Socialization is the core competitiveness of WeChat, and having a large number of users' social attributes makes it easier for social attribute applications in small programs to spread among WeChat group chat and friends.

On January 9, 2017, the WeChat applet was officially released.

Compared with the native App, the applet has the feature of "no download, no touch, no running, no need to uninstall".

The birth of a small program has brought many opportunities in the industry, and the flow of dividends has also attracted a lot of attention from the venture capital circle. The WeChat applets have been used in many fields such as social networking, tools, and life services and have seen explosions.

At present, the small-program project has obtained more than 600 million yuan of financing, mainly in the social, tools, and third-party ecosystems. Since the applet has just been born for one year, the project investment is mostly in the angel round stage.

Based on this, this article analyzes and studies the small-program ventures from the aspects of venture capital dynamics, business models, business and financial conditions.

Note: The original title is "Exclusive | Aggregated Fragment Traffic, Connect Online and Offline - Small Program Venture Capital Data and Trend Report". This article is authorized by the pencil road (ID: pencilnews). If you need to reprint, please contact the pencil road for authorization.

01

Small Program Industry Overview New Options for Declining Traffic Dividends

Small program release background and development: App downloads reach the top, small programs have not yet covered WeChat full users

Mobile App mode is heavy, burdening traffic and usage space, and it is difficult to obtain customers because of its high degree of fragmentation.

The bonus of mobile Internet seems to have reached the top, the growth of new downloads of App gradually declines, and the competition between App is also becoming increasingly hot. The cost of new products is also getting higher and higher.

According to information from Tencent's big data, the download trend of App in 2017 has no obvious growth trend, and even has a period of continuous decline.

WeChat, as the entrance to the mobile Internet, has close to 1 billion users. According to data released by Tencent, 50% of users spend more than 1 hour per day on WeChat, and there is a huge user base. The small program ends in 2018. In March, it only covered about 400 million users, and there is a large market space.

Memorabilia of the birth of the applet: Iterative iterations, now open for development of features and ad slots

Since the beta program was open beta in November 2016, it has received extensive attention from developers and practitioners, and WeChat has gradually opened up various functions of the applet to optimize the openness and use experience so that users can truly reach it and use it. Ie, go and benefit more personal developers.

WeChat applet features: Relying on WeChat traffic users at your fingertips, connecting online and offline

The WeChat applet appeared in the era of slower mobile device shipments and slower app downloads. Since users do not need to download or use the light mode, they quickly get users.

At the same time, the WeChat platform is used by nearly one billion users. More than 50% of users use WeChat every day for more than one hour. A large number of users and adhesiveness also give the WeChat applet a space to grow.

WeChat applet solves the pain point of App mode, but its retention rate is low and its interaction is weak

It is also a tool for executing functions on a mobile device. The applet actually replaces part of the functions of the App. Since the applet has a lighter mode, there is no need to register to make the user more accessible and useable, but the interaction is poor and the persistence is weak. In the App, it is difficult to replace the App at the high-frequency scene.

Other giants have similarly laid out small programs, but they cannot pose a threat to WeChat

For the lightweight applications of small programs, many mobile phone hardware manufacturers and Internet giants have already begun to lay out, but due to the fact that there are no WeChat users and poor experience, etc., they have not succeeded.

02

Small Program Industry Atlas and Hot Sectors Social, E-commerce, Gaming, and Third-party Ecology

Socialization: Combining WeChat's core competencies, using 1 billion users to complete fission

Based on WeChat's strong social attributes and payment scenarios, small programs such as social functions, e-commerce programs, and online services that connect online and offline functions to collect debris traffic, and new retail programs are most easily available. Development, and WeChat's ecology are also more fitting.

At the same time, Tencent has also fostered several service providers of WeChat third-party platforms. Such projects serve the operators of small programs and are closer to realizing the benefits.

Socialization is the core competitiveness of WeChat, and the social attributes of a large number of users have made the application of social attributes in small programs more prone to spread among WeChat group chat and friends.

