Fintech service provider, Peak Fintech Group (PKK.C), announced today that it’s signed an agreement with Italian retailer Gruppo Coin to provide short-term loans to their social-media influencers online sales partners, according to a press release.
Coin is one of Italy’s largest department store chains, and one of the first foreign retailers to recognize and use the power of social media influencers to sell their products. Chinese influencers specifically are using social media platforms like TikTok, Sina Weibo and WeChat for boost online sales by creating shows broadcasted on the platforms wherein products can be promoted and sold.
“One of Peak’s objectives has always been to serve as a bridge that connects North American investors and businesses to China. We’ve been working very hard behind the scenes for quite a while now on a way to help Canadian businesses either do more business in China or gain access to the Chinese market. Although the agreement announced today is not with a Canadian company, it certainly sets the stage for us to sign similar agreements with Canadian retailers. Our network of influencers is already excited about the prospects of selling ice wine and a variety of uniquely Canadian products not typically available in China. By capitalizing on the power of social media, I think we’re once again proving our ability to innovate and think outside the box when it comes to the many ways in which we can use the Lending Hub for the benefit of small businesses and entrepreneurs,” said Johnson Joseph, Peak’s CEO.
Production expenses are generally between $1,000 to $10,000, including promotions, product detailing and limited quantities available for the show to create a buzz and generate the fear of missing out. On average, the shows last three to four hours and offer a variety of products, and each personality does 250 shows a year.
“We’ve been studying this space for months, identifying some of the top influencers and brand ambassadors on China’s top social media platforms. We now have a network of almost 55,000 influencers, each either with their own e-Shops or affiliated with at least one e-Shop, over 120M combined followers and a proven track record of being able to effectively move products. With a network of followers more than 3 times larger than the entire Canadian population, we believe we’re well positioned to talk to virtually any retailer or brand around the world to offer an effective gateway into the Chinese retail space,” said Liang Qui, CEO of Peak China.
Top influencers can sell out of their inventory within the first ten minutes of the segment. Many influencers are celebrities, and this is quickly becoming the preferred way to sell products in China, from cosmetics to clothing to small appliances and everything in between.