Invigor Group (ASX:IVO) data analytics, pricing and loyalty solutions provider


by Anna Napoli

Invigor Group Limited (ASX:IVO) turns data into dollars for the retail and service industries. Invigor’s innovation in owned retail platforms and unique cross-channel data ecosystem allows businesses to have a holistic view of their customers and competitive landscape to not only understand, but effectively engage with today’s physical and digital consumers. Combined with proprietary data and predictive engines, Invigor Group provides strategic insights and recommendations that empower businesses to successfully influence future customer strategy and increase long-term profitability.

Anna Napoli: Hi, I'm Anna Napoli from the Finance News Network, and joining me now from Invigor Group (ASX:IVO) is CEO Gary Cohen. Gary, welcome to FNN.

Gary Cohen: Hi Anna.

Anna Napoli: Now for investors new to your company can you tell us just what Invigor Group (ASX:IVO) does?

Gary Cohen: Yes, well we are a technology company that is listed on the Australian Securities Exchange. We focus on data and we help companies, brands, retailers and the like really understand that data and how they turn that into dollars. And we have two main solutions both pricing and loyalty, and those solutions really help the customers actually understand markets and how to drive customers to them and create more revenue.

Anna Napoli: Gary, what's the market for data analytics, insights and loyalty?

Gary Cohen: Very large and growing enormously because of e-commerce and payment gateways and the like. Many brands and retailers today, especially bricks and mortar retailers, are struggling really how to make personalised offers and solutions to customers and get them coming in and competing with many online retailers.

So, the disimmediation that's occurring across the market in all these areas is really affecting the way many of the traditional companies are making money. What we do is we come and help them really drive and get them ahead of the game and really help them compete with many of the new world companies that are coming onto the scene.

Anna Napoli: Now to your products and solutions. Can you tell us more about your pricing?

Gary Cohen: So pricing Anna is a solution that is very much focused on the Australian market particularly around consumer electronics and alcohol. We have recently won an award by the National Online Retailers Association as the best pricing and analytic solution and that solution helps the retailers and the brands understand the market and what has happening to pricing across the market - whether it's their product or competitive products.

So for example, The Good Guys, which is one of our major customers, they use it for over 10,000 products across their company and understanding what is happening to the pricing of those products anywhere in Australia every day.

Anna Napoli: And, Gary, what can you tell us about loyalty?

Gary Cohen: So loyalty is our solution that complements our pricing product. It actually helps our brands and retailers really understand how to personalise offers and solutions to those customers that they would otherwise not know what they want or demand. It also helps them identify the most valuable customers. If you look at a solution that we provided for Afterpay Touch Group (ASX:APT), we really helped them understand their most valuable customers in ways that they would not otherwise know. So that is what loyalty does.

Anna Napoli: Can you explain your field service management?

Gary Cohen: That's a product that our company in Germany provides. One of our largest customers is Unitymedia which is the largest telco in Europe and that company uses our solution to manage their remote field force to actually provide services in a much more efficient way using our solution.

Anna Napoli: And can you tell us about your partnership with China’s Winning Group and Tencent Holdings (HKG:0700) which is the owner of WeChat.

Gary Cohen: Yes. So, WeChat and WeChat Pay is owned by Tencent Holdings (HKG:0700), one of the world's largest internet companies. What is interesting, and this is one of the most significant developments that have occurred in the last few months to our company, we have formed a partnership with Winning which is being used by Tencent Holdings (HKG:0700) to help globalise their business.

So, Tencent Holdings (HKG:0700) has a model to internationalise their business using partnerships, and we have if you like provided ourselves on the coattail of Winning and Tencent Holdings (HKG:0700), to actually globalise their business.

And, that operation and ability to use that partnership is actually going to drive significant revenue and growth for us in many years to come.

Anna Napoli: So, speaking of revenue let's talk about financials. Can you give us a snapshot of your company's financial position?

Gary Cohen: We have discontinued operations, and if we ignore the discontinued operations our revenue before our R&D grant is approximately this year about three million dollars.

And if you look at where it's growing it looks to grow quite significantly over the next 12 months to two years based on the WeChat partnership. So you will see significant growth in revenue based on what we're doing in Asia. Let alone what other major contracts are likely to sign in Australia.

Anna Napoli: Gary, what do you think the market is missing about your share price at the moment?

Gary Cohen: Well, we've only recently announced the WeChat partnership with Winning and Tencent Holdings (HKG:0700) and I think if and when the market sees the very substantial contracts we are about to sign in Southeast Asia with some of the leading fashion houses in the world and once those I think come through in announcement I think the market will start to really appreciate the significant uplift and opportunities, and transactional growth of revenue that will occur in the coming years.

I suppose, once that's probably understood by the market, generally and not always, but it should follow that the share price will follow.

Anna Napoli: Where would you like to see the company in 12 months time?

Gary Cohen: Well I think we’re actually on a very substantial growth path today. You know we’ve had a few difficult years. We have made major investments in technology and now it’s around sales and marketing and execution and leveraging the major opportunities provided by the WeChat Pay solution and our opportunities in Asia.

Anna Napoli: Gary Cohen, thank you for the update.

Gary Cohen: And thank you Anna.


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