The Asia Video Industry Association (AVIA) has released a new research study entitled Premium OTT – Building its Rightful Place in the Digital Market, to understand the usage of different video services in Singapore and attitudes towards them. The independent research study conducted by Milieu Insight was unveiled to agencies, advertisers and brands at AVIA’s first OTT Upfront Showcase where two of the region’s top premium video services, iQIYI and Viu, presented previews and highlights of their upcoming slate of content to the audience at a closed-door event.
The research shows that Premium OTT streaming services (OTT) are clearly differentiated from videos viewed on social media or video sharing sites. OTT was highly valued by consumers in Singapore for having the highest quality content. 58% of respondents indicated that they felt premium OTT services had high quality content, compared to only 36% for social media and video sharing services. Similarly, when asked which video services they generally felt captured the highest levels of attention while watching, 49% of respondents selected OTT streaming services, compared to only 35% who selected social media and video sharing services.
Levels of engagement were also entirely different with 51% of people feeling immersed when watching OTT content as opposed to only 39% for social media & video sharing. Top emotions elicited when watching OTT were happiness and amusement whereas for social media and video sharing, the top emotion was “nothing”.
When looking at the impact of advertising, linear television remains the place where it is most noticed (76%) and ads are thought to be the highest quality (41%), although it is in social media where ads feel most intrusive (37%). Linear was again the winner when it came to prompting brand or product searches (25%) and prompting purchase (19%). Louis Boswell, CEO, AVIA, commented that this “Bodes well for the OTT industry. There is a clear link between linear television and OTT from a content perspective, and with more OTT services looking at advertising, I strongly suspect it is simply a matter of time before the effectiveness of ads on OTT matches that of linear television.”
Dinesh Ratnam, Country Manager, Singapore, Malaysia and Brunei, iQIYI International, commented, “AVIA’s research further cements the rise of OTT and the appreciation for the premium content on OTT platforms. As the OTT industry continues evolving and becoming more accessible, its audience is also looking for more diverse content. With the global success of shows such as iQIYI’s original costume drama Story of Yanxi Palace drawing a global audience larger than that of Game of Thrones, the rise of Asian content is also drawing in larger, more diverse audiences. We are thrilled to be a part of AVIA’s inaugural OTT Upfront Showcase in Singapore and to have the opportunity to showcase our exciting slate to advertisers and partners.”
AVIA thanks its members Magnite, PubMatic, The Trade Desk, and Xandr for supporting the OTT Upfront Showcase and the same companies plus Index Exchange for supporting the research.
A link to the research study entitled Premium OTT – Building its Rightful Place in the Digital Market can be downloaded here (https://bit.ly/3L4lrMD).
About the Premium OTT Study
The study, Premium OTT – Building its Rightful Place in the Digital Market, was conducted in Singapore by Milieu Insight Pte Ltd, with online fieldwork using Milieu Insight’s online panel. The sample size was n=1200 and was representative of the Singapore adult population aged 16+. Premium OTT Services listed in the study were as follows: Amazon Prime, Apple TV+, Disney+, HBO Go, iQIYI, meWATCH, Netflix, Singtel Cast, StarHub TV+, Viu and WeTV. Social Media and Video Sharing Services listed were: Daily Motion, Facebook, Instagram, Snapchat, Telegram, TikTok, Twitter, Vimeo, WhatsApp and YouTube.
About the Asia Video Industry Association
The Asia Video Industry Association (AVIA) is the trade association for the video industry and ecosystem in Asia Pacific. It serves to make the video industry stronger and healthier through promoting the common interests of its members. AVIA is the interlocutor for the industry with governments across the region, leads the fight against video piracy through its Coalition Against Piracy (CAP) and provides insight into the video industry through reports and conferences aimed to support a vibrant video industry.
Society Pass Incorporated (Nasdaq: SOPA) (SoPa), Southeast Asia’s (SEA) leading data-driven loyalty and e-commerce ecosystem, today announced that Founder, Chairman and Chief Executive Officer, Dennis Nguyen will speak at the Wild Digital Southeast Asia 2022 Conference at 11:30 AM (GMT +8) on Wednesday, 07 September 2022 at Le Meridien Kuala Lumpur, Malaysia. He will participate in the panel discussion titled The New Roll-Up Play: Evolution of Ecommerce Aggregators in SEA. Bringing together some of the eCommerce roll-up industry’s most influential thought leaders for the panel discussion, Mr Nguyen along with the other speakers will explore the core trends and technologies shaping the future of digital eCommerce aggregators, strategies for maintaining industry dominance in SEA as well as how one can gear up to a successful exit.
Southeast Asia presents huge opportunities given the rapidly increasing mobile and internet penetration in the region, paired with very attractive young demographics. The market opportunity for e-commerce companies is expanding at an ever-increasing rate in SEA, where a surge in digital adoption is driving user and merchant uptake as well as creating new technologies and accompanying business models.
Society Pass’s success up to this point has been built through offering unique value for both consumers and merchants, along with a sophisticated software infrastructure supporting that exchange. Society Pass consumers easily search and order anything they want through the Company’s various interconnected mobile and web platforms. Society Pass’s strategic alliances, delivery arrangements, and payment processing are also done within the platform, reducing the inconvenience of checkout for consumers.
About Society Pass Inc Founded in 2018 as a digitally-focused loyalty and data marketing ecosystem in the fast-growing markets of Vietnam, Indonesia, Philippines, Singapore and Thailand, which account for more than 80% of the SEA population, and with offices located in Angeles, Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Manila, and Singapore, SoPa is an acquisition-focused e-commerce holding company operating 6 interconnected verticals (loyalty, digital media, travel, telecoms, lifestyle, and F&B), which seamlessly connects millions of registered consumers and hundreds of thousands of registered merchants/brands across multiple product and service categories throughout SEA.
