This acquisition is integral to AuMake’s platform, which consists of offline and online stores and a strategic partnership with JD.com.
Broadway has more than 20 years’ experience in the Chinese tourism industry and is a market leader in Australia and New Zealand (ANZ) with the ability to attract Chinese tour groups to its retail stores where they are able to purchase ANZ brands and products.
Chinese open to ANZ brands
Chinese tourists are highly open to new ANZ brands and spread brand awareness.
The acquisition is expected to improve AuMake’s financial performance while enhancing its ability to incubate new brands for the Chinese market.
AuMake issued 17.2 million ordinary shares at 15.1 cents per share and paid $2.8 million in cash as the first tranche of consideration for the Broadway business.
“Delighted to be part of AuMake business”
Broadway founder Jacky Young said: “We are delighted to be part of the AuMake business for the long term, which allows Broadway to grow at a rate beyond what would be possible as a private business.
“We are now able to access AuMake’s supply chain, online expertise and corporate experience to change our industry and to exponentially grow the number of Chinese travel agencies we deal with.”
To date, the Broadway business has experienced an 80% increase year-on-year in tour group visitation and revenue, which is expected to continue in the coming months.
Performance is anticipated to improve further as the market moves towards high season, in line with further increases in tour group visitation from existing and new Chinese travel agencies.
ANZ brand growth ecosystem
AuMake executive chairman Keong Chan said: “AuMake is now the only company that can deliver an ANZ brand growth ecosystem through its integrated offline and line daigou, Chinese tourists and Chinese ecommerce platforms.
“Through Broadway, AuMake provides for the first time genuine ANZ brands with unparalleled brand awareness and marketing opportunities to promote their products to the lucrative Chinese market via Chinese tourists visiting our region in tour groups.”