TSXV: JPIM
VANCOUVER, BC, March 17, 2022 /CNW/ - It is an honour as the
Founder and CEO of our newly listed public company to provide
investors with some recent updates across several pillars of our
business, as well as to review some of our expectations as it
relates to the growth of our core and rapidly growing Product
Information Management ("PIM") market.
According to Allied Market Research, in 2019 the global PIM
market size was valued at US$9.90
billion and is projected to reach US$59.25 billion by 2027, growing at a 25.2% CAGR
from 2020 to 2027. [1]
As the eCommerce Industry itself has been growing at greater
than 15% YoY, the PIM market is expanding even faster. PIM
essentially helps manage merchants' inventory and therefore working
capital, at a time when the low hanging direct to consumer fruit
has likely been picked. We believe our solution is uniquely
positioned to capitalize on this rapid growth, having developed a
very broad distribution capability through all dominant eCommerce
platforms, such as Magento, BigCommerce, Shopify and very soon to
be more.
Our Developing Enterprise Sales Pipeline
Our Enterprise PIM solution offers larger eCommerce merchants
(i.e., those having greater than US$50
million in aggregate annual revenues) increased management
utility by: a) enabling unlimited channel connectors and
marketplaces such as Amazon, Walmart and others and, b) the ability
to stage their product information changes to a test environment
before publishing it.
Recently we've added impressive new brands to our list of
Enterprise customers. First there is Jurlique, a well
recognized skincare brand whose products are sold in more than
5,000 stores worldwide. [2]
Next and most recently we signed on a preeminent Canadian brand,
Jamieson Laboratories. Many such Enterprise brands
require (either initially or as a later phase project) integrations
with larger ERP, CRM, or inventory management solutions that also
lead to increased service revenues. Jasper's technical prowess
continues to expand, which enables us to successfully complete
increasingly more complex integrations.
These recent wins are a testament to our Enterprise sales
pipeline's steady growth, which we expect will continue to expand
as a direct result of: 1) Jasper-led marketing campaigns in
partnership with Shopify Plus, 2) the recent introduction of our
new VP of Sales, 3) increased spend through Google and YouTube ads,
and 4) the onboarding of several new Enterprise sales, solution
engineers and account executives to keep pace with the increasing
demand from Enterprise merchants for live demonstrations.
New Partnerships
We've also recently partnered with two buying group/consumer
associations - the Clum Group and the Canadian Sporting Goods
Association (CSGA), which combined represent hundreds of
brands/storefronts/influencers and would enable us to significantly
grow our Serviceable Addressable Market without meaningfully
increasing our sales expenses.
These groups intend to make use of a special
parent/child capability within the PIM, which is a means for
them to centralize and curate all their product guidance and
governance information for immediate and real-time syndication to
their large membership base. Our PIM solution offers significant
operational advantages over syndicating the product related content
directly to an eCommerce platform or marketplace like Shopify or
Amazon. Today, without Jasper PIM, such buying groups and
associations are largely managing this voluminous content
distribution burden manually, leading to many errors and countless
hours lost to inefficient data entry work.
This parent/child capability allows the association or buying
group to have a focused and automated means of distributing content
updates to its membership base, a utility that becomes increasingly
meaningful as more of the buying groups' membership base adopt
Jasper PIM.
Each buying group or association partnership could potentially
introduce Jasper PIM to a network of hundreds or even thousands of
new customers through its associated member base. Jasper will
be working directly with each member to onboard and support the
member on behalf of the buying group itself.
We're excited for this new revenue channel and will continue to
look to develop more of these types of force-multiplier
partnerships in the future.
Small Business Customer Adoption via Shopify
Our small and medium business (SMB) solution merchant base has
grown more than 74% in our first half of this fiscal year. We
expect this trend to continue and accelerate as more and more
merchants sign up for a free trial and discover our products, which
to date has been largely through the Shopify App Marketplace.
We expect to reach an inflection point in this marketplace and
achieve even further growth in SMB adoption as we continue to
onboard new customers and turn them into brand ambassadors.
Developing brand ambassadors in the SMB space is uniquely
important and in the past 3 months we have received a handful of
glowing new customer reviews. We've been actively studying
the feedback from those consumers in order to continue to press our
vision of simplifying the SMB offering and having all integrated
touch points of the PIM between other platforms (especially Shopify
and Amazon) become more seamless.
One such brand ambassador is The Superfood Goddess. The
owner/operator (Stephie Bosco) is a
talented entrepreneur who has recently adopted Jasper PIM to help
her migrate her content from WooCommerce so she can centralize her
product data and automatically publish to a new Shopify
store. Her recent glowing review of Jasper PIM in the Shopify
marketplace suggests that our technology and our team support was
exactly what she was looking for to help her accelerate her
business. In the near term Stephie expects to increase her
store's product count dramatically, adding drop-shipping capability
and remote warehousing, which should help her reach or exceed her
goal of 25% revenue growth by the end of 2022.
Finally, as we employ the use of the new go-public proceeds
towards much more aggressive marketing and advertising campaigns,
we can expect continued penetration in the SMB consumer mindset and
quicker onboarding speeds.
Upcoming New Marketplace Distribution Opportunity
We are preparing to announce a new significant marketplace
integration in the next several weeks which we believe will deliver
strong differentiation and economic advantage to its vast customer
base. Each new marketplace we integrate with opens us up to
significant new distribution possibilities, representing in this
specific case more than 1.5 million potential customers. Stay
tuned for more information about this very soon!
Preparing our Quickbooks Online (QBO) Integration
We are preparing a seamless new integration channel that we
expect will be available to SMB merchants in the fall of
2022. Quickbooks online has more than 4,500,000
customers worldwide [3] and is a most suitable fit to plug and play
with Jasper to provide QBO merchants with an exciting bundle to
accelerate their ecommerce growth.
Quickbooks, as an accounting and inventory management platform,
does not offer compelling merchandising capability and, as such,
when connected to Jasper PIM allows the eCommerce merchant full and
centralized control over their product and inventory data.
Further, as we connect Quickbooks together with our PIM and add
Shopify and Amazon as outbound eCommerce platforms or marketplace
destinations, we bring all this consolidated utility to life for
very small merchants in the form of a powerful and cost-effective
solution.
We expect this integration will lead to a focused small business
eCommerce management trifecta solution that is unique in the
market.
The anticipated total average cost for an SMB merchant who
desires to use the future Quickbooks <> Jasper <>
Shopify bundle for example will fall in the neighbourhood of
US$500/month, a fee that we think
growing eCommerce merchants could easily justify for the fulsome
bundle they will use to run their entire online business.
We look forward to regularly sharing our progress with all
stakeholders, as Jasper embarks upon the next stage of its life as
a public company.
Warmly,
Jon C. Marsella
Founder, Chairman and CEO
Jasper Commerce, Inc.
[1]
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https://www.alliedmarketresearch.com/product-information-management-market#:~:text=Product%20Information%20Management%20Market%20Statistics,25.2%25%20from%202020%20to%202027
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[2]
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https://en.wikipedia.org/wiki/Jurlique
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[3]
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https://www.zdnet.com/article/intuit-delivers-solid-q4-cuts-q1-earnings-outlook-finishes-with-4-5-million-quickbooks-online-subscribers/
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SOURCE Jasper Commerce, Inc.