The huge group of children's users is inspiring entrepreneurs to enter the children's internet industry

Absrtact: Benefiting from the increasingly low age of the Internet, the huge group of children's users are inspiring entrepreneurs to enter the children's Internet industry; with the popularity of tablet computers, children's internet companies are beginning to pay attention to the application of mobile domain, some start from app development

Benefiting from the increasingly low age of the Internet, the huge group of children's users is inspiring entrepreneurs to enter the children's internet industry, as well as the popularity of tablet computers, children's internet companies are also beginning to focus on mobile applications, and some entrepreneurs starting from app development have begun to enter the field of children's Internet.

The data show that since 2008, the rice Cleaning network, OBI, Beval Net, Shanghai Dong Shi, Tin Man, the p. At the same time, Tencent, 360, Baidu, Sohu and other internet giants have entered the children's Internet market with different attitude.

However, "China business newspaper" reporter on the market in-depth interview found: Many children's internet companies are determined to make China's Disney, but is still in the start-up investment period, has not found a mature profit model. In this child internet entrepreneurship boom behind, still inseparable from the promotion of capital.

Membership fee is the main profit mode at present

Although entrepreneurs cut into children's Internet from different angles, they mainly focus on both entertainment and education, and the electricity quotient is only a supplementary means. Among them, the profit model of the child entertainment website still waits for the research.

Interestingly, most of the entrepreneurs who entered the children's Internet began as parents, and they began to venture in the field because their needs were not well met. The founder of Wang Haibing and Beval Net founder Yang are examples of this. "Screening games for Kids is a worry for me. "Wang Haibing had said so. Yang, who had also collected information on the internet about childcare, was disappointed.

Feilife and the first mother of Wang think they can do something in the field of child app, so hit set up a dazzling red horse. While working abroad, Feilife found that some of the single moms around were very tired, not only to take care of their children, but also to work and socialize. So he thought, "Can you find something that really attracts the attention of your child, and ask your parents to take a whole chunk of their time to do their thing?"

Entrepreneurs feel very sharp. At present, children begin to reach the Internet at an average age of about five or six years, in some big cities, this age is lower. It can be said that the emergence of tablets, accelerated the child net age ahead.

Although there is a point of view, children's Internet, especially entertainment sites are double-edged sword, but there are still many experts and ordinary Internet users will choose to let children use the Internet. They believe that the Internet can help children try to learn the skills of virtual communication, but also the reality of children playing playground. "Especially after being a parent, they will be more willing to use the Internet for their children." "Qiming Venture partner Gan Jianping said.

In fact, since 2008, China's children's internet industry began to enter a rapid growth period, positioning in different user groups of the virtual world is also gradually formed. In particular, the rice net in 2011 after the successful launch of the NYSE listed, but also the children's Internet entertainment industry to a new climax.

The reporter learned: Although the entrepreneur from different angles into the children's Internet, but mainly focus on entertainment and education, the electrical business is only as a supplementary means. Among them, the profit model of children's entertainment site has yet to be verified, although children love virtual world characters, but to let him spend money to play these games, but also need to obtain parental permission.

In Gan Jianping's view, collecting membership fees for members is the main profit-making model currently found by children's Internet enterprises. For example, the company represented by the Rice net has successfully received the membership fee of the game from the children's group. However, the reporter also found in the interview: There are still a large number of companies founded more than two years, is still very few to receive membership fees, most enterprises are still in order to attract users, retain users and efforts.

Most companies are still at the stage of burning money

Children's Internet products are "luck" ingredients, in the development of many products, only one may make money or even make money. And in order to bet on a product, these companies will develop a lot of products, but these are burning money.

According to the consultancy report, the current Chinese children's Internet industry revenue mainly from membership fees, virtual goods sales, online advertising and the provision of traffic for Third-party network games, offline operation is also the focus of the company, including brand licensing and extension to other media forms such as books, movies and animation series.

The reporter found that children's Internet company entrepreneurs have a Disney dream, all hope that the company's online business in line with each other.

Children like the main activities are playing games, and children communicate the best way is to tell stories, so children's Internet products on the whole is based on animation as the main manifestation, the degree of homogeneity of the product is obvious. Different companies, only in color, composition, animation image, story design differences.

In addition, because of the low entry threshold, it is easy to replicate. Especially in the children's app market, facing the same problem as the original group buying site. "Many companies and even individuals are piecing together some content to make a free app, but these bad things can affect the user experience and even hurt the industry." "Feilife said.

