From "Made in China" to "Marketed by China"

China’s evolution in the global manufacturing landscape has indeed been profound. For many years, China was known primarily as the “world’s factory,” producing a wide array of low-cost goods for global consumption. However, in recent years, this narrative has shifted dramatically as Chinese companies have embraced innovation, technological advancements, and brand development.

This transformation is evident in several sectors:

1. Innovation Leadership: Chinese firms like 华为 , 小米科技 , and 比亚迪 have moved beyond mere production to becoming pioneers in fields such as 5G technology, electric vehicles, and consumer electronics. This shift has allowed Chinese companies to set trends and lead global technological advancements.

2. Quality and Advanced Manufacturing: China is no longer just producing cheaper goods. Companies are investing heavily in research and development, focusing on quality, precision, and high-performance products. Examples include advancements in areas like robotics, artificial intelligence, and green technology.

3. Branding and Global Identity: Chinese brands have grown significantly in global recognition. Companies such as 阿里巴巴集团 , 腾讯 , and 联想 are household names around the world, known not only for their products but also for their strong brand identities, customer service, and technological leadership.

4. Moving Up the Value Chain: Rather than relying on producing goods designed by others, Chinese companies are now creating their own original designs and technologies. This allows them to capture more value from the products they produce, rather than competing on price alone.

This shift reflects China’s broader economic goals of moving away from low-margin manufacturing to high-tech, high-value industries, signaling the country’s long-term strategic vision to position itself as a global innovation powerhouse.

The evolution of Chinese companies into global retail leaders is remarkable. Over the past two decades, we’ve seen three distinct phases:

Initially, China is going through the "Made in China" era (2001-2010), becoming the world’s factory — focused on production and selling through B2B channels to Western retailers, largely operating behind the scenes for international brands.?

The second phase "Sold by China"(2010-2020) saw Chinese sellers gaining momentum on platforms like 亚马逊 , where they captured significant market share but lacked direct consumer relationships.

Today, we’re in the third "Marketed by China"(2020-present) phase. Brands like Temu , TikTok Shop , and SHEIN now operate vertically integrated global e-commerce platforms, controlling the consumer experience and competing with giants like Amazon.

01VC sees this transformation in our portfolio every day. We back companies that aren't just participating in the global economy — they’re defining it. Cross-border e-commerce is a crucial battleground, and the new breed of Chinese retailers are not just competing — they’re leading.

Chinese Sellers Lead in U.S. E-Commerce

Chinese sellers have taken over Amazon U.S., with nearly 50% of the top 10,000 sellers now from China. This isn’t just about market share; it reflects the agility and strategy of Chinese companies in capturing e-commerce opportunities globally.

Consider TYMO BEAUTY , a hair straightener brush brand that might seem niche but commands a significant market presence. Then there’s Govee with its smart strip lights and UGREEN GROUP LIMITED a leader in tech accessories. These companies have mastered their product categories, showing that being a small player doesn’t preclude a big impact.

Anker Innovations LTD is perhaps one of the most compelling examples. Originally known as a simple electronics manufacturer, Anker has grown its revenue to $3 billion, with over half from portable power devices. This evolution illustrates how Chinese brands have successfully pivoted from manufacturing to innovation, leveraging Amazon’s marketplace to go global.

Shein’s rise in fast fashion is another story of disruption. Its aggressive pricing has even forced Amazon to adjust, proving that Chinese brands are now setting the pace in retail. With a projected GMV of $45 billion in 2023, Shein is a testament to how rapidly Chinese companies can grow in sectors once dominated by Western firms.

TikTok Shop is another disruptor making waves in the U.S. market. In June, the platform recorded its first million-dollar GMV from a single live stream, signaling a pivotal moment for social commerce as live-stream shopping gains traction.

The Rise of OEMs and ODMs as Global Brands

Finally, the rise of OEMs and ODMs into global brands — like Carote in cookware or Reolink in home security — is a trend that’s impossible to ignore. These companies are no longer just behind-the-scenes manufacturers. They’re establishing themselves as global names, with some generating over 70% of revenue from international markets. This evolution represents a new era for Chinese firms as they continue to expand their influence across industries worldwide.?

