Meitu, a Chinese selfie-editing app, has gained popularity worldwide with its advanced features, challenging Instagram and Snapchat. The app allows users to digitally "beautify" their faces, with options to lighten skin, smooth out complexions, and round the eyes.
According to Hu Dongyuan, a travel agency employee, Meitu is like a cheap, non-permanent form of cosmetic surgery. She says, "Everyone uses it as a kind of personal advertisement."
Development and Evidence ¶
Meitu launched a Hong Kong IPO in December, valuing the company at $4.6 billion, despite consistently posting losses. The company has over 450 million active users in China and is gaining traction abroad, with 430 million overseas users as of October last year.
William Chou, an internet analyst for Deloitte China, notes that Meitu has appealed to the beauty concept of China’s post-95s. He adds, "Photo-sharing is a global phenomenon, but China has climbed to the top of the world in this."
Context and Response ¶
Psychology professor Yu Feng of Xi’an Jiaotong University comments that the selfie-editing craze highlights how Chinese lives are increasingly lived online, making a person’s virtual appearance as important as their real one. Meitu and domestic competitors cater to Chinese beauty preferences, allowing easy modification of attributes like skin tone and eye shape.
Meitu’s IPO prospectus states that its apps process half of the pictures posted on Chinese social media, with around six billion photos altered last October. The company promises to build an online "ecosystem" of apps and devices based on selfie-processing.
Consequences ¶
Despite its popularity, Meitu faces challenges in generating profits. The company lost 2.2 billion yuan ($320 million) in the first half of last year. Professor Jeffrey Towson of Peking University notes that Meitu’s big problem is the lack of a clear business model underlying its successful app.
Meitu’s shares have risen 16 percent since their debut, with investors hoping the company can pull off its planned business makeover. Deloitte’s Chou explains, "For tech companies, the future is more important than the past."
