Profile: Acorn International Inc (ATV)
20 Apr 2015
Acorn International, Inc., incorporated on December 20, 2005, is a China-based media and branding company. The Company has media resources, and has built a track record of developing, promoting and selling a diverse portfolio of branded products, as well as products from established third parties. Its media resources consist primarily of airtime purchased from both national and local TV channels in China. In 2013, its TV direct sales programs, which were typically five to ten minutes in length, were broadcast on two CCTV channels and 16 national satellite TV channels, and eight local TV channels in China. It has developed several leading proprietary-branded product lines, including Yierjian and Vibrashape fitness products, Ozing electronic learning products, Rose kitchen and household products, and Babaka posture-correction products.
Media Resources and Sales Platforms
TV direct sales programs, which are generally three to ten minutes in length since 2014, consist of demonstrations and explanations of the product in an entertaining and appealing manner, and provide phone numbers for customers to call to make further inquiries or to purchase the product. In addition to explaining the functionality of a product in the programs, the Company also highlights the value proposition of that product. Its TV direct sales programs typically feature one or more spokespersons or celebrity personalities and employ a variety of formats. Its TV direct sales programs for new products are broadcast on national and/or local TV channels in China depending on the features of the products during selected time slots to ensure sufficiently broad and targeted viewer coverage. The Company’s other direct sales platform consists of outbound calls, Internet sales and catalog sales. As of December 31, 2013, its database contained approximately 18 million names of individual customers. The Company sold over 1,100 kinds of products via its website in 2013. In addition to its official website, it maintains e-shops on various e-commerce platforms in China, including T-mall.com, Taobao, JD.com, and Amazon to provide products and services to end-customers. The Company sold over 1,900 kinds of products via its catalogs in 2013.
Nationwide Distribution Network
The Company uses its nationwide distribution network to distribute a selected number of its products promoted through its TV direct sales programs. Its network covers all provinces in China through over 90 distributors, which allows it to reach over 6,900 retail outlets across China. These retail outlets include bookstores, supermarkets, pharmacies, specialty retail chains and department stores. In addition to its ground distribution network, starting from 2012, it also engaged distributors on China’s leading e-commerce platforms to promote and market its products.
The Company offers over 3,200 products which are sold primarily through its TV direct sales platform, other direct sales platform comprising of outbound calls, Internet sales, and catalogs sales as well as its nationwide distribution network. Its recently featured product categories include electronic learning products, fitness products, collectibles products, kitchen and household products and mobile phone products, all of which are primarily sold through its TV direct sales platform, nationwide distribution network, or both. It periodically develops and introduces new and upgraded products under the same product brand to develop such brand into a product line. In addition to the five product lines it presently features, it also sells other products including consumer electronics products primarily through its other direct sales platforms. In addition, to further expand its product offerings, it entered into an Insurance Business Cooperation Agreement with Sino-US United MetLife Insurance Co., Ltd., or MetLife, a joint venture company established by certain wholly-owned subsidiaries of MetLife Inc. and Shanghai Alliance Investment Ltd.
The Company competes with PLP fashion, Global Buyer, CCTV Home Shopping, Hunan TV Happigo, Oriental CJ Home Shopping, U-you Home Shopping, BBG, Noah, Readboy, Dang Dang and Yihaodian.
Acorn International Inc
18/F, 20th Building, 487 Tianlin
SHANGHAI SHA 200233