CHEERS e-Mall GMV Growth Exceeds 4,000% YoY during the 6.18 E-Commerce Shopping Festival in China

BEIJING, June 23, 2020 (GLOBE NEWSWIRE) -- Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) (“Glory Star” or the “Company”), a leading mobile and online digital media and entertainment company in China, today announced that the Gross Merchandise Value (GMV) for its CHEERS e-Mall online e-commerce platform grew by 4,009% year over year to RMB50.6 million and order volume increased by more than 780% year over year in 2020 during the 6.18 e-commerce shopping festival, a highly popular mid-year e-commerce shopping bonanza occurring annually in China.

Success with a Younger Demographic of Chinese Consumers

In an uncertain economic environment, China’s 2020 6.18 e-commerce shopping festival has provided a first look at the subtle shift in consumer behavior across the country. During the shopping festival, Glory Star successfully capitalized on the rising purchasing power and consumption desire of China’s youth. Glory Star’s increasing focus on the young Chinese consumer segment has become a cornerstone of its CHEERS e-Mall development strategy and contributes to much of its success during the 2020 6.18 shopping festival.

In the period leading up to the shopping festival, Glory Star simplified its user shopping process, introduced daily themes, and promoted various product categories to attract the youth demographics. Its promoted product categories, including computer, communication and consumer electronic products, beauty and cosmetic products, and food and beverage products, sold particularly well during the shopping festival, accounting for 63% of its total platform orders in the period.

Serving Different Market Segments

Glory Star has witnessed an acceleration in consumption growth in third-tier cities and below, such as Luoyang, Weifang, Yangzhou, Shantou, and Jinzhong, etc.  In order to capitalize on this emerging opportunity, Glory Star utilized a number of creative promotion methods, such as flash buy, friend referral discount programs, and many more during the shopping festival. Notably, purchases of F&B products mostly came from third-tier cities and below, while purchases of daily grocery items also experienced an uptick in lower-tier city markets during the shopping festival period.