AI marketing company OpenDNA takes unorthodox step to sell stuff into China
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It’s been a busy year at OpenDNA (ASX:OPN), an AI-based consumer marketing business that has added digital marketing and a Chinese e-commerce marketplace to its offering.
And the company told investors this week about two new deals it has signed which it hopes will accelerate the latter.
About a year ago, OpenDNA had just the one business stream, an AI platform providing personalised real-time marketing and targeting of individual customers.
It worked with Endeavour Drinks, a subsidiary of Woolworths, to develop an app called Drinks Library, which utilised OpenDNA’s technology to track a customer’s drinking habits and allow them create their own ‘Drinks Library’ of “potential products tailored to their specific interests and reflecting their preferences across a wide range of situations, events and moods”.
That app was launched in late March and early April, and though it reported improved revenues and a narrower loss, it was looking for further opportunities.
In September it raised some capital and announced it was acquiring CHOOSE Digital, a digital marketing business, and RooLife, an online e-commerce marketplace for Australian businesses to sell to Chinese customers.
And now the company is going all-in on RooLife. Shares climbed as much as 67 per cent this week as OpenDNA signed deals with NNM Services, a pharmaceutical aggregator and wholesaler of health products, and Better Nature, an Australian company that makes health and wellness products.
“And preferred supplier of Netball WA and West Coast Fever,” it added.
The deal with NNM Services will see that company give OpenDNA access to its suppliers, providing it with a portfolio of products to sell on RooLife.
And it is betting on Better Nature being the key plank in its market entry into China. Better Nature’s products are “100 per cent naturally sourced, vegetarian, vegan friendly and Australian made and are expected to appeal strongly to Chinese consumers”, OpenDNA says.
OpenDNA chief Bryan Carr reckons that the Australian-made and 100 per cent natural tags will be huge hits with Chinese consumers.
“We are excited to be working with Better Nature and look forward to achieving mutual success by driving sales of their products in Australia and China,” he said.
“Better Nature’s products come highly endorsed as the supplier to high-level sporting teams, they are Australian-made and 100% natural and so are perfectly positioned to achieve success in China.
“We’re also providing an avenue for Australian health and wellbeing businesses and brands to be able to meet the significant demand from Chinese consumers for Australian skincare, vitamins, minerals and supplements.
“With our enhanced combination of online services and our hyper-personalisation engine, OpenDNA is uniquely placed to understand consumer buying behaviour and to provide a personalised shopping experience to deliver products that the consumers like and want. We look forward to updating shareholders of our further progress over the coming weeks and months.”