RooLife snags a deal to help Aussie brands sell on AliPay and gains +170pc
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The closure of borders and escalation of tensions due to COVID-19 has meant many businesses relying on Chinese consumers face-to-face, such as universities and travel agents, are feeling the pinch.
But there’s still an opportunity to reach Chinese consumers online. This morning, micro cap e-commerce stock RooLife Group (ASX:RLG) announced it has become an AliPay Marketing Partner.
AliPay, which is a subsidiary of online retailer Alibaba, helps Chinese consumers make payments digitally.
To help Australian brands reach the Chinese market, RooLife will provide digital marketing strategies (including Chinese language advertisements) and manage merchant’s marketing information.
RooLife shares more than doubled in early trade this morning.
While the company could not yet estimate the potential revenues, it anticipated Chinese consumers would flock to “high quality, safe and healthy” Australian products.
The company noted that AliPay has 1.2 billion users globally, 900 million of which were in China. Furthermore, between 60 and 80 per cent of information searches begin on eCommerce platforms such as AliPay.
“Chinese consumers prefer to use mobile payment systems and with AliPay, the world’s leading mobile and online platform,” said RooLife boss Bryan Carr.
“This [deal] provides the ability to market directly to and transact with this number of active users and presents an excellent opportunity for RooLife and Australian brands seeking to connect and transact with Chinese shoppers online.”