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"Right-most" investment in millet: a $95 billion business

via:博客园     time:2019/3/15 15:35:20     readed:134


For the rightmost, mobile channel preloading only solves the initial traffic problem. Now that community competition has evolved into cross-disciplinary and systematic competition, more killer maces are needed to break through the siege.

Wen/Qi Pengli

Source: New Business Intelligence NBT (ID: New Business Strend)

The cooperation between the rightmost and millet is providing a new idea for independent communities that are stuck in growth bottlenecks, that is, to break through the ceiling of independent vertical communities through physical expansion such as mobile phone pre-installed.

On February 28, 36krypton reported that after 1995, the funny community completed $80 million in financing. This round of financing was led by millet, and some old shareholders followed.

According to New Business Intelligence NBT, the financing amount of the rightmost round is actually US$100 million. Before the final acceptance of millet financing, the rightmost also had in-depth exchanges with Tencent and headlines on financing.


Millet may also be the right and most appropriate choice. It is understood that after the completion of this round of financing, Millet's MIUI system mobile phone will be pre-installed with the rightmost App. Some people close to the rightmost said that this will help break through the 30 million DAUs in the rightmost year. If the forecast data is true, it will be far more than Baidu Tieba and other similar products.

For the independent community products with limited living space, the joint mobile phone manufacturers also provide a new way to attach themselves to the giants.


The right most trapped

The scale of the rightmost financing is somewhat surprising. Throughout 2018, the right-most market voice and data performance were far below expectations.

On-line in the rightmost in 2014, February 2017 through the "Happy Camp" special implantation into the public eye. On the evening of the show, the rightmost Apple Store ranked up 1,200, with 1.5 million downloads. Subsequently, with intensive programs such as "Tucao conference" and "Chinese restaurant", the most right in June 2017 exceeded 1 million, becoming one of the most interesting community products of the year.

However, by 2018, the rightmost has hit the growth ceiling, and began to show a significant loss of users, and market share is almost stagnant growth. According to the Aurora data, there are only 1.9 million people living at the end of 2018, which is a sharp decline compared with the 3.1 million people living at the beginning of the year. Meanwhile, the penetration rate of the rightmost product increased from 1.6% to 1.8% in the whole year.

The voice and social products, such as B station, Soul and Litchi, which are dominated by Generation Z, are also competing with the youngest users, and the graphics and text model has become less sexy.

The rightmost is also consciously innovating products to achieve data growth. First, the introduction of short video and information streams, but graphics and text content has always accounted for a large proportion, failed to transform into a short video color, algorithm-driven products.


Functional innovation has not prevented the right-most community climate from deteriorating further. Poor style and community violence are common problems in almost all segments of products, and the right-hand side is just as bad at this point. Knowing how to evaluate the rightmost App is almost entirely negative. Criticism mainly focuses on vulgar content, users following the trend and serious mutual attacks. Expressing different opinions is very vulnerable to attack, and disputes based on stars are particularly common.

This also laid the groundwork for its subsequent policy shocks. In April 2018, content segments were shut down, policy supervision of segment products was tightened, and content audits of the most right-hand products began to be strengthened. Data show that the scale tightening directly affects the right-most user growth and user time. The rightmost did not launch a large-scale variety show in 2018, which in turn affected the rightmost user access.


Even the skin funny than the headline of the skin shrimp still a month in the morning line. However, due to various disparities, the skin shrimp with its back to the head soon came to the fore, leaving less room for funny skin.

After multiple squeezes on living space and traffic sources, the rightmost data failed to make a big breakthrough in 2018.


Scarcity in Vertical Communities

This is also the main reason why the rightmost round of financing can trigger Tencent, the headlines of deep concern and the final launch of millet.

Specific product positioning, the rightmost main hit for the funny Duanzi community after 95, the main content is UGC submission. The rightmost product form has the characteristics of both connotative paragraph and Baidu Post Bar, and the top comment and topic circle are the two most rightmost features. The former mainly focuses on top quality reviews, realizing the content of reviews, in order to enhance the user's staying time and creative enthusiasm. The latter is based on the homology of topics of interest, in order to enhance the probability of user interaction.


Between 2014 and 2016, SIG Haina Asia, GGV Jiyuan Capital and other institutions have received a cumulative investment of tens of millions of dollars. Founder Li Jinbo has served as No. 100 employee, Xunlei technical co-worker and CTO, launched IM products MSNlite, parent-child photo album based on family privacy and social intercourse, and other products. He has created the rightmost and PIPIPI funny successively, which also proves the community operation ability of the rightmost founding team.

