9158: Will focus on testing several business models

9158 listed in Hong Kong

Fu Zhengjun set the 9,158's listing location in Hong Kong because he feels that investors in Asian countries are more likely to understand and accept the KTV model. Judging from the current data, his decision makes sense. The 9,158 parent Tiange Group, which landed at the HKEx this morning, opened at HK $ 5.99, up 13.4% over the issue price of HK $ 5.28.

The first time entrepreneurial state and Fu Zhengjun in Hong Kong made a connection, he was unmistakably honest, the moment of the bell he was very excited, but also feel the pressure. In response to a question from a startup reporter about how to make a layout for the O2O model, he said this year it will focus on testing several business models and further expanding them in the future.

9158 is known as the originator of real-time video socialization and is a model created purely based on China's national conditions. This business is also summarized in a variety of technical terms, "empty economy", "reeling economy" or "ambiguous economy." Its investors include Taiwan C2, IDG, Sina and so on.

It is worth mentioning that, since the founding of 9158, Walden and Taiwan C2 have the intention to invest, but C2 is not known Walden. Because it is a small investment, only 1 million to 2 million US dollars, the two are not willing to partner to vote, no less than dispute. Finally, Fu Zhengjun C2 borrowed RMB1 million as deposit. Walden brush with the 9158 so.

The same missed opportunities are Zhou Hongyi. Speaking, he also considered Fu Zhengjun's honored person, to help them say something good in the industry, paving the way for them to take the investment. However, when Zhou wanted to invest, he refused because of the demand for too much shares. However, this listing, 360 as a cornerstone investor once again intersect with 9158.

9158's users are mainly distributed in the vast third-tier cities, and even more grass-roots rural markets. It is said that even if the monthly income of two thousand dollars of users, are willing to come up with half the wages spent interacting with the anchor. White-collar workers are not their target users. Connection site in Beijing, 9158 specially arranged several staff scene for the media demonstration products, answer questions. Almost everyone has a bunch of problems sitting in front of a dazzling studio. "Why three people at a time?" "What if I want to give a present?"

The prospectus shows that the 9158's main business is split into two: eight "many-to-many" real-time social video communities (including our two major communities, the 9158 Video Community and Sina Show) and a "one-to-many" community That Sina show field). Now, followers such as YY, Liufangfang, and Guagua communities are all concentrated in the "one to many" competition in the market. According to iResearch, in terms of total user expenditures, Tiange Group accounted for 33.9% of the market for real-time social video community in 2013, while the market share closest to their competitors was 23.1% over the same period.

Also worth the breakdown of their number of users, the platform average monthly active users from about 750 million in 2011 increased to 8 million in 2012 and 2013 and 1080 million. The average monthly paid users or monthly paid subscribers increased from 194,000 to 209,000 and 270,000 during the same period.

Corresponding to this is the amazing monetization capability. As of December 31, 2013, the pigeons sold more than 910 types of virtual gifts and articles at an amazing price with diversified prices. As a result, they maintained a high gross margin of nearly 90% for three consecutive years.

After the bell was struck, Fu Zhengjun, the founder of 9158, made the connection with Beijing media for the first time. He talked about the business direction of Post 9158, the integration with offline, and how to deal with peer competition.

Investors why optimistic 9158?

The first is that the 9158 is very powerful in social video technology applications. With more than 30% annual growth in this market, it is estimated that there may be 13 billion in this market by 2017. We are number one in this market.

Second, we are a tool in the field of communications and can be used in industries such as video finance, healthcare and other industries with a wide range of applications. It may be a year or two with the outbreak of other industries, we will also have a good development.

Thirdly, our platform is mainly singing. There is a very big market under the line. We cut into this market, many investors think this is the greatest opportunity for the future.

Line O2O how to layout?

We have begun to try in Hangzhou, this year will focus on business model testing success. There are several models in the test, a franchise system, we have the holding. Profit model is not considered in great detail, the focus or win with the original owner. Because online and offline is very different. We are the Internet ideas, many are free, take a little time with the new mode of line out. For example, we have a rating system, if 90 or more is exempt from a single half an hour, for example, to encourage interaction between family members. We are also trying to shop and shop, online and offline connection, the future there will be a lot of fresh attempts. At present, the interaction effect, user online duration and other data have increased.

Now the Internet is subverting the traditional, in fact, even if the traditional KTV is not subverted by the Internet, they will be subverted by other forms. If they are willing to cooperate with us, it is also an opportunity for them to help them to upgrade. We emphasize that civilians are suitable for all ages and may need to queue up at the door. Into the box, with the original karaoke OK is not the same.

9158 video platform how to apply in other industries?

We are a communication platform, this platform for karaoke OK, may also be used in other industries, such as medical, education and so on. YY has been more powerful in education, the competition in this industry is also very fierce, Tencent, Ali have already entered the industry. We will be in the medical, e-commerce cooperation. For example, in the medical field, the future may be a WeChat-like independent APP for doctors and patients. Users in tier-3 and tier-4 cities will be able to get in touch with more professional doctors in tier-1 and tier-2 cities. Currently this product is still under development.

As for education, we will try something too. This market is very large, one-on-one video education can still try. We will emphasize social rather than content. For example, now mother staring at children doing homework is very hard. You may not be able to do this problem, then you spend 300 a month to find a tutor can help you remotely answer.

Future M & A intent?

In 2010 we have an acquisition with Sina, the original they are loss, and now has become as large as 9158 platform. We have a M & A experience, and if there is a fit, there will be potential mergers and acquisitions.

How to compete with YY?

Our advantage is mainly from many to many, focusing on sharing between users, emphasizing social. YY stronger anchor, they are doing radio mode, the user to see a show. The two directions are different.

Social video market, one is many-to-many show, there is one to many, behind the very competitive market. We work with 360, Sina co-operation, hoping to gain a place. We are confident that we have a certain market share in both the online show floor and the discount KTV market.