Scienjoy Holding Corporation (“Scienjoy”, the “Company”) (NASDAQ: SJ), a leading live entertainment mobile streaming platform in China, is pleased to announce it has signed a memorandum of understanding (MOU) with Beijing Douneng Maihuo Culture Media Co., Ltd. (“Douneng Maihuo”), a prominent multi-channel network (MCN) and health e-commerce provider on Douyin. Both sides have signed the MOU to establish an official partnership and explore cooperation details. This announcement marks a substantial step in Scienjoy’s expanded presence in livestreaming e-commerce.
Douneng Maihuo stands out as one of the few MCNs in China that comprehensively covers the categories of fitness, fashion, health and weight loss. It is dedicated to establishing a health industry base and incubating and training Key Opinion Leaders (KOLs) and livestreaming broadcasters. In addition, it provides a one-stop solution for Key Opinion Consumer (KOC) training, live broadcast services, supply chain management and self-media content production. At present, Douneng Maihuo has nearly a hundred KOLs and has achieved rapid growth in 2021 with over 40x year-over-year growth in the first quarter of 2021. Douneng Maihuo has become a leading e-commerce provider on Douyin, the Chinese version of TikTok owned by ByteDance. In 2019 it was named as a top MCN in Douyin’s health and fitness category and was chosen in campaigns to introduce and recommend products to Douyin users.
Douneng Maihuo’s operations include providing famous health food brands with integrated marketing solutions, training KOLs to become leading influencers in health and fitness, and aiming to operate China’s largest private domain traffic for the health industry by aggregating fans on its health KOLs matrix. Douneng Maihuo uses precision marketing to target Chinese consumers who are concerned about health and fitness with health food and nutritional supplements brands such as BE-KIND, My Protein and Nestle.
China’s e-commerce livestreaming industry has huge room for development and a high market growth rate. According to a report on the livestreaming industry published by iResearch Consulting Group, the gross market value (GMV) of e-commerce livestreaming in China was RMB451.29 billion in 2019, accounting for 4.5% of China’s overall online shopping market. With the increasing integration between content platforms and e-commerce sales, the penetration rate of e-commerce livestreaming is forecasted to increase to 20.3% by 2022. The GMV of e-commerce livestreaming is estimated to reach RMB2.85 trillion by 2022. Furthermore, according to a report on China’s health food market released by the consulting agency Intelligence Research Group, China’s health food market is expected to reach RMB400 billion in 2021. With the increasing health awareness among Chinese consumers and the trend of more and more young consumers paying attention to health, China’s health foods market has huge potentials.
This strategic alliance will give full play to Scienjoy and Douneng Maihuo’s own resources and technological advantages. With approximately 250 million registered users and 300,000 seasoned livestreaming broadcaster, Scienjoy’s competitive operating capabilities will help Douneng Maihuo grow and maintain high private domain traffic stickiness. With the benefits of Douneng Maihuo’s MCN operation experience, vertical market advantages and public domain traffic conversion capabilities, Scienjoy can further explore different user groups, meet the needs of different vertical markets, improve the closed loop of content e-commerce monetization and develop business segments with long-term profitability.
“Content-driven e-commerce livestreaming is an important strategic step for us to build our full mobile livestreaming ecosystem. Finding partners with existing products, a large user base and operating income will help us expand our market coverage.” said Victor He, Chairman and CEO of Scienjoy on the cooperation. “We will further consider strategic partnerships that are in line with our strategy, explore and incubate new projects with high value potentials, expand market share and seek high-potential business segments, aiming to increase our market competitiveness and achieve robust performance growth.
Douneng Maihuo’s CEO Liang Cai commented, “Our strategic alliance with Scienjoy will help both parties play a greater value in the field of livestreaming collaboration. With Scienjoy’s experience in online livestreaming entertainment, we will fully integrate the upstream and downstream industry chains. We believe that this partnership will assist Douneng Maihuo in achieving our goal of becoming number one in the health category for e-commerce livestreaming.”