Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) (“Glory
Star” or the “Company”), a leading mobile and online digital media
and entertainment company in China, today announced that the Gross
Merchandise Value (GMV) for its CHEERS e-Mall online e-commerce
platform grew by 4,009% year over year to RMB50.6 million and order
volume increased by more than 780% year over year in 2020 during
the 6.18 e-commerce shopping festival, a highly popular mid-year
e-commerce shopping bonanza occurring annually in China.
Success with a Younger Demographic of Chinese
Consumers
In an uncertain economic environment, China’s
2020 6.18 e-commerce shopping festival has provided a first look at
the subtle shift in consumer behavior across the country. During
the shopping festival, Glory Star successfully capitalized on the
rising purchasing power and consumption desire of China’s youth.
Glory Star’s increasing focus on the young Chinese consumer segment
has become a cornerstone of its CHEERS e-Mall development strategy
and contributes to much of its success during the 2020 6.18
shopping festival.
In the period leading up to the shopping
festival, Glory Star simplified its user shopping process,
introduced daily themes, and promoted various product categories to
attract the youth demographics. Its promoted product categories,
including computer, communication and consumer electronic products,
beauty and cosmetic products, and food and beverage products, sold
particularly well during the shopping festival, accounting for 63%
of its total platform orders in the period.
Serving Different Market Segments
Glory Star has witnessed an acceleration in
consumption growth in third-tier cities and below, such as Luoyang,
Weifang, Yangzhou, Shantou, and Jinzhong, etc. In order to
capitalize on this emerging opportunity, Glory Star utilized a
number of creative promotion methods, such as flash buy, friend
referral discount programs, and many more during the shopping
festival. Notably, purchases of F&B products mostly came from
third-tier cities and below, while purchases of daily grocery items
also experienced an uptick in lower-tier city markets during the
shopping festival period.
Meanwhile, Glory Star still maintains its strong
presence in first- and second-tier cities, such as Beijing,
Shanghai, Guangzhou, Changsha, and Zhengzhou, etc., from which it
attracted 50% of its paying users during the shopping festival. In
contrast to consumers in lower-tier city markets who generally
prioritize price over quality in their purchases, consumers in
first- and second-tier city markets continue to prefer quality over
price. Catering to the varied consumer needs in each market
segment, the Company was able to achieve success in both markets
during the shopping festival.
Mr. Bing Zhang, Chairman and Chief Executive
Officer of Glory Star, commented, “We are delighted to see the fast
growth of our e-commerce business. We have successfully built up
over 15,000 SKUs and attracted more than 1,200 participant brands,
including Apple, Sony, TCL, Dyson, Dior, Estee Lauder, P&G,
Mengniu, and Yili, during the 6.18 shopping festival in 2020. Our
ability to serve a differentiated group of users and our strategic
focus on satisfying the needs of China’s younger demographic paid
off during the 2020 6.18 shopping festival. We delivered
outstanding GMV growth, boosted user shopping frequency, and ramped
up the average price per order significantly. Also, the substantial
enhancements we have made to the user interaction, production
selection, and shopping experience of our CHEERS App have helped to
boost our user loyalty, user time spent on our platform, and user
shopping frequency.
Going forward, we believe our premium content
production will continue to attract more customers with higher
purchasing power to CHEERS e-Mall. We plan to leverage our
increasing bargaining power with brand merchants to bring a massive
supply of quality goods to our 100 million users and deliver a
highly entertaining and seamless shopping experience at the same
time.”
About Glory Star New Media Group Holdings Limited
Glory Star New Media Group Holdings Limited is a
leading mobile entertainment operator in China. Glory Star’s
ability to integrate premium lifestyle content, including short
videos, online variety shows, online dramas, live streaming, its
Cheers lifestyle video series, e-Mall, and mobile app, along with
innovative e-commerce offerings on its platform enables it to
pursue its mission of enriching people’s lives. The Company’s large
and active user base creates valuable engagement opportunities with
consumers and enhances platform stickiness with thousands of
domestic and international brands.
Safe Harbor Statement
Certain statements made in this release are
“forward looking statements” within the meaning of the “safe
harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995. When used in this press release, the
words “estimates,” “projected,” “expects,” “anticipates,”
“forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,”
“will,” “should,” “future,” “propose” and variations of these words
or similar expressions (or the negative versions of such words or
expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside the Company’s control, that
could cause actual results or outcomes to differ materially from
those discussed in the forward-looking statements. Important
factors, among others, are: the ability to manage growth; ability
to identify and integrate other future acquisitions; ability to
obtain additional financing in the future to fund capital
expenditures; fluctuations in general economic and business
conditions; costs or other factors adversely affecting our
profitability; litigation involving patents, intellectual property,
and other matters; potential changes in the legislative and
regulatory environment; a pandemic or epidemic; and other factors
listed in the Company’s Annual Report on Form 10-K for the year
ending December 31, 2019 and in other filings made by the Company
with the Securities and Exchange Commission from time to time. The
Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable law.
Such information speaks only as of the date of this release.
Contact ICR Inc. Jack Wang Tel: +1 (646) 308-0546 Email:
gsnm@icrinc.com
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