"In fact, developed countries have basically entered. Only the four Asian tigers are left, and among them, South Korea has almost established a firm foothold.
Japan is also entering as planned, and Hong Kong, Taiwan and Singapore have small markets and can be launched at once."
Speaking of this, Zhang Yida paused and continued: "India is very critical, this country is Facebook's largest overseas market.
The two markets of the United States and Brazil must also be preserved, as Musical.ly’s current largest revenue and downloads come from these two countries.”
Lu Qi added: “All countries with a population of more than 100 million should pay attention, in addition to China, there are also India, Indonesia, Japan, Bangladesh, Pakistan, Philippines, the United States, Brazil, Mexico, Russia, Nigeria, Ethiopia, Egypt, etc.
13 countries.
Although some countries are economically backward, their ARPU (average revenue per user) is not high.
But the population base is large and the income generated is also considerable.
In addition, ARPU value should also be taken into consideration when dividing strategic markets.
The group’s resources are limited, so it must invest the most talents and funds into more important markets.”
"Okay, you guys do an assessment and internally divide the market into three levels of SAB. Each level corresponds to different resource support."
"Oh, right."
Lu Qi looked at Zhang Yida and said, "Yida, if we want to cooperate with the group's next strategic deployment, then we have insufficient funds in our account."
Zhang Yida nodded, Pinduoduo and Douwei were both big spenders.
Last year, the two companies raised a combined US$1.9 billion. After deducting Penguin's traffic entrance worth US$300 million, the actual cash financing was US$1.6 billion.
In one year, only US$600 million was spent on the account.
Where did all the money go?
Acquisition of Bilibili, Duoduo's unbeatable user subsidies, DouShi creator subsidies, Musical.ly overseas purchases...
Lu Qi added: "This year is a very critical year for Pinduoduo, as it will lead to Pinduoduo leaping over the dragon's gate and becoming a 100 billion GMV platform in one fell swoop.
Therefore, not only must our user subsidies not be stopped, but on the contrary, they must be intensified.
In addition, TV advertising must also be promoted to complement Penguin’s WeChat traffic.
For the song you wrote, we have found Malaysian singer Zhu Zhuai and obtained her authorization to adapt it. It is very catchy."
"Which song?" Zhang Yida didn't think of this incident.
"Hey, that's the one!"
As he spoke, Lu Qi began to hum.
“Fight Duo Duo, fight Duo Duo, you and I, fight Duo Duo.
Come and fight Duoduo all the way, no matter what happens, no matter what, Duoduo.
Fight Duoduo, fight Duoduo, the more you fight, the more you will avoid.
If you fight hard, you must fight Duoduo, fight Duoduo anytime and anywhere every day, fight Duoduo..."
Lu Qi, the uncle, hummed such a sweet song at this time.
That style of painting is simply...
Zhang Yida quickly stopped, and then Lu Qi stopped without knowing what he wanted to say.
The tune of this song is the original song "Miss You So Much" sung by Zhu Zhuai, but some changes have been made to the lyrics.
Zhang Yida came up with this brainwashing song on a whim half a month ago and planned to use it.
The success of Pinduoduo in his previous life is inseparable from the contribution of this song that filled his ears with its magical sound.
Basically, once users hear it, they will never forget it in their lifetime.
I kept going back and forth with those few keywords, "pinduoduo~pinduoduo~".
Once you fall into the trap, you will never get out of it.
The number of young Internet users was almost exhausted, so Zhang Yida once again focused on middle-aged and elderly women.
These people are price-sensitive, and an online shopping software that is cheaper than Taobao is very suitable for them.
Moreover, it is convenient to purchase and can be completed through WeChat. It has basically become the number one online shopping brand for middle-aged and elderly people.
"Okay, let's arrange a new round of financing in the near future!"
Although there is still US$600 million, which can last for half a year, Zhang Yida does not want to wait any longer.
The market and opportunities will not wait for anyone, and it is impossible to wait for all the funds to run out before raising funds.
If something goes wrong, we'll be in big trouble.
Therefore, generally startup companies will start the next round of financing when they still have 3-6 months of operating funds.
"Oh, there's one more thing."
Lu Qi said with a smile: "The bet between Pinduoduo and Penguin has been completed, and the performance target of 70.9 billion GMV in 2016 was achieved.
According to the agreement, Penguin will transfer 1.43% of its shares to the management for free."
Zhang Yida made an "OK" gesture, stood up and called Bonima.
"I, Zhang Yida, give money!"
…
"Tsk, tsk, tsk, that's amazing!"
Liu Zhiping looked at Pinduoduo's 2016 financial report and couldn't help but praise it.
"GMV was 70.9 billion, operating income was 1.744 billion, and loss was 525 million."
Ren Yu scratched his hair and said, "The losses have narrowed compared to the last fiscal year!"
Zhang Yida nodded, "Last fiscal year GMV was 13 billion, and the loss was 292 million.
At present, the monthly GMV has exceeded 10 billion, the monthly active users have also exceeded 100 million, and the total registered users are close to 300 million."
Ren Yu was still a little embarrassed. At first, he thought Zhang Yida was bragging when he said that he had exceeded 100 billion GMV in two years.
Now it seems that this goal is about to be achieved. Fortunately, Zhang Yida did not bring up the old things again, otherwise it would be a slap in the face.
