Generally known as the primary Chinese language e-commerce platform for life-style manufacturers, Onion World on Might 7 formally went public on the New York Inventory Alternate below the ticker image “OG”, providing 12.5 million American depository shares (ADS) and attaining the utmost enhance of greater than 57%.
Onion World is a next-generation life-style model platform that incubates, markets and distributes the world’s contemporary, modern and future manufacturers to younger folks, with a novel and modern enterprise mannequin that leverages key opinion shoppers (KOC) representing a complete of almost 700,000 social media accounts.
The agency, based in 2015, presently works with over 4,000 manufacturers throughout 43 international locations and areas via varied companions and KOCs. “Our firm is positioned as a world model asset administration group,” He Shan, CFO of Onion World mentioned on the itemizing ceremony.
The prospectus demonstrates that for 2020, the group recorded annual income of over 3.8 billion yuan ($591 million), with internet income in extra of 200 million yuan ($31 million), greater than double that of 2019. The worldwide e-commerce platform had accomplished 5 separate rounds of financing by the point of going public.
A report from China Funding Corp exhibits that in response to its complete income in 2019, Onion World is the tenth-largest life-style model platform within the nation. In response to the agency’s gross merchandise worth generated by on-line cross-border retail in 2019, it locations fifth amongst about 30 related platforms offering import and export enterprise for high quality life manufacturers in China.
Over latest years, the rise of latest consumption patterns has turn into one of many scorching spots throughout capital markets. China’s metropolis dwellers aged between 18 and 35 have turn into probably the most influential shoppers inside China’s life-style manufacturers market. Onion World’s model administration mode for this particular client group is anticipated to reshape buyer conduct and lead the consumption development of high quality life merchandise.
“The rationale why we selected to recruit KOCs to promote items firstly was that I seen the existence of freelance retail consultants. When the cross-border e-commerce trade had not but taken form, that they had robust promoting abilities and strong buyer group, so we needed to discover the way to assist them function extra successfully with out hoarding items,” He Shan mentioned in an interview with Nationwide Enterprise Every day.
The flexibility of the KOCs to speak on to shoppers has allowed Onion World’s model administration crew to all the time be one step forward of market traits with a view to meet the expectations of the younger technology of shoppers.
Onion World is focusing its future growth on the city markets of third and fourth-tier cities, with the assistance of its social e-commerce mannequin.
Pan Jianyue, CMO of Onion World, mentioned in 2019 that the corporate enjoys the benefit of integrating cross-border e-commerce and social e-commerce, which might empower its manufacturers with excessive progress potential in much less developed cities via social media. Greater than 4,000 manufacturers that Onion World presently cooperates with are primarily second-tier manufacturers and area of interest stylish manufacturers.
Nevertheless, it’s unsure for the agency to rely merely on their distinctive mannequin to face out in cross-border e-commerce, which is prone to turn into crowded with different e-commerce giants sooner or later. In response to a report launched by Analysys, within the fourth quarter of 2020, the worldwide market share of Tmall, Kaola and JD.com was 37.2%, 27.5% and 14.3%, respectively.