RooLife Group's (ASX:RLG) Managing Director Bryan Carr talks about how it matches consumer demand in China with brands who want to enter into its online market, strategy, 1H21 results and outlook. Thank you for the opportunity to introduce RooLife to a new audience today. Next slide please.
Now, it's probably very timely for us to be able to introduce RooLife now. We've just come off a record quarter, record half, and we've already forecast that we're expecting to nearly double our revenues going into this quarter. So it's quite timely to be able to get people to have a look at what we're doing as a business now. So RLG is a global digital marketing company. So we match consumer demand in China with brands who want to enter into that strong online market. And we're a global player. So we provide online marketing and sales for brands from Australia, New Zealand, UK, Europe, USA, South America. So very diversified exposure as well into that really strong e-commerce market in China.
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And the reason we're in China, it is the online shopping market there, it is the biggest in the world. AUD$2.2 trillion, 925 million online shoppers, and it's growing rapidly still. So over 12% a year growth. And China is recovering as an economy faster than anywhere else in the world. And as coming out of the COVID situation, there is such an awareness now for health and wellbeing and high quality food products. And they're the types of products that RLG is providing into that very strong market.
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Some key metrics here. Key financial metrics. Takeaways from this is if you look at closing cash position for us as a company end of December, over $5 million, so strongly capitalised. No debt. Very strong revenue growth, so $2.3 million in the last half, which is a record for us. But pleasingly and excitingly, we're talking about taking it up to $2.5 million just in this coming quarter now. So the quarter that we're actually in. So we're building very strongly. And that's coming off the back of some very strong contract wins we've had over the last 10 months. So we've consistently been able to add really strong client brands to our portfolio. We've announced that the value of those contracts, based on our hitting those sales targets, is $22 million. So that's feeding in now into this financial year and the coming financial year. That's what gives us the confidence to be able to forecast what we think we're going to do in this quarter.
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Bit more information there on the history. So really kicking this off FY19 as a business. So being able to get that strong quarter on quarter growth, up 48% quarter on quarter. Q2, now we're talking up 80% in this period now. Going into Q3, you might notice that we had a bit of a lull in FY20 Q3. That is a consequence of impact of COVID. Not on demand, but on our supply capability. So getting product from suppliers, obviously with commercial flights impacted. So we were impacted by that, but we still saw very strong demand from our customer base in China. And that's flowing through now. Year on year growth. Once again, very strong. And just to put it in context. So coming off $800,000 in FY19, able to grow that to $3.4m in FY20. And you can see how we're tracking against that now with what we're forecasting this quarter. So strong growth with still Q3, Q4 to come through. So very, very exciting times for the company, and we see greater opportunities still for growth in our future.
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I think it also helps to give a bit of an understanding about the brand journey when we bring on a new brand. So we've been consistently signing on these new brands. The first phase of launching any new product or new brand is that digital marketing, building brand awareness. And so that's the sort of month one to three for us in terms of that brand journey. Month three to six we start to build out and optimise our online marketing, our digital marketing, our pricing. And then from month seven onwards is where we really start to drive those product sales. And you'll see that that's what's now generating the strong sales growth for us. So, as you'll see, we've got four stores online there, three more stores coming online. So those four stores are just really reaching a level of maturity now to start meaningfully contribute revenue and sales. And then we've got three more that are coming on. So very strong expectations from us about how we can continue to grow this business.
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Today we released our half year report. So just confirming that growth is stacking up in revenue. And what it's being given off, coming off the back of those really strong product sales. So up 300% of product sales, that's the highly variable component for us, the highly scalable component. So our business model is based on a mixture of recurring monthly fees that we are paid by our brands. But the real blue sky opportunity for us is the commissions that we derive from promoting and selling these products online, successfully for our brands, and also for ourselves.
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Just explaining a bit more about those types of products and the distribution of them. So very strong in beauty and personal health care and health and nutrition. So, diverse range of products from around the world, but very focused on what Chinese shoppers are actively seeking now. So it's all about that personal health and grooming and health and nutrition. Some really strong names there from around the world. As I said, that's the mixture of revenue that we get. So those monthly recurring fees that we start each month and each year knowing what we've actually got as a baseline revenue, but the ability for us to sell those high demand products into such a strong market as China.
