ASX Announcement - Data Analytics & Insights · 3/1/2019 · Scaling these operations in Australia...
Transcript of ASX Announcement - Data Analytics & Insights · 3/1/2019 · Scaling these operations in Australia...
ASX Announcement
1 March 2019
Strategy Update
▪ Driving Loyalty & Shopper Insights for fintech and payment providers
▪ Expanding WeChat Pay opportunities across Asia and potentially other markets
▪ Growing Pricing with new contracts and extension of existing agreements
▪ Assessing growth opportunities for TillerStack
Data and analytics solutions company Invigor Group Limited (ASX: IVO) (“Invigor” of “the Company”) has over the past two years been investing in its core assets comprising Loyalty and Pricing. The Company last year made a significant step in transitioning its business model to a more scalable revenue model.
With the signing of an Agreement giving the rights to market WeChat Pay in Asia and the ability to leverage its products on this platform and other similar payment gateways, the Company now intends to further build upon this foundation and strengthen its position in this fast-growing sector. The Company as part of refocusing its strategy has disposed of non-core assets in Germany and is evaluating other assets that may be non-core.
An outline of this strategy and the key initiatives is set out in the attached presentation “Strategy Update”. A summary of these initiatives include:
1. A major opportunity integrating its Loyalty & Shopper Insights products into fintech and payment platforms. The partnership secured in September provided Invigor the rights to distribute and expand WeChat Pay in Singapore, Hong Kong and Japan. Over 12 deployments with merchants have occurred in January 2019 and is presently in the implementation phase with a major retail group across Asia.
2. Invigor’s Pricing has also achieved excellent take-up with leading brands and retailers and is generating solid annualised recurring revenue (ARR) from longer term (1-3 years) contracts. Scaling these operations in Australia and expanding them internationally is a key objective. Growth in ARR is expected in the coming months from new contracts and the extension of existing agreements.
3. TillerStack was spun out of the Condat business. TillerStack as a stand-alone unit continues to perform
well. However, Invigor recognises that its operations do not easily complement the strategy outlined above. The Company is currently assessing a number of strategic opportunities for TillerStack.
Comment
Invigor CEO Gary Cohen said: “The opportunity with WeChat Pay is transformational for the Company. It
presents an excellent platform to integrate our Shopper Insights & Loyalty products into some of the
fastest growing and most recognised fintech and payment platforms globally and give brands and retailers
the ability to substantially increase sales and revenue. We see considerable scope for growth in the
fintech and payment provider sector.
“As well, our Pricing product is making solid inroads and delivering similar advantages to brands and well
recognised retailers. Both operations are highly complementary.
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“Our objective now is to deliver the necessary revenue from contract wins, rapidly deploy WeChat Pay
incorporating our Shopper Insights & Loyalty products in three very large Asian markets and reduce our
costs. We will provide an update to the market on our progress.”
For further information, please contact: Gary Cohen CEO +61 2 8251 9600
About Invigor Group
Invigor Group (ASX: IVO) is a B2B data intelligence and solutions company that turns data analytics into dollars
for the retail and service industries. Invigor’s innovation in owned retail platforms and unique cross-channel
data ecosystem allows businesses to have a holistic view of their customers and competitive landscape to not
only understand, but effectively engage with today’s physical and digital consumers. Combined with
proprietary data and predictive engines, Invigor Group provides strategic insights and recommendations that
empower businesses to successfully influence future customer strategy and increase long-term profitability.
Web: www.invigorgroup.com |email: [email protected]
Twitter: https://twitter.com/InvigorGroup | LinkedIn: https://sg.linkedin.com/company/invigor-group
STRATEGY UPDATEMarch 2019
INVIGOR TURNS DATA
INTO DOLLARS
through innovative data-driven solutions for
commerce
THE CHALLENGE FOR RETAILERS TODAY
• Growth of eCommerce
• Disruption caused by digital payments
• Lack of data to understand customers
• Need to personalise customer engagement
THE PROBLEM WE SOLVE
We help drive profitable commerce by:
• Customer engagement through innovative data-driven solutions that increase sales and customer loyalty
• Pricing solution that provides understanding of the market and competitor behaviour
• Partnering with global digital payment providers such as WeChat Pay
• Improving advertising effectiveness
TIMELINE – SHAPING OUR STRATEGY
2017 – SUCCESSFUL ACQUISITION 2018 – BUILD SOLID FOUNDATION 2019 – EXPANSION & GROWTH
Sprooki acquisitionLoyalty platform - strategically aligned business
