Hot Cool Yong: entrepreneurs must make clear judgments about the market

Hot Cool CEO Yong

News and technology The eighth session of the global mobile games and channels conference held in Beijing on April 10, the conference will be "dry goods and contract" as the theme. Hot-Cool CEO Yong said in a speech that the market must be told. As a continuous entrepreneur, this is the second venture, deeply know as an entrepreneur, must grasp the direction, otherwise it is the opposite. The direction is wrong, so the more effort will die the more miserable, so must be very clear to the market to judge.

The following is a transcript of Yong speech:

I want to share this place with you, we're cool. From entering the hand tour industry to the release of some dry goods.

We are the company that started in 2008, so far hot is the largest social gaming company in Asia and is still the biggest social gaming company. We have a total of 21 million active users, 15 million of which are from pc,600 from mobile. And then we've been in the 5 years actually hot cool didn't do how many games although I see a lot of companies in a year can be 5, 10 such games, hot cool should also say that there is no such a large capacity, a year can be 5 to 10 games, we 5 years only out of 12 games. If the latest words are 13 games, the 13 games inside, we have 6 real masterpiece, which has 4 PCs, 2 is mobile, so this is actually our hot cool simple introduction. We do not have much of a game, but we certainly pursue a high quality of the masterpiece, God-level game.

Just listen to the front guests, especially the blue port of Wang Feng, he said a lot of views I agree, but there is a sentence I have a slight objection, that is, in this stage should not talk about some markets, I think it is necessary to talk about the market. Because as my own continuous entrepreneur, I This is the second venture, I deeply know as an entrepreneur, must grasp the direction, otherwise it is diametrically opposed. You are in the wrong direction, so the harder you work, the worse you will die, so you have to make a very clear judgment on the market. So I'm going to share the dry goods.

I would like to say that in our Asia, the market is growing very fast, why say such a, in fact, Asia, including China, Japan, Korea, I also communicate with a lot of friends, they feel that the Chinese market is very bad, we live in the environment is really suffering. But I'm really not optimistic about a company, is 100% of the focus on overseas markets. Hot cool is actually the case, we started in 2009, especially in the first half of 2009 and 2010, in the Japanese market, the Korean market to do the wind, indeed in that market led Japan's social gaming market, and made a lot of money. But my own experience tells me, and see some other game companies, all 90%, 100% focus on the overseas market companies, to the end I think are not core competitiveness of the company. For example, you focus on Europe and the United States, and finally you want to fight with? I can tell you very clearly that you can't beat anyone in that market. Therefore, I am not optimistic about the pure focus on overseas markets, especially the European and American markets.

What should be done? I think Chinese companies still have to be based on the Chinese market, from the hot and cool point of view we based in China, while radiation in Japan and Korea's market, we see this market is very big, we see from last year August, September to this year January, each market is more than 250% growth, This is iOS and Google Play, in fact, China's Google Play market has grown even bigger.

Let's look at the next one. We are very surprised that this market is actually better than the US market. In iOS or Google Play, the average revenue per download in Japan and Korea is very high, even in China is not low, it is the U.S. market One-third, and in Google Play, can even reach one-second of the U.S. market. So the market is very big, what's the big one?

Just rapid growth, each download in China's iOS, the average is 0.17 U.S. dollars, of course, there are many ineffective, such as the brush list such as download data. China's smartphone users are also smartphone users, we expect the market to reach 10 billion of the market size, or conservatively 80 to 10 billion of the market size, but unfortunately, there are only a few products, several companies to succeed, only 5% of the company to succeed, If you say the product, only 1% or even less than 1% of the product, will be able to succeed. So the market is very big, but it is really exploding, but the space for us to stay, it does not look so big.

We must have a giant, the morning has said, all do social games, online games and no games, even do not know the game before, there is to do the application are running over to do these things, are doing hand tour these games, the product life cycle now seems to be very sad, I just came down with Wang Feng Exchange this sentence, We share a view that if China's mobile gaming market is not able to solve a problem, then the market is over, what is the problem? The life cycle of the product.

If its product life cycle is only half a year, then this market is definitely not long a market, if its life cycle is only one year, which means that the company is a jiangshan generation of talent number, we do not want to do here three years, five years, ten years of the company, we only do a year of the company is good. In other words, if we do not like the end of the tour, the life cycle of a product to do three years, five years, the industry is problematic. But the present situation is no way, only in such a short time, we are trying to solve this.

In addition, the channel is particularly dispersed, I do not say, plagiarism this thing we all know. Although a lot of companies do not want to do plagiarism, but in fact each of us can see others, the main 99% of the products are marked with obvious traces. So in this morbid market, we are in the game industry is ushered in an unprecedented adverse environment. What do I want to tell you in this harsh environment? We are constantly trying, from the earliest to do social games, because social games have the same problem, how do you extend its life cycle, such as stealing food games, now we look back to see your sister such products, how to prolong your life cycle, How can you avoid it only to become a short-lived or a year, just like Wang Feng said one-night stand products. We have accumulated a lot of experience, we have accumulated a lot of successful experiences in mobile games, card games, moderate games, social games, heavy web games, domestic market operations, international shopping malls, and indeed there are NHN shareholders like Tencent and South Korea. In this external environment and internal environmental catalysis, we have accumulated a lot of experience, we want to replicate this experience to all the small and medium developers, of course, the big developers, such as Silverside, the apple of the Apple, their experience may be richer than us. But as a start-up from scratch, there is no more than the other companies to do a better chance, the answer is yes, I think the hot cool to the experience of copying to everyone.

