The mobile phone accessories market is brewing a rebirth

What brand will be after Amazon’s title boom?

In three months, Amazon almost blocked half of the cross-border e-commerce market.

From Pattoson Mpow, Zebao’s RAVpower, to Choetech, which launched wireless chargers before Apple and Samsung, have been removed from the Amazon platform one after another.

As the main category of cross-border sellers, 3C accessories has always been a red sea. In the product pages arranged by reviews, the difference in the order of one after the other determines whether the merchant is a billion-dollar seller, or it is unknown. Regardless of the charging head, data cable, or wireless earphones, mobile phone cases, the extremely low manufacturing threshold, and the attributes of tool products, undoubtedly make the 3C market a paradise for cost-effective players.

So, why are there still several cross-border leaders running on this highly competitive track? Under the tide of Amazon banning, are mobile phone accessories going to sea brewing the next opportunity for change?

1. One data line, half of cross-border history

To follow the development history of 3C sales, Shenzhen Huaqiangbei is an inevitable node. Here is the Jerusalem of the mobile phone industry, and it is also the holy place where mobile phone merchants from all over the world will come to pilgrimage in their lifetime.

At 7 pm on October 12, 2007, Huaqiangbei ushered in a bright moment. The Chinese electronics market price index was officially released to the world on this night. The only thing that can be compared with it is the Yiwu·China Commodity Index just released for one year. To this day, these two indexes are still important reference data for the country’s macro policy control.

From the earliest radio, television, to function machines, intelligent machines, Huaqiang North has experienced several times the industry cycle 3C electronics, electronic Huaqiang North businessmen sensitive sense of smell changes in the industry has created a myth benefit.

Cheng Yimu, Executive Vice President and Secretary-General of the Shenzhen Electronic Chamber of Commerce, once described the scene of the market boom. “When the new 60,000 square meter shop opened, it was looted and emptied within three hours. A shop application registration form, from The office upstairs was brought to the street downstairs, and it was actually sold for 50,000 yuan.”

Behind the business of “three feet square, one meter counter” is the mature industrial belt established by the vast Pearl River Delta. Taking mobile phones as an example, drawing a circle with Huaqiangbei as the center and a two-hour drive as a radius can cover the complete industrial chain of domestic mobile phones. An image that was quite magical at that time was that as soon as the latest generation of Apple mobile phones went on the market, they could be equipped with all the components in Huaqiangbei, making them like a hamburger on the spot.

However, after the highlights in 2007, Huaqiangbei is also moving towards a watershed in development.

The wave of smartphones led by the iPhone is sweeping, quickly withering the advantages of Huaqiangbei’s original industrial chain. Internet phone representatives millet , 3C products started Jingdong electricity supplier, while the leather off the mobile phone market cottage barbaric growth, on the other side let Huaqiang North for many years no longer rely on price advantage, customers holding the iPhone to store seized prices accessories online shopping , Requires the owner to not ship more than the price.

The collapse of the old order often means the birth of new opportunities. Also in this year, eBay, once Taobao’s biggest competitor, was renamed eBay. This time the name change was regarded as the Chinese version of Dunkirk’s Great Retreat. The sprouts of border e-commerce have also been sown.

When the iPhone 4 came out in 2010, the shipment of smartphones continued to rise, creating a huge mobile phone accessories market worldwide.

The low-value, high-demand, and diverse 3C accessories are an excellent training ground for cross-border e-commerce. It can be said that “Naijin Doujin” is the most common footnote in the early stories of cross-border 3C sales.

An industry insider described to Hugo Cross-border that during the period when the platform emerged, every afternoon in Huaqiangbei, there would be a group of backpackers gathering at China Post next to the Cyber Digital Building and handwriting express delivery orders.

Most of these backpackers are early eBay sellers. Under the black backpacks, they are stuffed with 3C gadgets such as data cables and mobile phone cases. Usually a 5 yuan mobile phone case can be sold for 5 dollars on eBay, and nearly 6 times the huge profit attracts people from all walks of life to join.

In 2007, land and sea-Wenzhou in Germany returned back to Huaqiang North a business, just two years won the first honor of eBay sales, eBay ranks among the big sellers of the German station Top10 column was hot overseas markets is evident.

During the same period, Xiao Siqing, the founder of Youkeshu, walked into the bustling crowd of Huaqiangbei in Shenzhen and became one of them. He founded Youkeshu in 2010. Starting from the three-foot counter in Huaqiangbei, and then moving the office to Bantian office building, Youkeshu was just an ordinary e-commerce company on eBay. Until it targeted the foreign drone accessories business, the transaction volume quickly improved. Won eBay China’s top 50 cross-border transactions and the title of Alibaba Shenzhen District Fengyun Internet Merchant.

