Source: i dark horse
The happiness of middle-aged men is not limited to Wang Xinling.
Author: Zhang Junwen
Editor: Cao Weiyu
The “Happy Planet” of 74 million “rich and leisure” middle-aged men is about to IPO.
On May 25th, Micropaitang Cultural and Creative Co., Ltd. (hereinafter referred to as “Micropaitang”) officially submitted a prospectus to the Hong Kong Stock Exchange, intending to be listed on the main board, with CICC as the sole sponsor.
Micropaitang is called “Online Panjiayuan” and is currently the largest e-commerce platform for Wenwan in China.
Users of this platform coincide with the recently popular “Wang Xinling middle-aged male fans” – mainly men in their 30s and 40s, with a high degree of education and considerable income. Watching them “picking up leaks” in Weipaitang, I believe you will agree with one sentence: Never underestimate the purchasing power of middle-aged men. In 2021, a “mysterious big customer” in Weipaitang will spend nearly 20 million yuan to take the collection.
The capital strength behind the company is also not to be underestimated. IDG Capital, Tencent , Detong Capital and other well-known institutions have successively injected capital into Weipaitang, the cumulative amount has exceeded 100 million yuan, and the company’s valuation has soared again and again, and has been rated as “Hangzhou Unicorn Enterprise” for three consecutive years.
01
The highest transaction price is nearly 20 million,
2.521 billion in three years
Founded in 2014, Micropaitang comes from Hangzhou, the “capital of e-commerce”. It is a platform that provides online text and entertainment transactions for users and third-party merchants. Users can bid for products provided by third-party merchants through pictures and live broadcasts. The highest bidder for a limited time wins.
As the leader of Wenwan e-commerce, the GMV of Wenwan transactions facilitated by Micropaitang in 2021 will be 40.5 billion yuan, which will account for 1/4 of the GMV of China’s Wenwan e-commerce transactions in 2021.
Micropaitang products cover eight core categories and 75 sub-categories. For example, jade jewelry, handicraft works, coins and stamps, purple sand ceramics, tea and wine nourishment, calligraphy, painting and seal cutting, cultural and play miscellaneous items, and flower and bird entertainment. In addition, collections such as audio-visual records and trendy art for young groups are also included.
The audience of Wenwan e-commerce can be summed up as the “new three big brothers” who are rich, leisurely and tasteful. According to Frost & Sullivan data, 87% of Wenwan e-commerce users are male, more than half are 31-45 years old, 48% have a bachelor’s degree or above, and 61% have an annual income of more than 200,000 yuan.
At first glance, it seems to be somewhat consistent with the “Wang Xinling boy” portrait that has recently become popular on the Internet. They may have been blushing when Wang Xinling said “I love you” one second, and the next second they will be playing in Weipaitang.
As of December 31, 2021, Weipaitang had more than 74 million registered users, of which 3.9 million were active buyers, and over 62.9% were repurchasers, with an average annual consumption of 10,374 yuan.
There is also a lot of money from the “mysterious big customer”. In 2021, a “mysterious big customer” in Weipaitang will spend nearly 20 million yuan to take the collection. According to the prospectus, from 2019 to 2021, the largest transaction volume of Micropaitang was 3.776 million yuan, 11.759 million yuan and 19.56 million yuan respectively.
As for merchants, they are generally small and medium-sized enterprises that sell Wenwan products. Weipaitang invites merchants to become platform merchants by dispatching business development teams to antique cities across China, and encourages existing merchants to invite new merchants to settle in. In addition, Wei Pai Tang also cooperates with institutional brand merchants and auction houses to provide them with an online trading platform.
The prospectus shows that in 2021, there will be more than 331,000 registered merchants in Weipaitang, more than 78,000 active merchants, more than 85.2 million orders, and an average sales amount of 475 yuan per order.
In terms of revenue, in 2019, 2020, and 2021, Micropaitang’s revenue was 473 million yuan, 1.07 billion yuan, and 978 million yuan respectively; the profits for the year were 137 million yuan, 53.82 million yuan, and 141 million yuan respectively.
The gross profit margin of Weipaitang is extremely high. During the reporting period, they were 71.9%, 76.1%, and 76.9%, respectively, and the corresponding gross profits were 340 million yuan, 814 million yuan, and 752 million yuan, respectively.
In other words, Wenwan’s trading intermediaries have made a steady profit of nearly 2 billion in three years. From the perspective of income structure, Wei Pai Tang mainly obtains income through commissions, annual platform service fees, and online marketing service fees. Among them, commissions account for about 60% of the total income.
Under normal circumstances, 2%-6% of the price of the products sold by Weipaitang is a commission. In rare cases, the commission rate is higher than 6%. In 2021, the commission income of Weipaitang will account for 63.2% of the total income, which is 618 million yuan.
Of course, Wenwan appraisal is also an important part of the transaction process of such auction platforms. Weipaitang has opened the Jianzhen Pavilion service to provide comprehensive identification services for Wenwan on the platform. As of December 31, 2021, Micropaitang has established cooperative relationships with 20 certified appraisal agencies in China, and has provided more than 1.1 million appraisal services to more than 265,000 users.
