Onion Global Limited (“Onion Global”, the “Group” or the “Company”) (NYSE: OG), a next-generation lifestyle brand platform that incubates, markets and distributes the world’s fresh, fashionable and future brands to young people in China and across Asia, today announced the launch of “ZIPLAB”, the Group’s first New Retail showroom in Guangzhou. ZIPLAB is positioned as a multi-super brand store presenting various fashion categories. ZIPLAB will create a completely fresh offline shopping experience to lead the “New Retail, New Way and New Consumption” concept and is divided into categories according to the characteristics of young people and their consumption habits. The store will implement the new retail concept of “Three to One”, which entails in-store + online show + live broadcast experiences. The flagship store in Guangzhou is in the core shopping district, covering an area of over 350 square meters. Onion Global initially aims to display more than 200 popular brands in the store. The Group currently owns three ZIPLAB showrooms, one in Guangzhou and the other two in Hainan Province.
Expanding marketing channels to deepen brand image
China’s online traffic has entered a red sea market with increasingly fierce competition. The country’s new online users are gradually fading, leading to an increase in both the cost of acquiring traffic and monetization pressures for e-commerce platforms. Therefore, having an offline presence is an important complement to our user acquisition strategy. Onion Global is dedicated to the strategy of omni-channel marketing and incubation for brands, in which offline stores can provide a good brick-and-mortar marketing channel.
The ZIPLAB New Retail showroom is an important add-on measure for Onion Global to expand its existing sales channels from online to offline. It will help the Group build a closed-loop ecosystem for brand partners, and provide the opportunity for us to directly interact with consumers, increasing the feedback we receive for brand incubation and optimization. This will also help us improve our brand incubation capabilities and deepen our overall brand image.
It is also beneficial for the brands to have their own offline community to operate their omni-channel marketing strategy, which will help facilitate the initial phases of a brand launch and improve their overall growth prospects. Offline shopping experiences can meet the bespoke needs of consumers, thus improving brands repurchase rates and users’ engagement. Ultimately, this will lead to more solidified partnerships between Onion Global and various brands.
Digitizing brand selection empowers offline stores
Boasting a strong brand database, Onion Global has in -depth cooperation with more than 4,000 brands from 43 countries and regions. The Group also has an extensive community with over 700,000 KOCs. With hundreds of millions of purchasing behavior data points and the KOC user interaction information, the Group can leverage the data to build precise models for brand incubation tools. Currently, ZIPLAB does not only showcase popular brands representing international fashion trends, but also some of the newly launch domestic fashion brands. ZIPLAB also showcases some niche overseas brands as well. Going forward, we can accurately make procurement decisions for the offline stores based on brand retention rate data in certain segments, and we can constantly iterate the mechanisms to predict the growth. This will ultimately help us replace unpopular brands and cherry-pick the best brands globally.
Mr. Cong (Kenny) Li, Founder and CEO of Onion Global, commented, “We remain fully committed to our mission of ‘Becoming the Dream Factory of Lifestyle Brands,’ and aim to provide a better lifestyle for the younger generation by increasing our efforts for new brand incubation and predicting consumption trends. The launch of ZIPLAB enables us to create a new marketing setting from online to offline while simultaneously elevating the synergies between consumers, products, and channels. The brand platforms focusing on new consumption trends represented by Onion Global will become an important force in leading the formation of a new pattern of domestic and international ‘dual circulation’.”
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, the Company’s forecasts, general observation of the industry and business outlook, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “expects,” “anticipates,” “target,” “aim,” “future,” “intends,” “plans,” “believes,” “potential,” “estimates” “continue,” “is/are likely to,” or other similar statements. Further information regarding these and other risks is included in Onion Global’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Onion Global does not undertake any obligation to update any forward-looking statement, except as required under applicable law.