A provider of integrated marketing solutions in Greater China, Activation Group Holdings Limited (“Activation” or the “Company”, collectively, the “Group”, stock code: 9919), has entered into a strategic cooperation with Vision Future (Shanghai) Media Technology Co., Ltd.* (“Vision Entertainment”) to form a joint venture, in which Activation owns majority shares. The partners will together explore the huge potential of livestream e-commerce business at the forefront of the digital marketing realm in mainland China.
Pursuant to the strategic cooperation, the two parties will jointly operate DouYin key opinion leaders (“KOLs”) livestream business and DouYin brand business to serve luxury and fashionable lifestyle brands. The joint venture will marry Activation’s celebrity and brand resources with Vision Entertainment’s rich experiences in the livestream e-commerce sector to help brands expand online marketing and their e-commerce business on the DouYin platform. It will draw on its professional marketing capabilities to bring in more live e-commerce celebrities, and nurture DouYin KOLs to build a DouYin KOLs matrix. Last year, Activation founded the MCN organization Avant Plus, which with its rich experiences and resources in the fashion industry, has forged long-term cooperation with a good number of trend-setting celebrities and KOLs, including the famous actress Charmaine Sheh, the fashion blogger Jiangnan BoyNam and “Di Bai Nai Nai”, assisting them in setting up social media accounts thereby facilitate word-of-mouth marketing for fashion and luxury brands. After Avant Plus, the Group will, through such cooperation with Vision Entertainment, strive to realize commercial brand advertising by the DouYin KOLs matrix, taking and selling customers’ products through livestreaming to form a closed-loop by generating business traffic with advertising + e-commerce. And leveraging the high user stickiness on DouYin platform, the Group will earn the dividend from celebrity livestream e-commerce and create a new ecological model of celebrity livestreaming and DouYin e-commerce.
Mr. Steve Lau Kam Yiu, Joint-Chairman and Chief Executive Officer of Activation, said, “As one of the first companies to tap the power of DouYin, Vision Entertainment has extensive experience in developing livestream e-commerce business and thorough understanding of the DouYin ecology and development pattern. It has been among those topping DouYin’s integrated organization ranking for two consecutive years, and has contracts with more than 120,000 KOLs and celebrities including Zhu Zixiao, Yu Zhen and Yuan Chengjie. The company also has rich experience in operating DouYin star accounts and in livestream e-commerce cooperation, with more than 2,000 brands as long-term partners. Whereas Activation, with the luxury products and fashion industry as its focus, has built up a formidable relevant customer base. This partnership will strengthen the Group’s capabilities in live e-commerce at the frontier of digital marketing to help brands build a closed-loop business from marketing to sales. In the future, the Group will continue to, through different partnerships, step up investment in enhancing the professionalism and competitiveness of its digital marketing and brand promotion endeavors.”
In the past few years, the e-commerce agency operation services and e-commerce services markets in mainland China have continued to grow rapidly. In 2019, the total transaction of live e-commerce amounted to RMB451.29 billion, a 200% increase year-on-year, and the relatively strong growth momentum is expected to continue in the coming two years. With content platforms and e-commerce transactions become more and more integrated, the penetration rate of live broadcasts is expected to increase from 4.5% in 2019 to 20.3% in 2022. Alive to consumers’ changing spending patterns, Activation is ready to make deployment in the area, so as to help luxury and fashion brands, previously rare players in the live broadcast arena, seize the mushrooming business opportunities therein.
About Activation Group Holdings Limited
Activation Group Holdings Limited is a leading and fast-growing integrated marketing solutions provider and brand/IP operator focusing on providing in Greater China experiential marketing, digital and brand communication, and public relations services. It is the largest integrated marketing company serving luxury and trendy brands in Greater China, claiming a 7% share of the market. Its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on January 16, 2020. The Group also focuses in the IP activation and sports IP activation sectors. Sports IP activation business covers exclusive rights to organize authorized events with LaLiga Club brand and Le Tour de France brand in China. The Company has kept hastening comprehensive deployment of its digital marketing capability, including setting up the MCN organization, securing e-commerce sales of derivatives of LaLiga Club and Le Tour de France and providing effective marketing and live e-commerce services to brands, thereby build a closed loop – marketing to sales – system.
About Vision Future (Shanghai) Media Technology Co., Ltd.
As a leading multimedia display service organization in the PRC, Vision Future (Shanghai) Media Technology Co., Ltd. is committed to the star e-commerce business, with a number of branches in first-tier cities such as Beijing, Shanghai and Hangzhou. Since its establishment, it has been in a leading position in the field of star and KOL livestreaming and e-commerce businesses in the PRC. Its principal businesses include livestreaming, e-commerce, gaming, advertising, information flow, short video, etc. The company is professionally committed to the comprehensive training, packaging and publicity of signed livestreaming artists as well as the provision of first class talented hosts for its own platform and the industry through a “Star Host Training Program” in order to promote the healthy and orderly development of the livestreaming industry. With its professional operation team, it will also train up more amateur hosts and enable more stars to play an active role in livestreaming.
Media Enquiry:
Strategic Financial Relations Limited
Mandy Go +852 2864 4812 mandy.go@sprg.com.hk
Eddie Li +852 2114 4170 eddie.li@sprg.com.hk
Corinne Ho +852 2114 4911 corinne.ho@sprg.com.hk
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Topic: Press release summary