AuMake doubles users of new social marketplace in last six months
Daigou business AuMake has confirmed users of its new social-led marketplace have grown to over 20,000, 85 per cent of which are situated in Mainland China and 63 per cent being repeat buyers.
The number of users has doubled in the last six months, when AuMake shifted its strategy during the pandemic to connect China-based influencers with Australian and New Zealand brands, and provide a way for them to share products via their audience.
“Leveraging social networks provides us with a significant advantage to our competitors in Australia, and we are increasingly tailoring our brand and product offering to appeal to younger Asian consumers,” said AuMake executive chairman Keong Chan.
“We believe our social e-commerce marketplace, which taps into the latest Chinese consumer trends such as group-buying, has the potential to change the way Australian brands connect and sell to Asian consumers.”
AuMake received strong financial backing in January 2021, when Shenzhen-based investor Steven Hu led a consortium that injected $7 million in the social marketplace.
The funds will be deployed on promoting and marketing the new online platform in Asia to increase gross merchandise volume and draw new users, as well as the continued build out of Aumake’s social e-commerce platform, including peer-to-peer review, short-form video, gamification and group buying capability.
And, the business has already seen results, with gross merchandise value up to $3.5 million – compared to the $1.9 million reported at 23 December 2020.
“We’ve been extremely active with the realignment of our entire operational team towards the new online business model, including a reduction in non-core labour expenditure and ongoing focus on the divestment of physical stores,” Chan said.
In 2019 the business acquired competitor New Zealand-based Broadway for $14.2 million, which pushed its bricks-and-mortar locations to 25. However, with the changes that have come to the retail industry, and the lack of international tourists, the business has had less and less reason to maintain a physical presence.