03 Mar YuuZoo Sells New High-Margin Franchise to Korea, Launches Social E-Commerce Network in One of the World’s Highest Grossing E-Commerce Markets
South Korea has an annual e-commerce ARPU of 1,115 USD, an annual digital ad spend of 70 USD per user and an annual app games ARPU of 63 USD.
Franchise agreements targets 8.6 million users within 36 months,growing from 1.8 million users in 12 months.
Valuation done under model designed by “Big 4” audit firm values YuuZoo’s stake in franchisee at USD9.3 million.
Singapore, 3rd March 2015: Singapore Exchange listed YuuZoo Corporation Limited (“YuuZoo” SGX: AFC), the world’s first 3rd generation social m-commerce network, today announced that it has launched a complete localised version of its virtual shopping mall in South Korea, together with a local South Korean partner.
The deal, which has been signed under a franchise model worked out by a “Big Four” auditing firm, provides YuuZoo a significant stake in the franchise company. Under this model, YuuZoo’s stake is recognized as revenue and as there is no cost also as profit. As per latest valuation report by another big auditing firm, this stake has been valued at USD9.3 million.
South Korea is one of the world’s fastest growing and most advanced e-commerce, social networking and games markets. The average annual B2C e-commerce sales per digital buyer is this year estimated to be USD1,115 , the average annual digital ad spend USD70  and the average annual games revenue per user USD63 .
Under the agreement, the franchisee has committed to reach 1.8 million users within 12 months from launch, and 8.6 million users within 36 months from launch. Assuming a highly conservative 10% of average B2C e-commerce, 10% of average digital ad spend and 10% of average annual games revenue in Korea, 8.6 million active users would generate total annual topline revenues of USD1.1 billion per annum.
Says YuuZoo Chairman & CEO Thomas Zilliacus: “We are entering overseas markets either with a franchisee or in partnership or joint venture with a strong local partner. This enables us to fully localize our virtual shopping mall for the local market. Through this business model YuuZoo becomes a unique local company in each market, optimized for the local consumer in a way no other global social e-commerce company is able to do.
South Korea is one of the most exciting social e-commerce and games markets in the world. The South Korean consumers are used to highly advanced solutions and offerings. We are convinced that our patent-pending solutions will create for the South Korean consumers and businesses a compelling new experience which will enable the user growth we have agreed on with the franchisee, and through that significant new revenue.”
Says Lawrence Choi, CEO of YuuZoo’s local franchisee in South Korea: “I am very happy to bring YuuZoo to South Korea. YuuZoo’s unique combination of social e-commerce shops, targeted social networks and games in one complete virtual shopping mall is something I am certain South Korean consumers will be very excited about. The mobile optimization and the patent-pending mobile advertising solutions, including mobile loyalty cards, will enable us to generate solid advertising revenue in addition to the revenue from e-commerce and games”, he concludes.
Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC), with access to over 85 million registered users in 164 countries, YuuZoo in a unique way combines social networking and e-commerce in a mobile-optimized, fully localized virtual shopping mall, where the consumer can access hundreds of targeted social networks, targeted shops and targeted entertainment through one single login. All networks are localized for each market as comes to language as well as merchandise and design. To see the networks, log into: www.yuuzoo.com andwww.yuuzoo.cn. For more information about the company, please log on to: www.yuucorp.com
Macquarie Capital (Singapore) Pte. Limited (“Macquarie”) was the financial adviser to W Corporation Limited (now known as YuuZoo Corporation Limited) in relation to the acquisition of the entire issued and paid-up share capital of YuuZoo Corporation and its subsidiaries.