Emerging Trends: The Next Frontier in Cross-Border E-Commerce

The landscape of cross-border e-commerce is undergoing a seismic shift, we’re closely monitoring the trends that are reshaping this sector. With TikTok’s recent $1 million shopping stream and the ascent of platforms like Temu, it’s clear that the e-commerce paradigm is evolving beyond traditional giants like Amazon. Walmart's strategic onboarding of Chinese sellers — where 75% of new sellers hail from China — along with Amazon's introduction of its Direct-From-China model, highlights the intensifying competition in this arena.

China's burgeoning influence in the U.S. e-commerce market is becoming increasingly evident. By 2024, projections suggest that Temu and TikTok Shop will be ranked among the top five marketplaces in the U.S., surpassing Walmart in gross merchandise volume (GMV). This marks a historic achievement for Chinese retail platforms in a market that has traditionally favored domestic players.

Temu, owned by Pinduoduo, is at the forefront of this shift, offering a full-service model akin to Amazon’s Fulfillment by Amazon (FBA), but with a distinct advantage: Temu ships products directly from China to U.S. consumers. This cost-efficient approach, coupled with rapid local warehousing initiatives, is prompting Amazon to reassess its global strategy.

The surge of Chinese retail platforms is forcing established U.S. competitors to innovate or risk obsolescence. In response to the market pressures exerted by the likes of Shein and TikTok Shop, Amazon has recently slashed its commission rates in the apparel category from 17% to 5% for items priced under $15. This tactical move underscores the necessity for American platforms to adapt to a rapidly globalizing e-commerce environment.

These figures highlight an important trend: Western brands are losing ground not only in revenue but also in profitability. Chinese brands have learned to operate more efficiently while investing heavily in R&D and marketing to win over consumers globally.

The Rise of Young Chinese Brands: Competing on Quality, Not Just Price

Chinese brands are increasingly emerging as serious contenders in the global market, positioning themselves as not just affordable alternatives to Western counterparts but as innovators in solutions. A striking case in point is the comparison between iRobot and Roborock . In 2023, iRobot reported revenues of $900 million, coupled with a staggering loss of $300 million. In contrast, Roborock, a Chinese robotics firm, generated $1.2 billion in revenue and turned a profit of $280 million.

These brands are not content to thrive solely in the digital space; they are expanding offline as well. By blending successful e-commerce strategies with brick-and-mortar retail, they enhance customer engagement and foster brand loyalty. Take POP MART and MINISO USA , for example. Both have carved out significant international presences, with Popmart deriving nearly 30% of its revenue from overseas markets and Miniso operating over 2,700 stores worldwide, including 200 in the U.S.

This dual-channel strategy is transforming the narrative from "Made in China" to "Marketed by China," signaling a shift towards building robust brands that resonate with international consumers. Roborock exemplifies this evolution, surpassing iRobot in solution, quality and pricing strategies, a notable feat in a market historically dominated by Western firms.

Other sectors are also witnessing this trend; brands like Insta360 影石 are outpacing GoPro in the action camera market, while TYMO has gained bestseller status on platforms like TikTok Shop. The momentum is not limited to consumer goods; Chinese firms in fintech, SaaS, and gaming, such as XTransfer and miHoYo with its hit title Genshin Impact, are making substantial global strides.

As the landscape evolves, young Chinese brands are demonstrating that with strategic innovation and growth, they can not only compete but thrive on the global stage.? Chinese products are no longer just about affordability. They are now part of a broader trend of globalization and brand-building. The transition from “Made in China” to “Marketed by China” reflects the evolution of Chinese businesses from manufacturers to global competitors in innovation, quality, and branding. As Chinese companies continue to expand globally, they are reshaping the landscape of international trade.

About 01VC

01VC is a leading venture capital firm specializing in early-stage investments in Tech Enabled Logistics, Industrial Automation, B2B Solutions, Supply Chain and Cross Border. With a sharp focus on disruptive technologies and digital transformation, 01VC strategically partners with startups poised for scalable growth in both the Chinese and global markets. Leveraging deep industry expertise and market insight, the firm identifies and supports innovative companies that are driving the future of technology, playing a pivotal role in their development and global expansion.

01VC portfolio includes investments in Lalamove, Hai Robotics, XTransfer, Xendit, YesMRO, OkkiCRM,? Mangatoon, X-Imagimng,? CartX, TYMO, Flextail,? Bangbang Robotics, and more.