(Yicai Global) Aug. 9 -- The Chinese tech firm that helps 1.5 billion users beautify their selfies using its image-editing and sharing applications now plans to commercialize those apps on social media.
Positioning itself in the social media sphere is key to Meitu's strategic model, state online news outlet The Paper reported founder and Chief Executive Wu Xinhong as saying yesterday at the Beijing launch of the company's latest strategy. This is the first time that Xiamen-based Meitu has made plain its plan since expressing an intention to break into social media, the report added.
Via social platforms, strong interaction with users of its MeituPic for photos and Meipai for short videos will boost user stickiness and traffic value, as well as help the decade-old company amass user data for precision advertising.
Big data integrating clients and advertising run through everything from the camera portal to social media and on to advertising. It will be widely used in the company's businesses that are closer to commercialization such as advertising, smart hardware, e-commerce and value-added services.
Meitu expects ad revenue to become its main source of stable income, said Chief Operating Officer Cheng Yu. The company forecasts that revenue to more than double this year from roughly CNY300 million (USD44 million) last year.
Meitu is also banking on social media to help further enhance its overall brand and user structure and enable the company to follow through on its strategic model, Cheng said. It already has deep ties with international consumer brands.
In addition to fully promoting internet revenue, Meitu will offer products and services via self-promotion, cooperation or investment. It already has smart hardware, an e-commerce platform and value-added services. It deems data pivotal in the linkage between consumer products and commercial products.
The firm will also realign its corporate structure toward becoming product-driven to ensure swift implementation of its beauty and social media strategy, Wu said. Meitu will establish the three major business units of social products, beauty products and smart hardware products to improve organizational efficiency, encourage innovation and maximize the value of capital and human resources.
Editor: Ben Armour