Despite the recent M&A activities in the US, Social Chain AG confirms its recently increased forecast for 2021. Due to the positive business development in all segments, the management projects revenues of EUR 350m and, even excluding A4D, an EBITDA of EUR 15m.
The business of the company’s own Social Chain Agency US is also doing well. After winning major contracts, the agency is set to double its revenue in 2021 compared to 2020. The first US web shop of a German Social Chain owned brand has been launched on schedule. Urbanara.com has been online since May offering sustainable home & living accessories for the US market, shipping directly from the US. Other Social Chain owned brands are currently planning their US market entry. The logistics infrastructure being built as part of this internationalization is another milestone for the US market.
The US is one of the most important markets for E-commerce and Social Commerce. For 2022, the latest Adobe Digital Report forecasts E-commerce revenues in excess of USD 1tn for the first time. The proportion of Social Commerce within the total E-commerce market is growing rapidly. In 2020, for the first time, more than 80 million Americans purchased a product through Social Commerce, up 25 percent from the previous year (source: eMarketer). According to the eMarketer forecast, revenue from Social Commerce will grow by almost 35 percent to more than USD 36bn in 2021. The conditions for Social Chain to also grow rapidly via Social Commerce in the US are extremely favourable, with the company able to leverage its broad social reach. Social Chain AG's social media communities currently count more than 30 million followers in the US.
Wanja S. Oberhof, CEO of Social Chain AG: "Social Commerce is currently establishing itself in the US as a fast growing part within the overall E-commerce business. Social Chain AG is one of the few non-American companies playing a key role in this transition. The innovation drive towards Social Commerce, which has been gaining momentum in Asia, will soon reach Europe via the US. For Social Chain AG, its US commitment is therefore, in addition to its international revenue, of significant strategic importance. With our growing knowledge and broad data pool, we will sustainably strengthen our pioneering role for Social Commerce in Europe. That’s why the acquisition and integration of know-how and key players is one of the most important acquisition targets, especially in the US."
Acquisition of mint: Benefits of know-how also for Social Chain's owned brands
With mint, Social Chain AG is investing in a 360-degree performance agency that has been focusing on Social Commerce marketing since its launch. The current 30-strong team serves clients in creation, social media marketing, but also in the for Social Commerce relevant areas of email and SMS marketing. mint specialises in bringing new consumer brands to Social Commerce.
Daniel Graham, CEO of mint: "I am very excited about Social Chain AG’s investment in mint. We, along with other Social Chain social media units, will provide unique opportunities for brands to truly be at the forefront of the fast-growing Social Commerce space. In the US, Social Commerce is the fastest growing segment in the entire thriving E-commerce segment. The expertise we are building here will also be of great benefit to Social Chain's owned brands internationally."
Social Chain Agency US wins global accounts with Zalando and Tik Tok
After a series of successful contract wins, Social Chain Agency US expects to double its revenue in 2021. In recent weeks, the social media marketing experts have won global accounts including Tik Tok and Zalando, among others. In addition, Social Chain Agency US recently became the social lead agency for the American market of Australian fintech company AfterPay. Due to rapid growth, Social Chain Agency US recently moved into new offices in Williamsburg, New York.
Jana Walker | Senior Corporate & Brand PR Manager | E: email@example.com |
T: +49 30 208 48 40 10
The Social Chain AG: Social Commerce on a global scale
Social Chain AG is reshaping the world of brands and commerce. Our strategy and our actions are "Digital first – direct to customer": from branding to marketing to direct sales of our products in the categories Food, Home & Living, Beauty, and Fitness. Our online shops are the most efficient points of sale for our Direct-to-Consumer brands. More than 70 percent of Direct-to-Consumer sales are performed by our owned and operated online shops. Our communities, with over 86 million followers worldwide, inspire our customers and amplify our brand messages. We manage the expansion of our Social Commerce system of communities, brands, digital points of sale and logistics via our integrated proprietary technology platform: LINKS which analyses interests, purchase intentions and product satisfaction along the entire digital customer journey.
The Social Chain AG‘s headquarters are in Berlin, with additional locations in Munich, London, Manchester, New York, San Diego and Los Angeles. The company employs a total of around 850 people. The Social Chain AG shares are traded on XETRA and several German stock exchanges.
The content of this press release is for information purposes only and does not constitute investment advice or other recommendations pursuant to the German Securities Trading Act by The Social Chain AG or its affiliated companies. The information provided cannot replace investment advice. The information contained in this press release is not to be construed as an assurance of possible price developments and should not be construed as a request to enter into a transaction. The information contained herein does not constitute an offer to sell or the solicitation of an offer to sell securities or rights, or a solicitation to trade in securities or rights. Accordingly, The Social Chain AG and its affiliates make no representations or commitments as to the accuracy, completeness or correctness of the information or opinions contained herein. We assume no liability for direct or indirect damages caused by and/or in connection with the distribution and/or use of this document. The statements correspond to the status at the time of the preparation of this document. They may become obsolete due to future developments without the document being changed