Zhejiang cross-border company Plaid: sold 4.17 million orders in one year, with an annual revenue of 700 million yuan

As the domestic market becomes increasingly competitive and saturated, going global has become an important way for many companies to break through the bottleneck of the domestic market. Zhejiang Prulde Electric Appliance Co., Ltd. (hereinafter referred to as "Prulde") is a successful example among these companies.

It not only occupies a place in the domestic market, but has also achieved remarkable results globally.In 2023, Prulde was successfully listed on the Growth Enterprise Market, with annual revenue exceeding 700 million yuan.

How did Prulde achieve this?

Prulde 2023 Listing Financial Report Source: Internet

The Global Power Tools Market Has Huge Potential

The global power tools market is huge. According to data, in 2022, the market size reached $37.3 billion. From 2022 to 2032, the compound annual growth rate of the market is 6.51%,and it is expected that by 2032, the global power tools market size will reach $65.79 billion.

Among them,North America is the world's main sales market, followed by Europe and the Asia-Pacific market, accounting for 38.65%, 32.39%, and 19.87% of the global market size, respectively.

In addition, due to advances in lithium battery technology, the cordless power tools market has developed rapidly. Data shows that since 2019,the global cordless power tools market has accounted for more than half of the global power tools market size.

All these have provided an opportunity for the development of Chinese power tool manufacturers.

Global Power Tools Market Size Rising Source: sphericalinsights

China is the main supplier of power tools in the world, with its manufacturing plants mainly concentrated in coastal cities such as Zhejiang, Jiangsu, and Guangdong provinces.

As a leader among them, Prulde has seized this growth opportunity byadopting a model that combines ODM (Original Design Manufacturing) and self-owned brand OBM (Own Brand Manufacturing), successfully entering major cross-border e-commerce platforms such as Amazon and Walmart, and further expanding brand awareness through mainstream overseas social media, achieving performance growth.

Successful Transformation from B2B to B2C

Prulde was founded in 2005 and is headquartered in Jinhua, Zhejiang. The company mainly produces and sells power tools, including dust collectors, heat guns, and other products.

Through a product matrix covering six major categories: electric heating, spraying, nail guns, blowing and suction, grinding, and steam, it meets the needs of home decoration, industrial manufacturing, construction, and garden maintenance.

Moreover,Prulde is not onlyan ODM service provider for global leading tool brands such as Stanley Black&Decker, BOSCH, Makita, etc. on theB side, but it has also actively built several self-owned brands such as NEU MASTER, PRULDE, BATAVIA,achieving a successful transformation from B-end to C-end by selling through Amazon, Walmart, and independent websites.

This is why, as mentioned in the title, the company sold 4.17 million products in 2023, with operating income exceeding 700 million yuan.

The Path to Prulde's Success

Looking back at Prulde's development over the years, its path to success is actually traceable.

First of all,Prulde's success is inseparable from its precise grasp of the market and continuous innovation.

The company combines global power tool industry trends with localized needs, continuously developing new products, especially in the field of lithium battery-powered products. Through internal training and external recruitment, Prulde has built a strong management and technical team. From 2020 to 2022, the company invested 14.4503 million yuan, 23.0185 million yuan, and 23.7644 million yuan in R&D, respectively.

The company also holds research resources such as the "Zhejiang Prulde Handheld Power Tools Research Institute" and the "Provincial High-tech Enterprise R&D Center for Power Tools", providing strong support for continuous innovation.

Secondly,in terms of marketing strategy, Prulde actively uses social media platforms to promote its own brands.

By posting product review videos on mainstream social media channels, it not only increases brand awareness and influence, but also increases product sales by providing purchase links. For example, NEU MASTER's review videos on YouTube have received very good feedback and direct traffic to Amazon purchase pages, forming a closed loop.

Source: YouTube

With the full explosion of TikTok Shop, Prulde is also actively exploring this new channel. As an important social media platform, TikTok can bring a large amount of exposure and traffic to brands. Prulde is using TikTok's influencer seeding and exposure strategies to further enhance its brand influence in overseas markets.

Source: TikTok

In terms of sales channels and capital operations, as mentioned above,Prulde adopts a model combining ODM and self-owned brand OBM, with ODM accounting for the main part.

Prulde's ODM clients include global leading tool brands and vertical retailers such as Stanley Black&Decker, BOSCH, Makita, etc. Its self-owned brand NEU MASTER performs particularly well on Amazon, becoming a Best Seller brand for electric nail guns, with several products having thousands of reviews.

In terms of capital operations, Prulde has enhanced its market competitiveness by acquiring local distributors or brands in Europe and America. In 2023, Prulde's wholly-owned subsidiary SINGAPORE PHALANX TOOLS PTE.LTD. acquired 37.5% equity of BATAVIA B.V., increasing its control over BATAVIA and leveraging its product design and European local sales channel resources to form a synergistic effect.

NEU MASTER independent website

Overall, Zhejiang Prulde Electric Appliance Co., Ltd. has achieved outstanding results in the cross-border e-commerce market through precise market selection, a comprehensive product matrix, continuous product innovation, and effective social media layout.

This successful case not only demonstrates the strength of Zhejiang enterprises, but also provides valuable experience and inspiration for other cross-border e-commerce companies.

In the future, with the continuous development of the cross-border e-commerce market, Prulde Electric Appliance is expected to continue to maintain strong growth momentum and bring more high-quality power tool products to global consumers.