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Aumake seeing early success with influencer-focused platform - TechInvest Magazine Online

Written by Staff Writers | May 4, 2021 11:58:38 AM

ASX-listed specialty retailer Aumake Limited (ASX: AUK) has reported a significant increase in active users on its social e-commerce platform, with more than 3,400 registering since the launch of its influencer-focused WeChat mini application on 12 April. New users bring total active users on the platform to more than 27,400.

In a trading update to the ASX, Aumake said new users onboarded in April had generated more than $300,000 in Gross Merchandise Value (GMV) during the period, bringing total online GMV since initial launch in October 2020 to over $4.7 million.

Aumake said higher transaction values per order suggest most of these new active users are influencers, rather than end consumers, driven by upgraded B2B functionality. The company’s WeChat mini application has been specifically designed to support the growth of influencers and their businesses, featuring group buying, live streaming and advanced account management tools. A loyalty scheme provides influencers with better pricing, discounts and priority access to new brands and products. 

“The early response to Aumake’s WeChat mini application is encouraging, particularly as it has been marketed as an online platform specifically designed to support influencers. The upgraded B2B functionality facilitates and incentivises influencers to promote new products to their social network. This B2B2C approach is significantly different to Aumake’s competitors, who operate online platforms which predominantly target end consumers and lead on price,” the company said.

To drive active user and GMV growth, Aumake is launching a new direct marketing campaign this month, promoting 19 SKUs across skincare and health supplements through its Hangzhou social e-commerce team. Promoted brands include Aumake’s two owned brands, Juene and Herbsmart, and Rachael Finch’s Kissed Earth. Products have been shipped to a bonded warehouse in a Free Trade Zone in Ningbo, China, facilitating faster delivery, faster customs clearances and deferment of taxes and duties until goods are moved out of the Free Trade Zone.

The company also announced it had appointed Tony Guarna as its Chief Financial Officer, succeeding Peter Zhao.

Mr Guarna has more than 30 years’ financial experience and has previously held CFO and Finance Manager positions at numerous ASX-listed companies including SciDev Limited (SDV), Austral Gold Ltd (ADG) and Freedom Insurance Group Ltd (FIG).