Social media is changing rapidly, and a China-based vendor believes it has the tools to continue to popularize with young people and, by extension, continue to grow revenue and profits.
By focusing on enabling its primarily Gen Z users to create their own audio and video content and replicating its successful regional model in other select markets, Newborn Town Inc. (HKG:9911) claims to have a different approach to more established social media players such as Meta Platforms Inc. META or dating site companies like those offered by Match Group Inc. MTCH.
Allowing users to create content and connect with like-minded people aims to ensure that users can stay within the social media app provided by Newborn Town rather than seeking additional connections in other media outside of an initial choice, the company says. Think for example of Facebook users then browsing WhatsApp.
Similarly, dating apps fail to connect due to their inherent lack of content creation, says Newborn Town.
And content creation is essential for Gen Z users, according to the company. The company’s social products, which include MICO, YoHo and Yumy, all take real-time audio and video interaction as primary forms of content, providing users with “vivid, direct, effective and immersive social experiences”, helping users to quickly establish social relationships. .
Regional strength to replicate
The company’s apps have strong regional ties with MICO, for example, starting life in Southeast Asia and the Middle East/North Africa (MENA) region. YoHo, similarly, started in the MENA region.
However, both of these apps have seen success outside of their home markets, with MICO ending up in the top 15 social media apps on Google Play in the US and Japan in the first half of this year, according to data. have. YoHo, one of the leading voice-based social platforms in the MENA region, has now branched out mainly to Southeast Asia and is among the top 10 social media apps in 40 countries and regions.
Its other app, Yumy, has only been around for about a year, but is in Google Play’s top 10 social media apps in about 50 countries and regions.
By replicating its strong local presence in other selected markets, the company hopes to build on its success. In the first half of 2022, the company focused on high-value markets, including North America, Japan and South Korea, to help grow its brand outside of its home markets.
His approach – focused on creating content and reproducing in the marketplace – can work.
On August 25, Newborn Town reported on their interim performance. Its first-half revenue reached RMB 1,374 million ($210 million), a year-on-year increase of 32.3%. Profit attributable to owners of the company was reported at RMB 83 million, more than double the same period last year.
Other more established social media companies have faltered in recent results. Meta missed analysts’ revenue estimates in its latest quarterly results, while Match Group reported revenue and membership numbers below expectations.
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