Joy Spreader Improves Marketing Efficiency with Data Intelligence Advantages as E-commerce Enters an Era of Segmentation – Yahoo Finance
BEIJING, Dec. 2, 2021 /PRNewswire/ — With e-commerce firms coming close to reaching the maximum number of users in China’s first- and second-tier cities, the user dividend in high-tier cities is gradually being transformed and approaching the limit. As a result, in the third quarter, the growth of new users and revenue in the traditional e-commerce sector slowed significantly. This augurs the entry of the e-commerce sector into an era of segmentation in growth, as the new business model shifts from a focus on scale to one of improving efficiency.
Joy Spreader Group Inc. (“Joy Spreader” or the “Company”, Stock Code: 06988.HK), a leader in new media performance-based marketing, has remained deeply engaged in the short video e-commerce marketing segment and, as a result, recorded high growth for the third quarter.
In an announcement released on November 29, Joy Spreader released its unaudited results for the first three quarters of 2021, during which, revenue reached HK$945 million (approx. US$121 million), an increase of 61.07% YoY. E-commerce product marketing business based on the DouYin platform posted revenue of HK$194 million, up 300.12% YoY. The e-commerce product marketing business maintained ultra-high growth, recording gross profit of HK$108 million, up 176.87% YoY.
The ability of Joy Spreader’s e-commerce marketing business to maintain the outsized growth despite the segmentation in the whole industry was driven not only by the expanding scale of the interest-based e-commerce business on the DouYin platform, but also by the gain in efficiency due to its advantage in data intelligence.
In recent years, recommendation-based e-commerce, in particular interest-based e-commerce on the DouYin platform, has become the largest growth driver in the e-commerce sector. Since the launch of interest-based e-commerce, the DouYin e-commerce ecosystem has been expanding rapidly. According to data released by DouYin, as of October 2021, the number of brands available on the DouYin platform had doubled in comparison to early 2021. During the November 11 sales period this year, the number of shoppers placing orders on the platform increased more than 100% YoY, while the number of repeat buyers increased nearly 200%.
As soon as DouYin made its entry into the e-commerce sector, Joy Spreader was keen to grasp the opportunity. Since launching the short video-based e-commerce marketing business in 2019, the company has gained strong advantages in data and resources in terms of short video-based e-commerce on DouYin.
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Source: https://finance.yahoo.com/news/joy-spreader-improves-marketing-efficiency-085900357.html