Partnership with Winning / TencentWeChat Pay distribution rights in 3 markets
Product InnovationSynergies between Invigor & Sprooki's products results in new Loyalty offering such as Shopper Insights
Microsoft PartnershipSynergy, partner network and global scalability
WeChat Pay ExpansionMerchant acquisition, launch of loyalty & advertising
Loyalty - Shopper Insights PilotsLaunch through pilots with major retailers and fintech
Pricing GrowthCustomer acquisition and renewals Pricing & Loyalty Growth
Customer acquisition and renewals, partnerships
Pricing PartnershipsRetail Drinks Australia with Shopper Insights
Partnerships with Financial & Payments CompaniesSynergy and scalability for Loyalty and Shopper Insights
Loyalty - Shopper Insights LaunchLaunch with major retailers and fintech
Pricing & Loyalty GrowthPartnerships, customer acquisition and renewals
Review of Non-Core Assets
Divestment of CondatNon-core business
INVIGOR’S FOCUS ON CORE STRATEGY
Laser focus on:
• Loyalty & Shopper Insights with focus on fintechs and payment providers (such as WeChat Pay)
• Pricing through proprietary platform for Australia and other markets
• Tillerstack - seek strategic investment
STRATEGIC OPPORTUNITY FOR GROWTH
• Move to more scalable revenue model
• Build on WeChat Pay relationships
• Accelerate growth by working with key partnerships
• Pursue M&A opportunities
• Continued reduction of cost base to move to net cash generation
WECHAT AND OTHER PAYMENT SERVICES
900M monthly WeChat Pay active users
$120BSpent by Chinese Tourists +20% vs 2017
93%say they would spend more if mobile payments were available
2019 Nielson report “Trends in mobile payments for Chinese outbound Tourism”;http://www.globaltimes.cn/content/1135088.shtml
140M Outbound trips by Chinese +13.5% vs. 2017
$6,026Ave spend by Chinese Tourists in 2018
Discounts and special offers are ranked as #1 most important factor influencing Chinese Tourists’ shopping decisions.
SCALE OF WECHAT PAY
Source: 2017 WeChat Data Report
68 MillionVideos posted every day
Year-over-Year
22%
38 BillionMessages sent every day
Year-over-Year
25%
902 MillionAverage Daily logged in users
(September 2017)
Year-over-Year
17%
3.5 MillionMONTHLY Active OA
Year-over-Year
14%
797 MillionMonthly Active Users
Year-over-Year
19%
20+ MillionIndustries categories covered
200+Sub-industry categories
covered
280%Total Monthly
Offline Commercial Transactions
Year-over-Year
23%Year-over-Year
62%
Daily Logged in Users
Official Accounts
Monthly Active Users of OA
Mini Programs
Travel
WeChat Pay
Moments
Messaging
MULTIPLE REVENUE STREAMS
WeChat Payment
WeChat Advertising
IVO Loyalty & Offers
From merchants who accept WeChat Pay
Derived from advertisers/brands who may or may not have We Chat Pay
From merchants who issue loyalty currency and/or share of transaction on redemption of offers
MEASURING GROWTH
• Numbers of merchants
• Revenue from merchant transactions
• Revenue generated from Loyalty
• Advertising revenue
COMPETITIVE VALUE PROPOSITION
We have our unique selling point through loyalty offer and targeted media, additionally to other offerings that competitors provide.
Multi-Merchant Offers & Loyalty
for ChineseCompetitors
SUCCESS CASES WITH PRICING & SHOPPER INSIGHTS
ASX ANNOUNCEMENTS & WINS
Appendix 4E, Feb 2019
View ASX Announcement
First 10 Deployments of WeChat Pay in Singapore, Jan 2019
View ASX Announcement
Insights Trial in China for Staff-less Convenience Stores, Dec 2018View ASX Announcement
WeChat Contract Expanded to include Japan, Nov 2018View ASX Announcement
Invigor wins $520,000 in new contracts in Australia, Nov 2018View ASX Announcement
Invigor to expand Alipay in Hong Kong with Winning Group, Oct 2018View ASX Announcement
Tencent Partner selects Invigor to expand WeChat Pay, Sep 2018View ASX Announcement
POSITIVE OUTLOOK
• Moving into a more scalable revenue model focusing on diversifying customer base and partnering with companies within the fast-growing financial services and payments sector
• Major opportunity to grow with Tencent’s international expansion starting with 3 key markets
• Integration of Loyalty solution into WeChat Pay, one of the world’s fastest growing and most recognised social and payment platforms
• Over 12 deployments in Singapore in January and strong pipeline of retailers and brands to convert in coming weeks
• Pipeline for Pricing and Shopper Insights building strongly across retailers and brands
• Global strategic partnerships opening up new opportunities with major international retailers
MARKET OVERVIEW
SINGAPORE HONG KONG AUSTRALIA
• 2.3M+ Chinese Visitors, locals
and students in Australia
• $9.1 Billion worth spending by
Chinese Tourist in AU
• 50% Chinese Locals/ Students
• 5 Official WeChat Partners
including 6 Majors
• 45M+ Chinese Tourists annually
• $60 Billion worth spending by Chinese in HK
• 58% of Local Residents Use WeChat & High Penetration of Merchants on Pay
• 20 Official WeChat Partners excluding resellers
• 3M+ Chinese tourists visited
Singapore last year
• $3.5 Billion worth spending by
Chinese tourists in Singapore
• SEA is Top 1 destination for
Chinese WeChat users
• 11 Competitors including 6 Official Partners