GUANGZHOU, China, May 9, 2021 /PRNewswire/ -- On the evening of May 7, local time in Beijing, Onion Global Limited ("Onion Global" or the "Company") , known as the first Chinese dream factory of lifestyle brands, formally went public on the New York Stock Exchange under the ticker symbol "OG", offering 12.5 million American depository shares (ADSs) at a par value up to 11.71 USD/share, achieving a maximum increase of more than 57%.
Chief Executive Officer and Director Cong (Kenny) Li, and Chief Financial Officer and Director Shan (Mio) Ho
The Company is the first among Chinese next-generation lifestyle brand platforms to go public. This offering heralds the capital market's continued bullishness on the new consumer sector and its recognition of the Company's growth potential based on its brand management model.
Onion Global Limited lists on NYSE
In recent years, the rise of new consumption patterns has become one of the focuses of the capital market. China's young urban generation, defined as the country's 284.8 million (as of the end of 2019) city dwellers aged between 18 and 35, has become the dominant force and the most influential consumer demographic in China's lifestyle brands market, with the proportion of total consumption by members of the demographic having reached 54.0% in 2019. Onion Global's brand management profolio for the demographic promises to reshape customer behavior in China, with the result that the firm fully expects to become a leader in influencing the trends guiding the consumption of quality life products and services.
Onion Global Limited is positioned as a dream factory of lifestyle brands for young people. With its distinctive strategic brand cooperation and incubation model, the Company has created a unique, global 3F (Fresh, Fashionable, Future) brand portfolio and built a closed ecosystem for management and operation of the brands in the portfolio destined for the young generation of consumers by building its own omni-channel marketing and distribution system.
The Prospectus shows that since inception in 2015, Onion Global Limited has maintained continuous and high growth in earnings. For 2020, the Company booked annual revenue in excess of 3.8 billion yuan yielding a net profit of over 200 million yuan, more than double that of 2019. Among firms globally specializing in brand management, the results are viewed as outstanding.
According to a report from China Investment Corp (CIC), for 2019, Onion Global Limited ranked among the top ten global lifestyle brand platforms of gross merchandise value (GMV) overall, and among the top five cross-border e-commerce platforms. Onion Global Limited placed fifth among the approximately 30 cross-border platforms in China that include quality lifestyle brand import/export businesses in their portfolios.
The core competency behind Onion Global Limited is its keen market insight and brand incubation capabilities. "Strategic affiliation, brand agency, investment control and innovative independent research are the four hallmarks that define the Company's mission, while the Company has, to date, concluded agreements with more than 4,000 brands in 43 countries and regions. Onion Global Limited's expanding independent research brand portfolio covers 23 major lifestyle product categories, with the team of portfolio managers constantly enhancing its awareness and understanding of the latest trends across market segments, quality supply chains and vendor resources through collaborative efforts. Meanwhile, Onion Global's unique and new traffic generator comprised of key opinion consumers (KOCs), who, in the aggregate, represent nearly 700,000 social media accounts, has replaced traditional marketing channels. The ability of the KOCs to talk directly to consumers has allowed Onion Global's brand management team to always be one step ahead of market trends, meeting the expectations of the young generation of consumers in terms of lifestyle brands while further and rapidly accumulating and consolidating brand incubation capabilities.
"Looking ahead, in an effort to acquire new customers, the Company plans to integrate the resources of upstream global manufacturing and processing facilities and product R&D labs, while aggressively expanding its own channels, in a move to give full play to the advantages of downstream omni-channel and other new marketing solutions, and empower more 3F brands with high growth potential," said Onion Global Limited CEO Cong (Kenny) Li.
As China's consumer market continues to evolve, new expectations among shoppers will create new areas for competition and opportunities for the firms that seek to engage. Onion Global Limited's mission is to be the dream factory of lifestyle brands for the country's burgeoning youth demographic. Will Onion Global be able to reshape China's lifestyle brand retail landscape with this offering? We believe that Onion Global's future performance will be something worth looking forward to.
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