BEIJING, June 09, 2020 (GLOBE NEWSWIRE) -- Glory Star New Media Group Holdings Limited (GSMG) (“Glory Star” or the “Company”), a leading mobile and online digital media and entertainment company in China, today announced that it has successfully completed content production programs for multiple international luxury brands, including Fendi, Prada, Gucci, and Burberry.
According to the Luxury Goods Worldwide Market Study, Fall-Winter 2019 report produced by Bain & Company, the worldwide demand for luxury goods continued to grow in 2019, which resulted in a global industry worth approximately €281 billion as of the end of the year. Currently, China has begun to lead the way toward recovery from the COVID-19 pandemic, and Chinese consumers are set to cement their status as crucial growth drivers for the industry going forward. According to Bain & Company’s Luxury Study 2020 Spring Update released in May 2020, Chinese consumers are expected to account for approximately 50% of the total global market for luxury goods in 2025 compared to 35% in 2019. Based on data from data for the 2019 McKinsey China Luxury Report, the growth of China’s luxury spending will be primarily driven by a significant uptick of upper-middle-class households. The total number of China’s upper-middle-class households is expected to reach 350 million by 2025 with a compound annual growth rate of 28% from 2018 to 2025.
As part of Glory Star’s content production strategies with international luxury brands, Glory Star will leverage its award-winning lifestyle content production services and social media platforms to help expand the online presence of these brands in China. Glory Star will also utilize the leading traffic conversion capabilities and extensive content library of its CHEERS app to enable luxury brands to better penetrate China’s emerging luxury market more effectively.
Mr. Bing Zhang, Chairman and Chief Executive Officer of Glory Star, commented, “We are excited to work with such internationally renowned luxury brands. These working relationships will allow us to further solidify our leadership as a premium content provider in the high-end segment of the luxury e-commerce market. Meanwhile, our access to world-class brands and expanding library of custom content will further boost user retention, user engagement, and user stickiness on our platform. Looking ahead, we are confident that these working relationships will make meaningful contributions to our business expansion efforts as we advance through the rest of 2020 and beyond.”
About Glory Star New Media Group Holdings Limited
Glory Star New Media Group Holdings Limited is a leading mobile entertainment operator in China. Glory Star’s ability to integrate premium lifestyle content, including short videos, online variety shows, online dramas, live streaming, its Cheers lifestyle video series, e-Mall, and mobile app, along with innovative e-commerce offerings on its platform enables it to pursue its mission of enriching people’s lives. The company’s large and active user base creates valuable engagement opportunities with consumers and enhances platform stickiness with thousands of domestic and international brands.
Safe Harbor Statement
Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic; and other factors listed in the Company’s Annual Report on Form 10-K for the year ending December 31, 2019 and in other filings made by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.
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