This is what we've announced before, and now we want to focus here with a "God-building program." We ourselves think that mobile games may be able to have the opportunity of a god like the end of the tour, just now in this market everyone wants to rob money, we look at the page tour market, want to three days, or one weeks, one months to do the income is particularly high, so that the product life cycle is very short, So that the product could have earned 1 billion of the income, the last only earned 300 million, although in the short term, within one months rushed to 30 million. But I think the product is not God. We want to help you build God's work, from the experience of our masters and your sister, and from our past 6 great experiences, we have helped to build this kind of God. There is a hatchery fund that is 100 million yuan. The second is the three support systems, and then we have a cell phone evaluation model that guides and evaluates the development of mobile games.

Let's take a look at this incubator fund, this is the fund we started with Shire, and for us, we've always wanted to see that hot cool has been invested and the heat has been hatched, and we've always wanted to see if the model of innovation works is going to work, at least to this day, We saw the innovation Workshop on our own. He was not successful from the angle of incubation, and from the mobile phone game industry, the game is a very specialized industry, you do not have the local experience, did not play games, operating the game experience, is unable to tell others how to do, not to mention hatching. And we, like the combination of the old, we are able to put our own professional experience, Xue old experience of investment in the total integration of the fund is now in operation.

In addition to the support system, I would now particularly like to talk about our operational support system, which is a fully data-driven operational support system. In our mind, a game, a God for the general game, should be like a Web site, and should not be like a movie and the previous end of the same, data-driven operations from scratch, how can you start to adjust data, adjust the data can quickly spread out, very explosive radiation out, grow out, This is data-driven operations, a data-driven operation that operates in hot-cool five-year data, with 21 million daily active users and 22 million daily active users, to support such an operating system. Are first-class university graduates of the master's, and even Tsinghua's PhD and postdoctoral. The data we collect every day can reach 1T, and I don't think there are a few games companies around the world that can collect such large amounts of data. Daily task throughput, we do operations should know, can reach 20,000 throughput is very huge. And there's our standard data analysis model, and what do we want to predict? What do we want to predict about the life cycle of a game? If the life cycle is coming, we'll do something next, to keep its product going. This is data-driven operations.

Then the five-level evaluation criteria, this is our own internal use of the PS perfect model, in this full score model, please note that this is entirely for mobile phone games and not for web games and end of the game, because we think that mobile phone games have some characteristics, it is completely subversion of the previous game, These features are interactive, especially offline interactions, in addition to the six points below four points. This off-line interaction only exists on the phone, when you're online, it means you're not on the line, and our offline interactions mean that you can make it possible for users to interact with others when they are offline, and that they can interact with you when you are off-line, and that you can play the game seamlessly when you're not online. can provide a very seamless user experience.

The other is socialization on top of this, and this socialization has completely surpassed our social games. Although we have always thought that the social very understanding, but after the mobile phone game, we found that the social understanding is a step forward, the former social networking is purely social network, online PK, online help each other, but on the phone can do anything? The ability to copy offline social networks to the line. What is offline social? is that you and your family, friends together, can not network, can enjoy the fun, in this place, in this equipment to enjoy the fun, we call this game called Family games, family sharing.

Another one is fragmentation, this needless to say, but we have an image of the noun called the toilet game.

The last point is that you can make a product to be emotional, to integrate into people's lives. We're looking for your sister, and even the other products that we're going to be doing here are all part of this. We think that if a product is a 10-point product, this product has no reason not to succeed, and it has reason to be a universal God-like product, which is called God.

In fact, there are some products, including my name is MT, in fact, are such products. Including looking for your sister, we think it is a 10-point product. We also use this model to make some successful cases, I don't have to say.

Then we use the same concept and model for the following products, for example, we would like to talk to you about our new products, its relevant data can be seen. Within the two-week period of the beta, it retained the next day to 68%, its seven-day retention, as a heavy three types of card games, seven days retained to 37%, its users online time is 93 minutes, but note that the average number of days to log on is 13 times. In fact, a user down also play 5-7 minutes of the game, fully meet the rules of the toilet game, anytime to go. And then his own conversion activation rate, is the user downloaded, how he can find ways to activate, where the face reached more than 90%, if the user downloaded not activated, for our many promotional channels are waste, for developers is wasteful, your CPA costs immediately increase 20%, 50% or even 100%.

Then there is a point is as a mobile game, you have to cover all the users of the crowd, the user of all ages, especially female users, such as we are looking for your sister inside, female users accounted for 65%, in this product, although the medium of products, although the card, But our painting style also guarantees that its game female users should account for 35%, 40% or more.

There is also a case also with our philosophy to do, is that we want to cross the boundary of things, emotional, living things to bring to the game products. We recently this product and Zhao Wei's a movie called "To Youth", on the release on April 26, we carry on the cross marketing cooperation, our product appears in this kind of movie related content, his movie marketing also appears our product some content, I thought only such thing, can lengthen your product life cycle, Only such things can make God a general product.

And finally, I hope that all of us here those who want to devote to the Asian market (China, Japan, Korea) can communicate with us, we also hope that our experience in the Asian market can bring us, and we grow together, the Chinese company's mobile gaming industry, not the Chinese market mobile gaming industry bigger, Japan and Korea their companies can also trample on our feet.

Thank you.