Body Rocket vs. Vitl | Two completely different entrepreneurial logics, but in the end they must end in the same way

If you have studied the Xiaomi model, for example, you have read the official authorized biography of Xiaomi "Forever Forward", or the book "Xiaomi Ecological Chain: Battlefield Notes" by Hong Hua, the founder of the Xiaomi ecological chain enterprise Barn College, you will find that Xiaomi is the best model. Focus on the mobile phone business, but at the same time develop the Xiaomi ecological chain, invest in hundreds of ecological chain companies, and each company focuses on its own subdivision, such as the production of Xiaomi bracelet "Huami", which is now the world's largest wearable The equipment company, "https://usa.1more.com/", which produces Xiaomi headphones, has now been listed in Shenzhen backdoor, renamed "https://www.gettopacoustic.com/", and "https://cn.roborock.com/" is the team behind the world-renowned Xiaomi robot vacuum cleaner.

Having said that, in fact, this article has been finished, then we will see you next time...

Seeing this, I don’t know if the bounce rate will be very high, but anyway, I have followed the fate and officially entered today’s theme. We will analyze two new startups at the same time, both of which can refer to Xiaomi’s logic. The product manager of Xiaomi’s ecological chain strictly abides by the The logic of a product development is to aim at the largest and most fertile market, and then solve 80% of the needs of 80% of the customer base in this market, and according to experience, the final function will not exceed 5 (general ecological chain companies, including Xiaomi itself, the first MIUI has 4 functions).

At the same time, the so-called subdivision monopoly refers to a book co-authored by Lei Jun’s entrepreneurs, namely the CEOs of Cheetah Mobile, Fu Sheng, Li Kaifu, and Wang Hua, called “Entrepreneurship is to subdivide monopoly”, and Fu Sheng’s success or failure will be determined by 2022. Looking back today, it’s all because it has or has not yet achieved a subdivision monopoly (at present, the https://www.orionstar.com/, a subsidiary of Cheetah, claims to be profitable within a year, let’s continue to look at it), we also decide whether to The first point of entry for investing in new ventures is the so-called pain point or market.

1. Pain points (market opportunity points):

1.1 As mentioned above, let’s first analyze Vitl’s style of play, which is to target 80% of the customer base and meet 80% of their needs:

This is a screenshot of their official website. Their briefing is not very good, but they have raised 209% of the funds anyway, and this 2C model has obviously achieved the marketing purpose.

In a word, they offer personalized nutrient subscriptions.

1.2 Body Rocket is a typical representative of segmented monopoly:

Simply put, Body Rocket embed sensors around the saddle and gears of the bicycle, which can effectively assist cyclists and triathletes to improve their performance data.

I don't know if this is the first in the world, but I really had a two-hour meeting with an electric moped company last week, but I couldn't hear the moving point. Especially when the founder said "I have integrated the most advanced sensor!” To be honest, I asked them and said, “How can you be sure that such a high-spec product will be what consumers want? Plus, the specification is so high, how to confirm that customers are willing to pay this hige price when doing retail?" Then the other party continued to say that his bike was great, and then there was no more.

2. Solution:

2.1 Vitl's one sentence pitch is actually very clear, that is, to provide personalized nutritional supplements:

If you go to Vitl's official website, you will find that they have many choices. Taking women's health as an example, it is divided into pregnancy, pregnancy, postpartum and menopause, which can meet the needs of women of all ages:

Here, Arthur wants to remind again that although we say that Vitl is meeting 80% of the needs of 80% of the customer base, they actually only do one thing from beginning to end, which is to sell vitamins. If they are like many Taiwanese startups here , start to expand other product lines with eyes closed, you will return to the state you just said, "then, there is no more", so we must remember that every new product is based on a lot of assumptions, so the more new products you open, the higher the risk. It is an exponential rise. You claim that you want to go deeper in the Taiwanese market or your market, but the impression given to investors is that you have no courage and ambition to expand overseas markets. If you sell the same product to the world, all the investors all over the world will love you very much!