Hunan’s Yangmeng is like an entrepreneur who ran away from a big factory in that era. After seeing the trend, he went backwards in the crowd. In 2011, he chose to leave Google , give up one million annual salary, and returned to his hometown of Changsha to start his business. It was established in January of that year. Registered the brand Anker in Hunan Haiyi E-commerce Company.

Fortunately, Yangmeng quickly established a clear position in the period of barbaric growth in the industry. At that time, notebook computers needed to be replaced every six months to two years. The original battery cost nearly 70-80 U.S. dollars on Amazon, while Huaqiangbei’s The product only sells for 10-20 US dollars, but consumer reviews are extremely poor. So Anke positioned the price range of 30-40 US dollars in the gap, developed a notebook battery that can reach 4.5 stars, and copied this underlying logic to expand to more 3C accessories categories, and became a product in June 2013. The head of the Amazon brand.

At the beginning of 2014, Aoji also gradually owned a number of self-developed e-commerce products, focusing on power banks, car charging, data cables, and B2C websites, and successively became the “marketing directors” of major brands such as Huawei and ZTE, helping them to make mobile phones And other electronic products are sold abroad. Later, when Lu Haichuan recalled this golden age, he said, “The huge demand of foreign consumers for Chinese products has caused the world to discover their products no matter which platform the sellers are on.”

2. Technological breakthroughs to prop up the market of 100 billion

The cross-border sales from Huaqiangbei, along with the ups and downs of mainstream mobile phone manufacturers, have found the value of their own brand in the course of technological changes.

According to the statistics of ResearchandMarkets, a consulting agency, the market size of peripheral products such as smart phone chargers and wires is expected to reach US$104 billion by 2022. Both Aoji and Anker were among the world’s top ten independent brand charger manufacturers in 2016. With Apple, Samsung and Huawei successively canceling the gift of charging heads, the third-party charging head market will also enter a stage of rapid growth.

The development logic behind the dismantling, consumers’ power anxiety gave birth to products such as mobile power supplies, fast charging heads, radio chargers, etc. This anxiety is more intuitively reflected in the domestically shared power bank “three powers and one beast” melee pattern .

It is worth mentioning that the current “ street power ” with a domestic user scale exceeding 360 million was incubated by Anker Innovation in 2015. In the second year, Anker replicated the same business model in Seattle, USA, launched Ankerbox, and deployed the shared charging treasure market. , So that consumers have a new perception of its brand image.

The technological breakthroughs in various charging products have increased the overall profitability of the industry, allowing 3C accessory brands to find a broader living space.

On the one hand, due to the rising energy consumption of mobile phones, the continuous upgrading of smart phones in terms of CPU performance, chip performance (5G mobile phone chip power consumption speed will be 2.5 times that of 4G), screen resolution, etc., has greatly increased the power consumption of mobile phones. Short video Heavy usage scenarios such as, e-commerce, mobile games, etc. continue to seize user time, accelerating the speed of mobile phone power consumption.

The mobile phone accessories market is brewing a rebirth

On the other hand, it is because of the narrow space for upgrading the battery capacity of mobile phones. Judging from the mobile phones released by several major mobile phone brands in recent years, it is limited by the physical characteristics of the lithium battery itself and the size, weight, heat dissipation performance, and cost of the mobile phone. And other factors, the overall growth rate of mobile phone battery capacity is relatively slow.

The mobile phone accessories market is brewing a rebirth

Faced with the increasing demand for charging, mobile phone manufacturers have turned to fast charging technology for solutions.

The first breakthrough occurred in October 2018, when Anker Innovation released the first GaN PD fast charge in Seattle. This product has higher output power than most chargers on the market, and weighs only 62g, which is convenient for daily carrying and storage, and can charge Nintendo Switch and even MacBook Pro. Anker’s innovative gallium nitride PD fast charge solves the package of charging needs of consumers, and gallium nitride has also gained fame as a result.

After several rounds of publicity campaigns by domestic mainstream manufacturers, consumers are no strangers to GaN technology. Different from the traditional charging head, the fast charging head contains a chip, which can adjust the speed of the charging process and control the temperature. Gallium nitride can overcome the limitations of silicon to design smaller and more efficient power supplies while still leaving room. The emergence of fast charging technology has also increased the overall profitability of the industry. A number of 3C factories supplying brands said that their profitability has increased by 10%-15% in recent years.

Furthermore, the GaN charger combined with the PD charging protocol can be adapted to more devices. There are currently five mainstream fast charging technology vendors on the market, namely Qualcomm, MediaTek, Huawei, OPPO, and the USB-IF Association. The PD protocol is dominated by the USB-IF Association.

Since each fast charging technology is independent of each other, mobile phones equipped with different fast charging technologies need to be equipped with a specific charging plug or even a data cable, and it is difficult for consumers to obtain a consistent fast charging experience.

Therefore, since 2016, various fast charging technologies have gradually realized compatibility with the USB-PD protocol.

