The BWX Ltd (ASX:BWX) share price is charging higher on Monday after providing an update on its European expansion plans…
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The BWX Ltd (ASX: BWX) share price is charging higher on Monday.
In morning trade the personal care products company’s shares are up over 4% to $4.22.
What did BWX announce?
This morning BWX announced a strategic partnership with British ecommerce company THG Holdings.
According to the release, THG will provide a full-service solution, including localised digital capabilities for taking BWX brands direct to consumers across Europe and Asia.
THG Ingenuity, the technology services division of Manchester Airport-based THG Holdings, is a global proprietary technology platform. It specialises in taking brands direct to consumers.
Management notes that the agreement will provide BWX with an end-to-end e-commerce solution and access to THG’s digital platform and full-service supply chain to build more meaningful scale for the company’s brand portfolio across Europe and Asia.
BWX has advised that the collaboration will initially target five priority markets. After which, it is aiming to increase this to 14 markets by FY 2022.
Management expects this to play a key role in the company achieving its targeted revenues of between A$30 million and A$50 million from the European region by the end of FY 2023.
Also part of its strategy in the region is expanding the Sukin brand across all priority sales channels. This includes Supermarkets and Hypermarkets, European Drugstores, and E-Retailers. The Andalou Naturals brand is then expected to follow in FY 2022.
It is also aiming to drive brand activity via direct-to-consumer channels and re-position the Sukin brand for the European market. The latter includes maximising its Australian provenance and the A-Beauty trend across Europe.
BWX’s Chief Operating Officer, Rory Gration, believes the partnership with THG is an important step for bringing its product innovation to more consumers at a time when the Natural beauty category is thriving.
He commented: “We are delighted to announce our partnership with THG, as we leverage the already-strong consumer connection to our brands Sukin and Andalou Naturals in the UK market over recent years.”
“Combining BWX’s house of Natural brands and insights with THG’s digital brand services, cross-border expertise and sophisticated technology means we can build more meaningful brand footprints in what is a fast-evolving retail environment,” Mr Gration concluded.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.