Social commerce business Crowd Media (ASX: CM8) has signed an agreement to distribute US-based Teadora Inc’s Brazilian rainforest-inspired natural beauty products across the European Union, including the Amazon EU online marketplace.
The initial six-month agreement will leverage Crowd’s core strengths in digital social media and influencer marketing to drive sales of Teadora products throughout the region and online.
Crowd will act as the exclusive digital distributor for the products and has already commenced generating Teadora revenue on Amazon EU.
While the terms of the agreement have not been disclosed, the agreed distribution margin is believed to be consistent with standard distribution and reseller margins of 75%.
Teadora was founded in 2013 and manufactures its products with ingredients which have been fair-trade sourced and sustainably harvested, and are carbon-reduced focused, recyclable and biodegradable.
The brand claims to be 100% vegan, toxin-free, cruelty-free, gluten-free and synthetic fragrance-free.
The collaboration with Teadora marks a milestone in the execution of Crowd’s strategic vision to “sell exemplary products integral to the lives of European-based millennials” using a direct-to-consumer model which generated $350,000 for the 2020 financial year.
Crowd has considerable experience in digital marketing to Millennials and the Gen Z population across 12 languages in most European countries, and will be using influencer and performance marketing strategies to drive Teadora sales.
Organic personal care market
Crowd chief executive officer Domenic Carosa said the Teadora deal comes at a time when the global organic personal care market is projected to realise a compound annual growth rate of 9.4% from now until 2025.
“We are excited to have executed a deal in a market size which was estimated at $18.58 billion in 2018,” he said.
“Increasing demand for cosmetics and skin and haircare coupled with a rising need for environment and animal-friendly products is expected to drive the growth.”
“With Teadora, we believe we have found a strong partner with which to build a profitable European business,” Mr Carosa added.