Xiaohongshu accelerating the investment, "Speed up to the medical treatment"?

Wen | Xu Yuanxuan

The "grass planting" community Xiahongshu began to invest, and it was a dozen projects in one investment.

This "Jimei" base, which was valued at $ 20 billion, did not rose for a while, and started the investment business since 2018.

It was only time in 2021, and the investment department suddenly became important after the rumor that Xiaohongshu was about to go to the United States.

From beauty to tide to play, to maternal and baby

The great investment in Xiaohongshu did not start this year.

After finishing the relevant information of the company's check check -in, it was found that Xiaohongshu Technology Co., Ltd. indirectly held 22 companies, an increase of ten more than in the first quarter of this year.

Except for 3 holding companies, Xiaohongshu currently invests in 19 companies.

According to the previous observation of "Narrow Broadcasting", the investment of Xiaohongshu not only covers the main industry promoted by Xiaohongshu, such as beauty, tide, clothing, mother and baby, etc., but also includes fast food, low temperature meat, IP incubation, etc. New areas of development.

The main field of the plus platform is very reasonable. The layout of the tide game industry not only reflects Xiaohongshu's optimism of the prospects of the Chao Playing industry, but also has a precise positioning for the separation of its own platform users.

According to the "2021 China Trend toy Market Development Report" issued by the National Investigation and Big Data Research Center of the Chinese Academy of Social Sciences, China's trendy toy industry has developed rapidly and has great market potential. Data show that in 2015, the scale of my country's tide-playing industry has reached 6.3 billion yuan, and the compound annual growth rate of 2015-2020 is as high as 36%. It is estimated that the scale of China's entire trendy toy retail market will reach 47.8 billion yuan in 2022.

According to the "Report", 75%of the consumers among the consumer groups are women aged 25-35. Female consumers value not only the design of the toy appearance, many buyers also use the tide as a gift for friends, especially the partner's preferred gift.

In March of this year, Xiaohongshu completed the investment in the operating company of the Chao Play brand Robbi, with a shareholding of 13.17%.

Robbi, founded in June 2021, can be described as a new star in the tide world. According to the company's founder He Jiashan, the image of Robbi Tide Play is combined with Jade Rabbit and future fantasy elements in ancient Chinese legends.

After the product was launched, many popular celebrities interacted with Robbi Rabbit, such as Huang Zitao, Cheng Xiao, Lin Yun, Jiang Mengjie, Zhou Yangqing, etc., and have released a photo with the Robbi Rabbit on their Weibo or Xiaohongshu.

In addition, Robbi has also successfully revealed the programs that I love to watch in the Z -generations such as "Trend Partner 2" and "This is Hip -hop 3", and co -branded with brands such as Chinese aerospace, MCM, and NBA, and are sought after by young people.

Investing in Robbi is not the first time that Xiaohongshu has launched in the field of tide. At the end of last year, Xiaohongshu invested in a coincidence block with special attack on Chinese building blocks.

Coincidentally, the traditional Chinese tenon -and -mortise skills are the core of its building block toy design, and they are committed to continuing and inheriting the civilization and wisdom of China in the previous year in new products.

The coincidence of the co -developed "ancient Chinese meganer series" developed by the building blocks and the National Museum has been widely praised by players. Financial Wuji observed on its official Tmall flagship store that the "Ancient Chinese Meriters" series currently contains the gangsters in the nine dynasties in my country, with a total price of 261 yuan and a total sales of 1000+.

As the national tide heat gradually heats up, the national tide brand has begun to occupy the minds of consumers. The Finance Search found on the Xiaohongshu that there were more than 780,000 notes under the "Lego" keywords, and only 1600 notes under the "Chinese building blocks" keywords.

Although from the current market, foreign brands are still dominated, but the small red book gambling seems to be the future.

In order to enrich the ecology and make more money

According to 36 氪 reports, when Xiaohongshu's last round of financing last year, the valuation was as high as $ 20 billion. This valuation was equivalent to 5 Weibo ($ 4.598 billion), 20 Zhihu ($ 851 million), 2 Station B ($ 9.828 billion). And these four MAUs (monthly live) are 200 million Xiahongshu, nearly 600 million Weibo, Knowing 100 million, and station B 200 million.

From the perspective of platform characteristics, Xiaohongshu influence is not as influential as Weibo. Intellectuality is not as good as knowing, entertaining is not as good as Station B. Therefore, the market value of Xiaohongshu is relatively high.

The rich platform ecology has also become an area where Xiaohongshu needs to start.

For example, the Robbi mentioned above, as the third largest shareholder of Robbi parent company and rabbit, Xiahongshu will naturally share his platform resources with partners. At present, there are already more than 7,800 notes on Robbi on Xiaohong books.

The expansion of the investment field is actually a test of the overall revenue of Xiaohongshu. This kind of temptation comes from the "adventure history" that is not successful in Xiaohongshu.

From the first shopping strategy of PDF in 2013, Xiaohongshu continued to optimize its business model, and used the high -speed development of the Internet in China to extend its business tentacles.

