Author: Zhang Jinliang 2021-06-09 10:20:54

Zhitong Finance APP learned that, recently, Weimob Group (02013) issued a $600 million financing announcement, which immediately attracted many well-known institutions and investments including Tencent (00700), GIC (Singapore Government Sovereign Fund), Canadian Pension Fund, etc. The active participation of people.

In the torrent of enterprise digital upgrades, SaaS has become an important means of digital transformation, and it has also made SaaS service providers “hot”. Analysts believe that behind Weimob Group’s repeated acquisitions of well-known institutions such as Tencent, it has benefited from Weimob’s comprehensive promotion of the “TSO” full-link marketing strategy and the three major group core strategies of “customization, ecologicalization, and internationalization”. The results have been achieved, and the forward-looking strategic layout has allowed the “new economy SaaS first share” to be recognized again.

It is worth mentioning that, as a strategic investor, Tencent subscribed for a 20% share of this additional issuance. It is understood that at the beginning of Weimob’s listing in 2019, Tencent increased its holdings of Weimob twice within a month. This is the third time Tencent has invested heavily in Weimeng after two years.

So, what is the charm of Weimob that will allow Tencent and other institutions to increase their holdings and be optimistic?

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Behind Weimob’s favor by Tencent: working side by side for full-link marketing

In the “930 Revolution” in 2018, Tencent sowed the seeds of “to B”. From Tencent’s establishment of the Cloud and Smart Industry Business Group (CSIG) as a starting point, to the establishment of the Yunqi Industry Ecological Platform, the launch of the Tencent SaaS Ecological “Thousand Sails Plan”, etc., and recently Tencent Cloud and the Smart Industry Business Group (CSIG) usher in a new one The round structure upgrades, these measures all demonstrate Tencent’s determination and ambition in the field of to B and SaaS.

Last year, Tang Daosheng, senior executive vice president of Tencent, said that Tencent will invest 10 billion resources to help small and medium-sized enterprises create exclusive SaaS products and solutions. Many SaaS companies with a market value of tens of billions can grow in the ecosystem. By this year, he is even more convinced that China’s SaaS industry can grow a number of top companies.

According to data released by Zhiyan Consulting and Miaozhen Academy of Marketing Sciences, the market size of China’s SaaS will increase from 61.7 billion yuan to 188.2 billion yuan from 2018 to 2025, with a compound annual growth rate of over 15%. In 2020, China’s actual marketing investment growth rate will be 8%, and the forecast growth rate will increase to 17% in 2021. While enterprises are increasing marketing investment, a considerable part of the expenses are invested in SaaS, which has a low cost threshold and simple operation, and the demand for enterprise SaaS services ushered in explosive growth.

It is precisely because of the explosive growth in demand for corporate SaaS services that Weimob, which is born with the “B” gene, has been “two-way” with Tencent. In addition to the Tencent SaaS ecosystem “Thousand Sails Project”, “SaaS” technology alliance, etc., Weimob also has Weimob. Outside of the figure. In fiscal year 2020, Weimob Group optimized its revenue structure to improve profitability, and its main business was subdivided into two major businesses, digital commerce and digital media. Among them, digital business covers subscription solutions and merchant solutions. Subscription solutions mainly provide merchants with commercial and marketing SaaS products and ERP solutions. Merchant solutions also help merchants obtain public domain traffic based on SaaS tools, supplemented by full-link services and operations, and support merchants from The full range of “TSO” requirements from traffic (Traffic) to tools (SaaS) and then to operations (Operation).

Recently, Weimob Group announced its business development in the first quarter of 2021. The announcement shows that in the first quarter, Weimob Group’s operating quality has steadily improved, and its digital business business has maintained rapid growth. Among them, subscription solution revenue increased by more than 100% year-on-year, and the number of paid merchants increased by approximately 21.9% year-on-year; merchant solutions revenue increased by more than year-on-year. 50%. This shows that more and more companies choose to use SaaS products and services, which also validates Weimob’s full-link marketing strategy.

