RooLife Group Limited (ASX:RLG) CEO Bryan Carr talks about taking global brands into the Chinese market, targeting consumers directly via a range of platforms and e-commerce solutions.Melissa Darmawan:
Hello. Melissa Darmawan for the Finance News Network. Joining me from RooLife Group (ASX:RLG)
is CEO Bryan Carr. Bryan, welcome to FNN.Bryan Carr:
Thank you, Melissa. I'm delighted to speak with you today.Melissa Darmawan:
You too. Firstly, can you start with an introduction to the company?Bryan Carr:
Yeah, sure. RooLife Group, we’re a global digital marketing and e-commerce business. So, what we do is we match the strong demand from China's online shoppers with international brands that are looking to get into this market. I mean, it's the fastest-growing, it’s the biggest online market in the world. And every business that contacts us is looking for growth. So that's what we do. We match that consumer demand in China with brands from Australia, New Zealand, the US, UK, Europe, South America. About 80 per cent of our China sales revenue now comes from brands from outside Australia.Melissa Darmawan:
Let's talk about the business. So, you did mention you've got marketplaces nearly all around the world. Is there anywhere else you operate?Bryan Carr:
We promote market on behalf of our brands globally. But our real strong focus for driving sales is in China. So, that's where we operate on a range of different platforms. Obviously there’s the well-known ones, like Alibaba, Tmall and Taobao platforms. But there's also a range of next-tier platforms that people may not have heard of, like Xiaohongshu, Little Red Book, VIP.com, Onion OMALL. These are all important and substantial platforms in their own right. Now, we're rolling out eight flagship stores right now which are the official brand stores for our clients in China. But we also operate a range of pop-up stores on various other shopping platforms.Melissa Darmawan:
Can you talk us through your revenue model?Bryan Carr:
We provide a range of services and sales. So, we generate accretive monthly service fees from all of our brands. But we also take a commission on all the products that we sell. So, we have the strong, accretive known revenues, but the great scalability of the commission side of sales as we generate them as well.Melissa Darmawan:
Let's have a look at the financials and strategy. Can you give us a snapshot from your last quarterly report?Bryan Carr:
Yeah. Really strong quarter for us. A record quarter, up 40 per cent on previous quarter revenue. And we also beat our guidance. And I guess it's also given us the confidence to see that growth for us to forecast what we believe will be another record quarter, and almost doubling of revenue to $2.5 million for the current March quarter.
So, really strongly growing, real solid base, over $5 million in cash at bank, no debt. We've got a strong portfolio with brands that we've signed on. So, we know that they're going to start contributing and continue contributing into the subsequent financial years. So, we feel like we're in a very, very strong position.Melissa Darmawan:
Now, building from that, I know you've talked about your marketplace, where you're going to be distributing. Talk us through your strategy and where to from here.Bryan Carr:
Now we're really delivering the revenue outcome of the brands that we've been signing on. So, as we bring on each online store, that revenue grows from each of those brands. And we find that that is great endorsement for us with all other brands that are looking to find growth.
So, our experience over the last 10 months is that most domestic markets have been affected adversely from the COVID-19 experience. At the same time, we’re seeing a real strong uptake in e-commerce. So, online shopping is booming. So, we find that brands that we're connecting with are eager to get into the Chinese market. So, we're matching that demand, taking them into China, but also the experience of COVID has made people even more aware of their health and wellbeing and quality food products. And they're all the things that we are delivering into the Chinese market. So, we're finding it's almost a perfect storm for us as a company right now.Melissa Darmawan:
Last question, Bryan. Is there anything else you'd like to add?Bryan Carr:
Probably just to reiterate the fact that we are operating in China is sometimes perceived… There may be adverse impacts to that. I can assure people that our experience is the opposite. We're seeing demand booming. It's the largest online shopping market in the world, over $2.2 trillion a year. It’s 925 million online shoppers. And that's growing at over 12 per cent a year.
Our brands are global brands. They are looking for growth markets, and China delivers that. What we're doing and have achieved over the last six months, we would really encourage investors to review our progress over that time period. And also look at what our projected growth for this quarter is and what the further opportunities are ahead for RLG.Melissa Darmawan:
Bryan Carr, thanks very much for the introduction.Bryan Carr:
Thank you very much. Delighted to speak with you.Ends