“It should be this quarter that GMV exceeds 100 billion, and Pinduoduo also happens to be on its second anniversary.”
Zhang Yida mentioned this matter again without giving any face, but he was not targeting Ren Yu, but he was elaborating on the potential of Pinduoduo to attract Penguin's attention.
"The unit price for this customer is on the low side. It costs more than 30 yuan per order. Do users only buy paper towels?"
Liu Zhiping couldn't tolerate any sand in his eyes, and he could see something was wrong at a glance.
"Yes, the unit price per customer is low, we have to admit this. Because our current focus is on hot-selling low-priced products.
There are relatively few digital electronic products with relatively high unit price per customer.”
Liu Zhiping hesitated to speak. He really wanted Zhang Yida to quickly develop a full-category e-commerce business.
But we have to consider Goudong. This is eating food in Goudong’s bowl.
The palms and backs of the hands were full of flesh, so they couldn't be allowed to fight. The guns had to be pointed at Ahri in unison. At least, that was the case for now.
"What's the next step?"
Faced with Liu Zhiping’s question, Zhang Yida answered truthfully: “In terms of financing, Musical.ly has opened several battlefields overseas, and we still have to burn some more money.
However, the money burning is also temporary. DouShi in China has launched live broadcast business and started advertising commercialization.
Foreign company Musical.ly also took the lead in opening the live broadcast function in the United States, and will gradually launch this function in other markets."
When it comes to short videos, Liu Zhiping's heart is filled with excitement.
They also didn’t expect that short videos would have such great power and become popular overseas.
If I had known earlier, I would not have closed Weishi. Now there is also an internal debate about whether to restart Weishi.
The average user usage time of the main short videos is so tempting, it’s a treasure!
But with the launch of Weishi, it would be a bit of a rift with Zhang Yida.
Moreover, there are many players in Kuaishou and Toutiao Video in China, and Penguin doesn’t dare to guarantee that it will win in the end.
"How much is it? Penguin can continue to lead the investment."
Liu Zhiping stared at Zhang Yida. This was also a method they discussed internally and continued to invest heavily in Zhonghe Group.
However, this still depends on Zhang Yida's attitude.
If you don’t agree with Penguin to continue to increase its share of equity, then you have to launch short videos yourself.
“Let’s raise $2 billion!”
Liu Zhiping frowned and asked again: "Isn't it a little lacking? After all, there are still so many markets abroad that need to be developed and maintained."
Zhang Yida smiled and said: "We have done the math and this number is more appropriate.
No matter how much the amount is, it will be a waste of funds and dilute the shares of existing shareholders."
Liu Zhiping quickly made a calculation. After the bet failed, Penguin held 20% of Pinduoduo's shares.
After merging into Zhonghe Group, this shareholding ratio dropped to less than 10%.
For Zhonghe Group, Penguin values it at US$20 billion to US$25 billion.
Even if the US$2 billion in financing is invested solely by Penguin, the shareholding ratio will not reach more than 20%.
The potential shown by Pinduoduo and Dioshu makes Penguin unable to put it down.
"Yida, have you ever thought about selling Zhonghe Group?"
Liu Zhiping's words made Zhang Yida a little confused.
Why, does Penguin want to acquire it?
Zhang Yida shook his head without hesitation, Zhonghe Group and Huimin Travel are different.
In the latter case, the road is getting narrower and narrower, and the business model has certain flaws. Zhonghe Group is different. Where is it? The goal is a market value of hundreds of billions of dollars.
It also carries Zhang Yida’s dream of globalization, which is absolutely impossible to give up.
Liu Zhiping was a little disappointed. If Penguin could acquire Zhonghe Group, it would definitely be a great thing for Penguin.
Taking advantage of Musical.ly’s overseas user base, we might be able to compete.
Penguin is not the kind of Internet giant that just waits for death. In fact, it has always had the ambition to go global.
But Facebook’s user base and foundation are there and cannot be easily shaken by Penguin.
In addition, political factors also have an impact. Social software data is too important, and Americans will definitely not let Penguin grow bigger.
The two of them chatted with Zhang Yida about other topics. When the conversation was almost over, Liu Zhiping said calmly: "Okay, let's execute the gambling agreement first!"
Then, the legal affairs and accounting teams of the two companies were arranged to hand over the work.
Penguin lost 1.43% of Pinduoduo's shares. Based on Pinduoduo's valuation of US$9 billion when it merged into Zhonghe Group, the value was US$128.7 million.
Converted into a valuation of US$19 billion, the shareholding ratio of Zhonghe Group is 0.68%.
Penguin's shareholding in Zhonghe Group will drop from 10.15% to 9.47%, which is less than 10%.
As for the 0.68% equity obtained from the gambling, Zhang Yida personally took half of it, and the other half was distributed to a group of middle and senior executives who were originally from Pinduoduo.
Zhang Yida's shareholding in Zhonghe Group will increase from 71.05% to 71.39%, and he also indirectly holds 0.29% through Ruixiang Industrial Investment Fund.
After settling these matters, Liu Zhiping took Zhang Yida and chatted for a while before leaving.
"Calculate the valuation of Zhonghe Group and notify Penguin when it opens for financing.
Penguin is willing to reach long-term cooperation with Zhonghe Group, but we also have a condition.
The condition is that Penguin’s shareholding in Zhonghe Group must remain above 20%.”