Ruoyuchen invests in TikTok China e-commerce service provider MOFAN

Chinese e-commerce integrated service provider Ruoyuchen invests in MOFAN, which is seen as an important step for Ruoyuchen to expand its influence in the ecological environment of TikTok China. In 2021, Ruoyuchen's service revenue in the TikTok China platform exceeded 3.2846 million US dollars.

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Recently, Wuhu Ruoyuchen Investment and Management Co., Ltd., a wholly-owned subsidiary of Guangzhou Rouyuchen Technology Co. Ltd. (hereinafter referred to as "Ruoyuchen"), invested in Guangzhou MOFAN E-commerce Co and accounted for 10% of its shares. In the industry, this is an important step for Ruoyuchen to increase the layout of TikTok China e-commerce.

According to the official website, Ruoyuchen was founded in 2011 and is a Chinese e-commerce integrated service provider. At present, Ruoyuchen has served more than 100 customers such as P & G, Selsun, Unilever, and Kao. The company has also hatched its brand of washing care, "Zhanjia." According to the 2021 financial report, Ruoyuchen achieved an operating income of 192 million US dollars, an increase of 13.44% over the same period of last year, and achieved a net profit of 4.3588 million US $. Among them, its own brand "Zhanjia" revenue has accounted for about 6% of the overall revenue.

According to the revealed information, MOFAN was founded in 2016 and is one of the first Chinese e-commerce service providers to enter the TikTok China live-streaming track which served L'Oreal Paris, Rifuquan, Perfect Diary, Little Ondine, Abby’s Choice, Kelala and other brands. During the 618 Shopping Festival, MOFAN’s GMV shop topped 200 million ($30 million), surpassing last year's Double 11 Shopping Festival.

It is understood that since the second half of 2020, Ruoyuchen began to accelerate the service penetration of the emerging e-commerce marketing platform represented by the TikTok China platform, and through the store station operation, integrated marketing, data mining, supply chain management, and other aspects, to help the brand to make a further breakthrough in the e-commerce live-streaming.

Selsun is the anti-dandruff care brand of Sanofi, a world-renowned pharmaceutical company, which officially entered the Chinese market in 2019. In June 2021, Selsun first entered the TikTok China e-commerce platform. From June 18 in 2021, the volume of transactions of its small shop GMV in TikTok China was over 447.9 thousand US dollars. In 2021, opened for half a year, selsun’s sales are more than 2.986 million dollars and became the global purchasing of personal care category TOP1.

In TikTok China SELSUN overseas flagship store, "SEASON Gold 2.5% sulfide selenium nonsilicone oil powerful anti-dandruff and oil-free shampoo 200ml" is the store's highest selling product, at the price of $7.32, this series has sold more than 110 thousand pieces. As of June 24, China standard time, the product sales page shows that the product has been snatched up.

In addition to the service operation of the brand, Ruoyuchen hatched its brand at the end of 2020 and achieved a rapid breakthrough in the vertical field of fine clothing care since its listing, and in 2021 the selling amount of GMV exceeded 11.944 million dollars in China. According to CHAILEEDO's observation, Zhanjia's popular videos are frequent on TikTok in China. The most popular video even achieved 31,000 + likes, and six related videos broke 20,000 likes. During June 18 shopping festival this year, Zhanjia also gained new market volume on the TikTok China e-commerce platform. The target completion rate of TikTok China's new stores reached as high as 160 percent.

In TikTok China Zhanjia Fabric Care flagship store, "Zhanjia Deodorant, Mite and Odor Removal Fragrance Spray 200ml" is the highest selling product in the store, priced at $19.11, and has sold more than 30,000 pieces.

As a service provider of the first tier of TikTok China, MOFAN has become a leading player in the e-commerce operation with its team's deep understanding of the business ecological environment and rich industry experience. The investment of Ruoyuchen this time not only realizes the upgrading of its serviceability in TikTok China content marketing and enhances the internal business synergy capability, but it also deepens the brand management strategy with the help of the diversified layout of capital and empowers the Group's brands management matrix and promotes the overall upgrading and development of the company's business.

Intensified competition, sluggish consumption, coupled with the slowdown in the revenue growth of mainstream e-commerce platforms, have made the entire beauty makeup e-commerce agent operators industry enter a critical period of transformation, while e-commerce supplier TikTok China has broken through the trillion level of product sales in just two years. Revealed information shows that Baozun, Lily & Beauty, and other Chinese traditional leading agent operators have set up subsidiary companies or business sectors in 2021 that specialize in TikTok China agent operations.

This time, Ruoyuchen invests in MOFAN to increase the layout of TikTok China's e-commerce supplier. There may be more opportunities, such as: With the help of the huge flow pool, it can quickly create hot-selling products for its cooperated and managed beauty makeup brands.