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Hormone economic analysis and how to maximize social dividend

If we can sum up the post-90 s group in one sentence, that is, "the body should be honest and the mind should be dissolute." They brought adult sex toys and condoms to the internet in an unpredictable way, which caused a wave.

For Huang Tiancai and Lin Degang born after 1980s and 1970s, the entrepreneurs born after 1990s just knocked on the door of hormone economy intentionally or unintentionally, but hurried by, and didn't dig deep into the value of this industry.

Hormone economy, an unspeakable secret

While most Internet entrepreneurs are still burning money and struggling to explore the profit model, online programs such as YY, 9 158, and Six Rooms are making money crazily out of public view, and their revenues are growing exponentially.

Just like those humble adult goods stores hidden in the depths of urban alleys, you can hardly see customers coming to your house during the day, but it is very lively at night. I don't know that they are enjoying the profiteering era of adult products: 5-6 times higher than the purchase price.

Someone once said that the essence of Internet economy is "diaosi economy". What is the demand for diaosi?

Good products are catering to demand, while poor products are creating demand. In the final analysis, people have three needs: physical needs, material needs and spiritual needs. We don't need to create the so-called diaosi economy. In fact, we cater to a "hormone economy"

Take BAT as an example, this is based on the hormonal economy. QQ and WeChat provide a social platform, and social interaction itself is a hormonal drive. Recently, Baidu, which has been fighting with Putian Department, has made a large part of its profits from the former, while the former's biggest source of income is andrology, gynecology and plastic surgery.

As for Ali, if there is no hormone drive, women will not be interested in buying clothes, cosmetics and shoes bags, and they will fight for life in the Double Eleven, while Vipshop and Jumeiyou will directly start female e-commerce.

We count with our fingers and make a successful product, which does not meet the needs of users' hormones. What the platform needs to do is how to maximize the economic benefits of hormones.

How to maximize the benefits of social Red Sea?

In the traditional bones of China people, "sex" has always been taboo. However, the "sex culture" has a long history, starting from the Yellow Emperor.

This phenomenon seems contradictory, but in fact it is easy to understand. In the eyes of China people, "sex" is not only very private, but also very obscene, with a certain sense of guilt.

This kind of guilt comes from the occlusion of information and the bondage of tradition. The rise of the Internet has just broken the block of information, thus giving people a deep release.

If we analyze Momo's user groups, we find that users after 90 account for the majority. The growth of the post-90s generation is accompanied by the rise of the Internet, and the society's tolerance for them and acceptance of information are far greater than before.

For the post-90s generation, "sex" is no longer a taboo, and they can talk about it without fear. They are obviously precocious both physically and ideologically, and their understanding of sex will be more objective than blind.

It is this environment that has made the social market mature, won a market value of more than 2 billion US dollars for Momo, and also spawned more social apps similar to Momo.

However, entrepreneurs must know that as a social product, the demand for sex is actually a kind of "pseudo-demand".

For example, Momo has been rectified recently because of its involvement in pornography, which will affect investors' judgment to some extent. As far as profitability is concerned, social products on the market, including WeChat, have not explored the model of maximizing benefits.

For entrepreneurs who flock to the social field, if they still follow the routine of Mo Mo, they will die. Good entrepreneurs should not compete in the Red Sea, but learn to think in reverse.

Entrepreneurship should choose two directions, one is close to hormones, and the other is close to money.

Grey profiteering adult products

The products closest to hormones are adult products, and the products closest to money are e-commerce.

While many entrepreneurs are still playing with concepts, two startups have started to make profits, one is "Spring Water Hall" and the other is "Other Interests", with sales exceeding 100 million in 20 14 and net profit exceeding 10 million.

Both entrepreneurial teams are doing "adult products" e-commerce platforms, and both have outstanding performance in financing. His interest in A round has received 50 million investment.

The difference is that the former has been established for more than 10 years, while his interest has only been established for 2 years. The former is positioned as a "special sale mode" similar to Vipshop, while the latter mainly promotes an "experience platform".

Without Ma Jiajia, a "martyr" born in 1990s, adult products may be in the era of gray profiteering forever.

According to the data given by Southern Weekend, at present, more than half of the adult products in the world come from factories in China, and the market share of sex products in China has accounted for 70% of the world. Another data survey shows that the global market has reached 800 billion yuan.

According to Taobao's data, the online shopping volume of sex toys increases by 50% every year, and the number of people who buy sex toys on Taobao also increases by more than 50% every year, reaching nearly 20 million in 20 13 years.

Another surprising data is that china sexology association once conducted a survey, and 80% of the sex products on the market are "three no products", that is, there is no batch number of relevant state departments, no production address and no production date.

