Having undergone their own business transformation over the past 12 months, eCommerce and artificial intelligence company Crowd Media (ASX: CM8) has capitalised on a corporate restructure from one of their partners to acquire trendy German accessories brand I AM KAMU for 1 Euro.
The nominal cash acquisition will primarily be supported by 5% profit royalties over the next 12 months to Invincible Brands which has been licensing Crowd to market the KAMU wrist watches and accessories under a reseller agreement.
“We are excited to have executed this small yet important acquisition for Crowd. We have been promoting and selling KAMU within Germany since the start of the year and it’s been well received by our German customers,” said Crowd CEO, Domenic Carosa.
“We will now begin to expand the brand into other parts of Europe and will also look to extend the brand across the Amazon eCommerce channel.”
With Germany having acted as a test market for Crowd Media’s eCommerce and influencer marketing division Crowd Direct, the Company is now confident that they have identified the most effective way to market KAMU where ownership of the brand will maximise margins alongside continental expansion.
Selling a range of accessories, primarily trendy watches that retail around €100, Crowd will engage its wider network of social influencers that speak more than 30 languages to promote the KAMU brand and its online channels.
Launched 12 months ago, the Crowd Direct division has been actively signing brand partnerships for products they believe will resonate with European millennials – the core audience of the social influencer network.
Products promoted through Crowd Direct play a larger role in Crowd’s 3-year plan where they are currently developing artificial intelligence that will be enable celebrities and influencers to engage in conversational commerce whereby AI will converse with fans in real time, bringing with it commercial opportunities for them to promote products. This was further advanced last month through a strategic investment by Crowd to acquire 8% of Forever Holdings which is developing the visual projections that are currently used in the Holocaust Museum enabling German students to converse with historical figures in real time.
For the Quarter ending 30 September 2020, Crowd Media reported total revenue of $3.8 million which included a 136% quarter-on-quarter increase from Crowd Direct to $317k.
*Owners of this website are CM8 shareholders
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