"Digitalization" has risen to the level of national strategy!
A few days ago, the government work report proposed that during the "14th Five-Year Plan" period, it is necessary to accelerate digital development, create new advantages in the digital economy, and coordinate the advancement of digital industrialization and industrial digital transformation.
In fact, the digital demands of Chinese companies are indeed becoming more and more urgent. According to Accenture’s Chinese Enterprise Digital Transformation Index, more than 80% of companies want to see the results of their transformation within a year, and 43% of companies want to see returns within half a year, compared with less than 40% in the 2019 survey. % Of companies want to see results within a year.
How to see results quickly and catch the digital express? How to maintain yourself in the digital torrent? This is a problem faced by many companies.
On the evening of March 17, Weimob Group (2013.HK) released its 2020 financial report. The adjusted total revenue was 2.064 billion yuan, a year-on-year increase of 43.7%. Behind the good data performance, Weimob provided countless companies with simple and fast comprehensive services. Link digitization path.
In this era when companies want to catch on the digital express, or even want to overtake on a curve, Weimob understands that its role is a "traveler". When the company that accompanies more on the digital journey, its own value becomes more prominent.
Achieve operating profit in three years
Ever since Ali proposed commercial infrastructure and Tencent proposed the industrial Internet, thousands of Chinese enterprises have devoted themselves to the B-side and the digitalization of Nuggets. But the reality is not good. Loss is a common problem they are currently facing. Some investors even said that "less than 10% of SaaS products can break even."
There is always an accident, and Weimob seems to have become this accident. The financial report released on March 17 showed that Weimob’s adjusted total revenue for 2020 was 2.064 billion yuan, a year-on-year increase of 43.7%, and its adjusted net profit was 108 million yuan, a year-on-year increase of 39.1%. It achieved operating profit for three consecutive years and was the first in the industry. A Saas company that has achieved operating profitability in three years.
In the 2020 financial report, Weimob optimized its revenue structure, and its main business was subdivided into two major businesses, digital commerce and digital media. Among them, digital commerce includes subscription solutions and merchant solutions. The former is to provide business and marketing SaaS products, and the latter is to provide merchants with a three-in-one overall service plan of traffic, tools, and operations and a series of value-added services.
CICC stated in the research report that the latest revenue disclosure method of Weimob Group can better reflect the integrated synergy between SaaS and precision marketing business, and is similar to the disclosure method of global e-commerce SaaS leader Shopify, which is convenient for investors Better understand the company’s business.
The financial report shows that in 2020, Weimob’s digital business revenue was 1.246 billion yuan, a year-on-year increase of 44%; digital media revenue was 818 million yuan, a year-on-year increase of 43.2%.
The profitability of Weimob is related to the increase in the number of customers and the increase in average customer revenue. The financial report shows that in 2020, Weimob’s subscription solution revenue was 718 million yuan, a year-on-year increase of 41.6%; the number of paying merchants was 98,000, a year-on-year increase of 23.2%, and the average revenue per user increased by 15.0% to 7,326 yuan; merchant solutions revenue was 528 million yuan , A year-on-year increase of 47.4%, the number of paying merchants was 46,000, and the average revenue per user was RMB 11,560.
The increase in average user income is due to the increase in the number of major customers and the continuous deepening of services on the Weimob digital business chain. In the past year, Weimob has implemented the key account strategy, internationalization strategy, and through investment and mergers and acquisitions. To enrich and improve its own service scope and chain.
In the past, Weimob’s customer base was mainly concentrated in small and medium-sized enterprises, but larger brand merchants tended to be more willing to pay, have a longer life cycle, and were relatively stable, so user stickiness and overall contract renewal rates would be better. Therefore, in 2020, vertical industries such as Weimob smart retail and smart catering will enter the offline large customer market.
In 2020, Weimob will further penetrate into vertical industries through investment and acquisitions, and further penetrate into major customers: in the catering sector, it has a holding seat and investors, and it has built a complete solution covering front-end cashier to back-end supply chain management; retail acquisition of Haiding, Make up for shortcomings in the areas of supermarkets, convenience stores and shopping centers.
Morgan Stanley predicts that Haiding, newly acquired by Weimob Group, will grow by 20%. It is estimated that the contribution of smart retail performance will reach 30% in 2021 and 50% in 2025.
The financial report shows that Weimob Group has 3682 smart retailers and 618 brand merchants. The average order revenue per user of brand merchants is as high as 282,000 yuan; 6,996 catering merchants have revenue of 44.817 million yuan, an increase of 13.0% from 2019. The average order revenue of users was 19,000 yuan, an increase of 46.2% year-on-year: Weimob’s transformation of large-scale customization in these two areas has achieved initial results.
