On April 15th, Changba Mysong, a leading music party chain brand for the young people, announced its completion of series A round finance for over 100 million RMB led by QHMA, Plum Ventures, and BlueRun Ventures.
Changba Mysong was founded in May 2014 as a combined product by the entity chain brand Mysong KTV and the mobile social network Changba App. It is an online KTV and entity chain brand. Compare to the traditional karaoke, Changba Mysong has some special features:
First of all, Changba Mysong focuses on the “SFD“ operation model. “S” stands for small. All of their offline stores are mini stores and have only 20 karaoke booth on average. Its cost in stores and initial fees for joining the brand are significantly lower than other big brand karaokes like Huanledi KTV or Cashbox Partyworld. “F” stands for fast. Changba Mysong already had 4 generations of products, reflecting its determination in providing their customers the best services. “D” stands for diverse. It reflects the diverse management strategies in Changba Mysong’s various locations. So far Changba Mysong is mostly located around schools, business centers, and residential neighborhoods, and they all have very unique management systems.
Second, Changba Mysong already has a good amount of fans from its mother app — online music social platform Changba App. Hua Chen, the CEO of Changba App also claimed that instead of collaborating with a traditionally big-name KTV brands, he’d prefer a mini KTV that’s different from everyone else. And as we can see, Changba Mysong is a mini offline version of Changba App. More specifically, Changba Mysong unites Changba App for both online and offline group activities and parties such as “Meeting the celebrities”. Subscribed users can also upload the recordings of their songs from Changba Mysong on to Changba App to share their talent.
In fact, on April 2nd, the offline KTV store KtvMe has announced its completion of series B round finance led by Tencent and Meituan and followed by DYEE Capital and CSC Group with 120 million RMB through its Wechat platform. Plus the finance that Changba Mysong has received, it’s optimistic to say that the offline karaoke market has entered a new era.
As for the traditional KTVs in the market, they need to consider a business model transformation or cross-platform cooperation within the internet market in order to receive more finance from capitals. Jie Ma, CEO of Thunder which is biggest karaoke demand system and service provider in China, said, “One of the reasons that KTV market is shrinking is that young people nowadays don’t have a big amount of spare time for karaoke anymore”. Those KTVs that are having another business bloom in the market reached their success by integrating the online and offline modes together and creating more possibility for offline KTV stores which fed into the interest of the young people.
However, a whole bunch of mini KTVs received a lot of attention from capitals in 2017. For instance, Changba announced its investment of over 10 million RMB to Mida Minik operating company on February 22nd, 2017; In the same month, Youchang M-bar also announced a completion of series A round finance of 60 million RMB by Ubox China. Therefore, the competition between miniKTVs and offline KTV stores still exists.
Regardless of miniKTV of offline KTV stores, the real key to attract more young people and to win a better share in the market is to consider what kind of activities and social events that will attract more young people.
Translated by Paris Wu
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