Mohawk Group Announces Expansion of E-Commerce Business to China
NEW YORK, Dec. 17, 2019 (GLOBE NEWSWIRE) -- Mohawk Group Holdings, Inc. (NASDAQ: MWK) (“Mohawk”), the tech-enabled, consumer products company, today announced it has officially begun its efforts to expand its E-Commerce brands into the Chinese market. During the first quarter of 2020, Mohawk intends to launch its first product for sale in China on the Tmall platform and to expand its product offerings over the course of 2020.
The Chinese E-Commerce market is already the largest and fastest growing E-Commerce market globally. According to eMarketer, online sales in China are expected to grow to over $4.096 trillion by 2023.
"Mohawk Group is building the consumer product company of the future using proprietary technology to optimize our business for online marketplaces,” said Yaniv Sarig, Chief Executive Officer of Mohawk Group. “In the last five years, we have been growing rapidly in the U.S., leveraging the Amazon and Walmart platforms to launch more than 250 products. We are excited to expand our efforts to China where we believe we can replicate our domestic success over time on marketplaces such as Tmall and JD which are ideal fits for our business model.”
Sarig continued, “It’s exciting to see how advanced the large Chinese E-commerce companies are when it comes to offering their third party seller brands API’s (application programming interface) and access to data. We continue to believe that the CPG company of the future will use data analytics, machine learning and automation to better understand and predict customer needs while driving cost efficiency at large scale and we are confident that Mohawk is best positioned to operate successfully on these online retail sites.”
About Mohawk Group Holdings, Inc.
Mohawk Group Holdings, Inc. and subsidiaries (“Mohawk”) is a rapidly growing technology-enabled consumer products company that uses machine learning, natural language processing, and data analytics to design, develop, market and sell products. Mohawk predominantly operates through online retail channels such as Amazon, and Walmart. Mohawk has incubated and grouped four owned and operated brands: hOme, Vremi, Xtava and RIF6. Mohawk sells products in multiple categories, including home and kitchen appliances, kitchenware, environmental appliances (i.e., dehumidifiers and air conditioners), beauty-related products and, to a lesser extent, consumer electronics. Mohawk was founded on the premise that if a company selling consumer packaged goods was founded today, it would apply artificial intelligence and machine learning, the synthesis of massive quantities of data and the use of social proof to validate high caliber product offerings as opposed to over-reliance on brand value and other traditional marketing tactics.
Forward Looking Statements
All statements other than statements of historical fact included in this press release that address activities, events, or developments that we expect, believe, or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements about our ability to successfully launch products and to expand our product offerings, including in China, our technology platform and its ability to disrupt the consumer products industry, including in China; our ability to replicate our success in the U.S. in China; our ability to gain market share; and our ability to penetrate new categories. These forward-looking statements are based on management’s current expectations and beliefs and are subject to uncertainties and other factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to our cash flows and revenue growth rate; our supply chain, sourcing, manufacturing and warehousing; international tariffs and trade measures; inventory management, product liability claims, recalls, or other safety concerns; reliance on third-party online marketplaces; seasonal and quarterly variations in our revenue; acquisitions of other companies and technologies; and other factors discussed in the “Risk Factors” section of our most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), including in our final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 13, 2019, all of which you may obtain for free on the SEC’s website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Jessica Liddell, ICR
Ilya Grozovsky, Mohawk Group
Brendon Frey, ICR