The head of a children's Internet company also told reporters that the app they are doing is mainly for users to find it, know there is such a thing, so did not spend too much energy to do. "Mobile Internet is a common challenge for children's internet companies, and we are not thinking of a good profit model at the moment." "Rice, PR director Guo Li said.

In fact, children's Internet products are "luck" ingredients, in the development of many products, only one may make money or even make money. And in order to bet on a product, these companies will develop a lot of products, but these are burning money. At present, most children's internet companies are at this stage.

Zhangyanan, analyst at the Research Center of the Qing branch, at present, children's internet industry is still in the early stages of development, mainly facing three difficulties: the first is the market to cultivate the time, this guidance not only to children, but also to the parents group; second, Tencent, 360, Baidu, Sohu and other internet celebrities have entered the market with different attitude, The new company will have to face the market impact of the Giants, and again, as with the network game market, like the strong regulation of the children's entertainment market, the state-related agencies are also increasing supervision, which also makes the industry face a certain market variables.

Wang Yu, general manager of Cool Rice network focused on animated online playback, and Beval, director of marketing, who is focused on the early-education media program, told reporters that policy does not have a major impact on the industry, the company is currently to do is to develop users, until the user reached a level, and then consider the construction of the company's business model.

These entrepreneurs believe that the number of children in China is more than 100 million, their demand is rigid, which makes every company full of opportunities. Although there are still many market uncertainties, but as many children choose between the building blocks and the ipad, they are increasingly opting for the latter, so many entrepreneurs believe that the children's Internet industry is becoming another blue sea.

Gan Jianping: "What's missing is entertainment."

Based on the huge user base, China's children's internet industry is gradually being valued by capital, and the industry has recently become a popular entrepreneurial field. Gan Jianping, the partner of Qiming Ventures, has already tasted the sweetness of being able to invest in the field. In 2011, the Rice Net (Weibo), which he dominated, was successfully listed in the United States. In his view, the business model for children's Internet companies has been found.

"China Business newspaper": Children's internet is a potential big market, in the market has not broken out when you have invested in a number of children's internet companies. What do you think are the main trends in the development of this industry?

Gan Jianping: The growth of children's internet industry has its inevitability. On the one hand, the use of computers and tablets more and more children, especially after the tablet, to promote the development of the industry. It can be said that the Internet users of low age, computers and tablets become an important tool for children's growth. On the other hand, if we go to the nursery rhymes, we will find the old songs we heard a few decades ago, which means that Chinese children's entertainment products and content are very few and scarce resources. Therefore, the market needs some to do boutique content, to provide high-quality products companies appear. From our investment in the Clean Rice network, its users grow very quickly, online product sales are very good, which also shows that children's internet companies have been recognized by users and the market.

"China Business Newspaper": We also found that children's Internet industry products and content homogeneity is very serious, and the profit model is not clear enough. What do you think is the way out for these companies in terms of finding business models? Can derivatives take on this responsibility?

Gan Jianping: I don't think so, on the contrary I think that the business model of the children's Internet industry has been found. Tencent, for example, has so many users that it has a charging product. Children's internet companies, too, its basic model is to collect fees for members. Children's games can have a monthly value-added services, props and other mature profit model fees. Of course, there may be a concern: will parents not let children surf the internet to play recreational products? And does the child have the ability to pay?

It turns out that this worry is superfluous. The key is to see if there is a good content, whether the content is richer and quicker to respond. To provide value-added services, there is bound to be someone willing to pay. In addition, based on the image of the game animation derivative income, there are also great potential, as well as the animation of television and film, into the book and clothing market are the real profit path.

China Business Daily: What do you think are the biggest challenges facing the children's Internet market at the moment? What are the areas of business opportunities for new entrants?

Gan Jianping: The biggest challenge in this industry is from three aspects: first, the government's control, the front-line people often feel very tangled, not clear about the government's intentions. In fact, the problem of Internet addiction that we are worried about is that the company can do well in strengthening self-discipline and the government should release some. Second, the protection of intellectual property rights, piracy has seriously affected the interests of creative property rights enterprises, especially in the field of derivatives, such as books. Third, under the line of the lack of sales channels, the current market is not large children's supplies channel business.

For new entrants, it is feasible to start from the creative to the subdivision area. But compared with the content of education, I am more optimistic about entertainment. China is not lack of education, but lack of entertainment. From the background of the entrepreneur, I value the team with the Internet gene, they are strong in innovation, work harder, and have a relatively standard corporate governance.