12 Nov YuuZoo Expands From Master to Vertical Franchisees, Sells Sports Franchise for the United Kingdom, Europe’s Largest E-Commerce Market
- In order to increase focus of its franchisee operations, YuuZoo adds football franchisees to its franchise model
- Company sells a sports franchise for the UK for US$13.3 million
- Franchise agreement targets 5.4 million new users to be part of the YuuZoo platform within 36 months
Singapore, 12th November 2015: Singapore Exchange listed YuuZoo Corporation Limited (“YuuZoo” SGX: AFC.SI), one of the world’s fastest growing third generation social e-commerce networks, has strengthened its presence in the United Kingdom by selling its first franchisee for the football sector. RM Powershot Challenge (“RPC”), a company with a firm foothold in football in the UK, has agreed to buy the UK sport franchise from YuuZoo in a share based deal valued at US$13.3 million. In line with YuuZoo’s revenue recognition policy, only half of this will initially be recognised, with the other half recognised if the franchisee reaches the agreed first 12 month targets.
The CEO of RPC, Sverker Siren has a strong track record of negotiating and signing deals with leading football clubs, monetising their fan base through mobile games. RPC already has agreements with 2015 EPL champion Chelsea FC, 2014 EPL champion Manchester City, 46-time Scottish champion Glasgow Celtic, 18-time England football champion Liverpool FC, and 12-time English FA Cup winner Arsenal FC. While the franchise initially will focus on the football segment, RPC also aims to expand into other sports such as cricket and rugby.
A key focus for the franchisee will be to sell the concept of “virtual clubhouses” to UK football clubs. In the virtual clubhouses fans can purchase fan merchandise, interact with other fans and club representatives, download and play games, share and view photos and videos, and where applicable, engage in online betting. The revenues from all these activities will be shared between the franchisee and YuuZoo.
Industry reports show that retail e-commerce sales in the UK is expected to top US$86.5 billion in 2015, helped by a strengthening economy and growing mobile commerce. From a global perspective, the UK will remain the world leader when it comes to retail e-commerce’s share of total retail sales, with its share increasing from 14.5 percent in 2015 to 19.3 percent in 2019. The UK is growing in other aspects as well, with its annual e-commerce ARPU of US$1930 , an annual digital ad spend per internet user of US$ 258.41 and a historical ARPU for football games of up to US$ 295.00.
Says YuuZoo CEO James Sundram: “The UK market is massive. At US$ 86.5 billion, it’s the largest and fastest growing e-commerce market in Western Europe and is expected to retain its position at least over the next few years. Due to its huge size, YuuZoo believes it is better to approach through this arrangement, where each franchisee we choose has a strong track record in its own vertical and is focused purely on growing our business in that area. RPC has that track record in football, from where it can expand into other sectors of sport.
Our new patent-pending gamified e-commerce solutions will be able to create a compelling new experience for the local sports consumers and businesses. We are in talks with UK franchisee candidates in other verticals and expect to sign additional agreements soon”, Sundram concludes.
Says Sverker Siren, CEO of RM Powershot Challenge: “We plan to leverage our strong relationships with the top football clubs to monetise their social media following through YuuZoo’s unique combination of social e-commerce shops, targeted social networks and games in one complete virtual clubhouse solution. We are confident we can generate significant interest among the many football clubs in the UK, and from there expand into other popular sports including rugby and cricket”, Siren says.
Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC), with access, after the recent acquisition of 26 million mobile gamers in China, to over 110 million users in 164 countries, YuuZoo in a unique way combines social networking, e-commerce, games and payments in a mobile-optimised, fully localised 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 localised for each market as comes to language as well as merchandise and design. To see the networks, log into: www.yuuzoo.com and www.yuuzoo.cn. For more information about the company, please log on to: www.yuucorp.com or www.yuuinvestor.com.
For more information, please contact: