Acorn International Launches Influencer Development Business as part of Pivot from Prior Dominance in Direct-to-Consumer in TV Media to Digital Media

SHANGHAI, March 26, 2019 /PRNewswire/ -- Acorn International (Acorn) (NYSE: ATV) announced today that it has launched its local Chinese influencer facilitator business, called A-KOL (standing for "Acorn Key Opinion Leader", with a key opinion leader being equivalent to a social media "influencer" in other parts of the world). A-KOL is initially established to support other parts of Acorn's broader business, such as Acorn Streaming, which monetizes digital content, and Acorn Products, which houses Acorn's e-commerce business. A-KOL is distinct from Acorn's core social media management business since A-KOL actually facilitates the development of local China influencers to optimize their ability to convert Acorn's content and product sales.

In China, grassroots influencers, known as KOLs, have become a social media and e-commerce phenomenon, and a major part of B2C business activity now in China. Based on research from Frost and Sullivan, China's internet KOL economy, which refers to all activities relating to the monetization of the KOLs' influence and impact on their fans, grew at a CAGR of 181.5% from 2013 to 2017 and is expected to continue expanding at a CAGR of 41.8% from 2017 to 2022. Moreover, China's market for internet KOL facilitators generated revenue of RMB38.8 billion in 2017 and is expected to grow at a CAGR of 38.9% to RMB200.9 billion in 2022. Despite its size, the industry remains nascent, with many KOLs operating independently, or connected to small, unsophisticated KOL facilitation companies.

In line with Acorn International's business model of combining social media management, content creation and sales of its own as well as third-party brands through e-commerce, various parts of Acorn frequently engage KOLs as part of its business growth. However, through A-KOL, Acorn can now develop its own KOLs to support its business.

"Acorn is bringing the lessons and experience from our prior dominance in direct-to-consumer marketing in TV media in China to direct-to-consumer via digital media. In the digital media and social media space, KOLs represent one of the most relevant and new types of media for conversion to product sales, and we believe they will play an important part in our business going forward," said Mr. Jacob A. Fisch, CEO and President of Acorn. "This is a dynamic and emerging space in the evolution of digital media marketing in China, with a number of these companies looking to tap the U.S capital markets, demonstrating the appeal of A-KOL as both a standalone business as well as for unlocking greater value from the other business units at Acorn."

About Acorn International, Inc.
Acorn International is a leading marketing and branding company in China, leveraging a twenty-year direct marketing history to monetize brand IP, content creation and distribution, and product sales, through digital media in China. Previously the leading TV infomercial company in China, Acorn today has three divisions support its growth: 1) Product Division, 2) Content Division, and 3) Influencer Management Division.

In the Product Division, Acorn sells product primarily through e-commerce channels in China, as well as through offline distribution and outbound marketing. In the Content Division, Acorn monetizes content. Specifically, in the Content Division, Acorn has redirected its direct marketing know-how to digital media in China, launching Acorn Streaming, which is primarily focused on live streaming and pre-recorded video content creation and distribution. In the Influencer Management Division, Acorn brings, through the creation of digital social content, leading U.S. celebrity talent and brands to China, representing their in-country digital presence. For more information visit www.acorninternationalgroup.com.

Safe Harbor Statement           

This news release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipates," "believes," "estimates," "expects," "future," "going forward," "intends," "outlook," "plans," "target," "will," "potential," and similar statements. Such statements are based on management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

Investor Contact:
Compass Investor Relations
Elaine Ketchmere, CFA
Phone: +1-310-528-3031
Email: [email protected]

SOURCE Acorn International, Inc.

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www.acorninternationalgroup.com

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