Mini KTV returns its capital in three months and makes a steady profit in six months? Hidden risks behind reckless growth

investors said: "the profit of one mini-KTV a day is generally about 200 yuan, so it will take five months to recover the cost as soon as possible." Mini KTV investment is risky.

Mini KTV financing has been going on since the beginning of this year, and the "Great Leap forward" is taking place as a new sharing economy model. Singing Bar announced that it has invested tens of millions of yuan in Amy Technology, the operator of Mida mini K, and Yousong, another mini KTV operator, has also received several capital increases from Youbao online, a new third board company, with a valuation of hundreds of millions of yuan.

at the same time, many operators are also optimistic about this market. There is an investment boom in large, small and medium-sized cities across the country, and some investors advocate "getting back the capital in three months and making a steady profit in six months." The reporter's squatting survey in Beijing shows that although the consumption of mini KTV is good, it is not "hot", and there are certain risks behind the "Great Leap forward".

he Guangfeng, an investment banking practitioner and a special researcher at the SUNING Institute of Finance, said in an interview that the mini KTV can quickly capture the market in a short period of time, and the most fundamental thing is to cater to the personified, emotional, and social leisure and entertainment needs of young consumers. However, if the follow-up mini-KTV has no qualitative improvement in service, it can be predicted that the KTV devices paved all over the streets will become furnishings like telephone booths.

strong > squatting experience: 20 people came in 40 minutes / strong >

Last weekend, reporters went to Beijing's Chaoyang Dayue City and a shopping mall in Shilibao for squatting observation.

first of all, the reporter found that mini-KTV is indeed a convenient way of consumption, and there is a certain market among young people. The mini KTV, which looks like a phone booth, covers an area of less than 2 square meters, with two high swivel chairs, two microphones, two pairs of headphones and a touch screen song-ordering and playback system. Consumers can use their mobile phones to scan the QR code to enter the system, sing along with the click, the system will automatically give a score, and the songs will be synchronously saved in their Wechat, which can be shared to moments.

the reporter found that there are six mini KTV on the first floor of Dayue City, Chaoyang, and the passenger flow is quite large. In about 40 minutes, nearly 20 people experienced mini KTV, and sometimes even queued up. Subsequently, the reporter came to a shopping mall in Shiliburg mini KTV squatting for an hour, but found that the mini KTV here is very "lonely". In an hour, only six consumers entered the mini-KTV, which was at its peak.

Mini KTV is not popular in a big city like Beijing, so where is the market?

Mida mini K is one of the earliest companies to enter the mini KTV field. Since the second half of 2015, it has been on the market in more than 500 cities across the country. Yousong M-Bar has also accelerated the layout of mini-KTV since it was launched in June last year. At present, it has installed more than 5000 units in China, covering about 29 provinces and 140 cities. It is reported that the number of users of Yousong is increasing by 30,000 to 40,000 per day. The Thunder Stone WOW House, which entered the game at about the same time as Yousing, currently has about 3, 000 units installed. In addition to these common brands, there are also some small and medium-sized brands are trying their best to seize the "spot".

people in the industry told reporters that for mini-KTV, "spot" is the most important. In the same shopping mall in Beijing, a machine with a good spot can earn more than 20,000 yuan a month, while a machine with a bad spot may earn only a few thousand yuan a month. "some people sing while waiting for seats in a restaurant, and some sing while waiting for a movie. They all make use of fragmented time, so the position of the jukebox is very important, and few people are willing to walk for a while, so the profit level of the jukebox in the corner is very average."

"at present, first-and second-tier cities have basically been covered, especially first-and second-tier cities, many places have been covered. Large and small shopping malls and pedestrian streets are easy for consumers to see. Some places are even found in traditional KTV. " The salesperson of the mini KTV "Glee Bar" told the reporter. In addition, the salesperson also suggested that, judging from the current situation, it is not recommended that new franchisees continue to look for markets in first-and second-tier cities, not only because the venue is not easy to get, but also because the market in first-and second-tier cities is basically saturated and is moving to third-and fourth-tier cities.

this judgment seems to be a true portrayal of the market. The reporter contacted a mini KTV brand customer service called "chain Song Mini K". The customer service told reporters that at present, customers are mainly concentrated in third-and fourth-tier cities in the central region and many county-level cities, with fewer customers in first-and second-tier cities.

strong > investors say: mini KTV has risks / strong >

for the mini KTV market, investors in the market now advocate "three months of capital recovery, six months of steady profit", so what is the actual situation?

"you can only play with this thing, just do it yourself." An investor who had wanted to win the agency of a mini KTV brand in Xi'an said in an interview with reporters.

he gave the reporter a brief analysis of the current market: the cost of a mini KTV device with better quality on the market is basically between 30,000 yuan and 50,000 yuan, and if calculated according to the normal business hours (10:00am~10:00pm) of the mall, it can receive up to 720 yuan a day. Excluding the rental cost of the mall and the cost of equipment operation and maintenance, the profit of a mini KTV a day is generally about 200 yuan, so it will take 5 months to recover the cost as soon as possible.

"this is a very extreme situation, and this cannot be the case." The above investors said that although the half-year return cycle is not too long, they really do not want to take the risk of what the market will be like in terms of the diversity and upgrading of current forms of entertainment.

according to Lei Yifeng, director of Lei Shi WOW Wah House, the reason why mini KTV is so popular is not that complicated. "everyone wants to be a mini KTV because users have a need to sing."

"for example, when I am waiting for a movie at the cinema, it is convenient for me to sing a song for ten or twenty minutes to pass the time and use the time of the fragments to entertain myself. Because there is only ten or twenty minutes to go to KTV to sing, and KTV does not provide this kind of fragmented service. " Lei Yifeng analyzed, "although we have not done special market research, but we have done 20 years of KTV industry, we know users very well." And our partners, such as Wanda, Hengdian and other studios, they also know their users very well. Their feedback, coupled with our verification, found that users do have this need. "

Edit: mary