A top Chinese e-retailer raises $102 million in an IPO
January 26, 2015 01:23 PM
Happigo Home Shopping Co. Ltd., a leading Chinese multichannel e-retailer, has raised 634.2 million yuan ($102.16 million) last week through its initial public sale of stock on the Shenzhen Stock Exchange.
Founded in 2005, Happigo,No. 19 in the Internet Retailer 2014 China 500 sells such products as electronics and cosmetics through television programs, telephone orders and online.
As its parent company Golden Eagle Broadcasting System is a leading television network and media company, Happigo relies heavily on TV shopping shows, which account for approximately 60% of its sales, the company says.
But Happigo also is investing in its online business. Consumers can buy products on Happigo.com, the retailer’s mobile app and stores on Wechat, a popular Chinese mobile social platform.
Happigo says it is taking several measures to increase its cross-channel sales. The company’s television shopping broadcasts show QR codes on the screen and encourage consumers to scan them to place orders via smartphones. Based on the consumer data it accumulates from its TV shows and e-commerce site, Happigo sell products through telemarketing from its call centers.
According to Happigo, the company’s television shopping program now could reach 5.24 million viewers and 1.75 million consumers have enrolled in its loyalty program via its web site.
In 2013, the total sales of Happigo reached 3.15 billion yuan ($510 million), including 244.98 million yuan ($39.45 million) from online, according to the company. The percentage of online sales in its total sales has grown from 6.4% in 2011 to 7.8% in 2013, the company says.
Happigo says it will use the funds raised in its IPO to upgrade such e-commerce systems as its web-connected television shopping platform and logistics networks. The company says it has 1.2 million customers with web-connected TVs.
Several management systems also have been upgraded recently. Happigo says IBM is helping the company build a new enterprise resource planning system with software from German ERP vendor SAP AG. In addition, the company has begun to upgrade its warehouse management system with software from Manhattan Associates, a U.S. supply chain software vendor.
After upgrading its technology, Happigo says its fulfillment center will be able to process 150,000 orders per day and to deliver more products to consumers from its suppliers.