As autumn arrives, the cross-border e-commerce sector enters its earnings disclosure period. Several companies have released their third-quarter financial reports, showcasing diverse performances from turnaround success stories to sustained high-growth enterprises. Among them, tool manufacturer Great Star stands out with remarkable results—achieving 3.6 billion yuan in quarterly revenue. This success stems not from chance but from deliberate long-term strategic planning.
Great Star: Leading the Tools Export Market
Qiu Jianping and Wang Lingling, founders of Great Star, ranked 1083rd on the 2022 Hurun Global Rich List with a net worth of 21 billion yuan. Qiu's grassroots background and precise understanding of the tools export market enabled rapid wealth accumulation. Great Star, which surpassed 10 billion yuan in annual revenue for the first time in 2021, continues its strong growth trajectory as a leader in tool-based cross-border e-commerce.
In Q3 2023, Great Star reported revenue of 3.601 billion yuan, a 28.06% year-over-year increase, with net profit reaching approximately 622 million yuan, up 9.76% from the previous year. The company's 2021 annual revenue reached 10.92 billion yuan, while the first half of 2023 saw 6.234 billion yuan—demonstrating steady progress toward matching last year's total within three quarters.
Notably, Great Star achieved this revenue growth without sacrificing profitability, maintaining an impressive 17.25% profit margin that far exceeds industry averages. This resilience amid rising costs and shrinking orders reflects three core strategic pillars.
Three Strategic Pillars of Growth
1. Innovation-Driven R&D Focus
Specializing in hand tools, storage solutions, power tools, and laser measurement instruments primarily for Western markets, Great Star invests heavily in R&D. The company expanded its power tools line and successfully entered the home energy storage sector, diversifying beyond traditional tools. In H1 2023, R&D spending reached 150 million yuan, yielding 1,058 new product designs and over 300 patent applications—particularly in lithium battery-powered tools, which secured major U.S. retail contracts.
2. Robust Global Supply Chain
With 21 manufacturing bases worldwide and thousands of supplier partnerships, Great Star's China-centric global supply chain ensures reliable production capacity and rapid response to large orders.
3. Brand Building as Competitive Moat
The company aggressively develops proprietary brands like WORKPRO and DURATECH, which accounted for over 39% of H1 2023 sales—enhancing pricing power and customer loyalty.
Loctek's Logistics Infrastructure Push
Meanwhile, standing desk manufacturer Loctek makes bold moves in logistics infrastructure. After announcing a 200 million yuan container ship investment earlier this year, the company recently acquired 59.88 acres in California for warehouse construction (128 million yuan transaction). This follows the sale of existing U.S. warehouses to fund larger facilities—part of a global network spanning 15 warehouses across America, Germany, and Japan that generated 258 million yuan in H1 2022.
The strategy gained government endorsement in 2020 when China's Premier praised Loctek's overseas warehouse model during a video call with its CEO.
The Next Phase of Cross-Border Competition
With persistent shipping congestion, high freight costs, and Amazon FBA capacity issues, logistics efficiency remains critical. While Loctek's infrastructure investments may pressure short-term earnings, they establish long-term advantages through improved fulfillment capabilities, cost reduction, and potential rental income from excess warehouse space.
The cases of Great Star and Loctek demonstrate that sustained success in cross-border e-commerce requires product innovation, supply chain excellence, and brand differentiation. For smaller sellers, developing unique competitive advantages becomes increasingly urgent as the market evolves.
Emerging Industry Trends
Future developments will likely emphasize:
- Precision Operations: Data-driven optimization across product selection, marketing, and customer service
- Localization: Native-language support, regional payment methods, and local after-sales services
- Regulatory Compliance: Stricter adherence to international trade regulations
- Channel Diversification: Expansion beyond traditional platforms to social commerce and independent sites
- Technology Integration: AI, big data, and cloud computing applications for smarter operations
In this new era of cross-border e-commerce, only those adapting to market shifts and embracing technological advancements will achieve sustainable growth.