CHEERS e-Mall's GMV Reached RMB 240 Million during 6.18 Mid-Year Sales Event

Rhea-AI Summary

Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) reported a significant increase in the Gross Merchandise Value (GMV) of its CHEERS e-Mall during the 6.18 Shopping Festival, achieving approximately RMB 240 million, a remarkable 380% increase year over year. The festival, from June 1 to June 18, showcased over 1,100 brands and marked the independent operation of the CHEERS e-Mall. Key drivers included innovative marketing and enhanced product offerings. The company noted increased consumer engagement, especially among millennial users, solidifying its presence in China's competitive e-commerce sector.

Positive

• GMV for CHEERS e-Mall increased by 380% year-over-year to RMB 240 million during the 6.18 Shopping Festival.
• Over 1,100 brands participated, with a 30% year-over-year increase in the number of SKUs offered.
• The food category GMV rose approximately 470% year-over-year.
• Strong consumer engagement, particularly with millennial customers.

Negative

• None.

BEIJING, June 22, 2021 /PRNewswire/ -- Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) ("Glory Star" or the "Company"), a leading digital media platform and content-driven e-commerce company in China, today announced that during the Company's Mid-Year Sales Event held from June 1 to June 18, 2021 (the "6.18 Shopping Festival" or the "Mid-Year Sales Event"), the Gross Merchandise Value ("GMV") of its CHEERS e-Mall grew by approximately 380% year over year to RMB 240 million. The Company's outstanding results during the 6.18 Shopping Festival were mainly driven by its execution of innovative marketing campaigns, an increased number of stock-keeping units ("SKUs") carried by its CHEERS e-Mall, alongside quality brand selections, favorable demographic trends, and established synergies between its CHEERS e-Mall and CHEERS video application.

The 6.18 Shopping Festival was the Company's first event since the independent operation of its CHEERS e-Mall platform from its CHEERS video application. During the Mid-Year Sales Event, Glory Star broadcast a series of livestream programs on its CHEERS video application to create a live shopping experience for its CHEERS e-Mall users. These livestream programs provided the Company's CHEERS e-Mall users with a better shopping experience and more opportunities to purchase a wide variety of products in categories such as skincare products, cosmetics, and fresh produce.

In April 2021, prior to the Mid-Year Sales Event, the Company further expanded its efforts to increase its CHEERS e-MALL SKU selection and to attract more brands into the CHEERS e-Mall. As a result, over 1,100 brands participated in the 6.18 Shopping Festival, the number of SKUs that was carried by the CHEERS e-Mall increased by approximately 30% year over year, and the GMV of the CHEERS e-Mall food category also increased by approximately 470% year over year. The most popular brands included Apple, TCL, and Hisense, while the top-selling SKU categories included gold jewelry, computers, communications and consumer electronics, and home appliances.

Glory Star has witnessed an acceleration in consumption on its CHEERS e-Mall from its millennial consumers. The Company's continued focus on millennial consumers and the integration of premium lifestyle content with its e-commerce offerings has enabled the Company to solidify its strong presence in first- and second-tier cities. Order volumes were highest in the provinces of Guangdong, Shandong, Henan, Jiangsu, and Sichuan, and approximately 64% of total orders were placed by female customers.

Glory Star's CHEERS e-Mall has been gaining traction with consumers and has continuously delivered strong GMV performance for the Company since its launch in April 2019. It achieved an outstanding performance in 2020, during which its GMV grew by 581% year over year to US$132 million.

Mr. Bing Zhang, Chairman and Chief Executive Officer of Glory Star, commented, "Our CHEERS e-Mall's robust operational performance demonstrates the platform's vibrancy after making its operations independent of our CHEERS video application earlier this year. It has evolved into a new and enduring growth catalyst for Glory Star. We plan to continue allocating resources to develop more cross-business synergies, increase our market share, and bolster our competitive advantages. As we enter an era of exponential growth in the content-driven new retail industry, we remain well-positioned to capitalize on this sizable market opportunity and deliver lasting shareholder value." 

About Glory Star New Media Group Holdings Limited

Glory Star New Media Group Holdings Limited is a leading digital media platform and content-driven e-commerce company in China. Glory Star's ability to integrate premium lifestyle content, including short videos, online variety shows, online dramas, live streaming, its Cheers lifestyle video series, e-Mall, and mobile app, along with innovative e-commerce offerings on its platform enables it to pursue its mission of enriching people's lives. The Company's large and active user base creates valuable engagement opportunities with consumers and enhances platform stickiness with thousands of domestic and international brands.

Safe Harbor Statement

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking states include, but are not limited to, the Company's ability to develop its online retail and SaaS industry value chains, expand its business relationship with existing clients and continue its business growth trajectory.  These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting the Company's profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.

Contacts
Glory Star New Media Group Holdings Limited
Yida Ye
Email: yeyida@yaoshixinghui.com

ICR LLC.
Robin Yang
Tel: +1 (646) 308-0546
Email: gsnm@icrinc.com

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SOURCE Glory Star New Media Group Holdings Limited

FAQ

What was the GMV achieved by Glory Star's CHEERS e-Mall during the 6.18 Shopping Festival?

The GMV achieved was approximately RMB 240 million, reflecting a 380% increase year-over-year.

How many brands participated in Glory Star's 6.18 Shopping Festival?

Over 1,100 brands participated in the event.

What categories saw significant GMV growth during the 6.18 Shopping Festival?

The most notable growth was in the food category, which increased by approximately 470% year-over-year.

What demographic is driving sales for Glory Star's CHEERS e-Mall?

Sales are being driven primarily by millennial consumers.

When did Glory Star operate the CHEERS e-Mall independently?

The CHEERS e-Mall began its independent operations earlier in 2021, prior to the 6.18 Shopping Festival.