Industry background
In the last 20 or 30 years, the Internet has developed rapidly, with new concepts, new thinking, new ideas, endless, the Internet has upended many industries. The lottery industry is no exception.
Lottery, only the state (blessing lottery, sports lottery) has the qualification to issue, I think in a sense, lottery is equivalent to gambling, but gambling can be said to be the most direct way of cash in the Internet business model. So lottery has its spring in the Internet era. From 2009 to 2014, Internet lottery sales grew by more than 50% year on year, and reached 85 billion yuan in 2014. However, after a ban by the Ministry of Finance on February 28, 2015, the Internet lottery was completely shut down, which directly led to a 3.19% decline in the market sales in 2015.
According to the bidding information of the wechat development project of China Sports Lottery Operation Management Co., LTD., the project development is expected to be completed around March 2017. The Ministry of Finance’s online lottery ban expires in April. Immersed in two years of the Internet lottery seems to be active again, and 18 years is the World Cup, the market share can be instantly promoted a level, the Internet lottery will usher in its spring?
Market analysis
In China, the proportion of lottery sales in GDP has been on the rise. The overall sales scale of the lottery industry increased from 105.2 billion yuan in 2008 to 394.6 billion yuan in 2016. Although the Internet lottery sales channel was closed in 2015, the overall growth rate of lottery sales declined slightly. But the average compound annual growth rate is still 18%.
Since 2008, the Internet lottery market has developed rapidly, exceeding the overall growth level of the lottery market by 2014, with a compound growth rate of 86%. Internet giants including Baidu, Tencent, Alibaba, Sina and NetEase have entered the Internet lottery industry. In 2014, the market size of Internet lottery reached 85 billion yuan.
From the data, enough to show that the lottery market is how big, everyone wants to get involved in, and with the regulation of lottery policy, Internet lottery gradually open, the lottery market still has space to double. The Internet lottery can increase the fun of various lotteries and increase the interaction between users, and there is still a lot of room for the development of online sales and gamification of lotteries. Properly handled, it can also create a giant product.
Product analysis
A search for “lottery” turned up nearly 600 apps about lottery.
Therefore, the following representative apps are selected for product analysis.
| The product name | App Icon | describe |
|---|---|---|
| Win the lottery every day |
 |
According to enterprise information obtained from “Tianyan”, its copyright belongs to Hainan Tiantian Zhongcai Technology Co., LTD., but its major shareholder is Actually Tencent, with 19.9 percent of the investment |
| Netease lottery |
 |
It is officially produced by NetEase and has the official traffic of NetEase |
| 500 lottery |
 |
Internet lottery originator, the first lottery listed company |
Among the three products selected, their market ranking and popularity are relatively high. Let’s take a look at the following two analysis charts:
(1) 2017 App Store Ranking Comparison chart (data from ASO100)
(2) Comparison chart of Android App Downloads in 2017 (data from Kuzhuan)
Usually, downloads and registrations are not accurate except for those from official sources, but these data are still valuable. We can analyze the trend through these data, and it can be seen that the number of downloads of this type of product has been increasing for nearly a year. Whether Android or iOS, Tiantian Lottery has always been in a leading position in these products, and in the relevant fields, the ranking is relatively high. After all, Tencent is behind Tiantian’s winning lottery. Tencent not only injects the blood of flow into this product, but also gives users a natural sense of trust. This is where Internet lotteries are most lacking. Most notably, it has its own unique wechat public account. The value brought by this public account is different.
Then let’s look at the interfaces of these products:
Generally speaking, the design colors of the three products are basically the same, and the basic color of the design is related to winning the lottery. Therefore, most of them are based on red, followed by white. Various red envelopes, money bags and ingot ICONS can be seen everywhere, giving people a visual impact of money. This kind of product design is basically this style, after all, this kind of product to carry too much content.
To the functions, the following is a comparison of the functions of the three products:
In terms of functions, as a lottery app, the main function must be lottery consultation and lottery buying. However, 500 Lottery App cannot recharge and buy lottery. It may have been closed before due to policy reasons, but it has not been opened yet. The remaining two can be purchased online color. Attention oh, it is true online lottery and redemption. Below is a screenshot of my purchase:
Secondly, the basic functions will be added to increase user interest and increase user interaction. For example, in the event center and event live broadcast, users can also make comments and comments, which can increase users’ interaction and stimulate their competitive spirit. Like winning the lottery every day, of course, not only increase the interaction between the user with the platform, also increase the interaction between the user and the user, can put the lottery of giving to others, then others will have the lottery, the lottery gives the characteristics of the gift, increase the interaction between the user and the user, also can increase the transmission, kill two birds with one stone.
Generally speaking, Internet lottery products are to meet the basic needs of users to buy lottery, add a variety of social attributes, create lottery scenes, to meet the competitiveness of users, let users believe that they are winning the lottery. Of course, if you want to increase user stickiness, various red envelope subsidies and communication between users will be less.
The above description of the basic are based on the front-end and demand, now a brief introduction to the basic background functions, of course, according to the characteristics of their own products to add, delete, change, or the same sentence, all changes from its root. The basic functions of the management background can be seen below:
The Internet lottery model doesn’t actually make money
The basic Internet lottery product is this model, now should consider and think about the profit problem. Although it seems to make some people feel very vulgar, it is a problem that cannot be ignored by every enterprise.
In fact, the Internet lottery industry is only a sales and distribution channel, just like the entity store, self-service terminal, in other words, the network lottery, just a sales channel, any website and company do not have their own legal design and distribution qualifications. So most of the Internet lottery is agent level, how to understand? See below:
Usually the Internet lottery want to enrich their own color, will receive more than one agent, why? Because multiple agents on the one hand can be convenient to switch back and forth, as for why to switch, is nothing more than to ensure two points, first, the user normal purchase color, a problem, immediately cut to another; Second, control risk, but why is not discussed here. Of course, more than one agent is to enrich the color, also mentioned above, mainly because each place has different local color, there are different high-frequency color, so more than one, can improve the color.
Let’s get to the point. Profitability. The total distribution costs of the lottery account for only 15% of sales, and the operating costs of the two lottery centers are included. In fact, the possible profits of online lottery are extremely low, accounting for 5-7% of sales, or even less. The profit is actually the same as those bricks-and-mortar lottery outlets. Of course, each place profit is not consistent, but basically are in this range.
Internet lottery and there is a great risk, is the license issue. According to the convention, the Internet lottery industry has a license is expected, before the license comes out, how to play how to play, but once the license comes out, how to get the license? So the risk is that not all companies are willing to invest in this direction. Currently only two sites are approved sales of lottery tickets, in September 2012, the Ministry of Finance for approval in the body colour center be the lottery operation management co., LTD., shenzhen yi sky network technology co., LTD. Internet sports lottery sales agent business pilot work), the former China be network, namely the latter 500 lottery network)
To put it bluntly, if you have enough flow users, like every day in the lottery, a little makes a mickle a mickle, profit is quite considerable, and with the flow, can carry out the business will increase, so cash will not be any problem. However, according to my personal observation, most Internet lotteries in the application market are not of this level. For them, Internet lotteries are not only low profit, but also high risk. Why do so many people, so many companies want to get into this space?
Explore Internet lottery in depth
I’ve been exploring this area for over a month, not just the technical implementation, but the entire business model. Found that a lot of Internet lottery does not care about license plates, will not say not to earn money, that is because there are “eat tickets” existence. It is no exaggeration to say that the Internet lottery “eat tickets” can be flawless performance.
Of course, you can see this as a gray area. There is a black area, pure private color. This kind of saying must not involve, be it user or business.
This part is not carried out, can only sigh.
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