Can transformational society breakthrough?
Hardware is a good commercial attempt, but Meiyu is a mobile Internet company. CEO believes that the high proportion of hardware business is not a good thing. For a listed company, the business is too single and hopes to expand actively. Internet income, the company's revenue, and diversity.
Excessive revenue reliance on the mobile phone business and the resulting huge losses have forced Meitu to think about future developments.
In August 2018, the CEO once again stood in front of the stage and announced the launch of the next 10 years of a new strategy - "beauty and social". At the same time, Meitu also announced structural adjustments to establish a social product business group, Meitu Xiu Xiu and Beauty shot is the core of the two products.
According to the data released by Meitu, nearly 4% of the monthly active users have become the social users of Meitu Xiu Xiu after nearly 4 months. At the same time, the company's Internet business revenue in 2018 reached 946 million yuan, an increase of 26.3%.
However, in inverse proportion to the increase in revenue, the number of monthly users of Meitu is falling sharply. As of December 2018, the company's overall monthly livelihood was 332 million, a decrease of more than 80 million compared with the same period last year, a drop of 20%. The only increase came from the ace application Meitu Xiu Xiu, but it only increased by 0.3%.
Another core beauty of social strategy is particularly bleak. After the rectification, the beauty of the moon took a cliff-like decline. By December 2018, there were only 38.94 million, which was 60% lower than the 98.13 million in the same period last year. On the other hand, the vibrato and fast-handed monthly activities continue to triumph, according to Questmobile statistics, the two monthly lives reached 426 million and 284 million, respectively, leaving other competitors far behind.
Meitu also knows that it can't compete with it in the field of pan-entertainment, so it has to “turn around” and exert its power in the field of knowledge. It also spends a lot of money on advertising. Although in the CEO's view, there is still a lot of space for a short video, from the perspective of real data, the US is developing in a more niche direction.
CEO said in an interview with Sina Technology that compared to the US shot, Meitu Xiu Xiu's content creation threshold will be lower, relatively lighter, more lifestyle-oriented, a bit like Instagram, (with the US beat) is Two different forms of products.
Success has allowed Meitu Xiu Xiu to see a proven road, but can it be achieved only by the App home page stream?
Sina Technology found that most of the recommended photos in the Meituxiu App are P-pictures and beauty tutorials. They are not the latest content. The exposed picture style is similar to that of Xiaohongshu. But for the user, it is not so easy to change from a retouching tool software to social software. Weibo users omelet directly said that why do Meitu want to follow the trend of the wind, it is better to deeply cultivate the superior function.
CEO also knows that it is not easy to refresh the user's perception. At present, Meitu is still in the stage of infrastructure construction and content ecological construction. It is planned to set the completion time of the first phase at the end soon. Meitu Xiuxiu is not satisfied with the picture social, the CEO revealed that Meitu Xiuxiu will go all the beautiful elements to the video and launch-related functions within this year.
Will the final Meitu transformation society succeed in breaking through? At least under the pressure of Weibo WeChat, Meitu wants to get rid of the previous definition, let people take photos sharing from Weibo WeChat and rebuild the social circle, still cost a lot.
Power beauty hardware prospects geometry?
After bidding farewell to the mobile phone business and transforming light assets, Meitu will inevitably have a huge gap in revenue. But abandoning the mobile phone business does not mean that Mito bid farewell to the hardware business. Meitu officially launched the “meetup cleansing instrument” to enter the smart skin hardware market.
In recent years, with the improvement of living standards, the demand for skincare by Chinese consumers is also growing. According to Euromonitor International data, from 2014 to 2017, sales of only one cleansing instrument in the Chinese market have doubled, from 1.27 billion to 2.4 billion.
User feedback also proves the potential of the market. A face-washing user told Sina Technology that after use, it would feel smooth and slippery, but at the same time, the skin became thinner. It always felt that the effect was psychological. Despite this, she is firmly convinced that if she sees new features in her ads, she will still make purchases.
The continuous growth of the market has attracted many players to enter the market. In the fierce market competition, is the cleansing instrument a good business for Meitu? At present, Meitu only provides Taobao and official online shopping channels, while the most sold stores on Taobao only sold 45. Compared with other brands' monthly sales of tens of thousands of data, it is still in a very small situation.
For the transformation of the light asset model, why Meitu has to launch hardware, Meitu said that the development and manufacturing cost of intelligent hardware such as the cleansing instrument is much lower than that of smartphones. Because there are fewer components involved, the development cycle is shorter, the unit price of the product is lower, and the capital and resources required are less than the smartphone.
Meitu is not launching an isolated hardware product and will launch a complete skin management service for the skin in the future. CEO said that the cleansing device is only part of skin management. Their vision is to help users' skin become better.
In an interview with Sina Technology, the CEO said that the smart skin market also said that there is still a lot of room in this field, and even have the opportunity to become a girl. At least from the current point of view, Meitu entered this market very much. Great determination.
No company has had so many high-quality female users like Mito. More than 70% of Meitu users are high-quality female users. Meitu has a deep demand for this group of users. But at the same time, how to turn many female user resources into income becomes the next step that Meitu must consider.
After the overall light association and stripping of the mobile phone business, advertising revenue will undoubtedly become the most important part, but at the same time, Meitu is facing the huge pressure of user decline.
With the sharp increase in traffic acquisition costs, how can 10-year-old Meitu attract more users and advertisers? After giving up the mobile phone business, can the large revenue be recovered by the beauty hardware? After a 30% reduction, Meitu’s next 10 years, everything to be solved.