Outstanding results from GSMG reported today with the company's CHEERS e-commerce sales program. This demonstrates how perfectly in-tune the business plan is with present day market dynamics.
From the news:
Success with a Younger Demographic of Chinese Consumers
In an uncertain economic environment, China’s 2020 6.18 e-commerce shopping festival has provided a first look at the subtle shift in consumer behavior across the country. During the shopping festival, Glory Star successfully capitalized on the rising purchasing power and consumption desire of China’s youth. Glory Star’s increasing focus on the young Chinese consumer segment has become a cornerstone of its CHEERS e-Mall development strategy and contributes to much of its success during the 2020 6.18 shopping festival.
In the period leading up to the shopping festival, Glory Star simplified its user shopping process, introduced daily themes, and promoted various product categories to attract the youth demographics. Its promoted product categories, including computer, communication and consumer electronic products, beauty and cosmetic products, and food and beverage products, sold particularly well during the shopping festival, accounting for 63% of its total platform orders in the period.
Serving Different Market Segments
Glory Star has witnessed an acceleration in consumption growth in third-tier cities and below, such as Luoyang, Weifang, Yangzhou, Shantou, and Jinzhong, etc. In order to capitalize on this emerging opportunity, Glory Star utilized a number of creative promotion methods, such as flash buy, friend referral discount programs, and many more during the shopping festival. Notably, purchases of F&B products mostly came from third-tier cities and below, while purchases of daily grocery items also experienced an uptick in lower-tier city markets during the shopping festival period.
Meanwhile, Glory Star still maintains its strong presence in first- and second-tier cities, such as Beijing, Shanghai, Guangzhou, Changsha, and Zhengzhou, etc., from which it attracted 50% of its paying users during the shopping festival. In contrast to consumers in lower-tier city markets who generally prioritize price over quality in their purchases, consumers in first- and second-tier city markets continue to prefer quality over price. Catering to the varied consumer needs in each market segment, the Company was able to achieve success in both markets during the shopping festival.