Society Pass completed an initial public offering and began trading on the Nasdaq under the ticker SOPA in November 2021. SOPA shares were added to the Russell 2000 index in December 2021.
SoPa acquires fast growing e-commerce companies and expands its user base across a robust product and service ecosystem. SoPa integrates these complementary businesses through its Society Pass loyalty platform and circulation of its universal loyalty points or Society Points, which has entered beta testing and is expected to launch broadly at the beginning of 2023. Society Pass loyalty program members earn and redeem Society Points and receive personalised promotions based on SoPa’s data capabilities and understanding of consumer shopping behaviour. SoPa has amassed more than 3.3 million registered consumers and over 205,000 registered merchants and brands. It has invested 2+ years building proprietary IT architecture to effectively scale and support its consumers, merchants, and acquisitions.
Society Pass leverages technology to tailor a more personalised experience for customers in the purchase journey and to transform the entire retail value chain in SEA. SoPa operates Thoughtful Media Group, a Thailand-based, a social commerce-focused, premium digital video multi-platform network; NusaTrip, a leading Indonesia-based Online Travel Agency; Gorilla Networks, a Singapore-based, web3-enabled mobile blockchain network operator; Leflair.com, Vietnam’s leading lifestyle e-commerce platform; Pushkart.ph, a popular grocery delivery company in Philippines; Handycart.vn, a leading online restaurant delivery service based in Vietnam; and Mangan, a leading local restaurant delivery service in Philippines. For more information, please check out: http://thesocietypass.com/.
Event attracts 19,000+ participants, bringing government and business leaders together to facilitate project matching
The seventh Belt and Road Summit, jointly organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC), concluded yesterday (1 September). Continuing in the tradition of being a formal, substantial and high-quality event, the summit saw state leaders and senior officials, regional government leaders and business leaders gathered to explore the business potential of the Belt and Road Initiative, and to drive synergies and create a win-win situation through multilateral collaborations such as the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the Regional Comprehensive Economic Partnership (RCEP).
The seventh Belt and Road Summit, which ran under the theme “Heralding a New Chapter: Collaborate and Innovate”, attracted more than 80 government and business leaders to share their insights.
More than 19,000 participants from over 80 countries and regions attended online or in-person.
The 38th Prime Minister of New Zealand, John Key, Aswin Techajareonvikul, CEO and President of Berli Jucker PCL, Liu Liange, Chairman of the Bank of China, and Rod Eddington, Chairman of Infrastructure Partnerships Australia, JP Morgan’s Asia Pacific Advisory Council and Non-Executive Chairman of Lion shared their insights at Business Plenary “Collaborate for a Bright New Era”.
As one of the major celebrations to mark the 25th anniversary of the establishment of the HKSAR, the summit saw more than 80 senior government officials and business leaders from the Belt and Road region gathered to share their insights under the theme “Heralding a New Chapter: Collaborate and Innovate”. For the first time, the summit was held in a hybrid format, overcoming geographical boundaries by allowing those who were unable to attend in person to participate virtually. More than 19,000 attendees representing over 80 countries and regions participated online or at the physical event.
More than 800 one-to-one matching sessions The business matching and project pitching sessions at the summit remained popular among project owners and attendees. More than 280 investment projects from the Belt and Road region and beyond were presented at the summit, covering four main areas, namely: (1) energy, natural resources and public utilities; (2) innovation and technology; (3) urban development; and (4) transportation and logistics infrastructure. The projects focused on areas such as smart city development, data centres and e-commerce related investments. More than 800 one-to-one business matching meetings were arranged for project owners, investors and professional service providers to pave the way for collaboration agreements.
Real opportunities in RCEP but some challenges Multilateral collaboration creates more frequent cross-border trade and investment, and is becoming more important than ever in driving a strong recovery in the Asia-Pacific region following the pandemic. The RCEP, which came into effect this year, stands as the largest free trade agreement in history, accounting for 30% of the world’s population and GDP. Combined with the joint effort of more than 180 countries connected through the Belt and Road Initiative, it will further strengthen regional economic integration around the world. In the Business Plenary titled “Collaborate for a Bright New Era”, business leaders from economies along the Belt and Road and the RCEP shared their insights and explored how these initiatives and agreements can complement each other to drive strong economic growth and promote cross-border collaboration between businesses of all sizes.
The 38th Prime Minister of New Zealand, John Key, shared his views on the RCEP. “One of the things that are challenged is the supply chains. China is a really a huge market, and we source a lot of goods from China. We can see the impact the breaking down of those supply chains has had on global inflation.”
Aswin Techajareonvikul, Chief Executive Officer and President of Berli Jucker Public Company Limited, shared that the Thailand enterprises have well received the potential of the Belt and Road Initiative (BRI). “It is in tune with our 20-year strategy and Thailand’s ongoing projects for economic development under the Thailand 4.0 economic model. We are able to expand trade and investment to our neighbouring countries. We can also better link with the world market, especially for the CLMV countries [Cambodia, Laos, Myanmar and Vietnam].”
Liu Liange, Chairman of the Bank of China, said: “Most of the members in the RCEP are located in important junctions along the Belt and Road. This not only fosters connectivity between value chains and supply chains, but also further expands the ‘social circle’ of the Belt and Road Initiative, engaging more countries and businesses in the construction of the Belt and Road and in broader collaboration, as well as forming the dual-engine of the Belt and Road Initiative and RCEP within the region.”
