Thanks, Brendon, and thanks everyone for joining us for our first earning call as a public company. When we co-founded Mohawk in 2014, our mission was to build a CPG company of the future. We set out to achieve this ambitious goal by building a team that combines the type of culture, mindset and technological prowess of a certain value startup with a world class supply chain and distribution capabilities of the leading consumer product brands.
We believe that proprietary technology driving efficiency through the entire supply chain is the next differentiator in the consumer product competitive landscape. In essence, Mohawk is a hybrid of technology and a CPG company. I often got people [indiscernible] would be Mohawk. Fast forward five years of inception will to-date I’m proud of our execution and our vision is proving true. Mohawk has achieved phenomenal growth by disrupting an industry that’s been slow to adapt by change in the consumer purchasing behavior. With companies like Amazon and Alibaba and others around the world disrupting the brick and mortar retail model through technology, the opportunity emerged for us to build a CPG company of the future.
The market model pioneered by Amazon has completely changed the consumer journey that traditional brands have relied on in brick and motor retail. More than anything the transparency and access to data that consumers have today has empowered them to make better choices.
In the past, consumers didn’t have Amazon or Google to have them do their due diligence on the product they were buying. Instead they relied on brand awareness, advertising medium term program of the purchasing decisions. The brand power was in convincing the customers that it was offering the right value at the right price. This all paradigm was favoring the brand interest over the consumers by limiting their access to choice and limiting the transparency around the real value of the product they provide.
When we had consumers [Technical Difficulty] behavior data, it is very clear that the base consumers are no longer constrained by the search limitations. The data shows that a significant maturity of consumer searches on Amazon do not include a brand name. Instead the consumer leverage the technology offered by the new retail platforms to search for the best solution for their problem. With transparency and access to data they now rely on technology compared to prices, features, reviews and recommendation to select a product that provides the best value preposition.
The trust created by the brand’s logo through advertising no longer stands up the social proof that regard to the consumer, what is best product for their needs? Consumer can now makes better choices with the mode of choice, thanks to heightened level of transparency provided by the online shelves.
For consumer product brands this new reality requires that are basic.
Adopting a direct-to-consumer model is no longer an option and developing technology solution that makes better and faster data driven decisions combined with delivering high quality product that address the consumer needs is the only way CPG companies of future will be able to compete. We believe that Mohawk is positioned to be the best of these companies. The reason for this belief is the fact that Mohawk has been able to capitalize on this consumer behaviorship, thanks to our incredible people, culture and proprietary technology called AIMEE, which AIMEE stands AI Mohawk E-Commerce Engine.
Developed by a talented group of experience top engineers over the last five years, AIMEE has just massive amount of data and automates various platforms for e-commerce, namely rapidly identifying required market opportunities, managing fulfillment and executing sales and marketing strategy.
With a tradition of 18 to 24 months go-to-market cycle for a common CPG company, Mohawk executes an approximately a third of that through its real time data-driven opportunity and trend tracking capability combined with our agile sourcing quality and logistics organizations.
Each of the products we launch under our portfolio of owned and operated brand, typically goes through four stages, procurement, launch, sustain [Technical Difficulty] what’s called the mode phase for those not succeeding move to liquidate. Efficient procurement of our product, sourcing manufacturers, qualifying them and developing high quality products continues to be a priority for us. We're working hard to enhance this function to enable the company to capitalize on the high throughput of quality ideas generated for many. We use that research engine for surface product opportunities that rely on large amounts of data, these opportunities maybe routed in a market inefficiency, a new transforming consumer needs, our degradation and customers satisfaction, where other parts we extract from the data.
The opportunities led by our research team move forward to sourcing, production and shipping from the manufacturing [indiscernible] to the target market. We aim to achieve this profit in six to eight month before the product is ready to launch.
During our launch phase we leveraged our technology to aggressively manage pricing, media buying for our products.
Our strategy is to generate strong consumer demand out of the and quickly establish premium, organic and paid search placement. It’s important to note that this strategy can only be successful if we actually build the right product that delight our customers.
Our goal is for every product we launch a transition to the sustained phase and become profitable in three months post launch. After several years of refining AIMEE based on our early learnings I’m proud to say that approximately 80% of our product launches over the last 12 months have reached a sustained phase.
What makes our business model so compelling compared to traditional CPG companies is that AIMEE’s automation that allows us to manage the growing number of products without having to meaningfully increase costs, specifically headcount, resulting in a significant expense leverage over time. Today we have more opportunity to offer approximately 250 SKUs of four brands, hOme, Vremi, Xtava and RIF6 and we focus on four primary categories, home appliances, kitchen wear, beauty and consumer electronics.
Looking ahead, we have multiple opportunities to drive long-term growth into improved profitability. Those include increasing our new product launch capacity, further optimizing unit economics of our existing product portfolio, expanding to new domestic and international marketplace, pursuing SaaS partnership and opportunistically adding new products and categories through acquisition.
Several of these initiatives are underway while others are [Technical Difficulty] in the coming months and years.
As you heard me outline there is tremendous opportunity for growth across our business.
Our model generated strong quarter results in our core business which we will brief you in a moment.
Before I turn the call over to Fabrice, I may leave you with a few key points that further bolster my confidence in the company’s future prospects.
Our total addressable market is massive and growing. Worldwide e-commerce sales hit $2.8 trillion in 2018 and are expected to reach $4.5 trillion by 2021. I believe that with our proprietary technology, supplier relationship and advanced fulfilment capabilities Mohawk is ideally positioned to capitalize on the continued ship and direct-to-consumer.
And finally, we’ve assembled a great team with deep experience in e-commerce CPG and technology to execute on this growth strategy. I truly believe we’re developing something special.
And with that, I’ll hand it over to Fabrice.