- Peak Fintech Group (PKK) has signed an agreement with an Italian retailer to provide short-term loans to Gruppo Coin’s social media influencer online sales partners
- Gruppo Coin is an apparel retail group with more than 1,100 stores in Italy
- With these loans, the company will leverage the power of its social media influencers to sell its products
- Peak will earn its customary approximately two per cent fee of the value of the loans provided for facilitating the transactions
- Peak Fintech Group (PKK) is currently down 4.17 per cent to C$1.61 per share
Peak Fintech Group (PKK) has signed a financing agreement with high-end Italian retailer, Gruppo Coin.
Peak, which provides fintech services to the Chinese commercial lending sector, signed to the deal to help secure short-term loans for Gruppo Coin’s social media influencer online sales partners.
Gruppo Coin is an apparel retail group with more than 1,100 stores in Italy. Through the loans, the company will leverage the power of its social media influencers to sell its products.
Peak’s research has found that Chinese influencers use social media platforms such as TikTok, Sina Weibo and WeChat to to revolutionize online retail sales. The influencers create entertaining shows broadcast on these platforms in which they promote and sell products they are associated with.
According to Peak, a show typically costs C$1,000 to $10,000 to produce. On average, each influencer will produce about 250 shows per year. Top influencers are usually able to sell their inventory within the first 10 minutes of the product being presented. Peak says this form of advertising is rapidly becoming the preferred way to sell products in China.
“We’ve been studying this space for months, identifying some of the top influencers and brand ambassadors on China’s top social media platforms,” said Peak China CEO Liang Qiu.
Currently, the company has a network of almost 55,000 influencers and over 120 million combined followers with a proven track record of being able to effectively move products.
“With a network of followers more than three times larger than the entire Canadian population, we believe we’re well positioned to talk to virtually any retailer or brand around the world to offer an effective gateway into the Chinese retail space,”Qiu added.
In addition to the cost of producing the shows, influencers must provide their large retail partners with a deposit of 20 per cent to 30 per cent of the value of the products they expect to sell for each show.
This is where Peak and the Cubeler Lending Hub come in. Gruppo Coin’s influencer partners will be eligible to have the cost of producing their shows, their required cash deposits and their entire product orders financed through the Lending Hub.
Peak will earn its customary approximately two per cent fee of the value of the loans provided for facilitating the transactions.
Peak Canada CEO Johnson Joseph said one of the company’s objectives has always been to serve as a bridge that connects North American investors and businesses to China.
“We’ve been working very hard behind the scenes for quite a while now on a way to help Canadian businesses either do more business in China or gain access to the Chinese market. Although the agreement announced today is not with a Canadian company, it certainly sets the stage for us to sign similar agreements with Canadian retailers,” he added.
Peak Fintech Group (PKK) is currently down 4.17 per cent to $1.61 per share at 10:50am EST.