BEIJING, June 23, 2020 (GLOBE NEWSWIRE) — Glory Star New Media Group Holdings Limited (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.
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