Core Viewpoint - The company "Youkeshu" has undergone significant leadership changes, with the entire core management team being replaced, reflecting a broader struggle within the cross-border e-commerce industry as it transitions from rapid growth to regulatory compliance and market competition [1][2][3] Company Overview - Youkeshu, once a leading player in the cross-border e-commerce sector, has seen its founder and original management team completely exit the company [2] - The company was established during the boom of cross-border e-commerce in China and quickly rose to prominence, being recognized as a benchmark in the industry [2][3] Financial Trajectory - Youkeshu experienced rapid growth, achieving a peak valuation of 30 billion yuan after multiple rounds of financing, with significant revenue growth reported in 2016 [4][11][12] - However, the company faced severe financial difficulties, reporting losses of 27.05 billion yuan in 2021, 3.61 billion yuan in 2022, and 4.91 billion yuan in 2023, leading to bankruptcy restructuring [19][21] Market Challenges - The company’s business model, heavily reliant on third-party platforms like Amazon, proved vulnerable to regulatory changes, particularly during the "account suspension wave" initiated by Amazon in 2021 [17][18] - The shift from a growth-driven to a compliance-driven market has exposed the weaknesses in Youkeshu's operational strategy, emphasizing the need for a strong brand and compliance with regulations [21][22] Leadership Changes - Following a tumultuous restructuring process, a new management team has taken over, with the founder and original team members being ousted [20][21] - The new leadership faces the challenge of reviving the company amidst a significant decline in revenue, with a reported 81.33% drop in revenue in the first half of the year [21] Industry Reflection - The story of Youkeshu serves as a cautionary tale for the cross-border e-commerce industry, highlighting the risks associated with over-reliance on platform traffic and the importance of establishing a sustainable business model [22]

Core Insights - The article highlights the explosive growth of the "Labubu" IP launched by Pop Mart, which has become a global phenomenon in the cross-border e-commerce market, particularly in the U.S. and Europe, with sales increasing significantly in 2025 [1][2] - Despite the initial success, a sudden withdrawal of sellers from Amazon raises concerns about underlying risks, particularly related to intellectual property infringement and compliance issues [1][12] Sales Performance - Labubu 3.0 series saw sales growth of approximately 8 times in the U.S. and 5 times in Europe in April 2025 [1] - Pop Mart's Q1 2025 financial report indicated a total revenue increase of 165%-170%, with overseas market revenue soaring by 475%-480% [1] - In the U.S. market, Labubu's sales surged by 895%-900%, establishing it as a leading IP [1] Product Popularity - The popularity of Labubu products on Amazon is evident, with over 2000 SKUs available, including clothing, accessories, and stickers [3] - Labubu clothing sets dominated the "Doll Clothing & Accessories Sets" sales rankings on Amazon, with the top item selling over 1000 units in the previous month [3] Seller Behavior and Risks - Sellers on platforms like AliExpress have capitalized on Labubu's popularity, with high profit margins reported, such as a 800% profit on certain products [6] - However, many sellers face significant risks due to potential infringement issues, as they attempt to associate their products with Labubu without authorization [7][12] Compliance and Legal Challenges - Amazon has initiated a crackdown on unauthorized Labubu-related products, leading to the removal of listings and raising awareness among sellers about the platform's reduced tolerance for brand association [9][12] - Sellers attempting to circumvent compliance measures have still faced removal from the platform, indicating strict enforcement of intellectual property rights [11] Market Dynamics - The article discusses the phenomenon of sellers blindly following trends, which can lead to market oversaturation and price wars, ultimately harming profitability [13] - It emphasizes the importance of compliance and respecting intellectual property rights as fundamental to long-term success in the cross-border e-commerce industry [14] Long-term Strategy - The success of Labubu illustrates the vast market potential for trendy IPs, but it also highlights that short-term profits do not equate to sustainable business [15] - Successful sellers are those who focus on original design and brand development while adhering to compliance, rather than seeking quick profits through risky practices [15][17]