Ma Baoli, CEO of Blue City brothers

category:Internet
 Ma Baoli, CEO of Blue City brothers


According to relevant data, LGBTQ has a huge consumption potential due to its expanding group size, high disposable income and willingness to pay, which determines the companys high ceiling. According to Frost & Sullivan report, by the end of 2018, the number of LGBTQ groups in the world exceeded 450 million, and that in Asia was about 300 million. Among them, gay men accounted for the highest proportion, accounting for 42.5% of the world in 2018. In 2018, the global LGBTQ market consumption reached US $3.86 trillion, and the gay consumer market alone reached US $596.7 billion. Blued is mainly male group. Judging from the current revenue scale of Blue City brothers, there is a huge space for growth.

Blueds business model is a growth model of users and diversified businesses based on LGBTQ group and social networking as the entrance, which is the self strengthening business flywheel mentioned by Blue City brothers in the prospectus.

At first, blued was based on location-based positioning (LBS) to help users complete accurate matching and provide instant messaging services in various forms of content, including text, pictures, audio and video. In January 2016, blued launched its live broadcasting function and started its commercialization in the same year, which was just at the beginning of the outbreak of live broadcasting in China. In July 2017, the family planning consultation service was launched to collect consultation service fees by providing personalized services to customers. In June 2018, blue launched member services in China, including subscription and function payment modes; in November 2019, it also launched member services in overseas markets; in March 2019, it launched hehealth platform in China to provide LGBTQ groups with rich anti HIV drugs and counseling services, as well as other services related to male health.

In retrospect, while promoting product iteration and cross market layout, blued has continuously innovated its services around blue users. So far, it has covered a wide range of services, including social entertainment, health consultation and family planning, and has formed a diversified cashing mode dominated by live broadcast, members, advertising and others.

Specifically, live broadcasting is the absolute main force of revenue increase at present, which mainly comes from users recharging virtual currency curved beans and giving targeted rewards when they buy gifts. In 2019, it will increase by 47% to 136 million yuan. The rapid growth is mainly driven by the unit price of customers. In 2019, arppu will increase by 61% to 2059 yuan. At present, the domestic live broadcast industry continues to boom, so this business is expected to continue the momentum of rapid growth.

Up to now, about two years membership service has penetrated rapidly. Paid users increased by 438% to 457000 from 85000 in 2018, while the corresponding member income increased by 678.84% from 4.72 million yuan to 36.74 million yuan, accounting for 4.8%. In the first quarter of 2020, it further increased to 7.2%, which is the second largest revenue generating sector of Blue City brothers.

From the commercial development of Blue City brothers, Blue City brothers is in the early stage of high growth, and the overall performance of the company also reflects this.

From the following two figures, since 2018, the companys revenue growth rate has been maintained at a rapid growth stage of more than 40% year-on-year. With the rapid growth of revenue, profitability has also been greatly improved, and the shrinkage rate of loss is significantly higher than that of revenue growth, reflecting the obvious scale effect. At present, the company is close to the turning point of break even. If it can continue to maintain the benign growth of users and business, it will accelerate the realization of profitability under the promotion of scale effect. From the past experience of the development of Internet companies, this is often an excellent opportunity to intervene.

Source: editor in charge of mass news: Chen Tiqiang_ NB6485