Datasea Enters into Agreement with U.S. Marketing Firm to Promote and Market its Innovative Intelligent Acoustics Products

Rhea-AI Summary

Datasea Inc. (NASDAQ: DTSS) has announced a marketing promotion and sales cooperation agreement with Meglio Interiors LLC to expand its footprint in the U.S. The agreement aims to develop, promote, and distribute Datasea's intelligent acoustics products in the U.S. The initial term of the agreement is two years, and Meglio will serve as one of the primary distributors of the products. Datasea plans to establish an assembly line for its products in the U.S. in the near future. The CEO, Ms. Zhixin Liu, believes that the agreement will accelerate sales growth and introduce home health products into the U.S. market, addressing everyday health and living needs.

Insights

Market Research Analyst

Entering into a sales cooperation agreement with a local distributor like Meglio Interiors LLC signifies a strategic move for Datasea Inc. to penetrate the U.S. market. The partnership is poised to leverage Meglio's established sales channels and expertise in the U.S. furniture market to boost Datasea's presence in the region. This is particularly relevant considering the growing interest in home health products within the U.S. market, which has seen an uptick due to increased health awareness among consumers.

From a market research perspective, the alignment of Datasea's product offerings with current consumer trends is critical. Their focus on air disinfection, deodorization and sleep-enhancement products taps into the rising demand for health and wellness goods. However, the success of this expansion will heavily depend on the effectiveness of Meglio's marketing strategies and the quality of Datasea's products. It's essential to monitor consumer feedback and sales data post-launch to evaluate the impact of this agreement on Datasea's market share and revenue growth.

Financial Analyst

The announcement of the partnership between Datasea and Meglio is likely to be viewed favorably by investors, as it indicates proactive steps towards expanding Datasea's market share in the U.S. and potentially increasing its revenue streams. The initial two-year term of the agreement suggests a trial period for both parties to assess the viability and profitability of the relationship. Investors should look for incremental sales growth and market penetration as key indicators of the agreement's success.

It's also noteworthy that Datasea is planning to establish an assembly line in the U.S. This could lead to reduced logistics costs and improved supply chain efficiency, which are important factors in gross margin improvement. However, investors should remain aware of the capital expenditures associated with setting up the assembly line and how it might affect Datasea's short-term financials.

Legal Expert

From a legal standpoint, the structuring of the agreement between Datasea and Meglio will be crucial in defining the scope of the partnership and the distribution of responsibilities. The two-year term provides a framework for both parties to develop a stable business relationship while also allowing room for adjustments based on the performance of the sales and marketing efforts. It is important that the agreement complies with U.S. trade regulations and intellectual property laws, especially since Datasea is a company with roots in China entering the competitive U.S. market.

Additionally, the legal framework should address potential risks, such as liability issues and dispute resolution mechanisms. Ensuring that these aspects are well-negotiated will safeguard both companies and provide a clear pathway for handling any legal challenges that might arise during the course of the partnership.

The Agreement is Expected to Expand DTSS' Footprint in the U.S. and Increase Product Sales

BEIJING, Jan. 19, 2024 /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS) ("Datasea" or the "Company"), which engages in the business segments of U.S.-based intelligent acoustics and China-based 5G messaging technology, today announced that its Delaware operating subsidiary, Datasea Acoustics LLC, has entered into a marketing promotion and sales cooperation agreement (the "Agreement") with Meglio Interiors LLC ("Meglio"), based in Chamblee, Georgia, to develop, promote and distribute the Company's intelligent acoustics products in the U.S. Datasea plans to establish an assembly line in the near future for its intelligent acoustics products in U.S, with Meglio serving as one of the primary distributors of such products. The Agreement has an initial term of two years.

Meglio has sales channels that include Atlanta, Dallas and New Jersey and broad experience in increasing sales for its clients in the U.S. Meglio has know-how in business development, marketing, sales, branding, and channel development in the U.S. furniture market, which the Company believes is an ideal fit for the Company's home health products that include air disinfection machines, bathroom and wardrobe deodorization devices, as well as sleep-enhancing products.

Ms. Zhixin Liu, CEO of Datasea, commented, "We believe that this Agreement will expand the marketing and sales of our intelligent acoustics products and introduce home health products into the U.S. market that will accelerate our sales growth. The Agreement is designed to increase our penetration into new markets worldwide and introduce our products to consumers that effectively address everyday health and living needs. We anticipate that, as a result of our cooperation with Meglio, the footprint of our intelligent acoustic products will grow and that we will experience increased demand for our products."

About Datasea Inc. 

Datasea Inc. ("Datasea") is a leading provider of products, services, and solutions for enterprise and retail customers in converging and innovative industries, Intelligent Acoustics and 5G messaging, especially focusing on ultrasonic, infrasound and directional sound technology. The Company's advanced R&D technology serves as the core infrastructure and backbone for its products. Its 5G Messaging segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies in intelligent acoustics, utilizing ultrasonic sterilization to combat viruses and prevent human infections, and is also developing innovations in directional sound and medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to mark its global presence. This underlies Datasea's commitment to Intelligent Acoustics and its intent to offer leading edge acoustic solutions to the US market. For additional information, please visit: www.dataseainc.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements  (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

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SOURCE Datasea Inc.

FAQ

What is the recent marketing promotion and sales cooperation agreement announced by Datasea Inc. (NASDAQ: DTSS)?

Datasea Inc. (NASDAQ: DTSS) has announced a marketing promotion and sales cooperation agreement with Meglio Interiors LLC to expand its footprint in the U.S. The agreement aims to develop, promote, and distribute Datasea's intelligent acoustics products in the U.S.

What is the initial term of the agreement between Datasea Inc. (NASDAQ: DTSS) and Meglio Interiors LLC?

The initial term of the agreement is two years.

What are the products that Datasea Inc. (NASDAQ: DTSS) plans to introduce into the U.S. market through the agreement with Meglio Interiors LLC?

Datasea plans to introduce its intelligent acoustics products and home health products, including air disinfection machines, bathroom and wardrobe deodorization devices, and sleep-enhancing products, into the U.S. market.

What are the expectations of Ms. Zhixin Liu, CEO of Datasea Inc. (NASDAQ: DTSS), regarding the agreement with Meglio Interiors LLC?

Ms. Zhixin Liu believes that the agreement will accelerate sales growth and introduce home health products into the U.S. market, addressing everyday health and living needs.