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Xiaomi’s new Mi CC brand will develop ‘trendy’ smartphones for young people

Huawei may be on the ropes as it battles sanctions from the U.S. government, but fellow Chinese smartphone rival Xiaomi is in expansion mode with the launch of a new brand that’s aimed at winning friends (and sales) among the young and fashionable.

“Mi CC” is the newest brand from Xiaomi. Unveiled on Friday, the phone-maker said it stands for “camera+camera” in reference to its dual-camera feature, but that apparently also segues into “a variety of meanings including chic, cool, colorful and creative.”

The end goal of that marketing bumf is a target customer that Xiaomi describes as “the global young generation.”

Essentially, what Xiaomi is doing here is breaking out a dedicated set of phones for those who care more about aesthetics than performance. To date, the company has built its brand on developing phones that are as good — well, nearly as good — as top smartphone rivals but at a fraction of the cost. The result of that is that a lot of marketing focus is on the technical details, even though Xiaomi has been lauded for some attractive designs, and CC adjusts that balance to target a different kind of audience.

Since Xiaomi has a history of bringing innovation into affordable devices, CC is one to watch out for.

Xiaomi’s CC teaser image doesn’t give much away, apart from the logo

The new division is the result of Xiaomi’s acquisition of the smartphone business belonging to Meitu, a selfie app maker.

Xiaomi bought the business last November to go after new demographics and build on the work of Meitu, which had sold just over 3.5 million after getting into the smartphone business in 2013. Those numbers weren’t enough to justify the continuation of Meitu’s phone business but, evidently, Xiaomi saw promise in that segment. Meitu retains a similarly positive outlook on the fashionable audience and it has a lot to gain financially from the success of CC, too.

Terms of the acquisition deal mean that Meitu will take 10 percent of all profits, with a minimum guaranteed fee of $10 million per year. Big sales could be significant for Meitu, which reported revenue of $406 million in 2018. Notably, two-thirds of that income was from phone sales but Meitu’s smartphone revenue dropped by 51 percent year-on-year. Hence, Xiaomi has come to the rescue with its know-how.

There’s no word on exactly what Mi CC devices will look like or where they will be sold, but Xiaomi is already trumpeting its differentiation.

“Mi CC is created by one of the youngest product teams in Xiaomi, among which half are art majors and are dedicated to creating a trendy design for young consumers,” it wrote in an announcement.

Gavin Thomas plays with a Mi CC phone in a teaser that the brand posted to its Weibo account

The first look is a teaser that features Gavin Thomas — an eight-year-old who went viral in China for his ability to speak Mandarin — but the phone itself is kept hidden in the video thanks to well-placed stickers.

As you’d expect from Meitu, there’s a lot of emphasis on selfies, stickers and other graphics.

Xiaomi has had success with brands, some of which include Redmi — its big-selling budget division — Poco, its ‘performance’-focused division, its gaming brand Shark, which looks much like Razer’s phones.

Outside of mobile, the company develops and sells a range of smart home products, many of which are licensed from third-party partners.

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Xiaomi gobbles up selfie phone brand Meitu as revenue jumps 49%

Xiaomi is diversifying into a new range of phones as the Chinese smartphone maker announced impressive growth with its latest financials.

The company announced it will take over selfie app maker Meitu’s smartphone business to go after new demographics, particularly women, while it lodged impressive 49 percent revenue growth in Q3.

Xiaomi posted a net profit of 2.481 billion RMB ($357 million) for the quarter on total sales of 50.846 billion RMB ($7.3 billion). The bulk of that income came from smartphones sales — 35 billion RMB, $5 billion — as Xiaomi surpassed its annual target of 100 million shipments with two months of the year still to go. The majority of those phones are sold in China, but the company said that international revenue overall was up by 113 percent year-on-year.

The company has ventured into Europe this year, with its most recent launch in the U.K. this month, but now it is taking aim at a more diverse set of customers in the Chinese market through this tie-in with Meitu. Best known for its “beautification” selfie apps, Meitu also sells smartphones that tap its selfie brand with optimized cameras and advanced editing features.

Now Xiaomi is taking over that business through a partnership that will see Meitu paid 10 percent of the profits for all devices sold, with a minimum guaranteed fee of $10 million per year. For other smart products, its cut increases to 15 percent.

Meitu is hardly a mainstream phone brand. Its first device launched in 2013 and has sold 3.5 million units to date. Recently, the company cut back on its hardware — it has launched just one device this year compared to five last year — while the average sell price of its devices has fallen, causing it to forecast a net loss of up to 1.2 billion RMB (or $173 million) up from just 197 million RMB last year. Shifting the heavy-lifting to Xiaomi makes a lot of sense — despite its total cut of sales dropping to just 10 percent, Xiaomi has impressive reach and a sales platform that already features third-party hardware.

Back to Xiaomi, these results are its first “true” financials since the company went public through a Hong Kong IPO back in July. It posted a $2.1 billion profit in the previous quarter but a large chunk of spending and revenue was down to the listing.

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Social media content and analytics startup PressLogic raises $10M from popular Chinese selfie app Meitu

PressLogic founders Ryan Cheung and Edward Chow

PressLogic, a Hong Kong-based social media content and data analytics startup, announced today that it has raised a $10 million Series A+ round from Meitu, developer of the popular Chinese selfie app. PressLogic will use the funds to launch its new lifestyle brand GirlStyle and enter e-commerce with its proprietary algorithms, which predict what topics will trend on social media among specific groups.

The new round brings PressLogic’s total raised to $15 million. Meitu first acquired a minority stake in PressLogic last year.

After launching a data-analytics service for social media managers called MediaLens in 2016, founders Ryan Cheung and Edward Chow began creating social media publishing and marketing brands in order to show potential clients how their technology could boost audience engagement. PressLogic, their social media publishing platform, now claims a total of 8 million Facebook and Instagram followers and more than 700 million monthly content impressions across its social media profiles and websites, with about 75 percent of its visitors aged 18 to 34.

MediaLens still serves as PressLogic’s core technology, underpinning its content brands, as well as the insights it provides to partners in order to increase their social media engagement and return on investment. CEO Cheung (Chow serves as PressLogic’s CTO) told TechCrunch that MediaLens “creates a pipeline from data sourcing to content suggestion to optimization” and has an edge against its competitors because it is able to make more granular suggestions about what content is likely to be popular among specific groups based on trending topics.

With its new round of funding, PressLogic will launch GirlStyle, a lifestyle and fashion-based social network targeted to young women, as an app and website in Hong Kong, Taiwan, Singapore, India, Korea and Malaysia by the end of this year. In terms of e-commerce, Cheung says the company will start by focusing on skincare and cosmetics by leveraging data from its online traffic and readers.

PressLogic hasn’t revealed if Meitu’s photo imaging technology will be integrated into its platform, but Cheung says it would like to extend MediaLens’ analytics to images, too, as data from photos and videos shared on social media is potentially valuable, but still difficult to transform into the kind of insights that help predict which content will go viral next.

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Meitu’s new phone includes a dual pixel front camera and AI-powered beautification

dazzlingblue2 Selfie app and phone company Meitu has unveiled its latest smartphone, which doubles down its focus on selfie cameras and beautification. Meitu went public in December with a Hong Kong listing that was fairly tepid but nevertheless the country’s largest tech IPO since 2007. It started out making selfie apps but branched into selling ‘selfie-optimized’ smartphones in 2013.… Read More

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