Infant Room (603214) Incident Review: Strategic Cooperation with Tencent Leverages Digital Transformation of Mothers
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Event: Incident: The company and Tencent strategy “Strategic Partnership Framework Agreement”. Both parties aim to develop “smart retail” together and agree to establish a long-term strategic partnership. The two parties will work together to carry out in-depth cooperation in digital marketing and digital operations.
Comment: Maintain overweight rating.
Hand in hand with Tencent to increase digital transformation and technological innovation, accelerate the development of multi-dimensional channels, incentivize mechanisms to bind outstanding talents to help development, and 杭州夜网论坛 gradually improve the mother and infant consumption ecology in the future, maintaining the company’s EPS forecast for 2018-2020 respectively.
77 yuan, maintaining a target price of 51 yuan.
This cooperation mainly focuses on customer acquisition, user experience, precision marketing, data precipitation, etc., and uses Tencent’s core capabilities for empowerment.
1) With Tencent’s advertising and mini-programs as its core capabilities, integrate the capabilities and resource advantages of both parties, open up online and offline marketing networks, and promote the upgrade of omni-channel marketing capabilities; 2) With Tencent Cloud as its core capability, deeply integrate the data of both partiesAbility to use data assets to improve marketing accuracy and operational efficiency; 3) use WeChat as the core 杭州夜生活网 competency to promote digital office and consumer interconnection; 4) rely on WeChat payment core product capabilities to revolve around customer flow to stores, conversion into stores, and exit from storesReaching the three major reorganizations to rebuild the three-dimensional marketing system and optimize the in-store service experience.
Tencent’s smart retail empowers strategically coordinated development.
The company’s future development uses Tencent’s digital transformation infrastructure to achieve multi-dimensional improvement: 1) The company currently operates 230+ self-operated stores and is still in the offline store development stage, using data to accelerate channel expansion and upgrades; 2) optimizing the store consumption experience, and furtherBroadened the boundaries of approved customer operation and sales channels to meet multi-scenario consumption; 3) The company is committed to optimizing supply chain upgrades using data and technology, integrating industry chain resources, extending upstream and collaborative industries, and enriching the mother-to-child consumption ecosystem.
Risk factors: Economic growth affects consumption, industry competition intensifies, and product quality requirements increase.