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.

Southwest Securities integrates the division of Aurora Mobile Limited big data, QuestMobile Mobile big data and Penguin Intelligence. The definition of youth in a small town is: living in urban areas of the third line or below (county seat), aged about 16-28, basically covering most of the post-90s groups. In China, a total of 177 million people were born in the 1990s. At present, the number of post-90s in third-tier cities and below is about 120 million, accounting for about 8.6% of the total population in China.

1. Young people in small towns: more leisure time and narrow opportunities for career advancement

Southwest Securities believes that the penetration rate of young people in small towns in the mobile Internet population continues to increase. In February 2018, the penetration rate of young people in small towns on the mobile Internet was 19.4%, an increase of 5.4% compared with the same period last year. There are more men among young people in the town (54.4%). And 68.3% (divorced + single) young people in the town are single and have more personal time alone.

Education and work: most of the young people in the town are workers / service workers (8.5%), freelance (13.7%), high school (27%), less career opportunities and slow career development.

• Consumption concept: price-sensitive, appearance party, the pursuit of cost-effective
  

Southwest Securities believes that in terms of consumption, whether they are first-and second-tier young people or young people in small towns, they are generally moonlight clans. the monthly expenditure of young people in small towns is about 2161 yuan, which is 565 yuan lower than that of first-and second-tier young people, but because there is less housing expenditure, the proportion of expenditure of young people in small towns is higher than that of first-and second-tier young people in terms of clothing, entertainment, food and travel.

In terms of consumer preference, Southwest Securities believes that young people in small towns prefer cost-effective, moderately priced / cheap products.

In terms of consumer psychology, Southwest Securities borrows the words of three squirrels CEO Zhang Liaoyuan: "they don't have a lot of money, but they can spend a lot of money; not for consumption, but because time needs to be spent by consumption; not functional demand, but pretending to demand. "

In other words, the young people in the town have a lot of leisure time, offline consumption, online entertainment is a necessary pastime, and they do not require high functional aspects of the product, but the appearance requirements should be stylish.

• Entertainment preference: prefer online entertainment that is relaxed and funny to kill time.

Southwest Securities Research believes that the online entertainment that young people in small towns are most willing to spend their time on are easy, funny and time-killing projects such as mobile games, online videos, short videos and online reading.

In terms of APP, most of the young people in small towns follow the mainstream popular products, and their promotion also promotes these applications to become mainstream products. 1) Games: young people in small towns prefer "PUBG: exciting Battlefield", "Arena of Valor", as well as action, mahjong, gem elimination and shooting games. 2) movies: "Young people in small towns win the world". Young people in small towns (with a population of about 8.6%) account for about 25% of the box office of head films, and are more inclined to choose films with more popular themes. 3) short video: young people in a small town push Douyin to surpass Kuaishou Technology. Third-tier cities and below are the main driving forces for Douyin users. 4) online video: young people in small towns have more free time and watch online videos more frequently, preferring Bilibili Inc. and Mango TV.

5) online reading: young people in small towns spend more time reading online and like to read through the official Wechat account. 6) online music: young people in small towns have a higher proportion of heavy listening to music and prefer music app online listening. 7) Live broadcast: young people in small towns watch live for longer and more frequently.

• Payment features: online entertainment payment penetration rate is high, offline entertainment is relatively single.

Southwest Securities believes that, on the whole, the most obvious difference in the field of payment between young people in small towns and first-and second-tier cities is that they have stronger social relationships; they need the Internet more than young people in first-and second-tier cities and strive to pursue new things; there is a lack of offline entertainment, and the frequency of watching movies is significantly lower than that of young people in first-and second-tier cities.

Online: in terms of online games, the proportion of young people in small towns who have paid behavior is higher than that in first-and second-tier cities; in terms of expenditure on online music and online animation, young people in small towns are more willing to pay for online animation than online music. Offline: in KTV singing, Internet cafes and other leisure and entertainment activities, the participation of young people in small towns is higher, but in the cinema, the participation is lower than that in first-and second-tier cities.

2. Payment increment: there may be marginal improvement in online reading, and offline movie watching habits are being cultivated.

Southwest Securities believes that in the online aspect, the market increment may lie in three aspects: online film and television, online reading and online music. 1) Games: immersive and more exciting games may have more room for development among young people in small towns. 2) online reading: under the background of the strengthening of copyright protection in the whole industry and the increasing awareness of payment among young people in small towns, there will be a marginal improvement in the online reading industry as a whole; online reading manufacturers who use Wechat official account as the content distribution channel are expected to benefit.

Southwest Securities believes that offline, the number of times and expenses of young people in small towns are lower than those of first-and second-tier young people, and the box office in cities of the third tier and below is growing rapidly and has great potential; music festivals in low-tier cities are strong, and the concert box office in third-tier cities has potential.

3. 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.