These poor-quality adult products basically flow online to Taobao, online to various adult goods stores, and then sell them at higher prices. For example, inferior inflatable dolls, which are often more than ten yuan, are sold at high prices of several hundred yuan.

Moreover, because adult products involve personal privacy, once inferior products are purchased, users can't return them, and because of privacy, users can't pursue businesses, which leads to huge profits and confusion of adult products.

This is an opportunity for Internet entrepreneurs. In fact, the so-called "Internet thinking" is not magical. It is the courage to be the first challenger and make the invisible parts of the industry transparent and open.

In the words of a well-known entrepreneur in the industry, starting a business is actually very simple. Take the milk tea market as an example. As long as it is made with real milk tea, it will definitely beat 95% of competitors.

However, for entrepreneurs born after 1990s, they often face a problem, with more damage and less construction. The appearance of Ma Jiajia destroyed the "hidden rules" of the adult products market to a certain extent, but it did not put forward a reasonable construction, which led to the withdrawal of Ma Jiajia from the competition.

Sales or social? How to get to the adult products platform

According to "other interests" statistics, in the domestic market, only 40% people have tried sex toys, and 40% people want to try them, but they have various concerns.

The most concerned is the user experience. Even those who tried sex toys, most of them didn't get a good experience. On the one hand, it is the quality and after-sales problems caused by a large proportion of inferior sex toys, on the other hand, it is the mentality of users.

The problem of "fake milk tea" should be solved first by the Internet platform. Take "Taqu" as an example, the products have been strictly screened, allowing users to participate in the process of experiencing samples. "Taqu" controls the quality and experience of products, and even recruits product experiencers with an annual salary of 200,000.

However, in terms of how to make users get a better experience, he has found another way, not doing so-called "vertical sales", but building a perfect "experience" community, starting with product socialization and maximizing the benefits of hormone economy.

As mentioned above, the so-called "social products" often have socialization before products, accumulate users first, and then try to realize them, but many entrepreneurs die in the first step and cannot stand out in the homogenization competition.

But product-based socialization made him take the first step towards socialization. According to the data released by Taqu, by the end of 20 14, the number of Taqu users has exceeded 20 million, the daily posting volume of community users has exceeded100000, and the monthly sales have exceeded100000 yuan.

Different from the ordinary e-commerce platform, the experience community model not only completes the closed loop of hormone economy in other interests, but also solves the user's mentality problem.

Among his interests, more than 45% users come from the post-90s generation, and these users not only become the main consumers of sex toys, but also become active users in the community. They are willing to share and exchange product experiences, thus dispelling the concerns of potential users.

However, some entrepreneurial teams use the traditional marketing method of selling at low prices, which does not fundamentally solve the concerns of users, but overdraws old users. Users will not order a special price for a single condom today. The pain point of users should be long-term good experience and buying habits.

Adult products platform is different from traditional e-commerce. According to the advertising law, advertisements related to sex are not allowed to be broadcast in public. The State Administration of Radio, Film and Television, the State Administration for Industry and Commerce and other institutions also frequently emphasize this provision below.

Vipshop and Jumeiyou can bombard TV, paper media, mobile media and other channels, covering most consumers and relying on huge traffic to support the "sale mode", which adult products can't do.

The growth channel of adult products platform can only be obtained through social means. Through the stickiness and sharing of the community, it not only retains more users, promotes the consumption of more potential users, but also effectively guides the platform.

He took advantage of social advantages in this respect. For example, the H5 page in cooperation with Durex brand has exceeded 600,000 likes in the circle of friends within 3 days. Another example is the recruitment of taste experiencers, which also caused crazy forwarding in Weibo and was sought after by young people.

In order to lower the threshold of adult products and attract people outside the post-90 s and post-80 s, he will also create a zero threshold so that everyone can apply for trial products. In this regard, the community model will also play a great role.

From the social concept, product socialization is also a kind of interest-based socialization. From socializing to selling products, this model is actually very difficult, such as WeChat. When the circle of friends is full of masks and purchasing, it is actually a kind of harm to WeChat and accelerates the decline of WeChat.

Wechat didn't get the biggest benefit from social dividends, but it was dragged down. Considering that at the beginning, everyone made WeChat really popular because of the hormone secretion produced by "shake", and WeChat didn't really realize this popularity.

With the tolerance of the big environment, the concept of "sex" is more open after 90 s and 00 s, and the prospect of sex toys platform tends to be clear. In the eyes of a new generation of users, these products are more "toys" and "fun".

For the adult products platform, the social dividend continues, and a large part of the transformation will also be in sex toys. For the adult products platform, the market competition has just begun.