During the epidemic, many companies faced the problems of order cancellation, delay, and difficulty in new orders, but Superstar's overseas sales ushered in a new growth point. From January to May 2020, the cross-border e-commerce sales of Superstar Technology on the Amazon platform increased by 71% year-on-year.
Behind the growth is the strategy established by Superstar Technology to supplement traditional foreign trade with cross-border e-commerce.
As a traditional enterprise, Superstar Technology is an OEM. Li Feng, Senior Vice President of Superstar Technology, said: The most important thing for Superstar is products. If you want to become a century-old enterprise, you must have your own brand to have the right to speak.
The fastest and best way to export your own brand is to do cross-border e-commerce.
Superstar Technology has practiced a typical overseas path since 1993: from OEM to creating its own brand, from product overseas to brand overseas, from traditional foreign trade to cross-border e-commerce.
1. Transforming from OEM to cross-border e-commerce
Superstar Technology chose Europe and the United States as the first stop to go overseas.
First, because most of the hardcover houses in North American housing, if you want to change the interior of the house, you need to decorate it yourself, and most residents choose DIY. The replacement cycle of conventional hand tools due to wear and loss is about 6-9 months. Hand tool products have gradually become household supplies.
Second, the auto repair, manufacturing processing, real estate and other industries in Europe and the United States are relatively developed, and the industry demand is relatively large.
In the European and American markets, Superstar Technology cooperates with Amazon's "Global Store", with the help of Amazon's advantages, traffic and resources, to build cross-border e-commerce into a new business growth point for the company, promote offline business with online business, and enhance brand effect.
Relying on the overseas e-commerce platform dominated by Amazon, the company has successfully realized the brand going overseas. In 2020, the company has become the first domestic export seller of Amazon hand tools.
2. Export its own brand and take the road of branding
Superstar Technology develops its own brands through the method of "overseas mergers and acquisitions + native brands".
1. Overseas M&A
Since 2010, Superstar Technology has completed the acquisition of Goldblatt, Pony, PT Laser, Arrow and other brands, with a total amount of more than 3 billion yuan.
In 2010, four companies including Goldblatt Tool company were acquired for US$1.3 million. In 2015, they acquired 65% of the shares of Huada Kejie. In 2016, they acquired 100% of the shares of PT Laser. Acquired American nail gun brand Arrow for 860 million yuan. In 2018, acquired Swiss professional tool storage brand Lista. In 2019, acquired American door and window hardware brand Prime-line. In 2020, acquired American vacuum cleaner brand Shop-vac. In 2021, acquired European power nail gun. Brand BeA, acquired high-end auto repair tool brand SK.
Expanding overseas markets by acquiring overseas brands is an important strategy for the development of Superstar Technology.
2. Original brand
Li Feng said that Superstar Technology and other cross-border e-commerce companies have the advantages of factories, R&D teams, overseas warehouses, and independent operations.
In terms of original brands, Superstar Technology has successfully established many brands such as WORKPRO, PONY JORGENSE, DURATECH, SWISSTECH, etc. These brands are not only comparable to the old brands, but the price is only half.
At present, the company's own hand tool brand has a market share of no less than 20% in the European and American e-commerce field, and its own brand sales account for one-third of the group's sales.
Traditional foreign trade enterprises represented by Superstar Technology, through cross-border e-commerce channels, build their own brands, promote "Made in China" to the world, and realize the transformation and upgrading of "brand globalization".