Social Case: Cat Card - Cut into vertical communities and use pet media to socialize

The unexpected explosion of cat cards as an applet broke out at the end of 2017, looking for vertical users in social groups to cater to the needs of a wider range of young users, cats and cats, and interacting with pets as a vehicle. The future direction of development It is a pet community and electricity supplier.

Vertical e-commerce: Build accurate images for users to get customers at low cost, and the model is lighter than micro shop

Small program e-commerce closer to the user, speed up the proliferation rate, focusing on the limited category of vertical electricity supplier SKU less, more easily find the vertical population to spread, lighter mode is also more suitable for small program interaction, is the fastest way to realize.

E-commerce Case: Logbook Books - Vertical subscription-based e-commerce provider with mild service

The logbook book is a physical book subscription-type electricity supplier. After paying a certain fee, the member can receive unlimited books for free within a certain period of time. The cost of the paper book is more expensive, and the difficulty of moving the book is higher. Middle school students and students with goals in emerging industries.

Life Services, Catering, and New Retail: Saving ODS Costs as an OMO Portal Optimization Process

The combination of online and offline is mainly in the direction of food and travel, that is, offline retail, catering, and shared bicycles, network vehicles, parking spaces, etc. The lighter features of the applet make the original business conversion rate higher. Process facilitation facilitates conversion, and dataization facilitates analysis while reducing the cost of human services.

OMO Portal Case: Even Coffee - Reducing Cost of Entity Stores, Emphasizing Social Properties in Coffee

Even coffee is mainly used to establish takeaway sites in densely populated areas, saving the physical space to expand the service population, using the social chain of small programs to share and expand the popularity, and the team has strengthened the role of the social chain to make the product a social symbol and thus a circle of friends. Make an explosion.

Games: More emphasis on social attributes, mode light heat period shorter

The game in the applet is consistent with the WeChat function. It emphasizes the social and killing time functions, so it is generally lighter.

However, consistent with WeChat's social stickiness, and the sense of excitement and satisfaction that mobile games pursue, it is more of a need to consolidate the social chain to achieve emotional interaction and entertainment in fragmented time.

The small program has achieved good results based on WeChat's strong sociality. There have been 300 million users in 18 days of launch of the mini-game, and a single game with DAU of over 100 million.

Third-party eco-platform: Assist applets to develop more flexible but subject to certain restrictions

The third party is divided into the developer and the operator. The current developer mainly focuses on the outsourcing team, because the technical requirements of the applet are not high.

Therefore, some web pages, h5, and App development outsourcing companies can make corresponding developments.

In terms of operations, we assisted applets to make data analysis, advertisement placement, and customer acquisition and other services. They also tapped more realization channels for small programs to increase customer contributions. The latter is also the main business direction of third-party ecology.

Third-Party Platform Case: Awesome - Solve the problem of traffic distribution for the take-away platform and make the business closed-loop realize differentiation

Praise is a third-party ecology for the establishment of SaaS systems and applet solutions for food and beverage takeaways. It has developed small programs for businesses to solve the problem of high commissions for traditional take-out platforms, and at the same time, it has formed a closed loop of self-built logistics.

03

Small program start-ups' data counts and investment remains low

In conjunction with the pencil route DATA and network information, we have a total of 238 projects related to the development and operation of small programs.

Among these projects, there are 143 projects whose main business uses small programs as carriers, or third-party platforms that are developed and operated specifically for WeChat programs. The statistical main body also consists of these 143 projects. Most of the venture projects have one for each project. To two applets.

Small program startup company establishment time inventory: some of the projects transformed from other business

Of the 143 projects, the number of projects after 2014 has been increasing year by year. In 2018, just in the first quarter, the number of projects that have emerged is still relatively small. Most of the projects established in 2016 and before were transformed from other businesses; and in 2014, The increase in the number of projects after the year is consistent with the development of the WeChat ecosystem and the accelerated development of the mobile Internet.

Financing of small-program startup companies: 600 million a year, relatively low investment ratio

According to incomplete statistics, small-program startup companies currently only have financing of approximately RMB 618 million, which is mainly concentrated in round A and before. The C+ round project is a small-program e-commerce eco shop SEE shop.