It can be seen that the Weimob Group has gradually expanded from providing pure SaaS services to full-link services including “traffic + tools + operations”, which is also the main reason for Tencent’s favor. Analysts believe that behind Tencent’s “addition” of Weimob is the recognition of third-party service providers, and it is also Tencent’s “to B” service strategy. Facing the digital transformation needs of many small and medium-sized enterprises and traditional companies, Tencent needs third-party service providers to play the role of “catalyst” to provide customers with efficient services. As a SaaS service provider, Weimob has provided SaaS services and products to more than 3 million merchants, and has absolute advantages in traffic introduction and later operations, and has occupied a large market share.

According to Tencent’s concept of “connecting everything”, third-party service providers play the role of “leader” in Tencent’s ecosystem. Just as Tencent stated in its first quarter financial report, Tencent will strengthen its efficient office SaaS products and security software, as well as its partnerships with SaaS vendors and independent software vendors and investments in them to support customers’ digital needs. Therefore, Tencent needs more partners who can empower enterprises to complete the full-link digital transformation, which is why the Weimob Group has repeatedly been favored by Tencent.

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(Weimeng Group “TSO” strategy)

“Traffic + SaaS + Operation” Empowers Digital Upgrade of Enterprises

On the road to empowering the digital transformation of brands, Weimob and Tencent have always been solid “allies”. The cooperation between the two parties has penetrated into smart retail, WeChat video accounts, and precision marketing. In order to better integrate SaaS and marketing and build a private domain traffic matrix within the WeChat ecosystem, Weimob launched the “TSO” full-link marketing. Through the Weimob SaaS system, it integrates precision marketing and digital operation capabilities to meet the digital upgrade needs of enterprises.

Take the video account launched by WeChat this year as an example. After Zhang Xiaolong’s speech, the industry’s sentiment towards WeChat video account was soaring and regarded it as the most potential ecological product of WeChat in the future, and Weimob, an e-commerce SaaS, has always been Frequent layout for video numbers.

Weimob COO Yin Shiming said at a conference that video content is the general trend, and the WeChat video account provides an excellent opportunity for brands to build private domains. As the first batch of WeChat head service providers to internally test video accounts, Weimob’s smart retail and micro-mall solutions help brand merchants to tap the performance growth dividend through live video accounts.

With the assistance of Weimob, Tianjin’s century-old “old brand”, Lao Meihua, used a live video broadcast to bring more than 160,000 goods in one hour. The sales volume of this live broadcast reached 30% of the brand’s single store performance, and it also achieved viewing. The number of people is 36,000, the number of likes is 310,000, and the number of new customers is 43%. It has become an excellent benchmark for video broadcast merchants. Coincidentally, the domestic clothing brand “Hongling Wool” followed the trend of the video account. With the assistance of Weimeng, through the Weimeng Mini Program Mall, the live broadcast of the goods was launched in the video account. 180 thousand.

On the other hand, Weimob Group has been awarded the “Partner of the Year” in Tencent’s advertising area and mid- and long-tail channels for 4 consecutive years. In terms of digital marketing, the two parties have helped many businesses to accelerate the process of omni-channel digitalization. In May of this year, “Tengmeng” was once again deeply bound, and jointly launched “Tengmeng Project 2.0”. Based on Tencent’s advertising platform traffic advantages and precision marketing capabilities, it integrated Weimeng digital marketing, SaaS system tools and full-link operation services Ability, and through the “Tengmeng Rubik’s Cube” data products, to further enhance the efficiency and accuracy of corporate marketing.

According to the 2020 financial report of Weimob Group, Weimob Group has helped 48,000 merchants to place accurate advertisements to obtain traffic. At present, there are too many brands to build full-link marketing through Weimob, covering “NEIWAI inside and outside”, Cotton Era, Lin Qingxuan, Yuanqi Forest, and the cutting-edge brand CHALI Chali, etc. Among them, the domestic underwear brand “NEIWAI Inside and Outside” is under the all-round assistance of Weimeng, through the exploration of a new full-link marketing path of “friend circle exposure and drainage + small program mall conversion closed loop”. It is reported that during the opening event, the average daily UV of its mini program mall increased by 110% year-on-year, and the advertising click-through rate reached 3.22%, achieving a double increase in brand exposure and sales conversion.

