Mini KTV industry development overview analysis

- Nov 21, 2018-

Mini KTV industry development overview analysis

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Mini KTV began to appear in 2016, because its single consumption was lower than traditional KTV price, the single consumption time was short, the user fragmentation time was fully utilized, payment was fast, and it had a good user experience, which was helpful to explore the daily K song demand of consumers and quickly swept the country. Mini KTV is mainly distributed in shopping malls, supermarkets, video game cities, underground passageways, pedestrian streets and other densely populated areas. So far more than 30,000 mini KTVS have been put on the market.

 

Upstream of mini KTV equipment materials mainly include visual appearance: glass house, air conditioning equipment, lighting equipment, decoration, furniture and so on, point song singing equipment including: touch screen, TV, microphone, monitor headphones, control panel, charging equipment, etc., the interior of the mini KTV equipment including vod, songs, computer servers, fx, headphone amplifiers, network devices such as routers and all kinds of circuit controller.

 

Mini KTV market is promising

According to the analysis report on market foresight and investment strategy planning of KTV industry released by the forward-looking industry research institute, the market size of China's mini KTV reached 1.65 billion yuan in 2016, and the market size of China's mini KTV will increase to 3.52 billion yuan by 2017. The mini KTV market in China is expected to reach 7.79 billion yuan in 2018. The mini KTV market is expected to expand rapidly in the next two years, and the size of mini KTV market in China is expected to exceed 14 billion yuan by 2019. The prospective industry research institute believes that the mini KTV industry has a market demand for consumption. With the penetration of mobile Internet and sharing trend into People's Daily life, the mini KTV market has a promising future. In the future, manufacturers that solve the constraints of operating capacity will occupy the leading position in the market and promote the rapid development of the industry.

The future market size potential is huge

Mini KTV is mainly distributed in shopping malls, supermarkets, video game cities, underground passageways, pedestrian streets and other densely populated areas. Data from the prospective industry research institute shows that in 2016, China's mini KTV production reached 20,000 units. By 2017, China's mini KTV market will have more than 30,000 units. China's offline mini KTV market is expected to reach about 200,000 by 2022. At present, the whole industry is in the early stage of development, and the market size potential is huge in the future.

 

Analysis of mini KTV operation status

At present, mini KTV's business model is mainly divided into two modes: direct marketing mode and franchise agent mode. The cost of a mini KTV equipment is between 20,000 yuan and 30,000 yuan. The median product cost is used to calculate the balance revenue and expenditure of a single mini KTV and franchisees. The profit margin of the former is as high as 56% while the latter is 49.3%. The average recycling cycle is 5-6 months, with outstanding profitability.

Analysis and forecast of development trend of mini KTV in China

 

1. Solve the operational problems and improve the confidence of the capital side.

 

At the present stage, the problems encountered in the development of mini KTV industry in China are all related to operation in essence, and the lack of enterprise operation ability becomes the main factor hindering the further expansion of the market. Mini KTV industry has good growth soil in China and can meet the demand of the new generation of consumer groups chasing the trend in the general direction. Under the trend of market integration, enterprises need to strengthen their operation ability. On the one hand, they can enhance their competitiveness and increase user stickiness; on the other hand, the solution of business problems can also give investors confidence. With the improvement of the overall operation capacity of the industry enterprises, the mini KTV industry will have huge development space.

 

2. The industry will be in the stage of shuffle and enterprise integration will be accelerated.

 

After two years of rapid development, mini KTV industry will usher in the stage of reshuffle. The mini KTV industry was born with the mobile Internet and the trend of sharing economy, resulting in a large number of enterprises following mini KTV wind into the bureau, a large number of homogeneous products were produced in the market, and seriously squeezed the market space. After the government brings the industry into regulation, the industry is about to be reshuffled, and the enterprises that cannot adapt to the regulation will be dismissed. On the other hand, the capital chase profit also will promote the industry conformity to accelerate, in the future is expected to emerge the head enterprise with bigger advantage. Enterprises need to strengthen their core competitiveness, such as providing professional recording equipment and improving product technology level, so that they can survive in the industry reshuffle.

 

Future space: advertising + entertainment

 

In fact, as early as 2011, Japan has a "ONE kara" similar to today's mini KTV: the room is only 3 square meters, and only for ONE person to use. However, today, the business model of mini KTV has gradually changed: the transparent mini KTV set in the places with large customer flow in the shopping mall can not only generate the traditional profit model of paid singing, but also is an excellent advertising booth, and it is also aimed at a very concentrated user group.

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