As we bid farewell to the year 2021, ETMall, a subsidiary of Eastern Media International Corporation (2614), reported today (10th) that the annual consolidated revenue of ETMall (merged with Strawberrynet) in 2021 reached NT$28.32 billion, up 14.7% year-on-year (YoY). Its consolidated before-tax net profit totaled NT$2.16 billion, which represents an increase of 27.6% over the same period last year. Its EPS reached NT$17.7 for the year, eclipsing an EPS of NT$14.11 in 2020, thus achieving brilliant results. With the stimulus of the Double 12 event, ETMall’s single-month consolidated revenue in December reached NT$2.47 billion while profit amounted to NT$200 million, representing a YoY increase of 32.3% and a new all-time record. Looking ahead, ETMall will continue to develop and expand products distributed by itself as well as EC channels, while striving for an annual revenue of NT$45.6 billion (including Strawberrynet).
Looking back on 2021, ETMall Chairman Gary Wang said that ETMall still managed to repeatedly set new profit records despite the pandemic’s impact on the global economy. Its EPS for the year reached NT$17.7, making it Taiwan’s number 2 e-commerce vendor comfortably in terms of profitability. The most important contributing factor has been online sales growth. ETMall’s annual online revenue has grown from NT$7.2 billion in 2020 to NT$10.6 billion in 2021, an increase of 47% YoY. Online channels will strive for NT$24 billion in annual sales in 2022. After factoring in sales from TV, telemarketing and Strawberrynet, ETMall will strive for the goal of NT$45.6 billion in annual revenue this year.
ETMall turned in an impressive scorecard for 2021. As our three major strategies have proven to be effective, they have driven a significant profit increase. The first was trying to stabilize operation with the model of diverse channels operating concurrently. The second was developing products and service items distributed by ourselves. The third was making good use of big data for business operations. Apart from its existing online, TV, and telemarketing channels, ETMall has grown and strengthened its cosmetics supply chain with the merger of Strawberrynet; in addition, the merger of Mama Bear Shopping reinforced our online channel for fresh produce. New, comprehensive retail arrangements have enabled steady revenue growth. Since ETMall started to develop self-operated products in 2017, sales of these products have accounted for 35% of our overall revenue, which has solidified our basic profitability. ETMall built its big data to analyze our target customers 10 years ago, which makes the operating efficiency of our new retail business higher than that of any other industries in Taiwan, as we rapidly accumulated 10 million paying customers. ETMall further upgraded its analyzing tools in 2021 by introducing the customer data platform (CDP). We are able to identify customer demographics via precise data analysis, and design different marketing strategies based on customers’ consumption preferences. As a result, precision marketing is achieved while corporate efficiency improves.
ETMall has been actively developing its “Tastiness, Beauty, and Health” ecosphere, leveraging AI and members’ big data to direct more customers to us. Marketing of ET coins has also joined forces with online sales as well as offline outlet services at Natural Beauty and ETtoday Pets. More than 20.5 billion ET coins have been distributed so far. We will continue to hold more ET coin marketing campaigns going forward, in addition to combining the web traffic of ET New Media Holdings and ETtoday, IP, and the exclusive advantage of Internet influencers’ live streaming platform, as we seek to expand sales. While our O2O sales continue to expand, ETMall has also actively rolled out fast logistics. Our Yangmei Youshi Logistics Center activated the Yangmei Warehouse No. 1 of its EC Warehouse last October, and the Yangmei Warehouse No. 2 is expected to be operational in June this year. This will increase the rate of online products moving into the warehouse and the percentage of speedy delivery. ETMall will remain open during the Lunar New Year to provide our members with high-quality services that are efficient, fast, convenient, and heart-warming.
ETMall embarked on industry-government-academia interdisciplinary cooperation in 2021, with industry-academia cooperation plans with National Taiwan University and Fu Jen Catholic University. Moving forward, it plans to work with Fu Jen Catholic University Hospital and 11 colleges to jointly roll out Happy Nice Food Packs, made by small farmers to help people fight the pandemic. By doing so, people can stay home without worrying about running out of grocery supplies. We hope to develop and apply more products related to daily necessities in order to meet more diverse needs in the future.
Looking ahead at the new year, ETMall is optimistic about retail sales in the first half of the year. Aside from the fact that we expect online sales to continue to rise, ETMall is upbeat about the pet market in terms of its strategic arrangements in the first place. We will engage in cross-industry cooperation to develop combination stores in order to direct new customers to us. Meanwhile, we will continue to develop self-operated products distributed by us, in an effort to double our profits again. ETMall adheres to the main theme of “Tastiness, Beauty, and Health”, as we provide better products and services to consumers to help them live a happy life.