After raising $50 million in 2018, the French start-up Launchmetrics tackles the Chinese market and acquires Parklu, a data analysis and influence marketing company.
Launchmetrics is a performance marketing solutions company serving brands in the luxury fashion and beauty industries.
After Europe and the United States, the French start-up decided to enter one of the most important markets in the world and a strong consumer of luxury goods: China.
The objective? To spread their notoriety and influence among luxury brands worldwide where the clientele is large for the fashion and cosmetics sectors.
Michael Jais, CEO and co-founder of Launchmetrics, said: “From now on, four digital points are necessary to make a purchase. In China, this rises to eight contact points, four of which are influencers, so the purchasing decision is very strongly influenced by them.”
Parklu is an important marketing influence company in China. By buying it, Launchmetrics is trying to establish itself in a market that is only increasing its consumption, especially since the last economic recovery policies adopted.
The French company intends to offer its new subsidiary new tools enabling it to monitor and analyse all social media investments in the territory by competitors and influencers in the West and in the East.
The management of Launchmetrics has set itself the objective of reaching a turnover of 100 million euros by 2024, compared to 30 million this year.
The French company is creating a real asset for itself after having already established itself on the European and American markets, and estimates that the acquisition of this market will weigh nearly 40% in the revival of global luxury consumption, an advantage for the brands with which the start-up collaborates.
“We estimate that China will account for 25% of our revenues within four years” he added. “We are going to suffer there, but we already see sectors recovering very strongly, such as beauty. But it is also true that in some countries, in France and Italy for example, the recovery will take longer.”
The meeting with one of Parklu’s founders is not recent and dates back more than ten years, at a local investment bank in Madrid: “He helped us meet the targets and above all to understand what was really going on behind the scenes, for example to rule out several of them in order to avoid political pressure.”
However, the acquisition of this company was far from being that simple. The rules in China regarding data are strict. Authorization is often required to leave the country, which forced the French company to have two separate structures built: “We built two technical infrastructures. One based in Shanghai behind the firewall, and the other in Hong Kong.”
Launchmetrics complied with its client’s needs because of the stakes involved. When you consider that the most important western fashion influencer Chiara Ferragni has 22 million subscribers compared to 117 million for Austin Li Jiaqi, 78 million for Papi Jiang and 55 million for Kevin Chu, the three biggest Chinese influencers, it was therefore inconceivable for the brand to abandon this project.
Parklu is specialized in the analysis of KOLs (key opinion leaders) and Launchmetrics in the optimization of the marketing resources implemented by the brands. This acquisition will allow the two companies to share their technological expertise and data in order to enrich their analysis algorithms to the maximum.
Featured Photo : © Launchmetrics
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