Wang Zhaohui: There are still opportunities for cultural investment in the Red Sea stage

【Ebang Power Network News】On January 18, the "NextWorld 2017 New Ecological Future Summit and Annual Style Award Ceremony" jointly initiated by Qimai Data, Zero2IPO Group, Pintu Group and Zhiqun was held at the Millennium Hotel in Beijing. Wang Zhaohui, founding partner of Ruchuan Capital, attended the conference and delivered a keynote speech on "Kawamoto Lun" of Entrepreneurial New Entertainment.

Wang Zhaohui, founding partner of Ruchuan Capital

At the conference, Wang Zhaohui said that cultural investment is still in a white-hot competition, and there are still opportunities in the stage of the Red Sea. The reasons are divided into four points:

First, new forms and contents have been spawned in the changes in cultural dissemination.

Second, the migration of aesthetics and interests of mainstream people.

Third, China's cultural and entertainment industry, although it has achieved very good peak growth in the past 20 years, there are still very good opportunities for industrialization later.

Fourth, Kaifu teachers continue to advocate that artificial intelligence will bring a huge convenience and a change in the entire way of life in the future time window field, which is just an opportunity for cultural content.

It is reported that the summit involves four popular areas of "artificial intelligence, mobile applications, new media, and small programs", covering practitioners in multiple industries such as entrepreneurship, promotion, new media, marketing, and products, and talking about the future innovation and development of the industry.

The awards of this summit are aimed at the three popular product forms of mobile APP, WeChat Mini Program and WeChat public account, aiming to stimulate enterprises to innovate and develop in an all-round way, and to commend new ecological excellent products that continuously pursue excellence and seek breakthroughs at the development level.

The following is a transcript of the speech:

Warm reminder: This article is a shorthand preliminary review, to ensure that the original intention of the guests on the spot, uncut, or omissions, please understand.

Wang Zhaohui: It was cold outside, and Xu Huan's welcome speech was elegant and calm.

First of all, I will introduce myself, I myself have worked in the Innovation Workshop for 7 years, and I am one of the co-founders of the Innovation Workshop. Last year, with the support of Kaifu, an early fund dedicated to culture and content was called Ruchuan Capital. Before you start sharing, let's tell a little story about the interaction with Xu Huan.

A very critical time node in my career is the innovation workshop, where I am very fortunate to see the growth of a large number of excellent entrepreneurs, and even continuous iteration, and finally achieve great success. I think Xu Huan is one of them, and I see three interesting phenomena in Xu Huan. as follows:

First, at that time, Xu Huan graduated from Huake, should have worked in a state-owned enterprise in Guangzhou for a while, may feel that life is too monotonous, she ran to Beijing alone to find the next dream. So, she met the founder named Pudding at that time called Xu Lei. Xu Lei gave Xu Huan three thousand yuan a month at that time, if I remember correctly, it now looks like a relatively shabby salary, but Xu Huan has not been disturbed or affected by external challenges, and she feels that a new starting point may be able to learn a lot of new things. When I met her, she was supposed to be in charge of pudding.

The second point is that in Xu Huan, I see a state in which she constantly learns and tries new things. She was initially in charge of PR and was responsible for products and work at the microcar stage. And in the whole family of the innovation workshop, I have met more entrepreneurs, engineers or other friends, and constantly learn and absorb more nutrition from the people around me or the platform. In the process, she came to me one day and said, Wang Zhaohui, can you be my referrer? I was nervous to say something? I don't think I have the resources to recommend you. She said you have worked in PR and head for so many years, and you have also done a lot of guiding work for micro-cars and pudding, and now that I am ready to apply for the Stanford Savage Program, can you help me recommend? When I heard it at that time, my first reaction was that the work was not saturated enough, and Xu Huan still had time and energy to read extra homework. In addition, I still admire it in my heart, because under the premise of handling a lot of work, I can still maintain a very strong desire to seek employment to participate in the project, of course, I also believe that Xu Huan has also had a very good growth and harvest in Stanford's barbaric plan.

The third point is that in Xu Huan's body, I saw the courage of the scarf not to let her eyebrows be raised. Frankly speaking, many girls will feel that the north is close to the big tree, and there has been a little help for us to do entrepreneurship, and the development of micro-cars at that time was also relatively stable, and it was recognized by a very good capital market and user market. But xu huan chose at this time whether he could take another risk? Make another bold decision? So there was the later Qimai Technology. Of course, she also lives up to expectations, in a very short period of time, may be the first innovation team among more than 300 companies in the innovation workshop to be listed on the New Third Board. In Xu Huan, I really saw a lot of things that follow-up entrepreneurs deserve to learn from her.