Inevitably, almost all literary and play lovers have an obsession with “picking up leaks”. This also allows some merchants with ulterior motives to see an opportunity, claiming that the value of tens of thousands, or even an orphan, starts at 0 yuan, and the final transaction price ranges from tens of yuan to thousands of yuan, creating the illusion of “picking up leaks” for consumers. Merchants charge shoddy goods and clear the goods crazily.
Micropaitang has set up a consumer protection fund of 10 million yuan to provide appropriate compensation to consumers who suffer losses from purchasing counterfeit products on the platform.
02
IDG Tencent Detong Luxury Capital helped out,
Players from all walks of life flood into the 100 billion market
The Wenwan e-commerce market has grown rapidly in recent years.
According to Frost & Sullivan, in terms of GMV, the period from 2017 to 2021 is a five-year period for the rapid growth of China’s Wenwan e-commerce market. The market size will increase from 23.3 billion yuan in 2017 to 166.2 billion yuan in 2021, with a compound annual growth rate of 63.4%. However, the compound growth rate in the next five years will slow down to 22.5%, and the market size is expected to increase from 192.5 billion yuan in 2022 to 434.1 billion yuan in 2026.
The seemingly niche track does not prevent people in the industry from making a fortune in silence. The 46-year-old founder and CEO of Weipaitang, Lin Zhiming, is an “excellent Hangzhou businessman” and a serial entrepreneur. According to the prospectus, in 1999, he founded Hangzhou Julang Computer Software Co., Ltd. In 2007, he also co-founded Hangzhou Tucson Co., Ltd., both of which have been cancelled. In December 2014, Lin Zhiming founded Micro Pai Tang. In December 2015, only one year after its establishment, Micropaitang achieved a monthly transaction volume of over 100 million.
Micropaitang quickly attracted the attention of capital. According to Tianyancha, before the listing, Weipaitang received a total of 5 rounds of financing, with a total financing of over 100 million yuan.
In December 2014, Micropaitang completed the angel round of financing, and the capital was an individual investor.
In July 2016, the company received 20 million yuan of Pre-A round of financing from Detong Capital.
In October 2016, Tencent’s A round of investment in Weipaitang invested US$20 million and provided tens of billions of traffic support.
In January 2018, Micropaitang received 50 million Series B financing. The capital was invested by Ma Dier, and its founding partner Xu Jie worked at DT Capital.
At the beginning of 2021, after the company received an investment of 150 million yuan from IDG Capital, the valuation was about 6.1 billion yuan.
Before the IPO, founder Lin Zhiming held 35.06% of the shares, and the other two individual shareholders with the largest shareholding ratio were also members of the founding team, with the team holding more than 60% of the shares. DT Capital is the largest institutional shareholder of Micropaitang, holding 12.58% of the shares. Ma Dier Investment holds 5.35%; IDG Capital indirectly holds 2.36%; Tencent holds 1.87%.
In addition to Weipaitang, the Wenwan track has been continuously flooded with players and has received large amounts of financing. In 2020, the top player on the track, Plaything Dezhi, completed a financing of US$80 million. Investors include Huaxing New Economy Fund, Source Code Capital, GGV Jiyuan Capital and Zhongyuan Capital under Huaxing Capital.
Internet giants have also entered the game one after another. In 2020, led by ByteDance and Luce Capital, Wenwan jewelry community e-commerce platform “Tiantian Jianbao” has accumulated a total of $40 million in Series B financing. Taobao, Jingdong And other traditional e-commerce platforms have also made efforts in the field of text and play. YY , Huya , Kuaishou, Douyin and other platforms have launched live broadcast support policies in the field of antiques.
Interestingly, the flea market located on the East Third Ring Road in Beijing, and the nationally-known cultural and art distribution center “Panjiayuan” has also started an online business. In November 2020, the “Panjiayuan Douyin E-commerce Live Broadcasting Base” officially landed in Beijing Chaoyang Shilihe Cultural Park. It is a state-owned enterprise Panjiayuan Culture Company under the Chaoyang District SASAC. Work with Douyin e-commerce to create a new format of “jewelry play + live broadcast base”.
The “base” covering an area of more than 2,700 square meters brings together nearly 300 live broadcast rooms, and the merchants who settle in can enjoy the integrated services provided by the “base” such as e-commerce supply chain, quality inspection, logistics, warehousing, anchor incubation, and merchant operation.
The “base” has gathered a number of advantageous resources. It is reported that China University of Geosciences Beijing Zhongdi Jewelry Appraisal Center, Beijing National Inspection Jewelry Appraisal Center, Beijing Longhua Shengshi Coin Art Appraisal Co., Ltd. and many other appraisal agencies will open appraisal services to check the goods in the live broadcast of merchants. With the endorsement of the Panjiayuan brand, consumers can shop worry-free.
It can be seen that Wenwan e-commerce, a niche track, will become more and more crowded with the influx of capital and traditional brands, but at the same time, it has also pressed the accelerator button for the development of Wenwan, a traditional industry, to resolve The high threshold and non-standardization of the cultural play industry have made traditional culture “break the circle”.
media coverage
iDark Horse Sina Technology Investment China Network
This article is reproduced from: https://readhub.cn/topic/8gxYJMYulxa
This site is for inclusion only, and the copyright belongs to the original author.