Edited by Southwest Securities: "the post-00 generation has its own payment attribute, and young people in small towns have money and leisure."

Southwest Securities believes that compared with the post-90s and young people in first-and second-tier cities, post-00s and young people in small towns are people who have not been deeply dug and still have potential in the paid content industry, and are the main sources of new mobile Internet traffic. and post-00s are "natural paying groups", young people in small towns have plenty of leisure time and a single entertainment channel.This has a certain reference value for the payment industry.

Post-00s, also known as post-millennials, generally refers to citizens born between January 1, 2000 and December 31, 2009. According to wind, the population of the post-00s generation is about 160 million, slightly less than the 180 million born in the 1990s.

Post-100s: Internet aborigines, the only second generation with stronger spending power

Southwest Securities believes that more than 80% of the post-00s generation is the only second generation, and they generally grow up in the family environment of "4-2-1". Their social relations exist more in QQ and Weibo Corp, and they need more spiritual companionship and a sense of belonging with group effect. At the same time, the post-00 generation has a more favorable living environment, higher spending power and financial autonomy.

In addition to being richer, the consumption level of the post-00s generation is also much higher than that of the post-90s generation, not only richer, but also more able to spend money. The deep digital environment makes the post-00s generation become the aborigines of the first generation of mobile Internet.

• Entertainment preference

Southwest Securities believes that as an ACGN group with strong social needs, post-00s prefer strong pan-entertainment applications that are social and interactive. According to the survey, the three main reasons for post-00 generation to use smartphones are entertainment, social communication and study and work, and the three most important features of their apps are sociability, trendiness and personalization.

Southwest Securities research found that, on the whole, the post-00s generation has the greatest demand for instant messaging APP. In July 2018, Arena of Valor's favorite game is Arena of Valor, his favorite animation is Bear, his favorite superhero is Superman, his favorite minority interest is antique, the star's consumer influence is Cai Xukun, his favorite social APP is Wechat, his favorite photo photography APP is Meitu, and in movies, he likes to watch comedies and IP works that accompanied them in their childhood.

• Payment characteristics and willingness

Southwest Securities believes thatOnline aspectPost-00s are more willing to pay for online music and reading.On this basis, the post-00 generation has a high tendency to pay reward, and the conspicuous reward payment is high.

In terms of digital reading, the post-00's habit of paying for reading is gradually increasing, and the proportion of paying for reading is even higher. 85% of the post-00s are willing to pay for reading, accounting for the highest proportion, followed by 82% in the post-90s, 78% in the post-80s, and the lowest 58% in the post-60s.

In terms of video payment, in recent years, the proportion of domestic video users has gradually increased, and the proportion of domestic users paying for video has increased by 7.4% in 2017. In terms of age, among the overall paid video netizens, the proportion of 20-29-year-old netizens who are mainly represented by the post-90s generation is the highest (39.7%), and the proportion of paid video netizens under the age of 19 mainly represented by the post-00s generation ranks second (27.3%).

Offline, the social demand of post-00s is higher, and the participation and consumption of offline entertainment is higher. FromOffline participation rate of new entertainment和Entertainment consumption expenditure for half a yearFrom a point of view, the post-00 generation is higher than that of the post-90s, 80s and 70s.

In addition, Southwest Securities believes that, on the whole, the post-00 generation has more leisure time than the post-90s generation in the same age group.

2. Primary market: the animation industry is in the ascendant, and Tencent and Bilibili Inc. have a rapid layout.

Southwest Securities Research believes that in the animation industry, the investment and financing of the primary market in the animation industry peaked in 2016 and 2017. Since 2014, Tencent and Bilibili Inc. have become the institutions with the largest number of investments in the animation industry. Innovation Workshop and Leyou Capital have become the second echelon.

From the perspective of Bilibili Inc. 's investment target, the investment in the animation field is mainly distributed in the production of original animation, animation derivatives, music tales and other fields.

3. Payment increment: women to animation / games, post-00s social APP, offline entertainment to be discovered.

Southwest Securities believes that qualitatively, the current age of the post-00 generation is still between 9 and 18 years old, and by 2028, the post-00 generation will enter the age of 19-28, and the demand realization capacity is expected to be stronger. Due to the stronger awareness of payment after 00, it is expected that the overall payment industry will receive the industry scale expansion dividend caused by the increase in payment rates.

In terms of subdivision, 1) in terms of games, post-00s prefer MOBA games with social attributes and sandboxie games, and the number of boutique games for women on the market is still small, or have greater potential. 2) in terms of video, post-00s prefer IP dramas and star starring dramas. 3) in terms of movies, post-00s prefer comedies, IP works that accompanied their childhood, and family films similar to "take my brother away". 4) online animation, the "9000-year-old" (post-90s, post-00) group is willing to pay for ACG; video site troika "Youai Teng" and two-dimensional users prefer Bilibili Inc., "homemade" + "content layout" + "whole industry chain development" + "go out to sea" is the key to its animation industry layout; at the same time, women have a shallower degree of mining to cartoons, or there may be more room for development.

5) in terms of social APP, the post-00s generation has a strong social demand. Wechat and QQ are still the most commonly used social APP, while short video applications are among the top three in social APP, while emotional dating APP such as snooping and Momo Inc are also loved by the post-00s generation. Southwest Securities believes that most of the current network products are designed for the characteristics of the post-80s and post-90s generation. In addition to Douyin, the network needs for low-age people, especially those under the age of 18, have not been deeply explored, and there is more space.

6) in terms of offline entertainment, the social demand of the post-00s generation is higher, and their offline entertainment participation and consumption are higher. Enterprises like Bilibili Inc., which have the ability to accompany them to grow for a long time, may have the potential to realize more traffic.

4. Risk tips:The risk of tightening policies related to media and overseas investment and operation; the risk that the performance of the subject matter of M & A falls short of expectations; the risk that the growth of subscribers is less than expected; the risk that Wechat may control the company's traffic; and the risk that the development of the film market falls short of expectations.