- The Chinese SaaS market has been experiencing a boom, but even then, no dominant player has emerged
- Infobird is expanding its target market by transitioning to providing more standardized SaaS services to various enterprises across China
- IFBD is ideally positioned to capture the lion’s share of the SaaS market in China thanks to both intrinsic and extrinsic factors
The Chinese SaaS market is currently experiencing a boom – described as one of the fastest-growing in the world – and is expected to double by 2022, with the 2019 market size as the measure (https://ibn.fm/oE9Qd).
This projection coincides with Howard Wang’s long-term outlook for the Chinese tech industry. Wang, the head of Greater China equities at JPMorgan Asset Management, recently told CNBC that although the near term is likely to be bumpy for companies in this space owing to regulatory clampdown aimed at curbing monopolistic behavior, the longer term holds great promise as Chinese tech companies have the potential to grow (https://ibn.fm/YXTzt).
Thus, the Chinese tech market bodes well for Infobird (NASDAQ: IFBD), a leading SaaS provider that offers patented, innovative AI-powered, customer-engagement solutions in China. Infobird, which aims to capture the bulk of the market share within the SaaS space, is expanding its target market and rolling out standardized SaaS modules to service mid-to-large enterprises, as well as millions of small-to-medium-sized enterprises (“SMEs”) (https://ibn.fm/qCa0g). With the nature of the SaaS landscape in China providing tailwinds, IFBD appears ideally positioned to realize these goals.
According to a NetworkNewsWire editorial (https://ibn.fm/Ab328), the Chinese SaaS market is highly fragmented. The top 10 vendors, for example, only hold a mere 35% of the market share, meaning no big market leader has emerged yet. In fact, the biggest player in this market has only managed to capture 7.2% of the market (https://ibn.fm/m2kv3). A look at the SaaS landscape points to the possible reasons why this is the case and, by extension, highlights why the conditions are favorable for IFBD to thrive.
About 90% of companies in China are SMEs, and although they contribute approximately 60% to the country’s GDP, their revenue contributions to SaaS providers are small and less stable. The remaining 10% comprises the mid-to-large enterprises, which offer more stable revenue contributions to SaaS providers, but with a caveat.
While SMEs do not have customization needs, the same cannot be said of mid-to-large-sized companies. And this presents a persistent problem that other SaaS companies have not yet quite figured out: striking a balance between standardization and customization. “Whoever can best solve this balance dilemma and quickly expand the market with standardized solutions will emerge as the next industry leader,” reads the editorial.
This situation plays to IFBD’s strengths. Infobird supports innovation (as evidenced by its impressive list of intellectual property and the fact that 40% of its workforce are part of its R&D team, as of December last year), has extensive experience working with large organizations in China, and recently completed an IPO in which it raised $25 million (https://ibn.fm/GFoGQ).
“Now, leveraging its proficiency, R&D activities, and half of its IPO proceeds, Infobird is undergoing a transition to providing more standardized SaaS services to both mid-to-large enterprises and the millions of SMEs in various industries across China,” the editorial continues.
Infobird intends to use its already developed standardized SaaS modules and its proprietary no-code development platform to more readily create new SaaS modules with preprogrammed microservices at extremely low cost and therefore quickly adapt to the changing market demands and opportunities.
With these new standardized modules already proving valuable by helping both SMEs and mid-to-large enterprises generate more business opportunities, not to mention the fact that they are fast and easy to roll out – making quick scalability a possibility – IFBD appears to have struck a balance. Further, given that IFBD already has proven templates guiding the development of the new standardized modules, its approach and success thus far cannot be easily matched by competitors.
These factors mean that Infobird will not only be able to expand its target market and roll out its standardized modules successfully, but also looks set to capture the lion’s share of the SaaS market.
For more information, visit the company’s website at www.Infobird.com/en/index.html
NOTE TO INVESTORS: The latest news and updates relating to IFBD are available in the company’s newsroom at https://ibn.fm/IFBD
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