In 2014, Xiaohongshu targeted the goal of cross -border e -commerce and launched the e -commerce platform "Welfare Society". One year later, Xiaohongshu users exceeded 50 million. In the following two years, Xiaohongshu's cross -border e -commerce business was popular and was praised by the Prime Minister.

With the change of the wind direction of cross -border e -commerce policies, the cross -border e -commerce business of Xiaohongshu has continued to decline with the general trend. The current main revenue source of Xiaohongshu, which fails to find the second growth curve in time, is advertising income. In 2020, the revenue of Xiaohongshu's advertising business increased by three times, reaching $ 6-800 million, accounting for about 80%of the total revenue.

However, due to the weak economic situation, the growth rate of Internet advertising business has slowed down. According to data from the Prospective Research Institute, in the first quarter of 2022, Internet advertisements increased slightly by 1.4%.

The problem of Xiaohongshu is that the main composition of its revenue is "advertising+e -commerce". Advertising income slows down, e -commerce has not improved, and Xiaohongshu must change to survive.

Therefore, industries and companies with great potential for the track, building a fence against risks is the logic of Xiahongshu that may make the above investment.

However, from the perspective of the company currently invested by Xiaohongshu, 90%of them were established after 2020.

Is Xiaohongshu really so optimistic about the future of these companies?

Can Xiaohongshu catch the doorway of CVC investment?

Judging from the investment behavior of Xiaohongshu, it is a standard CVC (Corporate Venture Capital, Enterprise Risk Investment).

Financial writer Wu Xiaobo has explained CVC: "CVC is different from the operating logic of traditional VC. Generally speaking, CVC's investment exit cycle is much longer than traditional VC. Generally, VC's investment cycle is 7 to 10 years, and CVC investment project time Often for more than 10 years, I don't even consider exiting. "

Taking the domestic CVC king of Tencent as an example, for more than ten years, Tencent has completed more than a thousand foreign investment and mergers and acquisitions through its Tencent investment, so as to continuously expand the "penguin".

From the perspective of the company's industry distribution, as of the end of October 2021, there were 63 gaming industrys in the 238 investment completed by Tencent, accounting for 26.5%. Because of this, Tencent has created an unshakable gaming empire through companies and studios in the field of gaming.

This means that powerful companies invest in high -quality CVC projects can not only expand their own industrial territory or build their ability to resist risks, but also drive relevant high -quality start -ups to grow.

But the problem is that, compared to professional investment institutions, or BAT, in order to build their own value chain ecology, it is difficult to say smoothly that Xiaohongshu wants to invest.

On the one hand, from a strategic perspective, from beauty to tide, to maternal and infants, these complicated investments do not have a clear idea and main line.

Take the investment in the cultural tourism industry as an example. On July 11 this year, Xiaohongshu established the establishment of Luzhen Township (Shanghai) Tourism and Culture Co., Ltd. to release an important signal to the market and industry to personally seek tourism monetization in person.

But for a long time, most of the Xiaohongshu intervened in the travel industry as a grass platform, and links with the homestay platform, the city tourism bureau or the brand of wine travel. And now Xiaohongshu has established a tourism company. From the perspective of the industry, from the grass -planting platform to the upstream supply chain company, if you want to obtain the real gold and silver of the cultural tourism and commercial world, the "bitterness" may be far greater than sweet Essence

At the same time, from the perspective of investment capabilities, in terms of time span, the investment department of Xiaohongshu has just started. The team has not yet stabilized. It is not easy for your own border and unique value.

On the other hand, from the perspective of the scale of management funds, although the valuation of Xiaohongshu in the first -level market has reached 20 billion US dollars, this is also limited to valuation.

At present, the plate of Xiaohongshu is very large. In addition to being limited by the platform strategy and organizational ability, the scale of funds is also a very important consideration. For Xiaohongshu, who is still sprinting the IPO, how many are there? It can still be used to make a question mark for "trial and error".

In the investment community, the VCs pursue the decentralized combination of investment in the investment principle of "don't put eggs in a basket". In the end, only a few can successfully create "anti -wind turning". In other words, if you want to do not drift water, you need to invest with spicy investment.

As far as Yu Xiaohongshu is concerned, he has not really practiced internal skills, so he was in a hurry to invest in the game, and it was obviously not ready. This situation can't help but remind people of Xiaohongshu being "in a hurry."

-The reference information-

Xiaohongshu's "Third Leg": Accelerate the investment layout, 4 startup companies have been invested in 2022

Xiaohongshu is a strategic investment: the game is large, the road is not clear-narrow broadcast

Can Xiaohongshu be worth 20 "Zhihu"? -Entertainment unicorn

The Development Report of the Institute of Social Sciences: In 2022, the market size will reach 47.8 billion yuan-China Consumer News

What is CVC? Why is it suddenly in the corporate investment community? -Wu Xiaobo Channel

Tencent has been sitting in the CVC throne for 8 consecutive years. What is the difference between the logic of "buying and buying" in 2021? -Xue Leopard Finance Society

"Ning Wang", Longyu Technology 7 billion "bet" lithium iron phosphate, what should I do if I lose? -On interface news

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