AuMake sees online sales growing
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Online sales now make up 30 percent of AuMake’s total sales, and they are continuing to grow.
The daigou business announced its unaudited FY19 earnings in an investor presentation on Thursday, reporting an estimated $40-45 million in revenue for the year. That’s more than double the revenue it generated in FY18 of $21 million.
The company said it is experiencing strong trading conditions even in the traditional low season of June and is anticipating significant growth from its recent Broadway acquisition, which will be effective next month.
AuMake expects own-brand sales through the Broadway channel to reach $15 million to $20 million in FY20.
In the presentation, AuMake said most of its online sales come from the Chinese social media app, WeChat.
In April, the company reported that its online customer database had grown more than six times over from 20,000 in Q3 FY18 to 130,000 in Q3 FY19.
It continues to invest heavily in its online infrastructure to maintain this growth. This includes a larger online customer service team, improvements to its various online sales platforms, such as WeChat and JD.com, and a new packaging facility.
Questions & Answers
Q.What is the primary source of AuMake's current online sales?
What is the primary source of AuMake's current online sales?
Most of AuMake's online sales are generated through the Chinese social media application, WeChat. The company has invested in its online infrastructure, including platforms like WeChat and JD.com, to support this growth.
Q.How much revenue did AuMake generate in the previous financial year, FY18?
How much revenue did AuMake generate in the previous financial year, FY18?
In FY18, AuMake generated £21 million in revenue. This figure more than doubled in FY19, with estimated revenues reaching between £40 million and £45 million, indicating significant growth for the business.
Q.How many online customers did AuMake add between Q3 FY18 and Q3 FY19?
How many online customers did AuMake add between Q3 FY18 and Q3 FY19?
AuMake significantly increased its online customer database from 20,000 in Q3 FY18 to 130,000 by Q3 FY19. This represents a growth of more than six times over the reporting period.
Q.What is AuMake's expectation for own-brand sales from its new Broadway acquisition?
What is AuMake's expectation for own-brand sales from its new Broadway acquisition?
AuMake anticipates that its Broadway acquisition, effective next month, will contribute between £15 million and £20 million in own-brand sales during the FY20 financial year. This is expected to drive significant growth.
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