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(NEIWAI internal and external advertisements are connected with mini programs to accelerate conversion growth)

Zhang Lei, deputy general manager of Tencent’s advertising channel ecological cooperation department, said, “A service provider’s identity may not only be an advertising agency, but may also become Tencent’s basic service provider, data service provider, and even some value-added service operators. Weimob is not only a Tencent advertising partner, but also an important partner for all links.”

In addition, in order to better serve enterprises to realize full-link operation services, Weimob Group has established a private domain growth center and a holding subsidiary “TEAM PRO”. Based on the Weimob full-link marketing strategy, the strategy, creativity, media, and The individual capabilities of operations are organically integrated to open up the full link for the effective growth of the brand, so that more companies will participate in the upgrade of the full link digital marketing industry.

“Three Core Strategies” Has Been Singed More by Institutions

As early as 2015, under the “Internet +” wave, the SaaS market has gradually emerged, capital has poured into the SaaS track one after another, and major mainstream funds have moved frequently. As the leading company on the SaaS track, Weimeng has naturally become the first choice of investment institutions. It is reported that in addition to Tencent, Weimob has a lineup of luxurious shareholders, including GIC (Singapore Government Sovereign Fund), Kaixin Capital, SIG, Guohe Investment and other well-known investment institutions.

It is understood that in the list of institutions participating in Weimob’s US$600 million fundraising, in addition to Tencent, there are also many well-known industry and long-term institutional investors, including the Canadian Pension Fund and Franklin Fund, actively responding to Weimob’s fundraising actions. , The old shareholder GIC also continued to bless.

Investigate why institutions have increased their holdings of Weimeng. The reason is that they firmly grasp the trend of digital transformation. In the context of the 2020 epidemic, digital transformation of enterprises has become a must. On the other hand, in the national “14th Five-Year Plan” and the 2035 long-term goal outline, it is clearly proposed to accelerate digital development and build a digital China. The development of the digital economy is bound to bring more development opportunities to marketing companies such as SaaS.

In recent years, the continuous high growth of Weimob’s performance is a fact for all to see, and it has continuously achieved profitability since its listing. In 2020, Weimob launched the three major strategies of “customization, internationalization, and ecologicalization”, and continuously improved and deepened SaaS technology and products to maintain its leading position in the market. Among them, under the “big customerization” strategy, in the first quarter of 2021, Weimob Smart Retail signed more than 100 brand merchants, helping Ordos, Nippon Qiandian to go to the cloud, well-known brands le coq sportif, and Hotwind. Comprehensive digital transformation of shopping guide.

With the full link strategy, Weimeng has emerged in its internationalization strategy. Digital business solutions have been deployed in more than ten countries and regions around the world, serving 1,009 overseas customers. Japan’s Kintetsu, One’s Life Japan and other well-known beauty department stores in Japan have realized the closed-loop operation of the WeChat ecosystem through the WeChat applet mall provided by Weimob.

In terms of ecology, Weimob Group’s SaaS products have successfully opened up multiple channels of traffic portals such as Baidu, QQ, QQ browsers, video accounts, Alipay, SMS, and Kuaishou.

In addition, Weimob said in its recent announcement of fund-raising of 600 million US dollars that it will be used for product research and development, investment and mergers and acquisitions, etc., to further promote the full implementation of the three core strategies of large customization, ecologicalization and internationalization and the full TSO link. The landing of marketing application scenarios expands the leading advantage in the SaaS field.

Following this strategic layout, Weimeng has gained continued optimism from many institutions. CITIC Securities said that it continues to be optimistic about Weimob Group’s long-term private domain economy and digital industry’s leading service provider status. It is expected that Weimob Group’s SaaS product CAGR is expected to maintain a growth of more than 50% from 2021 to 2023, and digital media business will be used in advertising such as video Driven by incremental growth, gross revenue from 2021 to 2023 is still expected to maintain a CAGR growth of more than 30%. It is expected that the potential market value of Weimob Group in the next three years is expected to reach more than 100 billion.

According to a research report released by Xiaomo a few days ago, Weimob has become one of the leading SaaS and marketing service providers in the field of decentralized models. It is expected that taking advantage of the industry’s east wind, combined with the progress made by Weimob Group in the penetration of high-quality large-scale customers, Weimob Group’s revenue is expected to achieve a stable compound annual growth rate of 30% during 2020-25, and SaaS revenue will be 49% faster Compound annual growth rate growth.

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