On October 23, AlphaX Partners decided to invest the second-party interactive community KilaKila with its “Virtual Idol Strategy Conference” in Beijing. Mr. Liu Zizheng, chairman of KilaKila, said that virtual idol interaction will be laid out in the future with more details to come.
Founded in September 2016, KilaKila focuses on popular content, for the young people and in just two years, it has become China’s most attractive online community of universal secondary interests.
As an emerging field in the secondary industry, the virtual idol market has great potential. According to statistics, in 2016, the Japanese animation industry market exceeded 2 trillion yen (about 118 billion yuan). The industry has achieved nine consecutive years of growth and the idol market consumption exceeded 155 billion yen (nearly 9.2 billion yuan), growing by more than 30 percent.
In contrast, the Chinese market has a broader secondary audience. The virtual idols are many young people of the Z generation. They pursue individuality, something new, self-expression, and have a high willingness to pay. In the future, they will become the main force in the consumer market.
The China Secondary Industry Survey and Market Forecast Report shows that the size of China’s secondary market reached 100 billion yuan in 2017 and it is expected to reach a market scale of 100 billion US dollars in five years. The virtual idol in China is a market of more than 340 million people with a scale of 100 billion.
In China, there are many secondary and virtual idol products that emulate Japan and South Korea: Tencent, Aofei Entertainment, and Shanda Games, are all in the second-dimensional virtual idol market. However, for the user, there is a lack of a platform to show.
Whether it’s live, games, or short videos, UGC is the most important development driver for the content ecosystem. In the field of virtual idols, KilaKila aims at the market gap, based on user needs, the pioneering launch of virtual idol interaction, providing a platform for display, and profit for virtual idol MCN.
In addition, KilaKila has rich experience in secondary operations. The live broadcast and video services have extremely stable modes and experience to deliver the virtual live broadcast. This helps to create the entire virtual idol ecosystem.
Yaping Yao, founding partner of AlphaX Partners, said that “KilaKila has rapidly iterated around users, transformed into a second-element interactive interest community, laid out virtual idol interactions, accurately captured the consumer demand and market trends of young consumer groups, and the market potential of the virtual idol industry.”