Meitu Pivots from Cryptocurrency, Eyes AI and Video Production as Future Growth Avenues
In Brief
Meitu tech China company shifts focus away from crypto assets like Bitcoin to AI, plans to sell tokens when the timing is right.
Kang Yikong, Meitu’s Senior Investor Relations Manager, confirmed that after the company’s significant cryptocurrency purchases during the 2021 bull market, Meitu has substantially halted further crypto acquisitions.
Highlighting a desire to liquidate these assets when the timing aligns, Yikong mentioned that the investments, which once included significant positions in Bitcoin and Ethereum totaling $100 million, were based on a strategic vision relevant at the time.
This strategic transition comes after Meitu encountered considerable losses during a cryptocurrency downturn, though a recent uptick in the foreign exchange market saw some recovery, with the company recouping nearly 190 million yuan.
Meitu’s Turnaround Towards AI
The shift towards artificial intelligence has been fruitful for Meitu. Their recent surge in profits is credited largely to the company’s subscription system, which provides stability against the unpredictable macroeconomic climate.
The company’s recent launch of MiracleVision 3.0, an AI-driven enterprise vision solution, underscores Meitu’s commitment to leveraging AI for its business.
Kang Yikong is optimistic about the contribution of AI to Meitu’s growth trajectory, especially in converting subscribers. The company’s future endeavors also include an innovative Beauty Industry solution which will offer makeup and skin testing to customers.
Global Expansion on the Horizon
With global economic uncertainties, companies are exploring avenues to curtail expenses. In this landscape, Meitu aims to offer offer cost-effective alternatives to traditional marketing methods. The rise in the number of subscribers for Meitu Design Studio showcases the trend of businesses preferring Meitu’s solutions over pricier options like hiring models and photographers.
As Meitu sets its global sights, the company is noticing a burgeoning demand from international markets, particularly in regions like Southeast Asia, Japan, South Korea, Europe and the US. Kang Yikong envisions repackaging successful domestic products for the international audience to drive profitability.
Localized strategies tailored to specific market conditions are on the cards. While some regions might witness an emphasis on product development, others might see efforts concentrated on expanding the user base.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
