This round of investment is led by L Catterton, the world’s largest investment in the consumer industry , and the old shareholders Jingwei Ventures and Alpha Commune have joined the investment . Wang Yanzhi, co-founder of Nebula Brands, said that this round of financing will be mainly used to continuously acquire Chinese brands on the Amazon platform.
Founded in 2019, Nebula Brands is committed to helping more Chinese consumer brands grow and build brands on the Amazon platform through the “capital acquisition + brand operation” model .
From 2018 to 2021, on Amazon, active Chinese brands and their GMV growth rate have become the most important driving force of the platform. About 600,000 Chinese sellers created $135 billion in GMV transactions, accounting for more than one-third of Amazon’s total market. Backed by the advantages of China’s manufacturing and supply chain, this share is expected to rise further, reaching 45% by 2025 . But at the same time, despite the huge market, Chinese sellers also have the problem of being restricted by factors such as financial strength and marketing capabilities, making it difficult to achieve branding.
As a result, Nebula Brands entered the track with a brand acquisition model, focusing on categories such as household products, personal care, fitness, beauty and pet products . These categories have a long life cycle and are easier to build brands. In addition, these categories also have great advantages in China’s supply chain , and there is more room for improvement for the acquirer. After taking over the brand, Nebula Brands will carry out a comprehensive brand planning to clarify the internal and external reasons why the original sellers cannot continue to grow, and fully consider factors such as the industry’s competitive landscape, operating team capabilities, supply chain development, capital flow and other factors. And will optimize the brand positioning, channel layout, supply chain upgrade and overseas launch , and each module will be handed over to the professional team in this field.
Wang Yanzhi said that the core competitiveness of Nebula Brands is mainly reflected in three aspects, one is a localized seller network and supply chain , the other is a professional team of Chinese and Western professionals , and the third is a digital decision-making model system .
Most of the members of the Nebula Brands team come from well-known e-commerce, technology and financial companies . At present, they have developed a due diligence framework based on data analysis , which can integrate the characteristics of Chinese sellers and simplify the acquisition process.
It is worth mentioning that, unlike overseas brand aggregation teams, Nebula Brands, as a local brand , has the advantage of localization. Since more than 70% of the product supply chain on Amazon originates from China, many different products can be integrated into the same factory for production, and even intelligent production scheduling and logistics . And most of these value creation parts require local companies to go deep into each link of the industrial belt to complete. In addition, the M&A atmosphere for Chinese SMEs is not mature. Therefore, the cultural fit also makes Nebula Brands more trustworthy when contacting sellers.
Wang Yanzhi, co-founder of Nebula Brands said:
“Chinese brands are providing more and more high-quality products and services in the international consumer market, many of which are full of potential. Nebula Brands can help them develop from a best-selling brand on Amazon to an international brand. Brand acquisition and integrated operation The model has proven to be very effective in the European and American markets.”
Chen Yue, managing partner of L Catterton Asia, said:
“The founder of Nebula Brands is very far-sighted. In a short period of time, he quickly formed an experienced team with efficient acquisition processes and channels. We look forward to the future cooperation with the team. For Nebula Brands, with our The accumulated experience, operational capabilities, professional knowledge and global influence in the industry are very important opportunities to help acquired brands continue to strengthen their business capabilities.” As the world’s largest consumer brand investment company, L Catterton currently has 17 offices worldwide The management scale is about 30 billion U.S. dollars. In the Chinese market, L Catterton has successively completed investments in Hey Tea and Yuanqi Forest this year.
Wan Haoji, partner of Jingwei Venture Capital, said:
“Since Jingwei led the investment in Nebula Brands in the A round, the company has continued to iterate and quickly formed a team with professional acquisition capabilities and brand operation capabilities, established a standardized middle-office process, and efficiently contacted and empowered China on the Amazon platform. Brands. We believe that relying on China’s supply chain advantages, and Nebula Brands’ Sino-American team background and resources, can help Chinese players to truly become branded and take them to the next level.”
Angel investor and director of Nebula Brands
Alex Jiang, founding partner of Alpha Commune, said:
“Nebula Brands is a team with great strategic ability and super execution ability. It has grown and evolved at an amazing speed. In the fast-changing e-commerce and brand fields, this ability has helped Nebula Brands to get rid of competitors and obtain the world’s largest consumer brand investment. Recognized by the company L Catterton. As an angel-led investment institution, we provide key support and work side by side in the company’s strategy, team and financing. Alpha will continue to invest in companies that make good use of technology and data to enhance China’s brand power.”
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