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    Ella Ji

    Research Analyst at China Renaissance

    Ella Ji's questions to ZKH Group (ZKH) leadership

    Ella Ji's questions to ZKH Group (ZKH) leadership • Q2 2025

    Question

    Ella Ji of China Renaissance questioned ZKH's competitive advantages and primary challenges in overseas markets like the U.S. and Europe compared to local players, and asked for a potential timeline for achieving revenue and profit milestones.

    Answer

    An executive from ZKH Group outlined a two-pronged overseas strategy: 1) Establishing localized e-commerce platforms in advanced economies, leveraging a strong, low-cost supply chain and high operational efficiency. 2) Following large Chinese customers to their new overseas plants in regions like Southeast Asia and Mexico. The executive acknowledged that building a brand from scratch is a key challenge but stated the company is past the initial learning curve and expects both models to accelerate in the second half of the year, without providing a specific profitability timeline.

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    Ella Ji's questions to ZKH Group (ZKH) leadership • Q2 2025

    Question

    Ella Ji of China Renaissance questioned the strategy for the overseas business, asking about ZKH's competitive advantages against local players in the U.S. and Europe, the primary challenges faced, and any timeline for achieving revenue and profitability targets.

    Answer

    An executive outlined a dual-model approach for overseas expansion: 1) establishing localized e-commerce platforms in advanced economies like the U.S. and Europe, and 2) following large Chinese customers to their overseas plants. The main challenges are building a local brand from scratch and navigating the learning curve of new markets. Key advantages include a strong, low-cost supply chain and the high efficiency associated with Chinese entrepreneurship. The company has passed the initial learning phase and expects both models to accelerate in the second half of the year.

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    Ella Ji's questions to ZKH Group (ZKH) leadership • Q2 2025

    Question

    Ella Ji from China Renaissance questioned the company's overseas business strategy, asking about ZKH's main competitive advantages against local players in markets like the U.S., the biggest challenges faced, and any potential timeline for achieving revenue and profitability targets abroad.

    Answer

    An executive, likely CEO Eric Chen, outlined a dual-model approach for overseas expansion. The first model involves establishing localized e-commerce platforms in advanced economies like the U.S. and Europe. Key advantages here are a strong, low-cost supply chain and the high efficiency characteristic of Chinese startups, though building a local brand presents a challenge. The second model involves following large Chinese customers to their overseas facilities in regions like Southeast Asia and Latin America. The executive stated that the company is past the initial learning curve and expects both models to accelerate significantly in the second half of the year.

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