17 Mar YuuZoo Launches Social E-Commerce Network With Joint Venture Partner In Turkey, One Of Europe’s Fastest Growing Social E-Commerce Markets
Turkey has an annual e-commerce average revenue per user (ARPU) of over USD 600 and an annual digital ad spend of over USD 27 per user.
Franchise agreement targets 1 million users in 12 months, growing to 4 million users in 36 months.
Valuation done by “Big Four” auditing firm values YuuZoo’s stake in franchisee at USD2.7 million, with YuuZoo also getting 30% of the revenue from advertising, e-commerce, gaming and payments.
Singapore, 17th 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 Turkey, in joint venture with a strong local partner. This follows hot on the heels of YuuZoo’s recent announcement of launch of a complete localised version of its virtual shopping mall through a joint venture with a local partner in South Korea.
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 four auditing firm, this stake has been valued at USD2.7 million.
Turkey is one of Europe’s fastest growing e-commerce, social networking and gaming markets. According to the industry association Ecommerce Europe, Turkey’s Internet sector is a key driver of national GDP, with e-commerce accounting for 0.9% of the GDP. The average annual B2C e-commerce sales per digital buyer this year in the region is estimated to be over USD600, and the average annual digital ad spend over USD27.
Under the agreement, the franchisee has committed to reach 1 million users within 12 months from launch, and 4 million users within 36 months from launch. Assuming a highly conservative 10% of average B2C e-commerce and 15% of average digital ad spend in Turkey, 4 million active users would generate total annual topline revenues of over USD250 million 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, and to expand our global footprint at a rapid pace. 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.
“Turkey is one of the fastest growing social e-commerce and gaming markets in Europe. We are convinced that our patent-pending solutions will create for the Turkish consumers and businesses a compelling new experience which will enable the targeted user growth, and through that significant new revenue”, he further added.
Says Haluk Yalinkaya, CEO of YuuZoo’s local franchisee in Turkey: “We are very happy to bring YuuZoo here in our endeavour to advance Turkey’s Internet industry. YuuZoo’s unique combination of social e-commerce shops, targeted social networks and gaming in one complete virtual shopping mall is something that Turkish users will be very excited about. Our exclusive partnership with them, including their patent-pending mobile advertising solutions, will let us generate substantial revenue through advertising, e-commerce and gaming.”
Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC), with access to over 85 million registered users and 700 million TV viewers across 164 countries, YuuZoo in a unique way combines social networking, e-commerce and gaming 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. For more information about the company, please log on to: www.yuucorp.com