ECMOHO Limited Achieves Single-Event Single-Brand Sales Volume of RMB 2.4 Million by Utilizing “Golden” Social Media Opportunity

Rhea-AI Summary

ECMOHO Limited (Nasdaq: MOHO) has launched the KGC DreamCloud Smart Massage Chair through a live broadcast with actress Eva Huang, achieving a gross merchandise value (GMV) of RMB 2.38 million. The company reported a 50-fold increase in GMV from sales via Douyin over the past year. With China's massage appliance market growing from RMB 4.9 billion in 2010 to RMB 14.8 billion in 2020, ECMOHO aims to enhance brand visibility and sales for its partners. The company expects GMV through interest-based social media sales to exceed RMB 30 million in 2021.

Positive

• Achieved RMB 2.38 million GMV in a single live broadcast event with actress Eva Huang.
• 50-fold increase in GMV from sales via Douyin year-over-year, indicating strong consumer interest.
• Plans to exceed RMB 30 million in GMV from interest-based social media sales in 2021.

Negative

• None.

SHANGHAI, China, July 30, 2021 (GLOBE NEWSWIRE) -- ECMOHO Limited (Nasdaq: MOHO) (“ECMOHO” or the “Company”), a leading integrated solutions provider in the health and wellness market in China, recently teamed up with famous Chinese actress Eva Huang to launch the live broadcast for a brand-new line of health equipment. Its flagship KGC DreamCloud Smart Massage Chair, with its powerful and comprehensive functions, attracted nearly 2 million users, and achieved a single-event, single-brand gross merchandise value (GMV) of RMB 2.38 million. With the general rise of interest-based social media, GMV of goods sold via Douyin in the past year increased 50 times year-over-year. Many of ECMOHO’s partnership brands gained market share and sales during the June “618” event this year.

With health equipment and small health appliances being sought-after by consumers worldwide, and with China becoming the fastest growing market for massage-related products, there is ample opportunity for health appliance makers. According to China Economic Net, from 2010 to 2020, China's massage appliance market grew from RMB 4.9 billion to RMB 14.8 billion. But despite strong demand for massage products, health appliance makers face a dilemma when looking for new growth opportunities. Due to market fragmentation and dispersion of consumers’ energy and attention, it is difficult for brands to find new target customers and convert these into sales. Fortunately, ECMOHO understands the needs of brand owners for marketing opportunities, and continuously seeks new channels for promoting health products to help partner brands achieve new growth objectives.

According to data from Timon Research Institute, in 2021, 27% of consumers will switch from graphic e-commerce to live-streaming shopping, and 34% of consumers are impulse buyers who made a purchase after seeing a live broadcast or a promotion by internet celebrities. The head of the Douyin business division at ECMOHO commented: “After marketing efforts on Douyin, we have gained a deeper understanding of traffic decentralization. ECMOHO focuses on a marketing strategy that targets various consumers and uses professional content that generates consumer interest, which then turns into consumption via the "viewing to interest to sales” approach. For example, utilizing live broadcasts by actress Eva Huang, the consumers’ decision-making process was shortened significantly for big-ticket item purchases. As our business on Douyin deepens, we expect that the gross merchandise value (GMV) of interest-based social media sales in 2021 will exceed RMB 30 million.Given the trend in social media e-commerce, ECMOHO’s business growth is expected to arise from two main areas. One is in providing business solutions via Douyin for existing core, mature partner brands; the other is supporting and nurturing new brands through Douyin’s strong brand promotion and innovation capability, to develop targeted content that will reach more consumers for new brands and products. We have already successfully helped Jiangzhong Food Therapy through a four-dimensional integrated approach, utilizing our in-house broadcasting team, talent matrix, marketing campaigns, and head key opinion leaders (KOLs) to help partner brands achieve sales explosion. In the future, we will replicate this model from existing users.”

Looking forward, ECMOHO will collaborate with more KOLs, and also rely on its own multi-channel network operation teams, to accelerate the promotion of IP-based and brand-effect private domain traffic for various health brands, including KGC medical instruments. This will propel ECMOHO to become one of the most influential live-broadcast sources for health products in China, and allow it to better help partner brands realize their goals of increasing brand awareness and recognition among Chinese consumers.

About ECMOHO Ltd.

ECMOHO is a leading integrated solutions provider in the health and wellness market in China. The company curates and sells the best global brands and quality products to Chinese health-conscious consumers. Our technology, network and expertise in marketing and distribution empower us to connect families with advanced health supplements, nutrition and food items, personal care products, household healthcare equipment and other wellness products. Through over ten years of operation, ECMOHO has established an ecosystem of trusted products and relationships to provide customized solutions which promote health regeneration, impart therapeutic benefits, and increase longevity to our devoted consumers to sustain health. For more information, please visit http://ir.ecmoho.com/.

For investor and media inquiries, please contact:

ECMOHO Ltd.
Investor Relations
Email: IR@ecmoho.com

Safe Harbor Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, 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" and similar statements. 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, such as the total GMV via Douyin, the performance of KGC and Jiangzhong Food Therapy, the Company’s expectations regarding demand for and market acceptance of products via Douyin, KGC, Jiangzhong Food Therapy and the effectiveness of the Company’s targeted marketing of Douyin, KGC, Jiangzhong Food Therapy, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company 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 applicable law.

Investor Relations Agency Contact:

William Tu / Scott Powell
Skyline Corporate Communications Group, LLC
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: wtu@skylineccg.com

FAQ

What was the gross merchandise value achieved by ECMOHO's KGC DreamCloud Smart Massage Chair?

ECMOHO's KGC DreamCloud Smart Massage Chair achieved a gross merchandise value (GMV) of RMB 2.38 million during its launch.

How much did GMV from sales via Douyin increase for ECMOHO?

The GMV from sales via Douyin increased 50 times year-over-year for ECMOHO.

What is ECMOHO's expectation for social media sales GMV in 2021?

ECMOHO expects the gross merchandise value (GMV) of interest-based social media sales to exceed RMB 30 million in 2021.

Who partnered with ECMOHO for the live broadcast launch?

Actress Eva Huang partnered with ECMOHO for the live broadcast launch of the KGC DreamCloud Smart Massage Chair.