Profile: Acorn International Inc (ATV)
2 Dec 2013
Acorn International, Inc. incorporated on December 20, 2005, is a media and branding company. It develops, promotes and sells consumer products through its integrated sales platform. The Company offers over 3,000 products through its multiple sales platforms, approximately 1% of which are sold primarily through its Television direct sales platform, nationwide distribution network or both with the remaining products sold through its third-party bank channel sales, outbound calls, catalogs or the Internet. The Company’s product categories include cell phones, electronic learning devices, electronic dictionaries, collectible products, health and wellness products, consumer electronics products and cosmetics products, all of which are primarily sold through its Television direct sales platform, nationwide distribution network, or both.
During the year ended December 31, 2010, the Company focused on growing its branded products, such as mobile handsets, Ozing electronic learning products and cosmetic products. Using its integrated Television direct sales and nationwide distribution network platforms, the Company has developed several brands, including Ozing electronic learning products, Babaka posture correction products and Meijin electronic dictionaries. In addition, the Company has expanded into other forms of direct selling, such as third-party bank channel sales, outbound calls, catalogs and Internet sales.
During 2010, the Company’s Television direct sales programs, which are five to ten minutes in length, were broadcasted on 28 national satellite Television channels, and seven local channels. Products sold through the Company’s Television direct sales platform and other direct sales platforms are delivered to its customers by national express mail and local delivery companies.
Television Direct Sales Platform is the Company’s primary sales platform. Television direct sales programs, which are five to ten minutes in length, consist of in-depth demonstrations and explanations of the product in an entertaining and informative manner, and provide phone numbers for customers to call in order to make further inquiries or to purchase the product. The Company purchased Television advertising time to broadcast brand promotion advertising. During 2010, it broadcasted Television brand promotion advertising on six Television channels.
The Company’s non-television direct sales platforms include third-party bank channel sales, the outbound call sales, catalog sales and Internet sales. It also markets and sells through print media and radio. During 2010, the Company’s database contained approximately 13 million names of individual customers. During 2010, it has also established relationships with 29 domestic banks. During 2010, the Company’s 772 outbound call center sales representatives utilized its customer database to target calls at customer subgroups identified by the Company as likely purchasers of particular products. The Company offers over 600 products via its catalogs, of which approximately 19 are the Company’s branded products and the remainder are third-party products. Its catalogs are distributed together with the products purchased and shipped to its new customers.
The Company tracks customers who have previously purchased products from the Company and distribute its catalog to them after their initial purchase. The Company issued six catalogs in 2010. The Company offers over 1,500 products via its Website, of which approximately 51 are the Company’s branded products and the remainder, are third-party products.
During 2010, the Company featured products under the third-party brands, such as Cell Phone Products featuring the Uking, Gionee, K-touch, Lenovo, Nokia and Konka brand names; Electronic Learning Products featuring the Ozing brand name; Cosmetics Products featuring the Aoya, Cobor, Dr Cell and Softto brand names; Collectible Products; Electronic Dictionary Products featuring the Meijin brand name, Consumer Electronic Products.
The Company competes with Moneng TV, Pacific Media, China SevenStar, CCTV Home Shopping, Hunan TV Happigo, Oriental CJ Home Shopping, U-you Home Shopping, TVSN, Avon, Happy Tao Bao, BBK and Noah.
Acorn International Inc
18/F, 20th Building, 487 Tianlin
SHANGHAI SHA 200233