The boom was mainly driven by revenue and GMV growth as well as market expansion
BEIJING, September 8, 2021 / PRNewswire / – Enabled August 31, Joy Spreader Group Inc. (HKG: 6988, “the Group”, “Joy Spreader”), a leading marketing technology company listed in Hong Kong, held a press conference to announce its interim results for 2021, during which the short video-based (SFV) e-commerce marketing business experienced a growth spurt. During the conference, the Group’s management elaborated on the three main drivers of the company’s growth during the reporting period: the extent of growth, the quality of growth and the expansion over new markets.
The scale of growth: The SFV-based company’s e-commerce marketing business boomed in the first half of 2021. The segment maintained strong growth during the reporting period with revenues rising to 129 million Hong Kong dollars (about. US $ 16.5 million).
The strong growth is mainly attributable to the rapid ramp-up of the company’s presence on the Douyin platform, the Chinese version of Tiktok. With Douyin accelerating its expansion in the e-commerce industry over the past few years, e-commerce merchants on the new media platform have become prominent players using the interest-based recommendation algorithm. The data showed that the combined gross merchandise value (GMV) of products sold by online merchants on Douyin exceeded 500 billion yuan (about. US $ 75 billion) for the whole of 2020 and is expected to reach 1 trillion yuan (about. 150 billion dollars) in 2021.
Joy Spreader, one of the first marketing technology companies to expand into the SFV-based ecommerce industry, was also one of the first to monetize video content on Douyin, starting to do so by January 2019. Thanks to Douyin’s success in e-commerce as a whole, the Group’s e-commerce marketing activity experienced strong growth during the period under review. At Douyin June 18 shopping day, Joy Spreader realized 350 million Hong Kong dollars (about. US $ 44.8 million) in Gross Market Value (VGM) of products sold by e-merchants via the SFV platform, i.e. approximately double that recorded over the whole of the first half of 2020.
The quality of growth: The e-commerce marketing business has grown not only in scale, but also in terms of quality. For e-commerce platforms, the most important indicator is the growth of GMV. Joy Spreader achieved HK $ 647 million (about. $ 82.8 million) GMV of e-commerce products in the first half of 2021, an increase year-on-year of 264.08%. The gross profit of e-commerce product marketing activity also increased 143.31% year-on-year to reach HK $ 65.28 million (about. $ 8.3 million).
Another indicator of quality is the number of marketing points. From June 30, 2021, the number of Joy Spreader’s marketing points on Douyin rose to 657,300, up 720.23% compared to the same period in 2020. On the marketing points, 65,200 were active, up 215.93% . The average GMV of products sold in active outlets also showed a year-over-year increase of 15.24% at HK $ 9,920.44 (about. $ 1,269.8).
Market expansion: The data showed that the combined gross value of goods (VGM) of products sold through interest-based online merchants in China should reach 9.5 trillion yuan (about. US $ 1.4 trillion) in 2023. The flourishing sector opens up new possibilities for industry players, providing an unprecedented opportunity for Joy Spreader. Looking forward to further growth of the Douyin-based e-commerce market and the continuous improvement of Joy Spreader’s marketing point ecosystem on Douyin, the company’s e-commerce marketing business is well positioned for substantial new growth. In particular, the company anticipates further business expansion through the conversion of the covered marketing points in Douyin into active marketing points and an increase in the average GMV of products sold through the marketing points. At the same time, the company plans to deliver bespoke new media content to corporate clients by helping to create new media accounts and content applied to private traffic that generates traffic through strategic alliances, investments and incubation projects. The move aims to strengthen Joy Spreader’s core advantages in the SFV-based e-commerce industry.
The emergence of overseas e-commerce platforms such as TikTok has given Joy Spreader an unprecedented opportunity to expand its e-commerce marketing service to international markets. The company plans to focus on developing its international SFV-based e-commerce marketing activity through three actions that are expected to be completed in the short term:
1) establish an e-commerce marketing platform in Hainan fixed for foreign markets;
2) accelerate the construction of a closed-loop ecosystem of services adapted to international markets, with an initial focus on South East Asia;
3) create algorithms specifically for overseas markets by analyzing video content and user behavior data outside of China by leveraging the capabilities and advantages of the company to reuse algorithms used in the domestic market; at the same time set up an international team of algorithms in Sweden provide data analysis and professional support for algorithms optimized for its international activities.
Interest-based e-commerce is emerging as another important part of the e-commerce marketing industry in addition to traditional e-commerce platforms. All indicators point to a promising future for the segment. Given this scenario, Joy Spreader expects to maintain strong growth through better GMV revenue and performance in tandem with market expansion due to its proficiency in technologies as well as continued foray into the industry. e-commerce marketing based on SFV.
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SOURCE Joy Spreader Group Inc.