Core Viewpoint - The public fund industry is experiencing a shift from self-operated direct sales apps to leveraging WeChat for customer acquisition and engagement, as many fund companies find their apps ineffective and costly to maintain [2][4][9]. Group 1: Industry Trends - The trend of shutting down direct sales apps is spreading from small to medium and large fund companies, with notable examples including Ping An Fund, which manages over 640 billion yuan [6][7]. - Many fund companies are migrating their direct sales operations to WeChat, which allows them to tap into a larger user base without requiring users to download separate apps [4][9]. - The reliance on WeChat is seen as a strategic move to reduce customer acquisition costs and enhance user engagement [4][9]. Group 2: Financial Implications - Operating a direct sales app incurs significant costs, often amounting to millions of yuan annually, making it unsustainable for smaller fund companies [9][10]. - The majority of fund companies are experiencing user attrition on their apps, with only a few large firms seeing positive growth in active users [9][10]. - The shift to WeChat is also driven by the need to optimize resource allocation and reduce inefficiencies as highlighted by regulatory encouragement for lower operational costs [16][22]. Group 3: Competitive Landscape - The dominance of third-party distribution channels, such as banks and independent platforms, has led to a decline in the market share of direct sales, which fell from 84% in 2016 to 26.42% in 2021 [13][14]. - Fund companies are recognizing that direct sales apps have become less competitive compared to multi-brand platforms that offer a wider selection of products [13][16]. - The industry is witnessing a transformation where direct sales are viewed as essential for maintaining customer relationships and reducing commission costs paid to third-party distributors [16][22]. Group 4: Future Outlook - The future of direct sales in the public fund industry may involve a hybrid approach, combining WeChat operations with enhanced app functionalities for larger firms [23]. - The regulatory environment is gradually shifting to allow more functionalities within WeChat mini-programs, indicating a potential for expanded direct sales capabilities [21][22]. - Companies that successfully integrate WeChat for direct sales and customer engagement may gain a competitive edge in retaining high-value clients [23].