Acceler8 Ventures (LSE:AC8), in a stock market statement on Tuesday, told investors that its main operating business, Hui10, has signed three merchandise consignment agreements with regional operating companies of Hong Kong-listed sportswear brand Li-Ning.
The deals, covering Li-Ning's Beijing, Shanghai and Shenyang operations, let Hui10's Lucky World subsidiary sell Li-Ning merchandise through its retail and online channels, including the Lucky World and TEAM CHINA platforms, without taking on conventional upfront wholesale purchase costs.
Lucky World operates as part of Hui10's Sports Lottery+ platform, which Acceler8 Ventures has been rolling out across Inner Mongolia following a successful pilot in Hohhot, combining UnionPay-certified lottery point-of-sale terminals with a loyalty programme built around "Lucky World Beans" redeemable against merchandise and services.
Under the new agreements, Li-Ning supplies approved merchandise on consignment, with Lucky World retaining a proportion of qualifying sales under a commission-based model.
Customers will be able to redeem Love Beans or Lucky Beans for e-vouchers against Li-Ning products, tying the new merchandise line directly into Hui10's closed-loop loyalty system.
"Li-Ning is one of China's most recognised sportswear brands, and these agreements build on the retail and digital commerce capabilities we have developed through TEAM CHINA and Lucky World, broadening the choice available to customers," said Daniel Levine, chief executive officer of Acceler8 Ventures.
He added that the focus "remains on growing active users and commercial activity across Hui10's ecosystem", with branded merchandise offering another route to revenue from the retail relationships the group is building.
Read more about Acceler8 Ventures