Belt and Road Initiative drives consumption and Infratech development Global economies are pushing to achieve post-pandemic economic recovery. At the same time, countries around the world are striving to build stronger global business connections with the help of macro measures such as the BRI, the RCEP and the GBA development.
The demand for high-quality, innovative and sustainable infrastructure around the world has given rise to many new business opportunities. These innovative projects will be led and driven by visionary industry leaders as they usher in a new era of infrastructure development. In the “Faster, Greater Infrastructure” session of the thematic group discussions, business leaders who had turned futuristic concepts into reality and envisioned some of the world’s most important infrastructure projects exchanged their views.
Founder and Managing Director of Emaar Properties and Founder and Director of Noon.com, HE Mohamed Ali Rashed Alabbar, said: “I really believe that a link such as the Belt and Road Initiative and its effects on human life, economic progress, quality of life, job creation and exchange of cultures and knowledge and unity to the world – it is going to be incredible.”
Chief Marketing Officer of Hyperloop TT Robert Miller addressed the current trends in infrastructure technology (infratech) development. “Infratech is really underfunded and underdeveloped. Hyperloop really falls into the category of infratech where there is a longer time to profitability. So we need patient investors from both public and private sectors. Meanwhile, governments everywhere are looking at reducing carbon emissions. One of the biggest polluters is the transportation industry: 23% of all carbon emissions worldwide come from transportation. Europe, the United States and countries in Asia are all looking how to decarbonise the transportation industry. Hyperloop TT could be a massive driver in that decarbonisation,” he said.
The seventh Belt and Road Summit was made possible by its Strategic Partner, China International Capital Corporation (CICC); Regional Banking Partner, Bank of China (Hong Kong); and Platinum Sponsors, China Mobile International and China Unicom.
About HKTDC The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus. Follow us on Twitter @hktdc and LinkedIn
Media enquiries Please contact HKTDC’s Communications & Public Affairs Department: Clayton Lauw, Tel: +852 2584 4472, email: clayton.y.lauw@hktdc.org Sam Ho, Tel: +852 2584 4569, email: sam.sy.ho@hktdc.org
aCommerce Group, the largest end-to-end e-commerce enabler in Southeast Asia, has partnered with Johnson & Johnson Philippines, part of the largest and most broadly based healthcare company in the world, in a joint venture to offer a sustainable packaging alternative and 100% recyclable solution in the Philippines.
The solution was developed through a wide-scale collaboration to reduce e-commerce waste and create a sustainable future for e-commerce in Southeast Asia. The forecasted amount of plastic savings from this initiative would be equal to 106,684 SQM of plastic – the equivalent to the area of 254 basketball courts. The new packaging solution will replace previously non-recyclable packaging materials with new, innovative, green, and simple packaging, rolling out through the month of August.
The paper used in the new packaging is 100% recyclable, non-toxic, and biodegradable. The innovative VoidFill acts as a box filler, replacing the plastic bubble wrap, and offers superior protection from damages by filling any excess space in the box. An additional cushioning layer is added to fragile deliveries to ensure outstanding control against shock and vibrations. The final layer, the Geami WrapPak layer, is added to avoid any surface abrasions, minor handling damages, and internal impact.
Both companies’ sustainability goals are naturally aligned. “As part of our responsibility to the environment. aCommerce will continue to invest in a sustainable future. We are excited to offer recyclable and biodegradable solutions using cutting-edge material engineering. We are truly fortunate to have like-minded partners such as Johnson & Johnson, that take action in order to create a cleaner future,” said Paul Srivorakul, Group Chief Executive Officer at aCommerce.
“We are committed to doing our part to leave a better world for future generations. We are excited to pilot our green e-commerce initiative with Shopee and Lazada, knowing that this ‘first step’ will help reduce plastic pollution that goes into our landfills and into our waterways. We hope that our consumers will take advantage of the offer when they order their favorite Johnson & Johnson products through Shopee and Lazada. Our consumers win, and so will our environment,” said Denise Peralta, Johnson & Johnson Philippines head of e-commerce.
Released for aCommerce Group by MT Multimedia Co Ltd Wasana Wongsiri (Jiab), T: +66 84 359 0659, E: wasana.w@mtmultimedia.com
Johnson & Johnson (Philippines), Inc. (J&J Philippines) launched J&J PH Chat & Shop as its official social-commerce platform to simplify purchasing of various consumer health products. Powered by aCommerce, it delivers a fully-automated experience – 24/7 shopping via Chatbot with a live agent ready to assist customers during business hours, and seamless, easy navigation even for new users. https://facebook.com/jnjphchatshop.
aCommerce (SET: ACOM) revolutionized e-commerce enablement with a cutting-edge platform & technology stack, EcommerceIQ. Proprietary software includes innovative omnichannel management software. We drive brands to achieve e-commerce goals with high-performance digital marketing, online store development & management, data & analytics, customer care, fulfillment, & delivery services. Visit https://acommerce.asia.
Win-win hybrid format overcomes limits of geography
The seventh Belt and Road Summit, jointly organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC), opened today (31 August). This year’s event lasts two days and runs in a hybrid physical and digital format, helping overcome geographical boundaries. Business leaders unable to attend the summit in person at the Hong Kong Convention and Exhibition Centre (HKCEC) join all sessions online and identify potential business opportunities through the online platform. Participants and guest speakers at the physical summit can actively interact during the event as more than 80 government and business leaders share their insights and explore opportunities the Belt and Road Initiative presents.
The seventh Belt and Road Summit, jointly organised by the Government of the Hong Kong Special Administrative Region and HKTDC, opened today (31 August), with the theme “Heralding a New Chapter: Collaborate and Innovate”.
In his welcome remarks, Dr Peter K N Lam, Chairman of the HKTDC, said: “With innovation driving progress, the Belt and Road Initiative provides the framework to apply these innovations to create a sustainable future.”
