With more than 1.2 million users, Chinese online payment platform Alipay has appointed Australian eCommerce firm RooLife Group (ASX: RLG) as an Alipay Marketing Partner, sending the small cap company’s stock up 300% in morning trade.
The Marketing Cooperation Agreement will see Roolife provide business services that enable them to list, promote and sell products via the Alipay platform which is considered the world’s leading mobile and online payment platform. With 900 million of their 1.2 billion users located in China, the partnership has significantly increased RooLife’s market access having rebranded in December 2019 following the acquisition of Chinese marketing company Quality Brands International Direct.
“RooLife is delighted to continue to build on its relationship with Alipay and this agreement further enhances the online services and reach that RooLife is able to provide to merchants seeking to connect and transact with Chinese shoppers,” said Managing Director, Bryan Carr.
By using RooLife’s online stores, Australian businesses are able to market directly to Chinese shoppers with RooLife managing promotions, marketing content and data analysis driven by artificial intelligence.
Financial terms have not been disclosed with revenues to be dependent on uptake from merchants who use the Alipay platform, however RooLife anticipates demand from Chinese consumers for high quality, safe and healthy Australian products to increase.
“A core challenge for Australian brands is to connect and meaningfully engage with Chinese audiences in a trusted way,” said Alipay Country Manager for Australia and New Zealand, George Lawson.
“Alipay’s merchant and customer relationships coupled with RooLife’s experience and expertise in Chinese marketing provides a compelling proposition for businesses seeking to access the greater China market.”
At present, RooLife operates the online China-central stores TMall, Taobao, Kaola, VIP, JD, Little Red Book and Pin Duo Duo whilst also promoting products via social media platforms WeChat, Weibo, Douuin, YouKu and Baido.
Shares in RLG reached an intraday high of $0.056 in morning trade, a rise of 300% on the previous close of $0.014.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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