Bubs Limited’s [ASX:BUB] share price has risen after striking a supply deal with Chinese company, New Times Asia.
Bubs were able to sell 20 ecommerce platforms in China, which contributed to an increase in brand exposure and sales potential.
Bubs stated that New Times Asia had committed into buying millions of dollars’ worth of Bubs products from Australia, which has helped double its sales revenue.
Today, its shares grew by 7.84%
Chinese demand for Australian consumer goods will help Bubs
The $17 million-dollar deal with the Chinese distributor is only the beginning for Bubs.
Its deal with New Times Asia will allow them to supply its products to major Chinese ecommerce sites, which in turn would double the company’s net sales revenue.
By 2021, the purchase could potentially grow to $37 million.
Stockhead reported that Bubs founder and boss Kristy Carr stated:
‘The agreement with New Times Asia is a major step forward in our China expansion strategy, and shows the investment we have been making and continue to make in building our China presence is bearing fruit.’
New Times Asia are pleased to partner with Bubs as they are confident it will quickly build brand awareness for the company in China.
Part of the deal involves New Times Asia purchasing volumes of products from Bubs, which will maintain flexibility on an international basis.
Bubs alongside many other distribution companies have made huge gains over the past year due to high levels of demand in its products.
Specialising in an international distribution is the smartest way to approach potential business growth, due to the fact that there is so much potential across new channels.
This deal will help Bubs diversify its product range across multiple fronts, allowing them to increase brand exposure and sales quantities.
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