The Policy Dialogue Session analysed how economies under the Belt and Road Initiative can strengthen cooperation and boost economic growth through infrastructure development and trade under “Driving Growth through Partnership and Collaboration”.
As the first major international event following celebrations for the 25th anniversary of the establishment of the HKSAR, the summit runs under the theme “Heralding a New Chapter: Collaborate and Innovate”. Project owners and operators, investors and service providers can explore opportunities arising from the Belt and Road Initiative, the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) development and the Regional Comprehensive Economic Partnership (RCEP) through a variety of activities, including the Policy Dialogue, plenary sessions, thematic breakout sessions, one-to-one project matching and project pitching sessions and a virtual exhibition, creating a multi-win situation that will help boost economic growth in the region. Activities today are held both online and offline while tomorrow (1 September) will be entirely online.
In this morning’s opening session, Dr Peter K N Lam, HKTDC Chairman, delivered welcoming remarks. John Lee, HKSAR Chief Executive, delivered the opening address. Han Zheng, a member of the Standing Committee of the Politburo of the Communist Party of China Central Committee and Vice Premier of the State Council of the People’s Republic of China, delivered the keynote speech. Wang Wentao, Minister, Ministry of Commerce, the People’s Republic of China; Hao Peng, Chairman, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), the People’s Republic of China and Lin Nianxiu, Vice Chairman, National Development and Reform Commission, the People’s Republic of China, delivered special addresses while Zhang Xiangchen, Deputy Director-General of the World Trade Organization, gave a keynote address.
Mr Lee said in his opening speech: “The global rise of protectionism has reminded us of how important regional co-operation is. We have to work together for the better future of the region. Hong Kong is therefore very pleased to see the Regional Comprehensive Economic Partnership, or RCEP, come into force earlier this year. The landmark agreement underlines the open, inclusive, rules-based trade and investment partnership that RCEP’s member states are committed to realising. We believe that regional economic integration is an essential complement to multilateral trade. Hong Kong is seeking early accession to RCEP. It will enable us to deepen the collaboration and connections we enjoy with our close partners. The Belt and Road was created to build connectivity, to bring business, and people, together. No one does that better than Hong Kong, thanks to our ‘one country, two systems’ principle; thanks to our longstanding East-meets-West experience and the boundless opportunities afforded us in national development.”
Delivering the keynote speech, Mr Han said: “Hong Kong is an active participant, contributor and beneficiary of the Belt and Road Initiative. We are pleased to see that since the initiative launched, Hong Kong has actively negotiated and signed cooperation agreements with co-construction countries, developing trade and investment cooperation, service standard connection, international financial cooperation and exchange between people. Hong Kong plays an important role in Belt and Road development, as well as expanding its own development space. Hong Kong deserves full recognition for its work in this area. The Central Authorities will adhere to the principle of ‘one country, two systems’ in the long run, fully supporting Hong Kong in maintaining its unique status and advantages. Authorities fully support Hong Kong’s active participation in and contribution to the Belt and Road development.”
Addressing the opening session, Mr Zhang said: “The COVID-19 pandemic, geopolitical tensions, climate change and anti-globalization sentiment are the four major factors that I believe could affect the reshaping of the landscape of global trade policies. It is very challenging but can still be managed well if the whole world works together. To address these challenges, I strongly encourage enhanced dialogue and cooperation between all governments to find collective solutions because none of these challenges can be addressed by one government alone. Global challenges require global solutions.”
Dr Lam said: “The HKTDC is honoured to have Vice Premier Han Zheng deliver an important keynote speech at today’s summit, giving a more specific illustration of Hong Kong’s role as an active participant, contributor and beneficiary of the Belt and Road Initiative. Following President Xi Jinping’s important speech on 1 July, the Vice Premier’s ‘Four Hopes’ for Hong Kong’s participation in the construction of the Belt and Road further highlighted the direction of the city’s development. The HKTDC has always been committed to promoting the Belt and Road Initiative and development opportunities. The team and I will continue our efforts to promote Hong Kong as an international business platform and services hub and contribute to the Belt and Road Initiative.”
Multipartite cooperation to promote economic growth The Policy Dialogue Session, chaired by HKSAR Deputy Finance Secretary Michael Wong, analysed how economies under the Belt and Road Initiative can strengthen cooperation and boost economic growth through infrastructure development and trade under the theme “Driving Growth through Partnership and Collaboration”. The panel featured government and business leaders from several Belt and Road countries, including Lim Sidenine, Secretary of State of Ministry of Public Works and Transport, Kingdom of Cambodia; Luhut Binsar Pandjaitan, Coordinating Minister of Maritime Affairs and Investment, Indonesia; Lim Ban Hong, Deputy Minister of International Trade and Industry, Malaysia; Heng Swee Keat, Deputy Prime Minister and Coordinating Minister for Economic Policies, Singapore; and Chayotid Kridakon, Thai Trade Representative and Advisor to the Prime Minister.
Growing relationship between Belt and Road, RCEP and GBA The RCEP, which came into effect this year, is the largest free trade agreement in history, accounting for 30% of the world’s population and GDP. With the joint effort of more than 100 countries connected with the Belt and Road Initiative, global regional economic integration will be become more established. The Business Plenary titled “Collaborate for a Bright New Era” was held this morning, with Paul Chan, Financial Secretary of the HKSAR, delivering the welcoming remarks. Hosted by Ronnie Chan, Chairman of Hang Lung Properties Limited, the session examined how economic growth can be achieved through multipartite cooperation. Other guest speakers included the Chairman of Infrastructure Partnerships Australia, JP Morgan’s Asia Pacific Advisory Council and Non-Executive Chairman of Lion Rod Eddington; the 38th Prime Minister of New Zealand John Key; President of the Bank of China Liu Liange; Deputy Managing Director & Chairman for Hong Kong of Jardine Matheson Holdings Limited YK Pang; and CEO and President of Berli Jucker Public Company Limited Aswin Techajareonvikul.
