Jihong Co surged 60.7% in Hong Kong in trading debut.

Starting out as a paper packaging business, Jihong initially focused on addressing the needs of end-consumers and piquing their interest using its creative packaging designs. That gave it the skills to attract consumers in its early years, leading it to seize on new business opportunities presented by the rise of the mobile internet and cross-border social e-commerce in 2017.

Unlike more mainstream e-commerce companies like Alibaba’s Taobao, whose business model centers on “people discovering goods,” Jihong flips the equation on its head to a model of “goods discovering people.” Using its experience in identifying what will attract consumers, the company specializes in guiding such buyers to goods they will want and purchase. 

But since its business model requires steady investment in advertising, the company’s sales, marketing and distribution expenses have long taken up a considerable part of its spending. Jihong now mainly places its ads on major global online platforms such as TikTok, Facebook, Google, Line, Snapchat, X and Instagram.