Huawei disclosed its fast charging technology in December 2017 for free use by charger manufacturers and protocol chip manufacturers. In November 2018, OPPO announced the external authorization of VOOC flash charging technology. At present, 23 companies have obtained relevant authorizations.

At the end of May, in order to solve the problem of the incompatibility of fast charging between major mobile phone brands, the Telecommunications Terminal Industry Association issued the “Mobile Terminal Converged Fast Charging Technical Specification”, which aims to formulate a convergent fast charging standard for mobile terminals and promote various fast charging standards. Compatibility between charging agreements, Huawei, Xiaomi, and OV domestic four leading manufacturers are also co-sponsors of this “Specification”.

Therefore, for the mobile phone accessories market, the market dividend has just begun, and the entry of many domestic players will trigger more intense competition. The upstream charger supplier Aohai Technology announced on July 26 that it plans to raise funds of 1.996 billion yuan, increase fast charging and self-branded businesses, and launch various charging and storage products on Amazon, eBay, and Lazada. Technology has reached 14% of the global market share.

3. Where is the overseas route for mobile phone accessory brands?

Different from the mature PC accessories market, which can develop accessory brands focusing on keyboards, mice and headphones, mobile phone accessories have been quite bumpy on the road to brand building.

Although according to the latest report, global smartphone shipments reached 1.24 billion units in 2020, and global smartphone shipments reached 340 million units in the first quarter of 2021. The growth rate of 5G mobile phones is impressive, with a year-on-year growth rate of up to 24%. . Especially in the global trend of mobile Internet, smart phone penetration rate in the future will get considerable improvement. However, because the value of mobile phones is relatively low compared to PCs, consumers generally believe that products such as chargers, earphones, and mobile phone cases only need to meet the “enough” standard. In the past few years, the profit point of mobile phone accessories has been dominated by the iPhone. The subtle changes of each generation of products will set off a research and development boom in the mobile phone accessories market. In the early years, Huaqiangbei’s most profitable product was the copycat Apple data cable.

Until the emergence of products with high technical content and higher profit margins such as wireless earphones and fast charging heads, mobile phone accessory brands have found room for cultivation. From this point of view, Anker Innovation, which has already established a foothold overseas, is a very typical sample.

Anker founder Yang Meng likened the consumer electronics market to the ocean and defined the company’s strategy as a “shallow ocean” strategy. Anker Innovation has two principles when selecting a category: First, the category must be in a “shallow sea” position, there is a certain market demand but not too hot, and the market size cannot be too small; second, the category is still in the product life cycle There is room for innovation in the budding or growing period .

Based on this strategy, Anker Innovation aims at the mobile phone market where shipments have been rising year after year, choosing to start with mobile power, and now it has expanded horizontally to wireless headsets, sweeping robots, home security and other categories, but charging products are still the main revenue. Anker’s innovative “Shallow Sea” strategy can be seen as a microcosm of the development of the mobile phone accessories brand.

The mobile phone accessories market is brewing a rebirth

A 3C cross-border sales gave a “strong operation” idea. With the explosion of the third-party fast charging market and the unification of charging protocols, fast charging technology will develop in the direction of higher power, smaller, and more convenient in the future. By improving the backward compatibility and power of fast charging, it is not only compatible with mobile phones, but also with notebooks, computers and other electronic devices, forming a complete set of 3C digital ecology.

In his view, the mobile phone accessories market is not what the outside world calls the “Red Sea”, because the product iteration cycle of the accessories market is very short, and it is necessary to always pay attention to the trends of mainstream mobile phone manufacturers to predict the birth of the next explosive model. In other words, the core competitiveness is the product development, iteration speed and the ability to pinpoint the market. For example, 3C digital wire, in fact, its product form is still constantly changing, as long as the product is constantly updated, then this market will continue to have new opportunities to be born.

The mobile phone accessories market is brewing a rebirth

Generally speaking, the research and development of 3C accessories should be half a year ahead of schedule, and the advantage of cross-border brands lies in the use of long-term accumulation of operation and management experience to seize market demand points in a short period of time and eat the market dividend of rushing to release new products. The above-mentioned 3C sales revealed to Hugo Cross-border that after Anker launched the GaN PD fast charge, a Shenzhen seller quickly copied and launched similar products within one month, and he also directly found the source factory of GaN. Cooperate to develop new and differentiated fast charging products.

Whether from the nuclear core products expand classes to more “shallow water” development path, or find a new machine point will operate the brand value of ideas precipitate out from the Huaqiang North Interstate already sold out of the cottage blindly low-cost business model, Under the wave of brands going out to sea, find a way to build corporate value, and with the entry of more major brands, mobile phone accessories may also usher in a new round of reshuffle and opportunities.

Posted by:CoinYuppie,Reprinted with attribution to:
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