Shenzhen’s Reolink Sells Cameras Overseas, Generating 2 Billion in Revenue in a Year

1. Revenue Reaches 2 Billion

It is often said that one must take control of their own destiny, and for cross-border sellers, this is especially true when it comes to owning their brand and distribution channels. Shenzhen Reolink Technology serves as a prime example, having spent over a decade in the cross-border market and successfully transitioning from an OEM to a leading brand. Financial reports indicate that between 2020 and 2023, Reolink’s annual revenue surged from 960 million yuan to 2.08 billion yuan, while net profit increased from 186 million yuan to 436 million yuan, showcasing impressive growth.

Core Business Driving Growth

Founded in 2009 by Liu Xiaoyu and Wang Aijun, both of whom have technical backgrounds and prior experience with major companies like TCL, Texas Instruments, and Huawei, Reolink initially operated as an OEM, producing home security cameras for well-known international brands. As cross-border e-commerce channels began to develop, Reolink shifted its focus toward building its own brand, leading to the birth of the Reolink brand.

To quickly penetrate the market, Reolink began selling its products on platforms such as Amazon, eBay, and AliExpress, while also managing its own branded website to enhance brand recognition. Simultaneously, Reolink strategically utilized social media marketing and established a presence on major platforms like YouTube, TikTok, and Facebook. Currently, Reolink’s official social media accounts have attracted hundreds of thousands of followers.

According to Reolink’s financial reports, from 2020 to 2023, international sales accounted for over 99% of the company’s revenue, primarily focused on the European and American markets. It is evident that Reolink has thrived in the smart security sector.

Challenges Ahead

However, this heavy reliance on smart security products and the North American market poses new challenges for Reolink. The company previously submitted an IPO registration application to the Shenzhen Stock Exchange but was alerted by the listing committee about three major risks, two of which pertain to product singularity and concentrated overseas sales. Despite withdrawing its IPO application, these risks may become more pronounced, especially given the fluctuating U.S. tariff policies. This dependency on a single product and the U.S. market makes Reolink particularly vulnerable to trade policy impacts. Thus, for long-term growth, Reolink may need to explore additional revenue streams beyond its core smart security category.

2. The Necessity of Brand Expansion

Reolink’s journey underscores the critical importance of brand expansion in today’s market. Given the increasing uncertainty in trade policies, cross-border sellers must leverage proprietary products and brands to navigate their international business strategies effectively. During a spike in U.S. tariffs in April, many cross-border sellers experienced firsthand the challenges of relying on OEM manufacturing for meager profits. Major retailers like Walmart and Amazon temporarily canceled orders due to rising tariff costs, leaving suppliers unable to dispatch goods and prompting them to seek alternative solutions.

A cross-border seller operating a toy factory in Dongguan remarked that the industry had focused too heavily on processing without adapting to contemporary needs. The strain of rising tariffs has revealed the limitations of this approach, and there is a significant opportunity for change.

Learning from Successful Brands

Transitioning to brand ownership is not without its challenges, particularly for smaller cross-border sellers. Learning from the experiences of larger successful brands can be a valuable strategy. For instance, the well-known brand Anker not only offers a diverse product range but also boasts several successful sub-brands. Its audio brand, Soundcore, ranks first globally in wireless headphone shipments, and its consumer energy brand, Anker SOLIX, leads in sales.

Soundcore’s global shipping achievements illustrate that Anker’s chosen categories not only perform well in sales but also carry substantial brand recognition. This success is rooted in Anker’s consistent branding strategy. Overall, Anker focuses on three major categories: charging and energy storage, smart innovation, and smart audio-visual products. Each category encompasses multiple subcategories, each with its own brand identity.

In addition to clear brand positioning, Anker prioritizes brand promotion. Beyond standard social media marketing and advertising, Anker frequently engages in broader marketing channels such as television and sports events to build brand recognition among potential customers. For example, Anker has placed advertisements in major subway stations in New York and aired creative ads for chargers during Amazon Prime Video’s exclusive broadcasts.

It is clear that one of Anker’s key secrets to success lies in its brand expansion efforts. As the market faces intensified price wars and policy fluctuations, brand expansion will be crucial for cross-border sellers to navigate challenges effectively. As the second half of cross-border e-commerce begins, it is time to shift focus from short-term traffic competition to leveraging brand value for sustainable growth.