can you first brief us on the development stages of the cross-border e-commerce brand Anker Innovations in the North American market, highlighting its development strategies and focus over the past five years?
2.
Anker Innovations is developing new markets besides North America, so how do its investments and focus on the North American market change?
3.
Is the success in North America replicable in emerging markets, such as the Middle East and Southeast Asia?
4.
How is Anker Innovations’ coverage in North America? What markets and cities will it further develop?
5.
You mentioned the different policies of different countries. As per some news in May, apart from Anker Innovations, several Chinese cross-border e-commerce merchants were banned by Amazon and their products became unavailable on the platform. Can you analyse the reasons for the ban? How come Anker Innovations was safe from it?
6.
Will the same thing happen in the future? What are the strategies that Anker Innovations has adopted to comply with platform rules that the consumers or investors don’t know?
7.
As you mentioned just now, the competition among brands of the cross-border e-commerce industry is more and more fierce. What is the market share of Anker Innovations in the North American market across the segments of charging products, wireless audio products and intelligent innovative products? What’s the competitive landscape like?
8.
You just talked about the product portfolio of Anker Innovations. What are the local competitors for Anker Innovations in the market? What is the market share of Anker Innovations across product categories?
9.
What about the competition in various market segments? What about the sales of different product categories of Anker Innovations in Q1 2021 in the North America market?
10.
What about the sales trends of different products in Q2 2021 or H2 2021? Will they maintain the trends in Q1?
11.
What are the core elements of operations in the closed loop covering R&D, production, warehousing and logistics, sales and after-sales? Which processes are completed by the team of Anker Innovations and which are outsourced or are completed by OEM?
12.
You mentioned that Anker Innovations keeps investing in innovation and product R&D every year. What about the investment scale currently? Compared with competitors, can its overall R&D capability keep up with the market trends?
13.
We’ve been talking about the North American market which shows an upward trend according to the prospectus. What are the accounts receivable, the turnover of different products and inventory levels in this market?
14.
Will accounts receivable and inventory remain at the same level this year as they were in 2020?
15.
Accounts receivable is more related to customers and sales channels. As you mentioned earlier, Anker Innovations’s online channels account for almost 70% of the North American market and it’s now slowly expanding to offline channels. How does Anker Innovations cooperate with different channels in the North American market at present? You have just mentioned Amazon, so what about other channels? What are the cost, expenses and corresponding gross margin of sales?
16.
The expenses and maintenance costs of offline channels are higher than those of online channels, and the pandemic has affected offline retail sales. Why does Anker Innovations want to develop offline channels?
17.
What is the cooperation model of offline channels? Is it the buyout model or another model?
18.
What are the differences between the buyout model and the consignment model in terms of profit, investment and maintenance?
19.
Thank you very much for your wonderful sharing. Are there any aspects that we haven’t covered today, or do you have any additional information that you would like to add?
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