Baozun announced that it will make an equity investment into iClick Interactive Asia Group Limited (a consideration of USD 50 million) and that the two companies have entered into certain agreements to capitalize on private domain business opportunities within Tencent's ecosystem. Under the strategic cooperation framework, Baozun will provide online e-commerce operation and infrastructure services such as warehousing and customer services to brand partners, while iClick will provide SaaS-based IT and system solutions to help brand partners establish their e-commerce infrastructure within the Tencent ecosystem. Both parties will jointly develop a private domain traffic platform within Tencent's e-commerce ecosystem.

CCBI believes that iClick's SaaS-based enterprise solution in the fast lane. There is little overlap between the two companies in terms of brand partners. The cooperation with Baozun will not only enable iClick to expand its SaaS solution's KA base, but also offers it an opportunity to provide one-stop end-to-end solutions to its customers.

Meanwhile, iClick and Baozun plans to launch more standardized services and products catered to the medium-size clients. Given the increasing client base and great business potential, CCBI expects the cooperation between these two companies to become a meaningful revenue driver in 2H21F and look for 153%/96% SaaS-based enterprise solution revenue growth for iClick in 2021F/22F.