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RooLife hits $270K in October from China e-stores ahead of India launch

ASX News, Consumer
ASX:RLG      MCAP $3.530M
28 October 2024 12:27 (AEDT)
Indian e-commerce conept

Adobe Stock

RooLife Group (ASX:RLG) clocked an additional $270,000 in sales this month to date following online store launches in China.

That comes weeks before the company officially launches an online store for Indian consumers next month.

The thinly-traded nanocap penny stock showed little reaction in terms of share price on Monday, but an Indian launch is noteworthy – given the size of that market, but also noting success in the Chinese online store launch.

The bigger question will be how the notion of Australian health and wellness products takes off in an Indian market. Where China and Australia enjoy a proximity-based familiarity of sorts, RooLife may need to do more marketing work in India.

It’s gearing up with Indian retailer JioMart – owned by Reliance Group – and its products will be advertised under the “A Taste of Australia” slogan. A dedicated web-store will be searchable by users. Some cosmetics will also be available.

Interestingly, the company also reported on Monday it expects tariff removals for its products into India. How exactly RooLife knows this wasn’t abundantly clear.

At any rate, an Indian e-store launch slated for November will see RooLife’s global expansion push carry on right before the start of a new year.

“RLG is exceptionally well placed to deliver significant top line growth in FY2025 as it builds out higher margin sales channels in two of the world’s largest consumer markets – China and India,” the company wrote on Monday.

RooLife chief Bryan Carr is expecting the Indian market to be a “big part” of business moving forward (though didn’t use the term “transformational.”)

“The $270,000 of sales so far this month from [the China e-stores] alone is a good start and we see considerable growth beyond this,” Carr said.

“The launch in Hong Kong with HKTVMall delivers RLG access to millions of active users who regularly shop on the platform, offering significant exposure for our portfolio of brands and solidifying RLG’s commitment to expanding its footprint in South East Asia.

“We are on track to launch in India next month with JioMart, part of Reliance Retail, and we are confident India will be a big part of our business. I look forward to reporting on progress as we approach going live.”

RLG last traded at 0.5cps.

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