Expansion to International Markets Planned for Relevium Technologies
Relevium Technologies Inc. (TSXV: RLV – $0.19 & OTC:RLLVF – $0.15 & Fra: 6BX – €0.11) has presented an update on its strategy to expand the market for its Bioganix brand of health products. The Company is preparing for sales to commence in Europe, supported by partnerships with online marketing specialists including Amazon.
The European market represents an exciting growth sector for Relevium, with the potential for 83 million monthly unique visitors to the online store. The total market size is estimated at more than 200 million people from 26 countries and therefore this new online marketing partnership may generate a significant sales increase.
European Sales Launch Pending
The Company will initially list eight of its best-selling established Bioganix products in Europe, with availability starting on May 18, 2018. Thereafter the full product line is expected to become available starting in mid-summer.
One of the attractive elements of the European market is that buyers tend to purchase more products in each order, amounting to a higher average ‘basket size’ compared to the North American online experience. In addition, there is less competition overall, and the relationship with Amazon contributes the benefit of established promotional investment in the region with enhanced online sales channels already in place.
Moreover, shares of Relevium are listed and actively trading on the Frankfurt Stock Exchange in Germany. As the Company works to add loyal customers within the European market for its product line, there is also the opportunity to attract new shareholders and establish a more diversified shareholder base. The sales growth trend will also work towards supporting a higher market value for the Company.
This new initiative follows on the heels of the announcement earlier this month that Relevium has achieved a new unit-sales record for its Bioganix line.
The Company reported sales of no less than 16,549 units in March 2018, a seasonally low period. This outstanding achievement is expected to translate into sales in excess of $439,000. The monthly high did not include the effect from new product launches, which are expected to have an incremental positive impact over the next six months. Relevium now has a total of 38 different products or SKUs.
Having recruited a total of 230,000 customers so far through its effective marketing strategy, the Company is working to build on its profile as a trusted supplier of quality health and wellness products. The addition of a powerful new sales channel in partnership with Amazon, operating in a large, advanced market overseas is a bold step to continue achieving sales growth.
Enhanced Growth Prospects for New Products in the Pipeline
As Relevium expands its customer base, this also increases the potential for a successful launch of new products. For example, the Company recently launched five products under the PlanetHemp brand in partnership with Hempco Food and Fiber Inc. In addition, Relevium will soon launch Bioganix Hemp-based vegan omega essential fatty acids.
A variety of the cannabis plant that is recognized for health and wellness benefits for humans and animals, Hemp has gained considerable popularity primarily due to its well-balanced nutritional value, alkalinity and the presence of cannabidiol (CBD), a compound known to promote and support overall health. Analysts are projecting the market for CBD products will surpass $1 billion within 3 years, so this new product line offers further growth potential in the pipeline.
After securing a large customer base primarily within the North American market, Relevium Technologies is now moving ahead with the next phase of its growth plan. The European market is an ideal choice for the strategic objective as it has the magnitude to deliver meaningful sales growth, and is well served by an advanced technology infrastructure where consumers actively participate in online shopping.
Possession of cannabis is now legal in several European countries, including the Netherlands, Spain, Italy and Germany. As the medicinal properties of cannabis are widely acknowledged in the treatment of many illnesses, it is likely that demand for cannabis-based products will be increasing in these countries and others. Relevium is establishing its distribution and sales network at an optimum time to seize additional opportunities that may be created as this sector evolves.
Through its partnership with Amazon, Relevium secures access to a high volume sales channel with an effective promotional structure already in place. This continues to yield a significant increase to the subscriber base for Relevium products, which in turn enables faster incremental sales growth as new products are developed and added to the established brand lines.
The recently achieved record sales demonstrate that Relevium products are gaining acceptance in the marketplace. As the Company advances into entirely new markets, and expands on its product lines, this sales growth momentum can be sustained. The trend of higher revenues and lower unit costs ultimately contributes to improved financial performance and supports greater shareholder value. Recommendation: BUY
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