As global trade competition intensifies, Chinese brands are accelerating their overseas expansion at an unprecedented pace, seeking new growth opportunities. However, going global is no easy path. Establishing a sustainable presence in international markets presents real challenges for every expanding brand. This article examines two exemplary Chinese global brands—Anker and Shein—analyzing their success strategies while providing insights and risk assessments for other brands considering international expansion.
Anker: The Amazon-First Branding Strategy
Anker Innovations stands as a paradigm of successful Chinese global brands, with achievements built on deliberate strategy rather than chance. Initially gaining prominence on Amazon, Anker has evolved into a globally recognized consumer electronics brand through three core strategies: product differentiation, meticulous Amazon platform optimization, and independent website brand development. According to Anker's 2023 annual report, its overseas revenue reached 14.6 billion RMB, with North America contributing over 45%.
The company's early success stemmed from leveraging Amazon's platform while establishing technological advantages in charging products through consistent R&D investment (approximately 5.8% of annual revenue). For instance, Anker's PowerPort fast-charging series demonstrates 22% higher conversion rates than competitors. The brand heavily utilizes Amazon's FBA (Fulfillment by Amazon) service, with over 90% of shipments processed through FBA, maintaining an average delivery time of 3-5 days—a key factor in winning Amazon's Buy Box placement and subsequent sales growth.
Anker's operational excellence on Amazon manifests in sophisticated keyword strategies combining long-tail and brand terms, along with full utilization of platform marketing tools. The company achieves 100% main image video usage and an 18% conversion lift from A+ content pages. However, Anker's journey wasn't without challenges—early struggles with excessive SKUs led to 127-day inventory turnover periods before optimization reduced this to 78 days through product category focus.
Shein: Mastering DTC With Agile Supply Chains
Shein has emerged as one of the fastest-growing global fast-fashion DTC (Direct-to-Consumer) brands, achieving $32 billion GMV in 2023 with over 300 million app downloads. Its success stems from a unique business model combining ultra-responsive supply chains, data-driven product selection, and social media virality.
The brand's core advantage lies in its "small order, fast response" supply chain system, with average production cycles of 7-10 days and minimum order quantities as low as 50 pieces—enabling weekly launches exceeding 10,000 new styles. Shein's data analytics capabilities allow rapid identification of potential bestsellers by tracking social media trends, while its marketing strategy leverages micro-influencers (KOCs) rather than traditional KOLs, generating over 20 billion views under the #sheinhaul TikTok hashtag.
Operationally, Shein's proprietary ERP system integrates design, production, and logistics, achieving response speeds twice as fast as Zara. However, this model presents risks—its heavy reliance on sophisticated supply chain integration makes direct replication by smaller sellers potentially dangerous, often leading to inventory pileups. For testing purposes, smaller sellers might consider lightweight approaches like Shopify+Oberlo combinations with monthly trial costs around ¥15,000 and target ROI ≥2.5.
Platform-Dependent vs. Omnichannel: Comparing Anker and Shein
Anker and Shein represent two distinct globalization models: platform-dependent (Amazon-centric) and omnichannel brand-building (independent website-focused). These approaches differ significantly in commission structures and customer acquisition costs—while Amazon charges 5%-20% category commissions, independent websites pay only 1.5%-3% payment processing fees. However, independent websites face higher customer acquisition costs (average $28 in 2023, 67% above Amazon's).
For emerging brands, a dual-track approach often proves effective—using Amazon for product validation before directing customers to independent websites for brand development. Children's apparel brand PatPat exemplifies this strategy, ranking in Amazon's US top 10 within six months before migrating repeat customers to private channels, boosting repurchase rates from 12% to 39%.
Compliance represents another critical consideration. For instance, EU EPR (Extended Producer Responsibility) registration requires 7-10 working days for approval, with non-compliance risking product delisting and penalty points. Global brands must proactively understand and adhere to regional regulations.
Key Considerations for Global Expansion
Several common questions arise regarding international brand expansion:
Replicating Anker's Brand Strategy
Focus on single bestselling products, register for Amazon Brand Registry (7-10 day approval), and utilize A+ content with brand analytics tools. Note: Registered trademarks (R marks) are required—pending trademarks (TM) may face rejection. Budget approximately ¥2,000 for registration services.
Avoiding Independent Website Pitfalls
Never use pirated templates or images—Shopify theme plagiarism may trigger account suspensions. Opt for official marketplace paid themes (from $180) with Google Analytics and Facebook Pixel integration for data tracking.
Shein's Model for Manufacturers
Requires daily production capacity ≥5,000 items with flexible lines. Consider joining SHEIN Seller Center for OEM partnerships—initial orders require $5,000 deposits with 30-60 day payment terms.
Handling Intellectual Property Claims
Upon receiving TROs (Temporary Restraining Orders), immediately remove affected products and submit evidence within 48 hours. Proactive intellectual property insurance (annual premiums ¥8,000-15,000) helps mitigate legal risks.
Overseas Company Registration
While not mandatory, forming a US LLC improves PayPal and banking access (service fees ¥6,000-10,000, processing time 2-3 weeks). Individual merchants can use Amazon Global Selling but may face valuation disadvantages during fundraising.
The Path Forward
Global brand expansion is transitioning from traffic advantages to competition based on product quality and organizational capabilities. Building globalized supply chains coupled with localized operations will determine next-phase success. Chinese brands must continuously enhance product innovation, establish efficient supply systems, and strengthen local market expertise to achieve sustainable international growth.