In his welcome remarks, Paul Chan, Financial Secretary of the HKSAR, said: “We are capitalising on our strong collaboration with Shenzhen, developing Hong Kong into an international innovation and technology hub, focusing development on life and health sciences, advanced manufacturing, artificial intelligence and data industry, etc. We are also pressing ahead with more local infrastructure projects, including the Northern Metropolis and the Lantau Tomorrow Vision, as well as many other road, railway and land development projects. Talents, capital and entrepreneurs are all essential to achieving our goals. We warmly welcome businesses and talents from all over the world, Belt and Road countries included of course, to come to Hong Kong to collaborate with us and grasp the enormous opportunities together. To this end, we will have new policies and support measures to facilitate the coming of talents and enterprises.”
The strong economic resilience demonstrated by the Greater Bay Area amid the pandemic will further unleash the region’s economic potential in terms of cross-border trade and financial market liberalisation, along with the development of cutting-edge innovation and technology. The Business Plenary this afternoon, “Capturing Synergies between Belt and Road and Greater Bay Area”, was hosted by David YK Wong, Permanent Honorary President of The Chinese Manufacturers’ Association of Hong Kong. The panelists included Chairman of the Power Construction Corporation of China Ding Yanzhang; CEO, Chairman of the Management Committee, Executive Director of the Board of China International Capital Corporation Limited Huang Zhaohui; Chairman of MTR Corporation Limited Rex Auyeung; Chairman of WeLab Bank KC Chan; and Chairman of East Asia Region of Arup Group Michael Kwok. The speakers shared ideas on the potential opportunities the GBA brings as an important Belt and Road hub, and also discussed how Hong Kong can further leverage the advantages of the GBA to enhance its position and promote the development of the city’s industries.
Five breakout sessions explore hot-button issues on summit’s first day Spanning many countries and regions, the Belt and Road Initiative creates new room for the development of professional sectors. On the first day, the summit, in conjunction with a number of organisations including the Department of Justice of the HKSAR Government, the Insurance Regulatory Authority, China Foreign Contractors Association and Dun & Bradstreet, held five breakout sessions to examine a range of topics such as international dispute resolution, insurance services, GBA infrastructure development, digital technology development and future infrastructure development. More thematic breakout sessions and project pitching sessions will be held tomorrow – details of the programme, speakers and partner organisations can be found at https://www.beltandroadSummit.hk/conference/bnr/en
One-to-one business matching meetings and project pitching sessions Following the success at previous summits, the HKTDC has extended the hybrid project and business-matching sessions from two to seven days (31 August to 6 September) this year. New features include a video display at the summit to increase project exposure and give investors and professional service companies a better understanding of project details.
The summit also features online and offline exhibitions which have attracted more than 60 exhibitors and are divided into the “Global Investment Zone”, “Hong Kong Zone” and “GBA Tech Zone”. The project pitching sessions give entrepreneurs from different countries a platform to present projects, giving investors and service intermediaries a comprehensive understanding of investment opportunities in different sectors. Pitching sessions focus on four main areas – energy, natural resources and public utilities; innovation and technology; urban development; and transport and logistics infrastructure.
China International Capital Corporation Ltd serves as the Strategic Partner of the seventh Belt and Road Summit; Bank of China (Hong Kong) Ltd as the Regional Banking Partner; and China Mobile International Limited and China Unicom Global Limited as Platinum Sponsors.
About HKTDC The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus. Follow us on Twitter @hktdc and LinkedIn
Media enquiries Please contact HKTCD’s Communications & Public Affairs Department: Clayton Lauw, Tel: +852 2584 4472, email: clayton.y.lauw@hktdc.org Sam Ho, Tel: +852 2584 4569, email: sam.sy.ho@hktdc.org
Society Pass Inc. (“SoPa”), founded in 2018 and based in Singapore, operates e-commerce platforms in Southeast Asia (“SEA”). SoPa focuses on the fast-growing markets of Vietnam, Indonesia, Philippines, Singapore, and Thailand, which together account for more than 80% of the Southeast Asian population. SoPa’s vertical markets include Lifestyle, Grocery and Food Delivery, Mobile Telecommunications, Loyalty, Travel, and Digital Media. Society Pass completed an initial public offering and began trading on the Nasdaq under the ticker SOPA in November 2021. SOPA shares were added to the Russell 2000 index in December 2021.
SoPa’s business model is based upon acquiring smaller e-commerce companies with high growth potential at a relatively low cost and expanding its user base across a robust product and service ecosystem. SoPa plans to integrate these diverse businesses by attracting and retaining customers through a loyalty program called Society Points, which has entered beta testing and is expected to launch broadly in the beginning of 2023. Loyalty program members will be able to redeem points to make purchases directly from Society Pass or from affiliated merchants. They will also receive personalized promotions and discounts based on the company’s data capabilities and understanding of consumer shopping behaviour. Argus Research believes that this open-loop loyalty program differentiates Society Pass from other regional competitors.
As of August 2022, SoPa has amassed more than 3.3 million registered consumers and over 205,700 affiliated merchants and brands. Second-quarter 2022 revenues of approximately $500,000 reflect the nascent stage of its platform rollout.
