AuMake has reported an increase in transactions, sales, gross profit, own-brand sales and online traffic in Q4, which it noted is typically a subdued quarter, thanks to a strategic adjustment of its product mix.
By increasing the supply of its most popular product lines, such as infant formula and health supplements, the business saw total transactions grow to 101,000, a 27 per cent increase on the March quarter’s 79,600. Total sales grew to $13 million, up 31 per cent on last quarter’s $9.9 million.
Online sales grew 89 per cent on the March quarter, from $1.9 million to $3.6 million – making up 28 per cent of the business’s total sales. The company trialled and assessed new technologies, such as social e-commerce technology, to improve the customer experience online during the quarter – having primarily used WeChat and web-based platforms.
As a result, gross profit improved 12 per cent, from $1.7 million to $1.9 million.
“Despite existing negative sentiment towards daigou, AuMake knows how important daigou have been, and will continue to be, for the creation of new brands,” AuMake executive chairman Keong Chan said.
“We will continue to invest in the diagou channel, however, we will increasingly use technology to do this rather than traditional offline stores. This is a significant area of innovation for us and we look forward to updating the market in this regard.”
The retailer said it has made significant progress in its partnership with JD.com since launching on the platform in March. Its store has grown at an average monthly rate of over 100 per cent to June 2019, and recorded the fastest sales growth globally in the supplements category on JD.com’s annual 618 shopping festival day.
Additionally, AuMake was selected as the only Australian retailer to have a presence in JD.com’s cross-border concept store in Chongqing, China. Ten products are ranged within AuMake’s display area in the store, which include its own-brand products.
JD.com is in the process of expanding its cross-border concept stores to Xi’an, China, in September, as well as other capital cities such as Shanghai, Qingdao, and Guangzhou – which AuMake has been able to review, and take learnings from for its own future store models.
AuMake’s acquisition of Australian and New Zealand business Broadway settled in late July, which has seen improved tour-group visitation in the month of July – up 80 per cent year-on-year.
“Broadway and AuMake operational teams have been focussing on changes to the product mix (including the introduction of AuMake owned brands products), introducing online sales functionality and increasingly the number of Chinese travel agencies that in turn increases our tour group visitation,” the business said.
“Strong growth in tour group visitation is anticipated to continue, positioning Broadway as the dominant Chinese travel retailer in Australia and forming a key part of the AuMake brand building platform.”
According to the business, the June quarter signalled an important period of growth, with the strategic use of well-known products to drive transactions, as well as the continued conversion of offline traffic to AuMake’s online platform.