In the future, with the deepening of smart retail, smart catering and other fields, Bank of America Merrill Lynch predicts that by 2025, Weimob Group’s major customers will contribute more than 50% of SaaS revenue. This will improve overall customer economics (LTV / CAC), thereby supporting value expansion.
With the continuous advancement of the key account strategy, Weimeng will further enhance the profitability of Weimob, and help it accumulate vertical industry marketing and operations, and quickly penetrate the waist brand and establish core barriers.
While advancing its key account strategy, Weimob is also advancing its internationalization strategy. The financial report shows that Weimob currently serves 1,009 overseas customers, covering more than a dozen countries and regions, including Australia, Canada, Japan, South Korea, Hong Kong and other countries and regions.
If the key account strategy is a deep cultivation of customers from small and medium customers to large customers, then the international strategy is the customer expansion of Weimob. Deeply cultivated in China, from small to large, to achieve deep coverage of customers; to complete customers from scratch, from less to more in foreign countries: Weimob will further develop from "micro" to large in the future to achieve sustained growth and stability in performance profit.
Full link, full ecological attack
At the end of February every year, Ordos holds a gold rush festival. In this year’s Gold Rush Festival, Ordos played new tricks, taking mini program malls and live broadcasts as the undertaking, combined with previous data to optimize, and through WeChat advertising, it accurately reached the target user population of private domains, and jumped directly to the small program. Program mall. In the end, the mini program GMV during the event exceeded 20 million in one fell swoop.
Behind the Ordos event is Weimob providing digital support for it. Behind the short-chain direct route of live broadcast, WeChat advertising, and Mini Program Mall is Weimob's full-link digitalization.
With the deepening of the digital upgrade of enterprises, enterprises will no longer only need a single digital service or solution, but an integrated digital solution from the front-end traffic acquisition to the back-end refined operation.
Weimob continues to help Ordos build a SaaS-based smart middle station, open up multi-channel traffic acquisition forward, and deepen refined operations backward, so as to clear the digital upgrade of the entire link. In 2020, Weimob will seize the opportunity of digital transformation of enterprises under the epidemic, and make efforts to upgrade all-link marketing to break the boundaries of marketing and transactions.
The so-called "full-link marketing upgrade" refers to Weimob’s TSO-integrated full-link smart growth solution, where T stands for Traffic, which is marketing; S stands for SaaS, which is a tool; O stands for Operation, which is Operations. In the integrated chain, the core of T is to broaden the width, tools are used to undertake traffic, and operations connect the two and data together.
Through TSO, Weimob breaks the boundaries of marketing and transactions, and customers can obtain marketing solutions individually or enjoy marketing services in the entire chain of solutions.
The data shows that among the merchant solutions and digital media of digital commerce, Weimob provided accurate advertising traffic to 48,000 merchants. The gross revenue of precision marketing reached 10.68 billion, an increase of 102.2% year-on-year. Revenue was 9.764 billion yuan, a year-on-year increase of 111.9%.
Fang Tongshu, executive director of the Weimob Group and president of the Smart Business Group, said that through the closed-loop full-link marketing of the TSO trinity, Weimob can help brands achieve overall growth in the private domain business. "For emerging brands, this is an era where you can overtake on corners, and Weimob, as an escort, will also reflect its own value."
For merchants, TSO can be said to be a "shortcut" that can help them achieve overall digitization and quickly achieve digitization. Through full-link marketing upgrade, omni-channel operation upgrade, and whole-basin connection upgrade, from traffic empowerment, to the use of micro mall applets, enterprise WeChat tools, etc., to marketing empowerment, it helps companies realize diversion and revitalize private domains. , Precipitating data assets, etc.
In order to further enhance the competitiveness of TSO, Weimob has also strengthened its service capabilities from the three links of T, S, and O. In order to enrich the traffic ecology, Weimob has accelerated the expansion of multi-flow platforms to help omni-channel operations. At present, its SaaS products have been accepted Into the QQ applet, QQ browser, Douyin Xiaodian and other platforms, the traffic channel expanded from Tencent platform traffic to other head platforms.
In order to strengthen tools and operations, Weimob expanded the developer ecosystem and improved the investment ecosystem through the diversified investment layout of "company direct investment + mergers and acquisitions + industrial funds". In 2020, Weimob acquired Yazuo and Haiding, directly invested in industry chain companies such as Shangyou and Miaoying Workshop, and jointly established industry funds with Huaying Capital to incubate projects in the fields of catering, retail, and short video.