Argus Research has a favourable view of SoPa’s target markets given its still limited e-commerce capabilities and strong projected growth. Vietnam, Indonesia, Philippines, Singapore, and Thailand all have young, rapidly-growing populations with a median age of 25-32, compared to an estimated 42 in China, a much more mature market. SEA economies are also growing at a faster-than-average rate. According to the International Monetary Fund, since 2010, SEA has averaged 4.6% GDP growth, compared to 0.7% in Japan, 0.8% in the EU, and 1.7% in the US.
Argus Research forecasts 2022 revenues of $7 million and 2023 revenue of $30 million, primarily driven by Leflair and supported by Pushkart, Handycart, and other recently completed acquisitions. Argus Research expects the broad launch of the Society Points programs to accelerate the revenue growth trajectory, and Argus Research forecasts a revenue run rate of approximately $40 million by the end of 2023 (for entities whose acquisition have already closed).
SoPa’s recent market cap near $50 million is close to one-time 2023 year-end revenue run-rate forecast of $40 million, and well below the average multiple of four-to-five times for a basket of comparable e-commerce peers. Argus Research believes the current valuation does not seem to reflect adequately SoPa’s growth prospects, driven by acquisitions, the loyalty points program, and continued economic recovery in SEA. Further, Argus Research thinks that the restructuring of Leflair to a separate entity that can eventually support its own public listing can unlock shareholder value for SoPa, with an attractive return on capital, under a holding company model.
To value Society Pass, Argus Research applies a six-times multiple to a year-end 2023 revenue run-rate forecast of $40 million, discounted back one period at 10%. Argus Research then adjusts based on its outlook for $15 million in cash and share count of 30 million at the end of 2022, and arrive at a fair value estimate for SOPA of $8 per share, well above current levels.
In Argus Research’s view, a premium to the peer average is warranted, given the early stage of Society Pass’ revenue-growth trajectory. Argus Research notes that its revenue assumptions could change significantly, as the company continues its M&A strategy and integrates new companies into its product and service ecosystem.
About Society Pass Inc As a digitally-focused loyalty and data marketing ecosystem in Vietnam, Indonesia, Philippines, Singapore and Thailand and with offices located in Angeles, Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Manila, and Singapore, SoPa is an acquisition-focused e-commerce holding company operating 6 interconnected verticals (loyalty, digital media, travel, telecoms, lifestyle, and F&B), which seamlessly connects millions of registered consumers and hundreds of thousands of registered merchants/brands across multiple product and service categories throughout SEA.
SoPa’s business model focuses on analysing user data through its Society Pass loyalty platform and circulation of its universal loyalty points or Society Points. The SoPa loyalty platform drives customer acquisition and increases customer retention for merchants. Since its inception, SoPa has amassed over 3.3 million registered consumers and over 205,000 registered merchants/brands onto its platform. It has invested 2+ years building proprietary IT architecture to effectively scale and support its consumers, merchants, and acquisitions.
Society Pass leverages technology to tailor a more personalised experience for customers in the purchase journey and to transform the entire retail value chain in SEA. SoPa operates Thoughtful Media Group, a Thailand-based, a social commerce-focused, premium digital video multi-platform network; NusaTrip, a leading Indonesia-based Online Travel Agency; Gorilla Networks, a Singapore-based, web3-enabled mobile blockchain network operator; Leflair.com, Vietnam’s leading lifestyle e-commerce platform; Pushkart.ph, a popular grocery delivery company in Philippines; Handycart.vn, a leading online restaurant delivery service based in Vietnam; and Mangan, the leading local restaurant delivery service in Philippines. For more information, please check out: http://thesocietypass.com/.
– Society Pass recently closed on its acquisition of the Indonesian online travel site Nusatrip just as the Indonesian travel market is taking off with international travel up 525% year-to-date.
– The deal was signed at an event on July 1st and just closed on August 15th with SoPa paying $620,000. Spartan Capital attended the closing event, visited Nusatrip’s Jakarta offices, met with its founder and CEO, and met the president of the seller, PT Moratelindo in Jakarta. Moratelindo is a telecom juggernaut in Indonesia with strong government connections, but Nusatrip was not a core business. The two companies remain close, for example with Nusatrip utilizing Moratelindo data centres, so SoPa has gained a strong, valuable partner in the region.
– Nusatrip is the third largest online travel agency in Indonesia, after Traveloka, which is independent, and Tiket.com, which is owned by the Indonesian conglomerate Djarum Group. According to recent press accounts, both have considered capital markets transactions in the last year which would value each in the billions of dollars. So Nusatrip could well be worth more than SoPa paid.
– Indonesia is a democracy with the fourth largest population in the world. GDP growth is projected at around 5% this year and next and its rapidly growing young population is served by numerous ultra-low-cost carriers (ULCCs). In Spartan Capital experience, young emerging market adults tend to avail themselves of international travel as soon as they have some disposable income. The domestic market is huge as Indonesia is an archipelago consisting of 18,000 islands, so much travel is by air, not by car.
– Nusatrip was EBITDA positive and growing rapidly before the pandemic with positive EBITDA from 2014, its second year in business, to 2018.
– The Indonesian travel market is again booming with traffic up 92% over 2021 through the first six months of this year. Spartan Capital expects this rebound to continue as it began later than the US and European markets and traffic is only about half that of 2019, before the pandemic.
– So, in Spartan Capital’s view, SoPa has impeccable timing, buying a business that was loaded with debt incurred to cover operating costs during the pandemic but poised for rapid growth, and likely to return to profitability again soon.
– Spartan Capital identifies six relatively straightforward synergies between Nusatrip and the other SoPa business units which should drive revenue across the ecosystem, furthering the founder’s dream of creating the next billion-dollar Southeast Asia super-app.
