TikTok chooses Netccentric as partner to launch new e-shop

Nettcentric (ASX:NCL) has been appointed by TikTok as a Malaysian partner in the video app giant’s new e-commerce platform.

The deal has been minted with Netccentric's social influencer content marketing company Nuffnang, a 100% owned subisidiary.

Nuffnang is bound under a one-year no-cash agreement with TikTok owners ByteDance to recruit creators to promote TikTok Shop and market products from approved vendors.

Nuffnang was selected for a trial run of the platform earlier this year, generating over $30,000 in sales in the first 12 hours. 

Nettcentric also notes Nuffnang drove 56% of group revenue in the 2021 financial year. 

Two of the top sellers involved in Nuffnang's Malaysian TikTok Shop pilot run earlier this year; GMV refers to Gross Merchandise Volume

What is TikTok Shop?

TikTok Shop is ByteDance’s attempt to further monetise the app by providing e-commerce capabilities. 

The ‘shop’ sees TikTok users sell products on behalf of approved vendors during livestreams broadcast on social media. 

Nuffnang’s Live Commerce product does the same thing, underscoring its acumen in handling TikTok’s amibitions for its ‘Shop’ feature. 

Nuffnang has an existing database of over 15,000 content creators in Malaysia, Singapore and Taiwan. 

Netccentric notes it is unable to forecast revenue attached to the deal at this time, but highlights the strategic intention behind partnering with the world’s leading video app. 

Is NCL overlooked? 

Since listing in 2015, Netccentric has never particularly garnered overwhelming market interest. 

The share price declined from 20c at listing in the years to 2020, but the covid era came as a revival for the stock price back to listing value. 

Since then, the price has been hit this year by sell-offs, seeing Netccentric currently sitting just below 10c.

Its first quarter (Q1) earnings for the 2022 financial year (FY) were up 18% to $2.8m, with EBITA of $79k up 225%. 

Nettcentric’s Q1 FY 2022 revenue earnings were 61% contributable to Nuffnang. 

One a one month basis, Netccentric is currently up 19.7%. 

Netccentric's three month charts up against the communication services index (XTJ)