Often called 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 underneath 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 recent, modern and future manufacturers to younger folks, with a novel and progressive enterprise mannequin that leverages key opinion customers (KOC) representing a complete of practically 700,000 social media accounts.
The agency, based in 2015, at present works with over 4,000 manufacturers throughout 43 nations and areas by means of varied companions and KOCs. “Our firm is positioned as a worldwide model asset administration group,” He Shan, CFO of Onion World stated on the itemizing ceremony.
The prospectus demonstrates that for 2020, the group recorded annual income of over 3.8 billion yuan ($591 million), with web earnings 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 reveals that in line with its whole income in 2019, Onion World is the tenth-largest life-style model platform within the nation. In keeping with the agency’s gross merchandise worth generated by on-line cross-border retail in 2019, it locations fifth amongst about 30 comparable platforms offering import and export enterprise for high quality life manufacturers in China.
Over current years, the rise of recent consumption patterns has develop into one of many scorching spots throughout capital markets. China’s metropolis dwellers aged between 18 and 35 have develop into probably the most influential customers inside China’s life-style manufacturers market. Onion World’s model administration mode for this particular shopper group is predicted 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 business had not but taken form, that they had robust promoting abilities and strong buyer group, so we wished to discover how one can assist them function extra successfully with out hoarding items,” He Shan stated in an interview with Nationwide Enterprise Each day.
The power of the KOCs to speak on to customers has allowed Onion World’s model administration group to all the time be one step forward of market tendencies with a view to meet the expectations of the younger technology of customers.
Onion World is focusing its future improvement 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, stated 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 by means of social media. Greater than 4,000 manufacturers that Onion World at present 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 more likely to develop into crowded with different e-commerce giants sooner or later. In keeping with 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.