Edited by Evergrande Research Institute: Jinri Toutiao: the Road to the rise of New Internet Giants

In the first half of 2018, Toutiao APP has been used for more time than Baidu, Ali and Sina, ranking second only to Tencent. "the future Tencent" is coming fiercely, based on what?

1. The embryonic form of the giant appears: from Jinri Toutiao to Toutiao

Evergrande Research Institute pointed out that Jinri Toutiao continuously bet on the distribution of information and short video track, demonstrating the excellent strategic positioning ability of the management team.

Personalized news recommendation function did not become the mainstream of the mobile information industry until 2014. Jinri Toutiao APP cut into the news and information industry from intelligent distribution as early as 2012. Jinri Toutiao APP always occupies the position of news TOP2 and overall TOP10, according to the App Store ranking in May 2018.

Since then, under the background of Tencent shutting down Weishi and short video without a clear business model, Jinri Toutiao launched the All in short video strategy. Douyin has more than 100 million DAU in June 2018, successfully reaching the top of the short video DAU list.

Jinri Toutiao has completed the transfer from "information distribution" as the core to "information distribution + short video" two-wheel drive. Jinri Toutiao has formed a first-mover advantage in the field of information distribution and short videos, occupying two super traffic entrances and becoming the basis for continued expansion of the boundary in the future.

2. The road to expansion:Diversification determines the lower limit, while globalization determines the upper limit.

In addition to information distribution and short videos, Jinri Toutiao is also constantly trying to expand, on the one hand, to expand the industrial chain to extend to online education, games and other areas, on the other hand, to go abroad, layout overseas, trying to open up new markets.

1) diversification: huge flow is the link of diversified business coordination, low customer cost and "accurate" industrial layout are the core competitiveness of Jinri Toutiao diversification.

Jinri Toutiao launched online successively in 2018.EducationProduct gogokid, launch TodayGames"Modules and individualsConsumption loanThe product is "safely borrowed" and tested internally.Paid columnTo develop diversified self-owned business to improve the efficiency of flow realization.

2) Global layout:Jinri Toutiao's overseas layout is "radical" and "conservative":Copy the domestic product line, "self-build + purchase" two-wheel drive, with algorithm technology output as the core.

It has successively launched the overseas version of "information distribution + short video" product matrix, with "copying" domestic product line, "self-building + acquisition" two-wheel drive and algorithm technology output as the main methods. Jinri Toutiao overseas version TopBuzz and Douyin overseas version Tik Tok have repeatedly reached the top of the overseas app store rankings, and it is estimated that the number of overseas monthly active users of Tik Tok has exceeded 100 million.

3. Future deduction: it is most likely to grow into the "future Tencent".

Evergrande Research Institute believes that for Jinri Toutiao in the future, "free + advertising", "traffic entry + diversification" and "global traffic portal" are three possible models.

Evergrande Research Institute believes thatThe fact that Jinri Toutiao has the ability of diversification and cross-border investment shows that Jinri Toutiao has the ability to diversify and invest across borders. Jinri Toutiao is most likely to grow into a "future Tencent".

In addition, the uncertainty of products going out to sea is strong, but the counterattack of Opera shows that Chinese Internet companies are not without opportunities, followed by the possibility of growing into global Internet giants. Sticking to the existing position and business model is likely to result from the failure of diversification and globalization strategy, which is the least likely to become Baidu, Inc. in the future.

Risk hint: there are uncertainties in content regulation risk and internationalization.

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