Weyland Tech Initiates Food Service Pilot in $500 Billion Dollar O2O Marketplace
HONG KONG–(Marketwired – Oct 17, 2017) – Weyland Tech Inc. (OTCQX: WEYL), a global provider of mobile business applications, announced today that its food services pilot program has launched.
In the pilot, announced in May, Weyland Tech is collaborating on developing Online-to-Offline (“O2O”) applications initially targeting the food service industry.
“In our projections the revenue for the pilot alone, with just 3 food distributors, reaches a $250,000 annual run rate over the next 12 months. In the coming months, we will open the platform up to additional distributors and are targeting a $2,000,000 run rate exiting the first full year,” said Brent Suen, Weyland’s CEO. Suen continued, “We expect exponential growth as we open the platform up to the whole industry and add the business to consumer modules. We’ll also take the lessons learned and modules built into our platforms in the United States and through our partners in international markets.”
“In Hong Kong, where the trial is based, dining out in restaurants grew to over $13 billion last year; we want our mobile apps enabling transactions in that kind of growing marketplace. Southeast Asia has some of the highest rates for daily dining outside of the home in the world.”
John MacNeil, Weyland Tech Director of Strategy and Capital Markets said, ”We’re really excited about the potential of online-to-offline in mobile applications. The pilot is B2B, as the platform develops we’ll bring the same capabilities to B2C. Outside of the most developed Asian cities, millions of buyers are not directly served by Third Party Logistics providers (“3PL”) but can reach centralized physical locations for pick-up. The solutions we are developing with Faith United will allow merchants to reach each other and online buyers and close sales that would not otherwise occur.”
Mr. Suen added, “Most people today talk about online-to-offline as a strategy to bring online customers to brick and mortar. While the focus today is using online marketing and advertising to entice the customer to visit a physical store and make a purchase, the potential is so much larger.”
“We think of online-to-offline broadly, using the same tools to generate any real world action. To Weyland, it’s not just buying something in a store, it can be restocking product like we are doing with our Faith United trial, it can be getting people to come out to a concert, or to an eSports event to watch their favorite players live.”
Mr. MacNeil continued, “Bain & Company, looked into this with Google, and what they found is a sizeable opportunity for O2O in Southeast Asia.”
“Based on their March 2016 report, online retail penetration in the region was just 3%. In China and the US, it was 14% with online sales totaling $293 billion and $270 billion, respectively.”
“We expect that the penetration of digital purchases and mobile purchases in particular will continue to grow rapidly. As only 100 Million of the approximately 400 Million Southeast Asian people aged 16-years of age or older made digital purchases that year, there is a lot of room for growth.”
With this pilot program and the platform developed with Faith United, Weyland will begin to address just one of the O2O opportunities we see in the region. The trial will involve ordering and fulfillment of frozen foods to food distributors in Hong Kong. Following the trial, Weyland plans to extend the platform to B2C by approaching restaurants, factory kitchens and foodstuff manufacturers to expand their reach to individual and business consumers.
We look forward to providing updates as we make progress in this venture.
About Weyland Tech Inc. Weyland Tech’s CreateApp platform is focused on the Asia markets. Our CreateApp platform offered in 12 languages, enables small and medium sized businesses (“SMB’s”) to create native mobile applications (“APP”) for Apple’s iOS and Google Android without technical knowledge or background. Empowering SMB’s to increase sales, reach more customers and promote their products and services via simple easy to build mobile APPs in an affordable and cost-effective manner.
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