Besides rapid growth, what else have top merchants gained from ZHU?

By Yibang Power Jin Shuqiao

According to the Q1 2022 financial report of jewelry brand Chow Tai Seng, its revenue in 2021 reached 9.155 billion yuan, with over 4,500 stores, accelerating its online channel expansion. After communicating with the official team of Dewu, they found the young users on this app very active, perfectly aligning with their online development needs. At that time, Dewu App had been renamed for over a year and was building a new-generation trendy online shopping community, hailed as the "hottest platform."

During the 2023 Qixi Festival, a Chow Tai Seng bracelet sold out on Dewu, pushing single-day sales to an annual peak. In 2023, Chow Tai Seng's GMV growth rate on Dewu led all platforms where the brand was present. Surprisingly, the team managing such a large-scale business consists of only three people. For 2024, their GMV target on Dewu is an ultra-high growth rate of 260%.

Chow Tai Seng is not the only brand thriving on Dewu. Yibang Power revealed that last year, Dewu's GMV and segmented industries showed strong growth, driven by a wave of merchants rapidly rising and quietly profiting on the platform. Early adopters among domestic and international brands undoubtedly became some of the biggest beneficiaries. (Reference: "In the Cracks of Giants, They Choose to Make Easy Money on Dewu")

Dewu adopts a unique multi-merchant model for single products, focusing on items rather than stores. A single product can be supplied simultaneously by the brand officially, distributors, or agents. As a result, categories like footwear, apparel, bags, beauty, jewelry, accessories, and 3C appliances, which are growing rapidly, see even more staggering sales at the top.

Higher average order values, lower return rates, multi-fold growth, and substantial profit margins are attracting brands to Dewu, with many even forming dedicated teams. However, according to Xie Gongjin, CEO of Ruiwang E-commerce, rapid sales growth alone isn’t enough to convince these brands and distributors to fully commit to Dewu.

For decision-makers, joining any emerging platform isn’t a simple, impulsive decision. "They need to clarify Dewu's positioning and value in their future growth strategy," Xie Gongjin told Yibang Power. As the saying goes, "Plan before you act, and know when to stop to gain."

01. "Almost Every Merchant Exceeded Their Targets"

Xie Gongjin has been in e-commerce for 15 years, previously working at Baozun E-commerce and Nike before founding Ruiwang E-commerce in 2019. The company is now Dewu's official strategic partner, providing services like store hosting, operations, advertising, and content marketing for top and ultra-top brands.

Ruiwang E-commerce specializes in categories like footwear, apparel, bags, beauty, and light luxury, with clients including Hla Group, MLB beauty, NIVEA, MICHAEL KORS, and Zippo. Xie Gongjin noted that in 2023, all their clients achieved over 30% growth on Dewu, with some even reaching 80%-100%. He believes Dewu is a distinctive and particularly interesting platform.

Yibang Power's research found that merchants rapidly rising on Dewu fall into two main categories: well-known top and ultra-top brands/distributors finding new users, and emerging, highly stylized domestic trendy brands. Price-wise, they also show a K-shaped divergence—some top brands offer mid-to-high-priced items, while others emphasize affordability and style.

In terms of categories, fashion and sports (including footwear, apparel, bags, sports, and luxury) remain Dewu's top segment. Emerging categories like gold jewelry, beauty/personal care/home goods, and 3C appliances maintain ultra-high growth rates, all entering the "billion-yuan club." As the tide rises, so do the boats—brands on Dewu enjoy impressive growth.

In the gold jewelry category, top brands or their exclusive agents each exceeded 100 million yuan in GMV in 2023, with the entire category expected to grow 4-5 times in 2024. Demand far outstrips supply, with gold being the fastest-growing subcategory, followed by pearls and jade.

A Dewu insider told Yibang Power that the platform sets quarterly targets for merchants in this category, requiring at least a 20% sequential GMV growth rate. "Almost every merchant exceeded their targets." Jin Dasheng, introduced to Dewu by an agent in 2022, has maintained rapid growth over two years. "We still haven’t hit the ceiling." In Q1 2024, Jin Dasheng's GMV doubled sequentially.

