- Penetrating key markets in China efficiently with paid platforms generating multiple revenue streams seen as key to its success
- Joint venture with fine wine marketer and distributor Shewn International Group, based in Shanghai, seen as beginning of low-cost and quick way to gain market share, Crystal Equity Research report finds
- Crystal Equity projects that the company will do $2.3 million in FY2018
Moxian, Inc. (NASDAQ: MOXC) has adopted two new dual strategies for growth: penetrating the online-to-offline (O2O) market by entering joint ventures and selling $2 million-$4 million retail businesses. The efforts to reach customers in key China markets quickly and at low cost can drive its success, Crystal Equity Research indicated in an August 2017 report (http://dtn.fm/5oZJz).
Moxian is a Shenzhen, China-based company that is executing its strategy of converting its two platforms — Moxian+ Business and Moxian+ User apps — in the O2O market from unpaid to paid (http://dtn.fm/n6qpX). This would launch numerous revenue streams: transaction fees of 1% of all processing by UnionPay on these apps, subscription revenue, mobile advertising income, licensing fees, plus OEM fees. Moxian is an integrated platform operator and an early-stage company.
One of the changes the company has made to its overall strategy is to target larger retail businesses, those doing $2 million to $4 million in annual sales, rather than the small and medium sized enterprises (SMEs) it focused on prior.
Key to MOXC’s unique attractiveness is its built-in UnionPay digital money collection process app — a highly desired feature by merchants (http://dtn.fm/IG9aU). That processing also provides a revenue stream to MOXC on every transaction. UnionPay is the dominant player in China’s digital payments system, the Crystal Equity Research report indicated, and it owns 25% of the global market for credit cards with a presence in 160 countries worldwide, including the U.S.
The report adds that the Shewn International Groups’ Memorandum of Understanding (MOU) signed by Moxian is critical in assessing its future performance and gaining investor confidence. “We view it as an important catalyst for valuation,” the Crystal report concluded. Shewn International Group is a distributor of fine wines. It has plans within China to market its wines in luxury apartments and other high end locations via self-pay elaborate vending machines, which keep the wines at precise temperatures. It hopes to install some 500,000 of the machines throughout the country, the report said. Under the agreement, the two companies would share technology and market strengths.
For more information, visit the company’s website at www.Moxian.com
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