AdEffective Rebrands to Shoply, Begins Expansion Strategy

Realising 159 percent sales growth in the second quarter, AdEffective – now Shoply – moves ahead with its aggressive growth strategy.

The e-commerce and online advertising company AdEffective, which owns Ohki, Eljo and Ezy Direct, has announced its rebrand to Shoply, as well as the recent acquisition of several premium domain names.

The company, which acquired Eljo and Ohki in the past year, has witnessed 159 percent sales growth in the second quarter alone, leveraging its acquisitions to increase its buying power and marketing clout. Now Shoply intends to power further growth with the acquisition of ToyStore.com.au, SportingGoods.com.au and HomeAppliances.com.au for just shy of $20,000.

These domains will be useful in developing the company’s reach into two new retail categories (toys and sporting goods), while further extending its reach in the home appliances category.

Shoply CEO Simon Crean said, “The purchase of these three premium domain names represents the initiation of our organic growth strategy which will complement our acquisitive growth strategy very well. The investment made in the first half of FY2014 building our scalable platform provides Shoply the ability to create and integrate new online stores quickly and efficiently. We also have a growing supplier network which will enable us to provide customers with an impressive product range across three of the largest and fastest growing online shopping categories.”

IBISWorld Online Shopping in Australia

The size of Shoply’s ambition: a breakdown of the local online shopping market according to IBISWorld.

According to IBISWorld, the opportunity for Shoply in these new categories is significant, with the toy and sporting goods markets contributing 11.7 percent ($1.6 billion)[1] to the total online shopping market in Australia.

Meanwhile, HomeAppliances.com.au will be used to present the sum total of all home appliance products currently available on both Ohki and Eljo, while also adding supplementary products from a number of new suppliers. The company’s leaders have also stated that the existing brands and domain names will continue on in their current incarnation.

“The Company remains committed to the increased focus on its Online Shopping Division through investing funds into creating and acquiring new revenue streams,” Shoply’s ASX announcement reads. “A number of acquisition opportunities are continuing to be assessed and the Company anticipates being able to conclude at least one of these in the current quarter.”

The announcement also states the online stores under its newly acquired domains will be launched during the June 2014 quarter.

[1] IBISWorld Online Shopping in Australia October 2013

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