Beauty and personal care is another fast-growing category. In November 2023, Dewu's beauty/personal care industry head revealed at a closed-door meeting that the category's compound growth rate over the past three years was nearly double, with GMV surpassing 10 billion yuan. The category is divided into luxury, premium, mass-market, and entry-level segments, with the first two accounting for over 60%.

C 咖， a rising beauty brand specializing in cleansers and skincare, ranks first in Dewu's cleanser category, with 700% GMV growth in 2023. Their Dewu team consists of just two people, who see opportunities in subcategories like masks, creams, and tinted moisturizers.

Similar trends appear in home appliances and 3C. In 2023, despite market pressures, Dewu's home appliance sales nearly doubled year-over-year, while 3C grew 200% against the trend. Subcategories like razors, hair dryers, massagers, waist supports, and sleep aids grew rapidly, while smart devices, audio/office equipment, photography, and gaming peripherals faced supply shortages.

For example, Baseus, specializing in phone accessories, joined Dewu in January 2023 and saw a 10x sales increase, creating two annual bestsellers and making Dewu its fastest-growing platform. Established domestic brand Flyco achieved over 100% GMV growth on Dewu in 2023, outpacing Tmall and Douyin.

Beyond these categories, top brands on Dewu also saw astonishing growth. Starbucks, which joined in May 2023, saw one of its water bottles sustain significant sales growth, outperforming similar platforms. Mars' Dove, an international food brand, joined in October 2023 and quickly launched three chocolate products as Christmas highlights, driving monthly GMV over 10 million yuan.

Some brands' items perform modestly elsewhere but explode on Dewu, largely due to its young user base. Across the internet, gift-giving is a major driver of mid-to-high-priced purchases, with Gen Z (students and young professionals) as the core demographic.

This is Dewu's advantage—it boasts China's youngest e-commerce users, with a 70% penetration rate among post-95 netizens. Over 90% of Dewu's users are post-90s, with a balanced gender split (52% male, 48% female).

Brands highly value this. First, Dewu's young user base dwarfs other platforms, making it essential for brands targeting youth. Second, while some viral items may not sell massively on Dewu, their trends often start there, as Dewu is a hub for trendy consumption.

"This is a barometer," Xie Gongjin said. "It helps test and reflect market trends." Items gain traction in niche circles before going mainstream, relying on professionals to identify, filter, and amplify them.

02. Top Brands' New Growth Engine

Many merchants familiar with Tmall, JD.com, or Douyin are initially lost when navigating Dewu's logic and backend.

Yibang Power found that brands join Dewu for Gen Z's purchasing power and gifting model (high AOV, low returns, high growth). After tailoring their offerings and strategies to young consumers, they achieve rapid growth.

Blue Moon, a top household brand, reported 2023 revenue of ~6.59 billion yuan (7.324 billion HKD), with online sales up 1.3% to 3.423 billion yuan, accounting for 52% of total sales. Early this year, Blue Moon's Dewu sales grew over 100%, with return rates below 2%.

First, they adjusted their offerings. Originally selling large, high-priced items (60-80 yuan), Blue Moon switched to mid-sized, bottled, and travel-sized products after realizing most users were young renters. Post-adjustment, 95% of users who favorited Blue Moon on Dewu were post-95s.

To attract Gen Z, Blue Moon previously conducted campus promotions annually. On Dewu, they engage these users with minimal effort. "Users are the foundation of operations and our top priority," a Blue Moon representative said.

Second, they revamped marketing. Traditional e-commerce revolves around events like Double 11 or 618, but Dewu users prioritize unique, year-round gifting occasions (Valentine’s Day, 520, Qixi, Christmas). Many Dewu orders are gifts, so brands focus on gift-friendly products and packaging, which also boost other items.

In 2023, Chow Tai Seng targeted students and young professionals with couple-themed jewelry. Their butterfly bracelet, packaged as a gift for Qixi, sold out quickly. "This product drove overall growth. Last year, we couldn’t keep up with demand." The item received platform promotions, while the brand leveraged unboxing videos and influencer content.

