Benefited from Technology, Strategic Globalization and Alibaba, BabyTree is Leading the Industry Edge

Friday, 30 August 2019, 10:35 HKT/SGT

HONG KONG, Aug 30, 2019 - (ACN Newswire) - On August 27, BabyTree (1761.HK), China's largest and most active maternity & child-focused community platform, announced its 2019 interim results. There are two points of particular interest to investors. For the first point, the average monthly active users (MAUs) of BabyTree this year was 156 million, representing an increase of 8.5% from the end of last year. Flagship App 'BabyTree Parenting' average MAUs reached 20.1 million, representing a growth of 9.2% from 18.4 million in 2018. Meanwhile, average MAUs for 'WeTime' reached 7.5 million, representing an increase of 74.4% from 2.0 million in 2018. For the second point, after 12 years of brand building, 'BabyTree' has become a household name and one of the most trusted brands in the M&C industry in China. The growth of its traffic is undoubtedly thanks to its trusted brand appeal.

BabyTree aims to create a global parenting ecosystem with worldwide presence

- Carefully analyze the user needs and drive business growth through technology innovation

The MAU data of Babytree for the year is the most eye-catching, and the reasons for the increase become the focus of attention of investors. As we know, BabyTree constantly achieved upgrading and innovation through the in-deep operation of products and exploring the potential needs of customers. For example, BabyTree added "group chat" and "topic ranking" new features on Babytree Parenting App to organize more interactive community groups. Such innovation further enhances the user experience, making these two apps more popular with younger parents.

On the other hand, Babytree has also spared no effort in the investments in AI. This kind of behavior analysis and technological innovation could effectively, enabling technology to improve the accurate distribution of content and consumer services as well as business growth potential. Besides, the company has developed and launched a variety of technical products such as Parenting Doctor and Baby Cry Recognition both in Apps and other user flow ecosystems, leading the maternity and child market in terms of technology and creativity.

- Establish a global presence by making various strategic investments

According to its interim results, BabyTree aims to create a global parenting ecosystem with worldwide presence. To this end, BabyTree has adopted strategic investment as well as merger & acquisition as its main means.

At present, BabyTree has made various investments abroad, including investments in Parent Lab Inc. and Zoetic, Inc. in the United States and Healofy in India. Parent Lab Inc. provides parents with systematic and viable solutions to parenting issues, and Zoetic, Inc. manufactures robot pets which could develop their own emotions and personalities. BabyTree's investment strategy and overseas layout have also been deeply rooted in younger family users in order to integrate global target traffic and expand user market share. At the same time, as a technology-driven company, BabyTree tends to invest in high-quality technology companies to help young families around the world to enjoy a better life.

- Conduct in-deep cooperation with Alibaba to maximize potential synergies of the brand

With the strong alliances with its strategic investor Alibaba, the significance is gradually appearing in e-commerce, marketing, and content areas. According to the interim report, in the area of e-commerce, the system integration with Alibaba processed at a slower pace than expected , but it is also reasonable. Technical challenges at the initial stage of cooperation requires time. However, after the end of the run-in period, the alliance is expected to further release the potential synergies.

In addition, BabyTree and Alibaba further deepened their cooperation in content marketing with aims to shift its mindset from initial data flow to brand synergy and create more marketing products through Alibaba's ecosystem. BabyTree was also actively collaborating with Tmall in co-built IP campaigns to increase sales and brand influence. Tmall flagship shop of BabyTree also had been an upward trend of user traffic during the six months. In particular, its "Babytree Custom-made Wiping Tissues" were sold out within a second during the Tmall live streaming during 618 Promotion Days. In the second half of this year, BabyTree and Alibaba will also carry out more in-depth cooperation: through the joint construction of the M&C KOL system and the popular tools of BabyTree bringing into Taobao.

In summary, BabyTree has entered a major strategic position in terms of organic growth and external cooperation strategies with promising prospects of its business development. Thanks to the population policy and the stable growth of the consumer market, BabyTree constantly digging long-term value in broader development business space to for users and investors.

Topic: Press release summary Sectors: Daily Finance, Daily News
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