Global Diversified Marketing Group Adopts a Digital Approach, Looks to Build New and Acquire Existing Ecommerce Assets

Rhea-AI Summary

Global Diversified Marketing Group Inc. (OTC: GDMK) announced a strategic shift towards a more digital-centric business model, aiming to increase its e-commerce sales from 10% to 90% of total revenue. This initiative responds to the growing trend in online shopping, which is projected to account for 22% of retail sales by 2025, with e-commerce revenue in the U.S. expected to exceed $1.7 trillion by 2027. CEO Paul Adler highlighted that transforming into a digital business could improve profit margins from over 30% to 60%. The company plans to enhance acquisitions and expansions in 2023 to support this digital transition.

Positive

• Shift towards a digital-centric business model targeting 90% e-commerce revenue.
• Potential improvement in profit margins from 30%+ to 60%+.
• E-commerce sector growth aligns with market trends, supporting strategic objectives.

Negative

• None.

Global Diversified Marketing Group Reveals New Business Model to Strengthen Its Digital Footprint

ISLAND PARK, N.Y., Jan. 25, 2023 (GLOBE NEWSWIRE) -- Global Diversified Marketing Group Inc., Delaware corporation (OTC: GDMK) (the “Company”) is pleased to announce that the company will start implementing a new business model that looks to expand its digital footprint. At present, 90% of business for GDMK comes from its brick-and-mortar stores and ecommerce only accounts for the remaining 10%. The goal of the new business model is to increase the percentage of digital/ecommerce business to 90% of its total sales volume. Responding to the global trend of steadily growing ecommerce sales and is all set to shift its focus on this new business model with the goal of achieving a 90/10 ratio between its digital and brick-and-mortar business with 90% being ecommerce and 10% brick-and-mortar.

In 2020, e-commerce sales accounted for over 14 percent of all retail sales in the United States and were forecast to rise to nearly 22 percent by 2025. Revenue from retail e-commerce in the United States was estimated at roughly 905 billion U.S. dollars in 2022. The Statista Digital Market Outlook forecasts that by 2027, online shopping revenue in the U.S. will exceed 1.7 trillion dollars.

A 2018 poll indicated that 56% of Americans liked the convenience of being able to find what they needed without having to go to a store. According to Pew Research, 31% of Americans admit that they remain online constantly, while 48% report going online several times a day. This explains the fact that 76% of Americans are online shoppers and 62% of them shop online regularly, which means that they make an online purchase more often than once per month.

Global Diversified Marketing Group Inc. operates as a global diversified holdings company through several divisions with one of its divisions as a global multi-line consumer packaged goods (“CPG”) with branded product lines. Another division is involved with acquiring ecommerce assets as well as private businesses in various verticals and scales them up. In order to embrace a more digital business model, GDMK has made some key acquisitions as well as expansions in 2022 and the same approach is likely to intensify in 2023.

Paul Adler, President & CEO of Global Diversified Marketing Group, stated: “About 70% of people in the USA shop online. As we are transforming our business model towards being more digital this will improve our margins from 30%+ to 60%+ and receivables will be instantly collected versus a Net 30 and Net 60 terms. This is major step because ecommerce sales for 2022 were $905 billion and it continues to show growth of double-digit numbers year over year.”

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About Global Diversified Marketing Group

Headquartered in Island Park, NY - Global Diversified Marketing Group Inc (OTC: GDMK) operates as a global diversified holdings company through several divisions with one of its divisions as a global multi-line consumer packaged goods (“CPG”) with branded product lines. Another division is involved with acquiring ecommerce assets as well as private businesses in various verticals and scales them up.

Safe Harbor Statement

Certain statements in this announcement are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, many of which, by their nature, are inherently uncertain and outside of the Company's control and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.

These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements in this news release include, but are not limited to, information concerning the ability of the Company to successfully achieve business objectives, and expectations for other economic, business, and/or competitive factors. Those assumptions and factors are based on information currently available to the Company. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the ability of the Company to develop the Company's brand and meet its growth objectives, the ability of the Company to complete acquisitions that are accretive to the Company's revenue, the ability of the Company to obtain and/or maintain licenses to operate in the jurisdictions in which it operates or in which it expects or plans to operate. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking statements and forward-looking information. The forward-looking information contained in this release is made as of the date hereof and the Company assumes no obligation to update or revise any forward-looking statements or forward-looking information that are incorporated by reference herein, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

The foregoing statements expressly qualify any forward-looking information contained herein. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Contact:

Global Diversified Marketing Group Inc

Paul Adler, Chairman, President & CEO

800-550-5996

paul@gdmginc.com

 

FAQ

What is the new business model of Global Diversified Marketing Group (GDMK)?

Global Diversified Marketing Group is shifting to a digital-centric business model, aiming to increase e-commerce sales from 10% to 90% of its total revenue.

What are the expected outcomes of GDMK's new business strategy?

The new strategy aims to improve profit margins significantly, potentially increasing them from over 30% to 60%.

How does GDMK's new business model respond to e-commerce trends?

The company is adapting to the growing e-commerce trend as online shopping in the U.S. is projected to rise significantly.

When was the new business model announced for GDMK?

The new business model was announced on January 25, 2023.