Retail company AuMake has bought Chinese retailer Broadway. After full consideration, the deal cost $14.2 million.
AuMake is a retail chain aimed at being a ‘one-stop-shop’ for Chinese tourists across Australia. ‘Daigou’ stores like AuMake are catered for Chinese tourists.
AuMake offers healthcare, skincare, baby formula, and dairy products.
The chain offers payment options through WeChat, Alipay, and UnionPay. The company estimates an increase of exposure to over 700,000 customers.
Meanwhile, revenue for the 2020 financial year is estimated to reach $100 million. Broadway currently operates eight stores across Australia and New Zealand.
Aumake executive chairman Keong Chan says the daigou market is estimated to be worth over $4.5 billion in Australia and NZ.
“Over the past 18 months AuMake has been investing in, and refining its business model and expertise in the cross-border market, which allows us to identify and leverage unique growth opportunities,” he said.
The combined stores of both AuMake and Broadway equal to 25.
“The increased customer base is expected to improve the financial performance of the business across all metrics,” said Chan.