Most Kwai Chung steps into eCommerce via joint venture

Magazine and online company Most Kwai Chung plans to establish two joint ventures via its wholly-owned subsidiary MCBL with retail platform HBL to expand its footprint into eCommerce, offering apparel and related products from brands overseas and homemade gift sets.

In a statement, Most Kwai Chung said it has entered into an agreement to form Mofargo, which will primarily engage in the operation of an online platform for the sale of apparel and related products from brands overseas; as well as "Bad Limited" which will primarily engage in the sale of homemade gift sets comprising a wide range of products on its online channel, providing the public with more diverse and interesting gift ideas.

Most Kwai Chung said expanding into eCommerce is to diversify its operations and income stream, as it is planning to tap into the online shopping business, where the company can leverage its expertise in analysing consumers’ preferences through data analytics, its overall mass reaches to target audience and digital capabilities to market the products on the online channels of the joint venture companies more effectively and assist in building the brand awareness of the online channels of the joint venture companies through various marketing activities.

Speaking of data analytics, Most Kwai Chung said as it has established the foundation in integrated advertising and media services since 2010. Over the years, the company has accumulated a growing number of visitors or viewers on its digital media platforms as well as experience in conducting data analytics to understand the latest trends and target audience’s preference in online engagement and formulating tailor-made advertising strategies for its customers.

In managing the joint ventures, MCBL will be responsible for assisting the design and marketing of the online channels, along with the branding design, of the joint venture companies, whereas HBL will be responsible for setting up the backend of the online channels of the joint venture companies, negotiating and communicating with the online merchants and customers, sourcing products to be sold on the online channels of the joint venture companies and managing the logistics and warehouse operation of the joint venture companies.

The joint venture in relation to Mofargo will be owned as to 60% by MCBL and 40% by HBL. Meanwhile, another joint venture which will principally engage in the sale of ingenious homemade gift sets on the website of "Bad Ltd" will be owned as to 60% by MCBL and 40% by HBL too.

Most Kwai Chung said earlier that it was expecting to have a sharp decrease in profit in the first half of this financial year starting from 1 April 2021, as its digital media and other media services segments have recorded a decrease in gross profit margin. In a statement, the company said that based on the preliminary review on the management accounts of the company for the six months ended on 30 September 2021, it is expected to record a significant year-on-year decrease of not less than 70% in the profit due to a number of reasons.

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