To get back to the point, say a little bit about the relevance of data and cultural investment. We know that Qimai Technology is a company based on data, search-based, and advertising-based optimization, produced by some services. In the past, in the past year and a half of doing Ruchuan, many people came to ask me, Wang Zhaohui, are you very intuitive in doing cultural investment? Do you see that an entrepreneur has done it in a certain big entertainment investment or cultural content company in the past, and you give him money at once? Of course, the background is very important, but the data is also indispensable.

As an example, many of you may have seen House of Cards. "House of Cards" may be the highest-rated drama on Netflix in the past few years, but this drama is not produced by patting your head from investment to the design of content products, it is actually a very rigorous basis and big data logic, including some feedback from users to make decisions. Because this drama is not actually original to the Americans, it is a version of a play from the United Kingdom, probably in 1992 and 1993. Can it be replicated in the Market of American Dramas in 20 years? Or can this market succeed? In fact, at that time, Netflix invested in this product was a question mark, but after tracking and investigating the 30 million valid member data, I saw that they had more than 4 million messages and comments, discussions about the show, more than 3 million search records about search dramas, and even more than 30 million users used what kind of equipment to log in, and what links in each show used fast forward and pause, these big data are very clear records. Finally, according to the judgment of big data, Netflix invested more than hundreds of millions of dollars in this drama, making the results that everyone later saw.

We also wish That Seven-Wheat Data will be able to provide some data to global content companies like Netflix in the future, helping them to provide a very good reference value in investment decisions. Ruchuan was established for a year and a half, is a relatively small investment fund, but in the first year and a half of its establishment, it has also received some support from some representative institutions familiar to us such as Innovation Factory, Sequoia, and Zhen ge as LPs. In addition, directors like Chen Kexin and Han Han are also our personal LPs, why? Because they are very optimistic about the direction of content investment.

Below, I will spend five or six minutes to talk about why I think that cultural investment is still in the current white-hot competition, and there is still a chance in the Red Sea stage. We have Ruchuan's own investment logic.

First, new forms and contents have been spawned in the changes in cultural dissemination. I am a post-70s, probably when I was young, the way of communication is typical point-to-many communication, everyone discusses with the people around me every day from what was broadcast on last night's TV program, this morning's broadcast, this morning's newspaper said, is a typical matrix communication. So that kind of information is a relatively single, no interactive way of dissemination, and at that time the Internet, mobile Internet industry is not as developed as it is now, there is no so-called community, BBS or other communication channels let everyone continue to ferment their own views, so the communication currently seems to be relatively monotonous. But then when there was the Internet, when the mobile Internet exploded in 2009 and 2010, we felt that everyone began to form the way of Figure TWO, that is, in a small local area, there were multiple rounds of cross-cutting, in-depth discussion. What are the benefits of this transmission? The interactions that may have taken place in the past, in the process new media and new platforms will bring new content and imaginary possibilities.

For example, in the past, from traditional TV stations to online platforms to later short videos to later long videos, people continued to appear in the past timeline. Even where many video platforms have emerged, there have been communities of bilibili subcultures, which is the way we just talked about that iterates with technology and social media. Of course, in this process, people like Douyu, Douyin and Kuaishou came into being. Of course, many people feel that there are already kuaishou and a lot of short video brands, is there no opportunity in this market? But it is still under the incubation of today's headlines that have appeared douyin products. It can be seen that the continuous iteration occurs with the propagation upgrade, resulting in many products that the imagination did not have in the past. Even verticals like Quick Look and what used to be considered niche are now very influential unicorns in the market.

For example, there is a typical example, in the past, everyone thought that media people or talk show people, how can they stand up a company independently? But I think Luo Zhenyu, Li Xiang, Wu Xiaobo, and even Gao Xiaosong, in the past he never thought that he was a composer, lyricist, and finally with the iteration of the Internet, and even under the demand for strong content on video platforms, "Novel" has produced a very popular product, which means that users have appeared multi-level segmentation, as long as high-quality content, as long as the content that meets their interests and hobbies will continue to pay for their interests, to pay.

Second, the migration of aesthetics and interests of mainstream people. You can clearly see the differences between the 60s, 70s, 80s and 90s.

The first era is the post-60s, post-60s is a typical stage of material scarcity, in the case of food and clothing has not been solved, you go to talk to him about culture, talk about entertainment, talk about content, they can't take care of it, they are still thinking about the next meal, the family's money is not enough to eat, how much surplus grain do I have? How long can I eat? The entire cultural content of that era was relatively monotonous, and even black and white were used to represent some memories of this era.