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One of the things that we do get asked about is, "How is the geopolitical situation between China and Australia affecting our business?" The answer is not at all, not at all adversely. We're seeing very strong demand. That goes for our Australian products as well as our international products. But the diversification of our global spread of client base and products, I think, also mitigates any concerns or risk in that regards there. So as I said, just to reinforce it, we are very much a global provider of products and services. So yeah, so we think we're very, very well-protected and placed for strong growth here as well.
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The Chinese online shopping market is a very mature, very developed, and quite diverse range of platforms. So our role is to very much understand the demographics of where a product and a brand sits, how we reinforce and drive the credibility and awareness for that brand. And that goes across a range of platforms, but it also gives us a diverse range of revenue streams as well. So some of those names may not be familiar, but I can assure you that they're very well entrenched and very sophisticated and mature platforms and ways to communicate with customers in China. And we're able to really access all of those in building out our sales and our brand awareness.
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That multi-channel approach I'm speaking about, obviously the e-commerce platforms form the foundation and the basis for where and how we sell these products to our online shoppers in China. But the social e-commerce component is so critically important. The way that people engage and trust and connect with brands is very much through a range of influences, live streaming, videos, people endorsing and recommending these products. So that's a very key element for us. And that's where our level of expertise resides as well, is being able to match those correct KOLs, Key Opinion Leaders, and influencers who are going to drive the sales. We also build out channels to other platforms, whereby other operators can market and sell the products that we provide via our B2B distribution networks. So giving, once again, an even bigger opportunity for scale for our brands as they enter into the Chinese market.
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What do these actually look like? So what are we delivering? So this gives you an idea of the products and how we deliver these e-commerce stores. So these stores have launched over the last six months. So Nuria, US-based cosmetic company. Colab, UK based dry shampoo product, very popular. And obviously then we have the Kiwi health with AFT Pharmaceuticals and BLIS Probiotics. Once again, health products that we expect to be in strong demand in the Chinese market. So this will give you a flavour of what it actually used that we're delivering.
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Our partnerships and our endorsement are key elements for us too. And I think that's been a key element in us securing significant contract wins during a period where none of us have been able to travel. So we've been able to engage, connect with, and launch with brands from around the world without actually physically meeting. And I think that comes from the endorsement from our client base, and also from our partners. So obviously we are a marketing partner, international marketing partner with Alipay. That gives us obviously access to the 1.2 billion active users of the Alipay accounts that are buying our products. So it's endorsement, but it also gives us a way to very easily connect, collect payment on behalf of our brands.
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This once again, just in last week, an article in Forbes Magazine about the work that we are doing with our partner, Alibaba, and also one of our clients, Nuria. So once again, we see this as very good endorsement of what we do. So for Forbes to write an article about the store that we have built and delivered on behalf of one of our clients, and to sort of confirm our relationship as a partner, is very strong endorsement for the quality of work that we deliver.
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Another key initiative that we're just launching now, obviously everyone's seen the boom around the buy now, pay later opportunity. We have partnered to use Alipay's Huabei buy now, pay later capability, which means that we are making it easier for our customer base to buy. It means that we're expecting to drive up order size, but also to be able to drive up the sales across our platforms. And I think there's, I mean everybody has seen the impact of making it easy for consumers to purchase, and that's what we're expecting to see across our range of stores as we roll out this buy now, pay later capability.
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Now, just as a bit of a summary there. What we do is provide all aspects of what a brand is required to sell online and into China. So we have very experienced digital marketing teams based here in Australia and in China. We provide all aspects of the logistics and supply chain, product registration, marketing material, pricing information, our marketing capabilities, and importantly, the ability to collect payment direct from consumers from their mobile phone and wallets, and be able to settle those payments to our clients wherever they are in the world. We're also able to identify, we have a good portfolio of social media and influencers, and an established network to reach B2B solutions for many of our clients as well. So in essence, what we become, is we become the brand in China. So we own and operate all outlets, all stores for these brands, and very much become their face in the Chinese market.
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So just in summary, just to confirm where we operate. So we're operating in that very strong, booming e-commerce market. We are providing products and services from around the world to a market which has very strong demand and is growing rapidly. We believe that the opportunity for growth, as China continues to recover, it is extremely strong. The demand for health and wellbeing products is extremely strong. And we are well capitalised, with over $5 million cash at bank, to continue to drive out secure new brands and drive this to a very strong business from a revenue and growth perspective. So please keep an eye on how we're going and the developments we're making, because we're very excited and optimistic about what we're doing as a business. So thank you very much for your time.
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