The step to launch virtual reality (VR) is constantly quickening.
Fujian province will speed up the pace to build China (Fujian) VR Industrial Base, which is likely to construct a series of VR theme parks for film & TV production, scenery tourism and etc. in cities including Fuzhou, Xiamen, Quanzhou and so on. Fujian will also actively create the advanced VR industrial zone. It is not a single example that capital from various sources now is accelerating the deployment in VR application scenarios, and searching for breakthroughs to realize the VR, so as to rapidly achieve the profits.
Cooling trend difficult to influence institutional enthusiasm
Recently, VR concept slightly cools in the market, but institutions do not slow down their moves for surveys at all, almost covering all VR listed companies. Related targets, such as Beijing Baofeng Technology Co., Ltd. (300431.SZ), Shenzhen Tatfook Technology Co., Ltd. (300134.SZ), Hangzhou Shunwang Technology Co., Ltd. (300113.SZ), GoerTek Inc. (002241.SZ), Avit., Ltd. (300264.SZ) and etc., receive site visits of various institutions one by one. For VR companies attracting much attention, institutions focus more on their development orientation and planning.
It is worthy to notice that, during the latest month, “VR+ theme park” becomes the key sub-field highlighted by institutions. LingNan Landscape Co., Ltd. (002717.SZ), a leading company in this field, is frequently investigated by 14 institutions in one month. Public data shows that the company has successively invested in technology companies including Beijing Hengrun Tech. Co., Ltd. and UtoVR, pushing the construction of “Modern Club VR Theme Park”. LingNan Landscape will carry out the construction and operation in urban commercial complex, urban cultural & scenic spot as well as famous scenery. Due to transforming to “VR ecology”, another listed company named Toread Holdings Group Co., Ltd. (300005.SZ) is also frequently surveyed by five institutions in one month; it has invested and merged various touring companies, such as www.lvye.cn and Beijing Exploring Cultural Development Co., Ltd., focusing on experience-based tourism concept.
“At the end of last year, we formally listed the VR as the investment orientation, and 2016 is an actual start for the VR development,” VR team member at a large securities company in Shanghai told the SSN journalist, “although the market is fluctuating, institutions are still keeping their enthusiasm in this emerging sector, which possesses huge growth space, and they will choose opportunities to make deployments.”
This VR team member also indicated that teams previously focusing on game & entertainment are surveying the VR industrial chain now. Institutions not only speed up their pace for domestic investigations, but also directly deepen in the overseas markets for advanced technologies. “The survey teams usually fly to many places including San Francisco to study the VR industry, and collect the latest technology and content. Meanwhile, people are also eager to make the VR as supporter for games and contents. Currently, young people in the Silicon Valley hope to present the content through VR mode, which is a powerful reacting force for VR technical development,” said the said member.
B end application takes lead in explosion
The prospect of VR application scenarios is not only accepted by institutions, but the industrial capital is also intensifying its strength for expansion. Many VR entrepreneurs point out that B end application will be the first to break out when the VR is connecting other industries. Although C end application, such as VR+ game, video and sports, expects a huge market scale, it takes time to mature. Conversely, due to powerful capability to realize cash, another commercialized breakthrough of VR+ is rushing to concentrate towards B end application.
A VR survey report from Goldman Sachs points out that the VR market scale will be 80 billion U.S. dollars up to 2025, with 60 percent for C end and 40 percent for B end.
Institutional insider participating in the investigation also believes that this round of domestic VR wave is difficult to start from C end, but B end insensitive to the price will bring in opportunities. The internet bar model of Shunwang Technology is just a persuading proof. Currently, about 1.5 to 2 million yuan is required to open an internet bar; it is feasible, even if a pair of VR equipment values 100,000 yuan. The number of internet bars covered by Shunwang Technology exceeds 100,000 now. C end content will see developing opportunities and gradually form the ecology, when the number of VR equipment for B end reaches a certain scale, like 10,000 to 30,000. A positive cycle will form, if the developer earns money, or even brings in explosive products.
Based on surveys in the primary and secondary markets, many entrepreneurs will choose B end market as entry point in the VR+ field, expecting to rapidly realize the profits.
Translated by Jelly Yi
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