Weimeng, which has achieved operating profitability for three consecutive years, is accelerating its attack.
Span from 1 to 100
Enterprise digitization, especially retail digitization, is currently falling into the Red Sea. It is not only companies like Weimeng that compete, but also giants such as Alibaba, JD.com, and Meituan. For example, Meituan has outstanding advantages in catering, but its basic logic is traffic logic. It is a centralized platform based on traffic distribution. These are the giants.
"Their (Meituan, Ele.me) positioning is called a centralized traffic platform. The business model is that merchants open stores on the platform to rent stores and advertising fees to obtain traffic. Weimob is a tool and method for customers to generate traffic. The flow connection method, we are not the key to buying and selling between flows."
In contrast, Weimob is taking the road of decentralization, emphasizing that each enterprise becomes its own center by means of private domain traffic. For many companies that want to quickly achieve digitalization, but also want to maintain autonomy and independence, Weimob is undoubtedly the best choice.
"Enterprise digitalization is now in a brand new stage with two characteristics: On the one hand, the state advocated Internet anti-monopoly last year, allowing data to be returned to merchants; on the other hand, under the epidemic, the digitalization of enterprises has accelerated in an all-round way." The aspect also understands its own opportunities.
In order to take advantage of the rapid development of enterprise digitalization, this year, Weimeng has made frequent actions, covering the entire chain and the entire ecosystem. Yin Shiming, Chief Operating Officer of Weimob Group, said Weimob hopes to achieve three major changes, one of which is the upgrade of full-link marketing.
In March of this year, Weimeng attacked from the traffic side, and its WeChat Mall & Smart Retail officially docked with Douyin Stores, which made it no longer just a WeChat business, but truly achieved diversified traffic coverage and improved product service capabilities and competitiveness. . According to the research report of CITIC Securities, the GMV of Douyin Store is expected to reach 400 billion yuan in 2021.
At the same time, Weimob also enhances the competitiveness of TSO from the tools and operations side. In March of this year, Weimob signed a strategic cooperation agreement with Yumsoft, an omni-channel digital retail solution service provider. Weimob started from the traffic terminal, and is better at marketing and traffic acquisition, but it is slightly inadequate in the mid-to-backend. The cooperation with Yum! has not only brought a lot of customer resources, but also strengthened and improved its back-end capabilities.
For Weimob, this is obviously a fast way. "It may take three years for us to go to Yum! and it may take two years for Yum to go to us. No matter how hard we work, we can only provide customers with a 100-point solution in two years. , Let customers wait for us for two years, why are we not together now?" said Ling Yun, vice president of Weimob Group.
Under the TSO integrated solution, to provide customers with front-end, middle- and back-end digital service capabilities, Weimob has obviously paved a fast way for them. The Weimeng, which has opened up the front, middle and back platforms, on the one hand, while achieving high-speed iteration, on the other hand, it can also achieve coexistence of standardization and personalization, that is, it can create the most suitable front-end for merchants when the middle and back-end are the same. platform.
Under the key account strategy, international strategy, and comprehensive ecological strategy, on the one hand, the number of customers, especially the number of major customers, has increased, on the other hand, the extension of the mid-to-backend service chain and the continuous enrichment of products, and the profitability of Weimeng It continues to climb.
It has achieved stable operating profitability for three consecutive years. The current Weimob has obviously crossed the initial stage from 0 to 1, and started from 1 to 100, and even 1,000, 10,000 endless possibilities.
Conclusion
The strong will always be strong. For the SaaS industry affected by the scale effect, this will obviously be the norm. Weimeng, which has survived the initial investment and large-scale stage, has now entered a profit and harvest period. With the expansion of horizontal customers and the deepening of vertical services, its competitive advantage will be further enhanced.
At present, Weimeng, which is continuously cultivating the industry, increasing the proportion of large customers, upgrading the entire chain operation capability, building an open ecosystem, and accelerating the international layout, is obviously exploring the boundaries and endless possibilities of China's SaaS development and enterprise digitalization.
In the end, this possibility will give birth to more and greater possibilities. The process of enhancing the competitiveness of Weimob and strengthening its digital service capabilities will also become a more convenient and effective process for enterprises to digitalize. Creating value, then sharing value, and further creating value, in a cycle, this is the bright road of Weimob, and it is also the road of digital China.