1. Expand Nusatrip to the other four countries where SoPa operates. 2. Cross sell Gorilla travel eSIMs so Nusatrip international travel customers can use their phones abroad. 3. Leverage Thoughtful Media social media/influencer marketing to market the service. 4. Leflair, SoPa’s luxury goods flash sale app, is launching in Indonesia later this year. 5. Allow Nusatrip customers to earn points through the Society Pass loyalty program to purchase goods on any of the seven other SoPa businesses. 6. Allow customers of the other seven SoPa businesses to use their loyalty points for travel booked through Nusatrip.
About Society Pass Inc
As a digitally-focused loyalty and data marketing ecosystem in Vietnam, Indonesia, Philippines, Singapore and Thailand and with offices located in Angeles, Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Manila, and Singapore, SoPa is an acquisition-focused e-commerce holding company operating 6 interconnected verticals (loyalty, lifestyle, F&B, telecoms, digital media, and travel), which seamlessly connects millions of registered consumers and hundreds of thousands of registered merchants/brands across multiple product and service categories throughout SEA.
SoPa’s business model focuses on analysing user data through its Society Pass loyalty platform and circulation of its universal loyalty points or Society Points. The Society Pass loyalty platform drives customer acquisition and increases customer retention for merchants. Since its inception, SoPa has amassed over 3.3 million registered consumers and over 205,000 registered merchants/brands onto its platform. It has invested 2+ years building proprietary IT architecture with cutting-edge components to effectively scale and support its consumers, merchants, and acquisitions.
Society Pass leverages technology to tailor a more personalised experience for customers in the purchase journey and to transform the entire retail value chain in SEA. SoPa operates Leflair.com, Vietnam’s leading lifestyle e-commerce platform, Pushkart.ph, a popular grocery delivery company in Philippines, Handycart.vn, a leading online restaurant delivery service based in Vietnam, Mangan, the leading local restaurant delivery service in Philippines, Gorilla Networks, a Singapore-based, web3-enabled mobile blockchain network operator, Thoughtful Media Group, a Bangkok-based, a social commerce-focused, premium digital video multi-platform network, and NusaTrip (“NusaTrip”), a leading Jakarta-based Online Travel Agency (“OTA”) in Indonesia and across SEA. For more information, please check out: http://thesocietypass.com/.
SOPA is in the early stages of building an online South East Asian company. Luxury store, Leflair, was the primary revenue contributor for 2Q22. Other businesses are food and beverage online support, online delivery companies Handycart and Pushkart (bought during 1Q22), and Mangan.ph (2Q22), as well as Gorilla Networks, a telecom MVNO (early June ’22). SOPA is also starting a loyalty points offering. Maxim believes there should be significant cross-selling opportunities and organic growth in the future. Specifically, Maxim believes Thoughtful Media can market the Company’s other brands and the food delivery and luxury brand businesses can be expanded geographically. Maxim has a positive view on the SEA market given faster-than-expected growth rates, increasing mobile and ecommerce penetration, younger populations, travel opening back up, and the opportunity to consolidate smaller companies.
2Q22 revenue of $445K increased significantly from $8K in the prior year quarter, but was below our estimate of $670K. Results were held back as most of its businesses were very early stage. Almost all the quarter’s revenue came from the online ordering segment, which currently consists of the company’s online luxury store, Leflair. The cost of online marketing limited the amount put to use. Hardware and Software segments are currently not being prioritized. 3Q22 adjusted EBITDA loss of ($4.4M) was wider than our estimate of ($3.3M) and a loss of ($0.1M) in the prior year quarter. The variance vs. our estimate is primarily due to 1-time costs related to capital raises, M&A, higher growth investments, and public company-related costs.
Healthy cash. SOPA ended June 2022 with $28M in cash and no debt. Cash included the $25M, net from November 2021 IPO and $10.7M, net from a February 2022 capital raise. Maxim projects current cash levels to be sufficient to fund organic growth over the next two years.
Maxim raises revenue projections and expect significant growth for the next two years. Maxim expects growth from spending on marketing, expansions, and launch of Loyalty Points in mid-2022 and factoring in contributions from all announced acquisitions.
Maxim projects revenue to increase from $0.5M in 2021, to $12.9M in 2022 (unchanged), and $54M in 2023 ($38.2M prior). The increase is due to the significant expected contribution from acquisitions and organic growth. Maxim projects 2022 adjusted EBITDA loss to widen to ($13.9M) (($12.7M prior), from a loss of ($4.9M) in 2021. The higher loss is due to one time costs related to acquisitions and higher public company expenses. For 2023, Maxim projects the adjusted EBITDA loss narrows to ($2.2M) from ($4.7M) prior.
Compelling valuation – Maxim believes SOPA is undervalued and trades at a discount to its peer group. SOPA trades at an EV/revenue multiple of 0.4x our 2023 revenues compared to a peer group EV/revenue multiple of 2.3x our 2023 revenues. Maxim’s positive outlook is supported by the attractive SE Asian markets and opportunities to consolidate smaller companies. Management has announced plans to spin off Leflair Group and to have it listed on the Nasdaq by the end of 2022.
About Society Pass Inc As a digitally-focused loyalty and data marketing ecosystem in Vietnam, Indonesia, Philippines, Singapore and Thailand and with offices located in Angeles, Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Manila, and Singapore, SoPa is an acquisition-focused e-commerce holding company operating 6 interconnected verticals (loyalty, lifestyle, F&B, telecoms, digital media, and travel), which seamlessly connects millions of registered consumers and hundreds of thousands of registered merchants/brands across multiple product and service categories throughout SEA.
