eCargo and McPherson’s Forge Distribution Partnership to Grow A’kin Product Line in China

Rhea-AI Summary

eCargo Holdings Limited (ASX:ECG) and McPherson’s Limited (ASX:MCP) have entered an exclusive distribution partnership for McPherson’s A’kin skincare and haircare line in China. eCargo will manage supply chain services, distribution, and eCommerce operations to boost A’kin's growth in a skincare market valued at US$22.9 billion in 2022.

The agreement spans 12 months with possibilities for extension and includes operations on Tmall Global. eCargo aims to leverage its experience in China to maximize sales and brand growth for A’kin.

Positive

• Exclusive distribution partnership with McPherson’s for A’kin products enhances market presence in China.
• eCargo's management of Tmall Global operations could significantly increase brand visibility.
• Partnership aligns with eCargo’s strategy to support brands with high growth potential in Asia.

Negative

• None.

SYDNEY--(BUSINESS WIRE)-- eCargo Holdings Limited (ASX:ECG) (“eCargo”) and McPherson’s Limited (ASX:MCP) (“McPherson’s”) are pleased to announce a distribution partnership that will see eCargo become the exclusive distributor for McPherson’s A’kin skincare and haircare line in China.

Key Highlights

• An exclusive distribution partnership agreement was signed between beauty and health retailer McPherson’s and eCargo, a retail and eCommerce partner for brands looking to grow in the Asia market. eCargo will be responsible for end-to-end supply chain services, distribution, marketing and sales as well as eCommerce operations, to accelerate the growth of A’kin in China
• Australian made and owned, A’kin has been pioneering natural skincare and haircare products for over 20 years, providing pure, high quality and effective natural beauty products that are inspired by Australia’s diverse natural landscapes and harness the power of its rich botanical nutrients
• eCargo will expand McPherson’s distribution network through cross-border online channels in mainland China, as well as online and offline distribution channels in Hong Kong & Macau
• Operations and management of McPherson’s flagship Tmall Global online store will transition to eCargo, to better tap into more than half a billion Chinese consumers on the platform
• Agreement is for a 12-month term with an option to extend on an annual basis

Commenting on the partnership, eCargo Holdings’ Chief Executive Officer Lawrence Lun said: “McPherson’s is a renowned leader within the health and beauty market in Australasia and we are excited for the opportunity to scale A’kin’s growth within the Chinese skincare and haircare market, which is estimated to account for US$22.9 billion in sales in 2022¹. Health & Beauty is a key vertical of focus for eCargo, and this partnership is consistent with our strategy of partnering with brands that have strong growth potential to scale in Asia.”

“eCargo has developed a strong niche in rapidly growing brands with an existing presence in Asia. A’kin has been sold in China for over 5 years, and we are excited to leverage our wealth of experience within both offline and online distribution to maximise sales and drive brand growth in China, like we have done for other brands.”

Jade Peak, International Commercial Director at McPherson’s said of the partnership, “We are excited to partner with eCargo and benefit from their strong capability to support and grow overseas brands in the China market.”

“The Chinese beauty market represents a key strategic growth initiative for McPherson’s, and partnering with a group that has the right skills and capabilities to help execute on this strategy is a critical step in our growth aspirations in Asia.”

About eCargo Holdings Limited

eCargo Holdings Limited (“eCargo”) is an ASX-listed company helping overseas brands grow and build their businesses in Asia. As a full-service retail and eCommerce partner, eCargo’s broad range of capabilities cover end-to-end supply chain solutions, eCommerce set up and operations, online to offline distribution, and brand marketing. eCargo has served and grew over 80 brands in the Health & Wellness, Personal Care, premium Food & Beverage, and Fashion categories.

eCargo is headquartered in Hong Kong, with offices in Shanghai, Shenzhen, and Sydney.

About McPherson’s Limited

McPherson’s, established in 1860, is a leading supplier of Health, Wellness and Beauty products in Australasia and increasingly China, with operations in Australia, New Zealand and Asia. McPherson’s markets and distributes beauty care, hair care, skin care and personal care items such as facial wipes, cotton pads and foot comfort products, as well as a range of kitchen essentials such as baking paper, cling wrap and aluminium foil.

McPherson’s owns a diversified portfolio of market leading brands, including Manicare, Lady Jayne, Dr. LeWinn’s, A'kin, Swisspers, Multix, Moosehead and Maseur, as well as managing some significant brands for agency partners.

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¹ Source: https://www.statista.com/outlook/cmo/beauty-personal-care/skin-care/china

View source version on businesswire.com: https://www.businesswire.com/news/home/20230201006129/en/

Corporate Marketing:

Jesse Lun

eCargo Holdings Limited

jesseLun@ecargo.com

+852 2233 2721

Investor Relations (Australia):

Eric Kuret

Automic Markets

eric.kuret@automicgroup.com.au

+61 417 311 335

Source: eCargo Holdings Limited

FAQ

What is the partnership between eCargo and McPherson’s about?

eCargo is the exclusive distributor for McPherson’s A’kin skincare and haircare line in China.

What will eCargo do in the new partnership?

eCargo will handle supply chain services, distribution, marketing, and eCommerce operations for A’kin.

How long is the distribution agreement between eCargo and McPherson’s?

The agreement is for 12 months with an option to extend annually.

What is the estimated size of the skincare market in China?

The skincare market in China is estimated to be worth US$22.9 billion in 2022.

How does this partnership benefit eCargo?

It allows eCargo to expand its distribution network and leverage its expertise in the Chinese market.