NEW YORK, April 2, 2012 /PRNewswire/ -- Consumer Capital Group, Inc. OTCBB: CCGN) ("CCG" or the "Company"), primarily engages in the development and operation of its retailing website "Chinese Consumer Market Network," which provides manufacturers and distributors a platform to promote and sell products and services directly to consumers in China, today announced that it released its financial results for the year ended December 31, 2011.
Jack Gao, President and Chief Executive Officer of CCG, commented, "2011 marked a key chapter in our development. We are currently collaborating with Fuxin Bank in China to issue cobranded debit cards. These debit cards have all the financial functions of traditional bank cards. The cardholder may use the debit card to make electronic payments on our website and it provides discounts for retail transactions outside of our website with certain vendors that have signed up with the program. To promote distribution of these cards, we signed a dealer agreement with China Unionpay, which is a card management company similar to Visa and Master Card. We believe that with the cooperation of China Unionpay, which has POS machines across China, and other potential dealers, we will be able to rapidly grow the debit card program and improve our financial results in 2012."
Selected Fiscal Year 2011 Financial Results
CCG's net revenues derived from its e-commerce business were $2,155,027 and $11,668,827 for the years ended December 31, 2011 and 2010, respectively, a decrease of $9,513,800 or 81.53%. The Company began its principal operations during 2010 with the launch of the e-commerce website. The decrease is the result of CCG's failure to continue to attract more members and grow its membership base, as well as the failure to achieve repeat purchases from existing customers. Such decrease is caused by competition from CCG's competitors, change in key personnel in the Company's internet sales team, and less attractive promotions. CCG is focused on developing a broader sales network in order to attract more customers.
"We are confident that we will improve our financial results during 2012 as Chinese consumers are experiencing a rapid increase in per capita income and household consumption," said Mr. Gao. "The Chinese government has implemented an active array of policies to increase disposable income and shift growth away from industrial development and toward domestic demand. At the same time, e-commerce activity in China is thriving. According to International Data Company, China's online shopping sales rose 66 percent to $127 billion in 2011. As the Chinese government focuses on stimulating the domestic consumption market and expanding imports, with boosting domestic consumption being a key theme in China's recent five-year plan, this environment is likely to improve the outlook for consumer markets. Credit Suisse projects that China's household income is expected to rise to $9 trillion in 2015, up from $4 trillion in 2010."
"We believe that our e-commerce business model possesses a number of strategically significant strengths that will benefit us in 2012," added Mr. Gao. "While many of our competitors cater predominantly to consumer-to-consumer transactions, we however focus on the full range of consumer goods and services, from clothing and consumer electronics to household appliances and home furnishings, in a full business-to-consumer modality. Furthermore, we believe our sweepstakes and incentive programs are an unmatched innovation among China's competing e-commerce offerings, as these group-buying dynamic programs harness results in an unusually low-cost and effective method of attracting consumers to the website. For manufacturers and distributors, our platform provides comprehensive retail channel benefits and geographical breadth while permitting autonomy and flexibility in how sellers fulfill and ship goods to consumers. By concentrating our development of core competencies on e-commerce technology, we also avoid the overhead and operational difficulties of logistics and supply chains."
About Consumer Capital Group, Inc.
CCG provides an online marketing and retail platform for manufacturers and distributors to promote and sell products and services directly to Chinese consumers, who can earn discounts through CCG's rewards and incentive programs. CCG's online platform eliminates the extended network of intermediaries in the manufacturing-distribution-retail chain by providing manufacturers with direct access to the members of its website. Furthermore, the Company's website provides customers with access to certain Western products that are generally unavailable in China, such as handbags and eyewear made by U.S. companies and food and beverage products from Spain, Germany, and France. Sellers use the Company's website to advertise and sell their goods, manage customer data, and track orders and shipments. Consumers use the website to shop online and pay for products and services. Consumer Capital does not buy, hold, or sell any inventory. CCG employs a system that escrows payments for the goods until the consumer indicates that the order was satisfactorily fulfilled. The Company's website is located at: www.ccmus.com.
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Consumer Capital's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, general economic conditions; geopolitical events and regulatory changes, availability of capital, changes in the agricultural industry, the Company's ability to maintain its competitive position. Additional Information regarding risks can be found in the Company's Annual Report on Form 10-K and in the Company's recently filed Prospectus filed pursuant to Rule 424(b)(3) with the SEC.
Mr. Kevin Ma
NUWA Group LLC.
Mr. Jack Gao, President
Consumer Capital Group