Purui, a Xiamen-based sports brand, sells youth-oriented co-branded badminton gear on Dewu. Within a year of joining in 2023, sales surpassed tens of millions. "We develop Dewu-specific products and prioritize launches there. Initially, we only sold rackets, but now we debut everything on Dewu first—backpacks, sportswear, socks. Whatever we create goes to Dewu," founder Wang Qi said.

"Dewu supports new products with traffic, so even with minimal effort, good products and listings convert. Unlike Taobao or JD, where unpaid listings go unnoticed. For example, our first hit in September 2022 flopped elsewhere but took off on Dewu."

Xie Gongjin believes brands can either overhaul design/production or optimize existing offerings. "The latter is simpler and lower-risk but still effective."

This means brands can start light—adjusting offerings and packaging, then leveraging differentiated content for traffic. While all platforms emphasize content, Dewu’s leans toward authentic user shares ("buyer shows") versus Taobao/JD’s polished "seller shows."

"On Taobao, you see what sellers want you to see. On Dewu, buyers share organically. Product pages feature real recommendations, reducing pre-purchase doubts and boosting confidence."

Most merchants report that Dewu requires simpler operations—teams of 3-4 suffice. "Out of 50+ employees, only five handle Dewu." Traditional platforms demand focus on events, categories, and promotions.

Content needs vary by category. Culturally rich products rely more on content, while staples depend on branding and promotions. However, content becomes crucial for new launches or market education.

03. "Success on Dewu Fuels Growth Elsewhere"

An agent told Yibang Power that brands often ask about Dewu’s traffic and conversion. The answer? Just check their GMV. The agent’s 2023 Dewu GMV exceeded 300 million yuan, up 900% year-over-year.

Dewu’s massive young, trend-conscious user base holds immense strategic value. Many domestic brands have rejuvenated their image on Dewu, gathering momentum there before flourishing elsewhere.

C 咖， founded in 2021 by Hanhoo Group partner and vice chairman Xiao Rongsheng, developed gift sets for Dewu’s gifting demographic. Its Dewu success later drove holiday sales on other platforms. The Dewu team now leads cross-platform holiday campaigns.

Traffic and growth remain evergreen topics. Beyond Dewu’s native traffic, many merchants redirect users from Douyin, Xiaohongshu, and Bilibili. Reasons include shorter testing cycles, longer hit lifespans, and unique promotional windows.

Most brands peak on Dewu during 520, Qixi, and Christmas, achieving staggered surges while expanding gifting scenarios. 3C, beauty, and jewelry sales during peaks triple regular periods, with shifting demographics (e.g., beauty shifts from female to male buyers during 520).

Merchants note Dewu’s user base is expanding beyond tier 1-2 cities to tier 3-5, encompassing students, professionals, and families. A top beauty brand reported near-equal gender splits in daily sales.

On Dewu, content, traffic, and products are interconnected. Surging new users and demands push the platform to expand supply. Dewu has ramped up merchant recruitment since 2023, offering perks like 30,000 yuan fee waivers, new product subsidies, and 1-on-1 support.

Brands welcome more entrants. "More brands will boost Dewu’s vibrancy and variety," Purui’s Wang Qi said. "More traffic benefits sellers. Eventually, people will think ‘Dewu’ when buying rackets."

Despite aggressive recruitment, Dewu maintains standards. "Not every applicant gets approved," Xie Gongjin said. "From my view, it’s about quality, style, and youth appeal."

Some top brands use third-party services to test waters, especially international ones. Many Dewu brands are operated by agents like Ruiwang E-commerce, Xundi, and Maya E-commerce. Using platform tools, brands access audience insights via these partners.

Meanwhile, early adopters are doubling down. Blue Moon plans to expand its Dewu team, focusing on content and livestreams. Chow Tai Seng has held strategy sessions with Dewu, setting 2024 targets and executing monthly.

Jin Dasheng’s agent noted 20%+ sequential growth in recent quarters. "In 2024, we’ll deepen our category focus and diversify materials/styles. Sustained high growth seems likely."