SoPa’s business model focuses on analysing user data through its Society Pass loyalty platform and circulation of its universal loyalty points or Society Points. The Society Pass loyalty platform drives customer acquisition and increases customer retention for merchants. Since its inception, SoPa has amassed over 3.3 million registered consumers and over 205,000 registered merchants/brands onto its platform. It has invested 2+ years building proprietary IT architecture to effectively scale and support its consumers, merchants, and acquisitions.
SoPa leverages technology to tailor a more personalised experience for customers in the purchase journey and to transform the entire retail value chain in SEA. SoPa operates Leflair.com, Vietnam’s leading lifestyle e-commerce platform; Pushkart.ph, a popular grocery delivery company in Philippines; Handycart.vn, a leading Vietnam-based restaurant delivery service; Mangan, a leading local restaurant delivery service in Philippines; Gorilla Networks, a Singapore-based, web3-enabled mobile blockchain network operator; Thoughtful Media Group, a Bangkok-based, a social commerce-focused, premium digital video multi-platform network, and NusaTrip, a leading Jakarta-based online travel agency in Indonesia and across SEA. For more information, please check out: http://thesocietypass.com/.
Spartan Capital Securities LLC (Spartan Capital) issues Equity Research Report on Society Pass Inc. (Nasdaq: SOPA) (SoPa).
Click Here (on Society Pass website) to view the full Spartan Capital Equity Research Report. https://tinyurl.com/SocietyPass
Summary Points:
Vietnamese e-commerce luxury goods retailer Leflair generated 92% of revenue and has strongly rebounded since being purchased out of bankruptcy and relaunched last year. Leflair posted a minor gross loss and a $694k operating loss. We look for four major catalysts for Leflair for the remainder of 2022: first, the launch of a new app, second, re-entry into the Philippines market, entry into the Indonesian market and the 4Q holiday shopping season.
The second largest contributor was online grocery and food delivery comprising 5% of revenue. This included both Pushkart, which offers supermarket delivery in the Philippines and Handycart which offers restaurant delivery in Hanoi, Vietnam. We suspect that Pushkart generated the bulk of this revenue. During 3Q, the company acquired Mangan, a restaurant delivery company in the Philippines, which should substantially increase segment revenue.
The telecom segment is represented by Gorilla which was acquired in May. It generated $5.6k in data sales revenue, versus our estimate of zero, ahead of the relaunch of its app planned for late 3Q.
Both telecom and merchant POS had modest positive gross income, while the other two did not, netting to effectively zero. The operating loss was $7.6 million, with the vast majority of this related to G&A. As revenue ramps, we expect each unit to first turn a positive gross margin, then cover operating expenses. As is normal for a growth company, we expect costs related to growth to keep operating income negative for at least the next year.
Lastly, EBITDA came in at negative $4.4 million and the company ended June with $28 million in cash. Our model has the company generating $10 million more in EBITDA losses through the end of 2023 before turning positive in 2024, so cash appears more than adequate. The Q also provided details on recent acquisitions, which are being done with modest cash outlays — all seven closed acquisitions were done for about $1.2 million in cash, plus stock. So we see the opportunity for many more acquisitions as well with the cash on hand.
About Society Pass As a digitally-focused loyalty and data marketing ecosystem in Vietnam, Indonesia, Philippines, Singapore and Thailand and with offices located in Angeles, Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Manila, and Singapore, SoPa is an acquisition-focused e-commerce holding company operating 6 interconnected verticals (loyalty, lifestyle, F&B, telecoms, digital media, and travel), which seamlessly connects millions of registered consumers and hundreds of thousands of registered merchants/brands across multiple product and service categories throughout SEA.
SoPa’s business model focuses on analysing user data through its Society Pass loyalty platform and circulation of its universal loyalty points or Society Points. The Society Pass loyalty platform drives customer acquisition and increases customer retention for merchants. Since its inception, SoPa has amassed over 3.3 million registered consumers and over 205,000 registered merchants/brands onto its platform. It has invested 2+ years building proprietary IT architecture with cutting-edge components to effectively scale and support its consumers, merchants, and acquisitions.
Society Pass leverages technology to tailor a more personalised experience for customers in the purchase journey and to transform the entire retail value chain in SEA. SoPa operates Leflair.com, Vietnam’s leading lifestyle e-commerce platform, Pushkart.ph, a popular grocery delivery company in Philippines, Handycart.vn, a leading online restaurant delivery service based in Vietnam, Mangan, the leading local restaurant delivery service in Philippines, Gorilla Networks, a Singapore-based, web3-enabled mobile blockchain network operator, Thoughtful Media Group, a Bangkok-based, a social commerce-focused, premium digital video multi-platform network, and NusaTrip (“NusaTrip”), a leading Jakarta-based Online Travel Agency (“OTA”) in Indonesia and across SEA. For more information, please check out: http://thesocietypass.com/.
The Economic Times Promising Brands Conclave, that will be held in Mumbai on September 22, is an effort to shine the strobe light on organisations that have strived to serve their customers in the best possible way. The platform, via standalone addresses, fireside chats and roundtable discussions, will focus on delving deeper into understanding how these companies have succeeded in contributing to an enjoyable customer experience. This evening will bring together the marketing gurus, brand custodians, brand owners, best creative leaders from the marketing fraternity on one platform to celebrate the Promising Brands and engage in the most candid knowledge exchange platform to understand the nuances of successful brands.
Why Attend? – Gain: The latest in brand amplification, customer loyalty, social media & more – Evolve: Keep pace with ALL the latest trends – Learn: Hear from the best & brightest in marketing, design, sales – all sharing ideas & insights – Adapt: To a focused agenda for marketing professionals & focused on what matters – Grow: Gain insights into what your customers will be clamoring for coming years & how you can deliver now
