Baby-friendly Room (603214) Small and Medium Cap Information Update: Establish Strategic Partnership with Tencent to Accelerate Digital Upgrade of Mother and Baby Retail

Home / Baby-friendly Room (603214) Small and Medium Cap Information Update: Establish Strategic Partnership with Tencent to Accelerate Digital Upgrade of Mother and Baby Retail

Baby-friendly Room (603214) Small and Medium Cap Information Update: Establish Strategic Partnership with Tencent to Accelerate Digital Upgrade of Mother and Baby Retail

Event: Established a strategic partnership with Tencent, and worked together to advance the digital upgrade marketing of maternal and 杭州桑拿网 infant retail, and carried out in-depth cooperation in digital operations to promote the digital upgrade of the maternal and infant retail industry.

We believe that the company’s mother-infant chain model has the advantage of “brand + professional + service”, and realizes the effective integration and expansion of offline channels through the form of “self-built + off-site mergers and acquisitions”; after reaching strategic cooperation with Tencent, relying on reducing social traffic, smallSupported by digital tools such as programs, it is expected to achieve a comprehensive upgrade from customer acquisition, operations to digital asset management.

We maintain our profit forecast unchanged. We expect the company’s 杭州桑拿网 net profit attributable to its mother to be 1 in 2018-2020.

22/1.

56/1.

9.3 billion yuan, corresponding to an EPS of 1.

22/1.

56/1.

93 yuan, maintain “highly recommended” level.

Leverage Tencent’s digital tools to achieve all-round upgrades from customer acquisition, operations to digital asset management, and the complication of mother and baby users ‘consumption habits, changes in concepts, and the replacement of marketing channels, for traditional mother and baby retailers in the marketing transformationBrings challenges.

The company reached a strategic cooperation with Tencent this time and is committed to realizing the traffic and capabilities of digital tools such as applets, WeChat payment, enterprise WeChat, and cloud services, and upgrading from three aspects: customer acquisition, operation, and digital asset management: (1)Passenger transportation upgrade: Social fission is realized through social interaction and sharing of mothers and mothers, and wide customer acquisition channels are effectively expanded through accurate marketing; (2) Operational upgrades: Improve the management level of shopping guides through corporate WeChat, deposit customers’ digital assets, and purchase code-scanning service purchases, Face payment, and other store intelligent experiences to achieve refined upgrades of in-store operations; (3) Digital asset management upgrade: Tencent builds a data center for the company to support precision marketing, achieve multiple scenarios, multiple materials access, and promote consumer experienceTo realize the upgrade of the digital asset platform for mothers and infants.

“Self-built + M & A” accelerates channel integration, offline retail leaders create a “mature and light consumer” for mother-to-child consumption in a comprehensive mother-to-child ecosystem, and mother-and-child chains build competitive advantage with “brands + professional + services”.

Since the listing, the company has achieved effective integration and expansion of offline channels through the form of “self-construction + mergers and acquisitions”: it is expected to open more than 45 stores in 2018, and the exhibition store will accelerate significantly; in December, it announced its intention to acquire Chongqing Taicheng to enter the southwest market and promote the nationwide layout.

At the same time, the company lays out a maternal and infant online shopping mall to form a linkage with offline stores. After joining hands with Tencent, it will further promote the digital upgrade of maternal and infant retail, focus on the maternal and infant ecosystem in the future, and expand comprehensive services such as early childhood education.

Risk warning: intensified competition in the mother and infant industry, the company’s new store operation is worse than expected, etc.

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