Ann: Business Update, page-26

From my understanding, HT8 did have had a homeware business with a shop front before 2017, I believe. The business was sold to the House Group. I guess there are a few things one can perhaps draw on:

· It is a business that HT8 had some experience.

· At that time, it had a physical store and also a website of its own – there was no marketplace to sell to, and Amazon had not yet entered in the country.

· HT8 indicated that it will operate the homeware/kitchenware business on Amazon initially this time. It means it has no real overhead to worry about. Amazon will do all the advertising, logistic etc. There is not much cost to HT8 at all. A very different model.

· What I heard is that this was initiated by Amazon because HT8 was doing such a fantastic job and is number 1 ranked local seller on Amazon AU. My take is that this is very different game today because there is a mighty helping hand today.

Personally, I believe that HT8 needs to expand to other category to scale up and working with Amazon is a very smart move. If you are the number one seller, why would you cut them off? The business contributes well to all marketplace sellers nicely, so I cannot see the danger myself, anyway I am adding more my holding and will place my bet squarely on this company.