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.
SOURCE Jasper Commerce, Inc.
View original content: http://www.newswire.ca/en/releases/archive/March2022/17/c4319.html