We updated our coverage of Moxian, Inc. (MOXC: OTC), a provider of an ‘online-to-offline’ commerce platform to connect small– and medium-sized business with consumers in China. The Company recently launched a mobile app for consumers to take advantage of coupon rewards and social networking through the Moxian+ platform. A separate mobile app allows merchants to create a profile, communicate with customers, or manage special offers and advertising.
Called O2O for short, online-to-offline commerce strategies attempt to identify customers in the digital space through online search, e-mails or digital advertising and then entice them to physical stores. The strategy has given rise to new terminology, such as ’e-bonding’ and ‘showrooming’. Indeed, 020 tactics are intended do more than just find customers using digital media and drive them to physical stores. Business strategists also want to cultivate a stronger customer relationship. O2O designers are using ‘big data’ on customer behavior to plan creative offerings and advertising for prospects and customers.
In our view, Moxian is entering the market at a particularly good time. For all the fuss over the advent of e-commerce, it only accounts for about five percent of retail sales around the world. That is because only the discovery, research and payment elements of the consumer’s experience can be completed online. The rest of the transaction continues in the real world and only returns online when the consumer returns online to share news of the experience in social media.
Moxian reported token revenue from is O2O platform in the fiscal year ending September 2015 and that might disappoint the less patient investors. Nonetheless, the Company moved closer to its market penetration goals by launching mobile apps for consumers and merchants Moxian sales personnel are ready to hit the ground running in the Company’s first geographic target market in Beijing. Shanghai and Guangzhou will follow later in 2016. Revenue is expected to build as new merchants are signed up for platform services and begin advertising on the Moxian+ platform. We expect investor interest to build with quarter reports in 2016.
Additional information is available in the full report dated January 11, 2016. Please read the important disclosures on the final page of all our reports.
