One year after its implementation, leading brand Ecommerce enabler aCommerce today announced anupdate on its “aCommerce 2.0” strategic plan, the impact of the COVID-19 pandemic on its business, and key personnel appointments. Highlights include:
The Company’s successful execution of its “aCommerce 2.0” plan over the past 12 months cemented its position as an industry leader that will continue to help develop Southeast Asia’s Ecommerce ecosystem for decades to come. As part of the plan, aCommerce has strategically invested in its core brand Ecommerce technology &services, driven protocols, enhanced its end-to-end Ecommerce platform, outsourced non-core operations, and scaled back less economical contracts and business areas. As a result, the Company has far exceeded all internal targets of its “aCommerce 2.0” strategy, including achieving group profitability ahead of schedule.
Key elements of the plan include ensuring the Company:
“Our ‘aCommerce 2.0’ plan enabled us to hone our focus toapproximately 160 of our most valuable clients, significantly increasing our profitability and enabling us to grow our average revenue per client by over 120% since the first quarter of 2019. We are especially pleased to deliver strong like-for-like organic revenue growth of over 40% year-on-year from our existing long-termclients. We achieved this by both increasing volumes and average order values. Our average order value is growing at a rate of 15% year-on-year and currently stands at almost US$38. This, combined with our disciplined cost and working capital management, has enabled the Company to get close to cash flow positive. We are starting to look at long term shareholder options for the future,” said Piers Bennett, Co-Founder and Group CFO.
The outbreak of the pandemic in early 2020 presented unprecedented challenges for businesses across the globe, fundamentally changingcorporate operations and consumer behavior. The pandemic is accelerating the migration of consumer spending to online platformsand is encouraging a more rapid digital transformation withincompanies themselves. Brands are fully embracing and prioritizingomni-channel Ecommerce over traditional offline distribution channels.
This is a transformative time for the provision of all services digitally and Ecommerce in particular. As an Ecommerce enabler, aCommerce, with its integrated technology capabilities and ability to provide end-to-end data to brand partners, has managed to successfully navigate this new landscape and accelerate its “aCommerce 2.0” strategic plan.
“We have seen a very rapid and material change to our business resulting from COVID-19. Certain segments, such as consumer staples and healthcare, are seeing year-on-year growth rates well into the triple digits, however non-discretionary luxury & fashion and consumer electronics segments are also seeing year-on-year growth of up to 40% as brands look to rapidly prioritize online distribution in the face of declining traditional offline. We have also seen an increased share of sales volumes from direct-to-customer channels like social platforms, B2B, as well as company branded web-stores,or “brand.com”, which we operate - currently as much as 50% of sales, from around 20% to 30% a year ago. The decisive actions we took last year have yielded higher levels of operating leverage from our incremental revenues, which has rapidly brought forward our group profitability target,” said Paul Srivorakul, Co-Founder and Group CEO.
The Company also announced several additions to the leadership team as it positions aCommerce for its next phase of growth:
“We are delighted to welcome a seasoned senior business executive like Luca and I look forward to working with him to achieve our goal of becoming the leading high growth and cash flow generative brand Ecommerce enabler in the region. The new appointments of Peter, Phensiri and Graeme are indicative of our ability to recruit, retain and develop a strong leadership team. We have assembled a top-flight management team to continue the strong execution of ‘aCommerce 2.0’ and take us to the next level, creating lasting value for our partners, clients and employees,” concluded Mr. Srivorakul.