The second era is the post-70s generation, our era began to accept the integration of Hong Kong and Taiwan culture, the Little Tigers, Teresa Teng, including the fifth generation of Chinese directors also began to create new and very interesting local cultural content at this time.

The third era is the post-80s, along with the birth of the Internet and adulthood is the same timeline, this time like some of Japan's animation culture, including a group of post-80s writers like Han Han and Guo Jingming, have begun to appear in this time interval. They have not recognized this cultural characteristics of the post-60s and post-70s, and they have their own pursuits.

The fourth era is the post-90s, their adult journey is to grow up with the mobile Internet, they are convenient for mobile phone use, in the cultivation of payment habits are several times better than previous generations.

In this process, you can see a lot of post-90s unique communities and some of their favorite characters, and even in the past, they thought that the existence of avatars was very popular after 90s.

For example, you can recognize half of the keywords on this page and raise your hand to tell you. What do you mean by telling everyone about The Emperor?

AUDIENCE: Europeans.

Wang Zhaohui: This is a word that my team helped me summarize, I am a post-70s, my team is a group of people after 88 and 89, to understand the cultural preferences of this group of people, we must understand what community they are active in, what kind of jargon they use in communication and interaction, this page of words is a lot of post-90s, post-95s in mobile games often socialize some interactive words. Like the European emperor means that the luck is very good during the game, like the European royal family, of course, to avoid racial discrimination put like the face of the African chieftain is very bad.

Post-90s crowd portraits, we also did a data statistics, you can clearly see anime and games, the penetration rate of these two categories in the post-95 crowd is very very high, even several times higher. Why do we have more communication with Xu Huan? Because our investment team is doing a lot of investment in the game field or investment in the animation field, we will also understand some deeper data from Qimai's products as one of the basis for our investment. So this page can be seen very clearly, their acceptance of payment, their preference for games and anime, and they are very willing to immerse themselves in their own small circle. Maybe the post-70s are still willing to take care of everyone's feelings, and the post-90s say that I live for myself, and I only care about what I and the people in my circle think. Therefore, the extension of culture must be related to the preferences and personalities of people in different eras. This is the difference between the 70s, 80s and 90s I just talked about earlier, and the dependence of a pair of netizens on the Internet is a state of flesh and blood.

Third, China's cultural and entertainment industry, although it has achieved very good peak growth in the past 20 years, we think there are still very good opportunities for industrialization later. Why? Because we see very solid industrial templates in the NBA, in Marvel, in the industrial system of Hollywood in the United States, and even in the performing arts systems of Japan and South Korea. Because in the past 30 years, or even longer timelines, they have more experience with us.

Today, because the relationship of time is not unfolding, the NBA and Marvel bring you spiritual inland excitement and long-term influence. In fact, now in the cinema has seen this result, that is, Marvel out of a film, may all young people will chase several in a row, this is the stimulation of the spiritual river, which is also an important result of the combination of industrialization and content industry. So we feel that China has not yet reached the peak of the wave, if we can learn from and refer to the industrialization system of the NBA, Hollywood or Japan and South Korea, we feel that there is still a great possibility of growth.

That's what I just said, and I won't expand on it.

Fourth, Kaifu teachers continue to advocate that artificial intelligence will bring a huge convenience and a change in the entire way of life in the field of time window in the future, which I think is just an opportunity for cultural content. Because a large number of artificial intelligence will liberate our time and energy, what will fill the liberated time? From the perspective of political power, it is not good for a large idle population to bring about social instability. Shouldn't we do more and better cultural content from the field of cultural investment to meet their needs and satisfy their desire for creativity, imagination and emotion? And these are all the current situations where artificial intelligence is currently impossible to produce high-quality content. So this is also a driving force and motivation for us to invest in culture. We feel that artificial intelligence is accompanied by high demand for cultural content.

This is part of the investment in the past year and a half. At the end, in the future, we will still rely on the seven-wheat data to provide us with a lot of references, hoping to take seven-wheat as an important basis for our investment decision-making, in our regular meeting can have several pages of PPT is from the seven-wheat data to provide us with a very important reference and decision-making basis.

Thank you!

This article is from Ebang Power Network, the entrepreneurial department authorized to publish, slightly edited and modified, the copyright belongs to the author, the content only represents the author's independent views. [ Download the Entrepreneur APP to read about China's 7,000 most profitable businesses ]