Related news: millet and the United States to reach a strategic cooperation map, mobile phone will be produced and sold by millet.
On the evening of Nov. 19, Sina Technological News reported that Wu Xinhong, CEO of Metro, issued an internal letter saying that despite the constant impact of the market, we never thought of giving up Metro mobile phones. On the contrary, it is precisely cherishing the hard work of many small partners for many years that we finally reached strategic cooperation with Millet, complementing each other and forming synergy. Effect.
Millet and Metro announced today the signing of a strategic cooperation agreement. According to the content of the cooperation, Metro will exclusively authorize the brand, image technology and secondary domain name of its Metro mobile phone to Millet Group worldwide. The authorized mobile phone will be developed, manufactured, sold and promoted by Millet, while the company will continue to provide joint support of image technology and beauty algorithm. In addition, millet has been authorized to produce and promote a range of intelligent hardware products under the American Tuttoes brand (except skin-related intelligent hardware products).
Wu Xinhong said that in the future, Metro will continue to focus on the two indicators of user and gross profit growth, while constantly consolidating the moat of AI technology and image technology. Our business model will also implement the essence of the mobile internet: that is, to achieve the strategic competitive advantage of Atlas with the development of light assets model, technology as the driving force, connection and service as the core. At present, our capital reserves are abundant, and we can successfully accomplish social transformation.
The following is the full text of the internal letter:
Ladies and gentlemen,
With you to announce a good news, Meitou has formally formed a strategic partnership with Millet Group: in the future, Meitou and Millet will work together to expand the market space of Meitou mobile phones. More specifically, millet will be responsible for design, research and development, production, commercial operation, sales and promotion, while atlas will provide Atlas brand, and continue to be responsible for image-related algorithms and technologies in mobile camera.
In addition, Millet is also authorized to use the Metro brand in non-skin-related smart hardware products, and Metro will develop its own smart hardware in skin-related areas to make users beautiful in the real world.
This is a strong alliance. In the mobile phone industry, Meitou has leading image technology and beauty algorithm, high-quality female user groups, and high premium brand image. As one of the largest smartphone brands in the world, millet has the top strength in supply chain management, sales and marketing promotion. Millet mobile phone shipments this year has exceeded one hundred million units, with a strong scale effect.
Through this cooperation, we will use the advantages of millet to strengthen our mobile phone business, which undoubtedly strengthens our beliefs and accelerates the pace of mobile phone access to more users. At the same time, we still grasp the soul of Meitou mobile phone: through leading image technology and beauty algorithm, we can take more beautiful photos and videos.
Looking back in 2013, we are still a small software company, "newborn calves are not afraid of tigers" stepped into the smart hardware industry, after stepping through numerous pits, launched the first Metou mobile phone. The 8-megapixel front-end camera, as well as the dedicated independent ISP chip, is our first creation in the world, which greatly improves the quality and experience of self-timer for mobile phones. You know, at that time, the mainstream level of the industry was only 300 thousand ~200 million pixels.
Since Meitou mobile phone, self-timer has become an important use of mobile phone scenes, automatic beauty when taking photos has gradually become the trend of the market.
For our company, the introduction of Meitou mobile phone has enriched the overall brand of Meitou more three-dimensional, but also harvested a group of high quality female iron powder. More precious is that, by the accumulation of word-of-mouth and the differentiation of early mobile phones, the brand premium, Meitou mobile phones with relatively small size, not only realized profits, but also maintained a high gross profit rate in the industry, contributing to the company's stable cash flow. It can be said that the United States can be successfully listed in 2016.
It is worth mentioning that the company that pioneered and led the mobile phone industry was built by a small team. With extremely limited resources, these excellent small partners have opened up the first territory of photo mobile phones, which deserves our applause.
However, this year's fluctuations in the environment of the smartphone industry have greatly impacted our mobile phone business. Due to the small size of our mobile phone business, it is impossible to reduce the cost to cater to the intensifying price war. In the first half of this year, the shipment of Meitou mobile phones declined, and in the second half of this year, the mobile phone business lost money. Facing the increasingly fierce market competition and industry saturation, we need to face difficulties more actively through the integration and adjustment of resources, and ultimately overcome it. Despite the constant impact of the market, we never thought about giving up the Metro mobile phone. On the contrary, it is precisely cherishing the efforts of many small partners for many years that we finally reached strategic cooperation with Millet, and the two sides complement each other to form a synergistic effect.
Today's strategic cooperation will enable Meitou and Xiaomi to play their respective strengths and face the market more confidently. With this cooperation as an opportunity, our hardware department can concentrate on developing the next generation of image processing technology, and take advantage of the scale effect of millet in supply chain management, sales and marketing to accelerate our vision of putting Metro mobile phones in the hands of tens of millions or even hundreds of millions of users. In the future, Meitou's brand and excellent image technology will use the production, research, development and distribution strength of millet and its ecological chain to apply to more intelligent hardware, which will bring enough imagination space for the profit sharing of Meitou's brand intelligent hardware.
This strategic cooperation will also accelerate the landing of the strategy of "beauty and social interaction". In the future, a series of Apps will be pre-installed on the mobile phones launched by the two sides, which will further promote the social user matrix of Meitou. At present, the users of Metro mobile phones are mainly concentrated in the first and second tier cities, and Millet has an efficient new retail channel of online and offline integration, which can effectively complement the existing user groups of software and hardware of Metro. At the same time, millet channels can also bring more male users, and enrich the portrait of the social users of the map.
In the future, we will continue to focus on the two indicators of user and gross profit growth. At the same time, we will continue to consolidate the moat of AI technology and image technology. Our business model will also implement the essence of the mobile internet: that is, to achieve the strategic competitive advantage of Atlas with the development of light assets model, technology as the driving force, connection and service as the core. At present, our capital reserves are abundant, and we can successfully accomplish social transformation. I'm glad that the "Meihe Social" strategy is progressing smoothly. In October, MeiTuxiu's social user scale has gained 50 million MAUs! It is not easy to achieve such results in only 2 months.
Finally, let's bless the strategic cooperation between Mito and millet. Let us work together to make more people beautiful!
Founder and CEO of Mito
November 19, 2018
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