Although the absolute volume of users is not large and even declined in 2018, there are still many selling points with high-quality founding team and the rightmost gathering of core young users. According to observable data, 36% of the post-95 population is in the right. According to New Business Intelligence NBT, the right-most users use more than an hour a day. On the top right, the comments, comments and forwards of a single post often exceed 1000 at the same time, and the user interaction is very active.

If Tencent or the headline invests the most right, it will help expand the post-95 population and increase the user's time. Based on these two criteria, Tencent and headlines are also difficult to have better investment targets beyond the rightmost.

However, there are two main reasons why Tencent and the headlines failed to reach an agreement with the rightmost, one is that the rightmost itself is unwilling to stand in line too early; the other is that the future data of the rightmost is not optimistic, but the quotation is too high, and the two sides have not reached an agreement on the price.

Price has become the core obstacle to trading, which shows that neither Tencent nor the headlines have such a high demand for the rightmost.

Tencent and headlines already have products that cover post-95 users. Tencent QQ space, more than 300 million users under the age of 25, accounting for nearly half of the total number of users; the introduction of Tencent animation, investment B station also allows Tencent to reach 95 after there are enough channels. TikTok's earliest major users are between 18 and 24 years old. Up to now, 90% of TikTok's users are under 35 years old, and their younger age has been very high.

A younger community like the rightmost has no strategic slot value for the two giants. It looks delicious to eat, but it's not a pity to abandon it.


The thirst for millet

Compared with the ambiguous attitude of Tencent and the headlines in this transaction, it seems more determined to invest in the rightmost part of millet, which is more eager for the post-95 generation.

Before investing on the rightmost side, millet had acquired Li Jinbo's MSNlite, which originated from the rightmost founding team.

Just in 2014, when Li Jinbo began to do the rightmost work, Xiaomi published the book "Sense of Participation". Li Wanqiang, co-founder of millet, said in the book that if you want to make a product that young people love, you must really understand young people's preferences. Young people's cultural hobby community is the first scene to fully display young people's interests and expression preferences.


In February this year, Mimi launched the Mi 9 mobile phone in collaboration with the rambling movie Alita: The Angel of War. In addition to mixing the product with the movie trailer, the relevant theme fuselage has been developed. When Redmi Note7 was released, Xiaomi also co-operated with TikTok in its first online flash store, broadcasted live press releases, and launched a series of evaluation videos of Redmi Note7 on TikTok, which eventually sold more than 1 million phones in the first month.

With the continuous improvement of competition intensity, the young competition among mobile phone manufacturers is not limited to the marketing level.

Investing heavily and installing resources to the right can help millet reach its most needed young people more directly, leading other manufacturers in pulling New Millet users and defining millet users.

Millet has previously invested in Ichi Art, Interesting Headlines and Himalayas, including the introduction of fast applications, but more to provide richer and more convenient content services for rice noodles. Compared with the wider range of interesting headlines or Himalayas, the rightmost has a clearer user attributes, and it is the young people Millet needs most. This is the essential difference between the vertical community and other content platforms, and may be the most right and most valued value of millet investment.

Millet itself has been focusing on the management of rice noodles, is one of the few mobile phone manufacturers with fan culture. Through mobile phones, TV, eco-chain hardware, e-commerce, Internet business and millet forum, millet provides a series of services from hardware to content to communication for fans, forming a closed-loop user retention. This also provides an important basis for Millet to retain the post-95 users on its own platform and transform them into more loyal fans.


For the rightmost, it may be too far to seek an independent listing, but Baidu Post Bar and the connotation section prove that the volume of such products can reach 20 million daily life. Compared with this goal, the rightmost still has a lot of room for development, which is also an important reason why the rightmost is unwilling to commit to Tencent and headlines too early. For large companies with abundant product matrices, the value of independent communities with limited daily life is limited, and it is difficult to sell at a good price at the right.

At this time, mobile phone manufacturers with mobile channels and desire for precise users are probably the few good ways out. The pre-loading channel to obtain millet may be the right most physical but also the fastest way to break through the bottleneck. In 2018, millet mobile phone shipments exceeded 100 million, ranking fourth in the domestic market.

If the cooperation between millet and the rightmost is effective, it may inspire OPPO, Vivo and Huawei to cooperate in depth with such independent community products.

However, for the rightmost, the pre-installed mobile channel only solves the initial traffic problem. At present, the competition of community products has evolved into cross-domain and systematic competition. To break through the siege, we need to bring out more killer's maces by ourselves.

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