2.2 Body Rocket's solution, like the above, focuses on solving the pain points of professional cyclist and triathletes, helping these two groups to reduce wind resistance and improve performance data.

Facts have once again proved that many new startups that can make money have done very bad presentations. I read it for a long time, and they hid key data in a bunch of small words:

Four sensors sell for 1999 euros, which is more than 60,000 Taiwanese dollars. Even in Europe, this figure is definitely not a cheap price, but it is exclusive to others. If you don’t buy it, others will buy it. Professional athletes want to improve themselves in real competitions. The performance on the road is definitely willing to spend this money.

3. Entry Barrier:

In 18 months, 2000+ stores have been expanded, and it is a large retail channel. Personal intuition is a bit high, and I don’t even know if it will be too fast, so I went to see the data of Crunchbase. According to the current figures, The seed round is at the end of 2017, so it is speculated that this round should be the series A. The post-investment valuation is about 27 million pounds, which is about 33 million US dollars, which is a very beautiful figure, but such a great leap in value, with the crazy way of distributing goods, I personally will be very worried about the so-called Sales-out data. If it's all Sales-in but poor Sales-out data, it can be the straw that crushes the company.

But fortunately this briefing explained everything, Vitl not only has European and American VCs, but at this stage there are as many as 15 leading company founders investing, and only one song can be used to describe the mood at this time: "what should I say for the next?"

3.2 The competitive threshold of Body Rocket:

Here I must emphasize again that although no one stipulates that the presentation must be done beautifully, it should not be so difficult to spend a little money to find a beauty editor on Taobao to help improve the visual experience, right? Suppose you are unfamiliar with developing Sequoia or Tiger today, will you use this unmanaged briefing? ? ?

Fortunately, the team's data is very beautiful, 100 signals can be transmitted in 1 second, which means that there are 100 clocks in one second, and they are now the first in the industry, so it should be a good data.

Again, the world cycling champion is their investor and shareholder. This super advantage was not included in the briefing. If I hadn’t written this investment analysis, or I would have been moved by the film (but that’s because I understand segment monopoly) , Will general random investors invest?

4. Team:

4.1 Team of Vitl:

When the team grows to a certain level and can grow organically on its own, the CEO can already take a back seat and speak out, so let's take a look at the team distribution of Vitl:

- 18 nationalities, 13 languages, and a 50/50 male to female ratio

- Members include doctors, Dieticians, Nutritionists, and geneticists -> The translator here in Taiwan, whether it is Dietician or Nutritionist, and the translations on the Internet are all bad, but anyway, Dieticain is an expert to help you eat , and Nutritionist is an expert to assist you with nutritional supplements.

-> The team is so high-quality and diverse, what could be better than this?

4.2 Team of Body Rocket:

- Founder & CEO - Eric DeGolier, the 2004 Paralympic Triple Crown Champion, and has been in the cycling industry since 2002, working as a design engineer and converting industry experience for 20 years

- Chief Strategy Officer - Rich Palmer has many entrepreneurial experiences and focuses on innovation and strategy, so he is a good candidate for strategy chief

- Chief Commercial Officer - Marcus Hoenig has served as Vice President of Commercial Development since 2007, was promoted to Chief Commercial Development Officer at the end of 2012, and became Chief Commercial Officer in 2016

In conclusion, as mentioned at the beginning, two seemingly different types of companies must end up in the same way, so in fact, the analysis among you can be skipped???

What I mean is that when a segmented monopoly is achieved, it must begin to expand to surrounding goods or services. In the same way, when 80% of the customer base can be targeted and 80% of their needs can be solved, it must start to look for the surrounding areas, which can be subdivided into monopoly projects. , in order to build a stronger moat.

Arthur is too tired to write here, so let's give 4.5 stars to both!