Third-party brand acquirer Thrasio's $500 million "heavy bet" on the Chinese market
As expected, the emerging business of acquiring Amazon's third-party brands has officially spread to the Chinese market.
A few days ago, Thrasio, the world's largest Amazon third-party brand acquisition company, announced that it has established a dedicated team in China and invested 500 million US dollars to develop the Chinese market. It is understood that Thrasio invested far more funds than other companies of the same type entering the Chinese market.
Thrasio has appointed Alan Lim, an industry expert with 20 years of cross-border e-commerce experience, as the president of Thrasio China, and is fully responsible for the business in China.
Alan Lim said: "China is Thrasio's key expansion market this year. South China and East China are important support and development points for Thrasio. Currently Thrasio has taken the lead in establishing a Chinese branch in Shenzhen and plans to form a Shanghai team this year. At the same time, Thrasio Shenzhen The team size is planned to expand to more than 100 people. In the future, Thrasio will use a local team to reach cooperation with sellers in a way that is consistent with the actual situation in China.
Regarding Thrasio's entry into the Chinese market, Josh Silberstein, Thrasio co-founder and CEO, said: "If you want to build a truly groundbreaking global consumer goods company, China must be an important part of the map. In the global Amazon store, there are nearly Half of the top sellers are headquartered in China, and they contribute a significant portion of GMV to the Amazon market."
According to data from the beginning of 2021, about 46% of the sellers in Amazon's global market are headquartered in China. Thrasio China Investment Director revealed that as soon as Thrasio entered the Chinese market, there were already hundreds of Chinese sellers who came to consult and communicate.
He said: “I have encountered operational bottlenecks, worried about changes in various policies of the Amazon platform in the future, cash flow is tight after a certain stage of sales growth, want to transform to other platforms or other tracks, want to return to life and start a new chapter in life, or because Lack of international resources requires Thrasio's global data perspective to lead brand growth and other reasons, will become an opportunity for Chinese sellers to consider selling brands to Thrasio."
It is reported that before acquiring the brand, Thrasio will consider the brand from multiple dimensions such as EBITA, the number of SKUs, the number of GMV, the number of Best Seller and Amazon's Choice, and whether the products sold are vertical categories. Brands that are not advertised, regulated, or quickly updated, Thrasio will generally not consider acquisitions.
After acquiring the brand, Thrasio will transfer 503 nodes for each acquired brand, analyze and find opportunities for existing brands from the perspectives of creativity, brand management, marketing, etc., tap the potential of the brand, and then upgrade the brand.
Thrasio co-founder and CEO Carlos Cashman said: “When we find the best Chinese brand in the same category that meets our standards, we will provide brand owners with convenient and fair trading opportunities. Their goal is us. We hope to expand the visibility of these valuable products and achieve global distribution, so as to provide Chinese sellers with better financial returns."
Thrasio China Investment Director said: “After selling the brand to Thrasio, some sellers will choose to retire and enjoy life, and some sellers will choose to use the funds to continue to create a different category and different brands from 0 to 1, and even some sellers have When the opportunity arises, I will sell my brand to Thrasio again."
At present, Thrasio has raised $1.8 billion in funds, acquired more than 100 Amazon third-party brands, and operated approximately 22,000 products in total. Thrasio has acquired brands such as Vybe deep tissue massage fascia gun, Circadian Optics bright light treatment lamp, Sdara Skincare skin care products and so on. Last year, Thrasio began to focus on other regional markets outside the United States, including the opening of Thrasio GK in Japan and the opening of two new offices in the United Kingdom and Germany. (by tiktooky)