Group 1: Market Strategy and Supply Chain - The company is actively shifting its supply chain to Southeast Asia for shipments to the U.S., with approximately 40% of shipments currently coming from this region, while 87% of product orders are already placed in Southeast Asia [2] - By Q3 2025, Southeast Asia is expected to become the primary shipping base for the U.S., although there will be a transitional gap in Q2 and Q3 that may negatively impact operations [2] - The cost of sourcing furniture in Southeast Asia is about 10% higher than in China, with additional logistics costs leading to an overall increase of 25% in shipping costs compared to domestic operations [2] Group 2: Product Pricing and Inventory Management - The company has categorized its SKUs into three types: non-transferred SKUs, transferred SKUs, and transitional SKUs, with pricing strategies adjusted accordingly to maintain market share in the U.S. [4] - The original growth target for the U.S. market was set at 40% for 2025, but it has now been revised to no growth due to the transitional supply chain issues, which could impact sales by nearly 1 billion [4] - The company currently has over three months of inventory in the U.S., which is expected to help bridge the gap during the transition [4] Group 3: Competitive Landscape and Market Share - The company holds approximately 15% market share on Amazon across five European countries, with a goal to increase this to 20% by focusing on 38 key product categories [6] - There has been no significant entry of competitors into the European market, attributed to the unique operational challenges and limited logistics capacity [6] - The company plans to leverage its logistics capabilities in Europe to assist more Chinese sellers in entering the market, with an estimated potential volume of 200-300 million [9] Group 4: Logistics and Operational Efficiency - The company has secured annual shipping contracts for the European route at prices below $2,000, with provisions for renegotiation if conditions change [5] - In the U.S., the company aims to increase the proportion of self-fulfillment to 70%, with 30% still handled by FBA [6] - The company is focusing on optimizing warehouse operations and logistics efficiency, particularly in the U.S. market, to further enhance operational performance [6] Group 5: New Product Development and Marketing - The company is concentrating on launching new products in key categories while limiting the number of new SKUs to improve efficiency and reduce costs [7] - The strategy includes focusing on high-ranking products to fill important market gaps, which is expected to significantly boost sales [7] - The company is also exploring the use of AI technologies to enhance operational efficiency and reduce costs in product marketing and customer service [12]
致欧科技(301376) - 2025年4月29日投资者关系活动记录表