Of the 143 projects, a total of 46 projects were financed, the investment rate was 32.17%, and the proportion of investment was low in the industry.

Financing Programs for Small Programs in Various Fields: Projects with WeChat’s Strongest Sociability are Best Regarded

The social class applet combines the ecology of WeChat. It can quickly obtain a large amount of users and realize a faster liquidity. Therefore, more attention is paid to the investment institutions.

Tool gadgets use more high-frequency, more in line with the concept of touch, users have higher willingness to pay.

At present, the Aladdin Index, a small-procedure index statistics agency, is still used to obtain more financing.

Layout of investment institutions: Investment institutions prefer tools and third-party ecology

The rapid growth of small programs has also attracted the attention of investment institutions, and some agencies have also laid out their plans for this.

At present, the Real Estate Fund has invested in four projects. It is the largest investment institution among investment institutions. It focuses on the small program investment in the tool scenario, indicating that it is more optimistic about the micro-core social competitiveness as a core competency in small programs to meet social needs. The high-frequency function of the small program is good.

At present, due to the rapid growth of the game, many organizations are also looking at the relevant opportunities for the game.

Entrepreneur background summary: Tencent founder infiltrated small program startup

As an ecosystem of WeChat, the applet is also more conducive to the creation of Tencent's founders.

On the one hand, they have a more thorough understanding of technology and more complete collection of user experience. On the other hand, they also have related resource support and networking support from Tencent.

Third-party orders and profitability: Projects have separate markets

Third-party ecological order revenue reflects the popularity of the overall applet. As a third party, the cost of developing a small program is not high, and the charge is between a few thousand and tens of thousands.

The order volume is basically on the order of thousands, each project can have several small programs, and the development cost of the small program is low, so the demand is still very strong.

04

Small Program Venture Project Future Trends and Outlook OMO Portal Project has a bonus

The ceiling is still noticeable

Small program scenario Bonus: Strong social applications and OMO portal applications

In the application scenario of small programs, applications that are still using WeChat's strong social combination are growing at a faster rate, and it is easier to aggregate more users, and the cost of pulling new ones is lower.

People in the fragmentation time to strengthen the relationship chain and snooping demand also makes the social class applet easier to become explosive. The online-to-offline collaboration has more rapidly increased the user's conversion rate of spending power and realized it.

Therefore, the OMO portal type applet aggregates offline traffic to online, enabling service providers to grasp user data, improve user operations, and reduce entity costs, as well as bring new traffic dividends to the entity.

Investment institutions still hold coins to be voted, and the third-party ecology is more vulnerable to attention

At present, the total investment in small programs is still at a low value, focusing on the third-party WeChat ecosystem that provides multiple services. Youzan has already been listed on the backdoor, and Weimeng has also received D-round financing, and Aladdin, the index platform, has received over 100 million yuan of financing.

These WeChat third-party ecological distances are closer to real estate, business income is relatively stable, and it is easier to obtain support from investment institutions.

It is understood that games and tools are also areas where investment institutions are currently paying more attention, and it is expected that there will be more explosion funds in these areas.

Small programs lead the business model change: gather debris traffic, rebuild retail model

The applet represents the traffic that is closer to the user, but there are still a lot of fragmented traffic under the line. Only the food and beverage market's traffic line is 20 times below the line. If the fragmentation flow is online, it will bring a new one. Wave demographic dividend.

Therefore, multiple applications as online and offline portals are still the most supported by WeChat and have the most prospects for development. The applet is also considered to be tasked with opening up online and offline traffic entrances to allow unlimited data circulation.

The purpose of the final mini-program is to make all scenes become retail venues, and WeChat acts as a decentralized platform to guide users to convert purchases.

Small program startup risk: just need high frequency still choose App

Due to the characteristics of running out of small programs, there are certain difficulties in retention. In addition, users may encounter limited service coverage when they use it.

High-frequency, just-needed, and scenes that need to cover multiple content and complex interactions still need the App, because the applet's code package is limited, it has a functional impact, and the content depth is worse than that of the App.

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