VGI Global Media Plc, Thailand's number one online to offline (O2O) solutions provider across advertising, payment and logistics platforms, and China's iClick Interactive Asia Group Limited, an independent online marketing and data technology platform, have agreed to form a joint venture that will enable brands in Southeast Asia to capture the multibillion-dollar Chinese consumer market.
The market penetration will be enhanced through a range of technology-driven marketing solutions.
The new partnership will leverage the respective strengths of VGI and iClick to provide brands across Southeast Asia business opportunities and deepen their engagement with the large and growing customer base in China.
Together the firms will generate significant cross-border marketing opportunities through a suite of mobile and new media products. These include an AI-powered mobile application that generates personalised digital content based on users’ interests and preferences, allowing brands to target consumers more effectively with highly granular segmentation. Also featured are a range of so-called China Solutions – marketing intelligence tools, social, and mobile solutions offering clients in-depth insights into the Chinese market based on iClick’s 780 million consumer profiles while also enabling clients to target consumers across different channels in China, especially the significant number of Chinese outbound travellers.
Finally so-called O2O Solutions -have 10,000 new mobile charging stations with the ability to display marketing messages that will be introduced and placed throughout VGI’s network across Thailand, in prominent locations such as BTS SkyTrain stations and the distribution centres of Kerry Express, a leading parcel delivery company in Thailand.
Nelson Leung, CEO of VGI, said, “This collaboration represents an exciting new digital development in Thailand, as well as the entire Southeast Asia region. We are delighted to join forces with iClick, strategically combining our strengths and unlocking the potential of our companies to improve our influence and market share within the region. Through iClick’s expertise in digital market analysis and knowledge of the markets in China and more widely in Asia, we will be better positioned to offer targeted, customized and measurable marketing solutions to our customers. We will also continue to expand our O2O solutions to meet the demands of the ever-growing Chinese market.”
Sammy Hsieh, Co-founder and CEO of iClick, added, “By offering a variety of innovative solutions, this joint venture will strengthen both VGI’s and iClick’s footprint within the region’s digital market. With the fast-changing demands of consumers, the capability to offer effective, flexible and targeted products and services is vital to the success of the future of advertising. We are confident that this strategic alliance with VGI will create even greater and more innovative marketing platforms for brands in the region, and open doors to many new business and investment opportunities between our companies going forward.”
The joint venture will address the significant potential of the Southeast Asia market. China is ranked the top country in the world for the number of outbound travellers, with nearly 150 million outbound trips made by Chinese travellers in 2017. The most popular destination for these travellers was Thailand, followed by Japan, Vietnam, Singapore, Indonesia and Malaysia. Chinese outbound travellers also exhibit a strong propensity to spend while abroad. This group spent US$258 billion in 2017, contributing 21 per cent of global total spending while abroad, making China the top country in this metric. The joint venture has also identified opportunities not limited to the travel sector, and plans to capture potential benefits in retail, consumer goods, healthcare and entertainment, among others.