The traditional KTV, once booming, is now facing the battle of survival. It is not only losing young customers in the consumer group, but also facing the double impact of internal and external environment.
“As of March 2021, there are 64000 KTV related enterprises in operation / in existence in China, and more than 40000 enterprises have been cancelled or revoked.” Recently a group of public data, so that the development of KTV once again placed in front of everyone. Is KTV really a bad business now?
“For some relatively traditional KTV operators, the business is not as good as before.” Mr. Zhang, who has been operating KTV for three years in Haidian District, said, “in the past, KTV was the main choice for many consumers in leisure and entertainment, but now young people can go to the movies, play in secret rooms and kill scripts. All kinds of entertainment products are put in front of consumers, leading to the rapid diversion of young people. In addition, within the KTV industry, there are mini KTVs that were in great fire in the past few years, as well as the current online KTV software, which will definitely reduce the number of consumers who choose traditional KTV. “
It is worth noting that the operating cost of KTV has become a pressure that can not be underestimated. According to Mr. Zhang, the cost of small and medium-sized water, electricity and equipment is more than a few yuan per month, but the cost of space and equipment is relatively high.
And at this stage, KTV operators are also looking for a way to break the situation. At this time, KTV into other formats has become the choice of many operators.
Beijing Business Daily reporter found that “hotpot + KTV” has become a relatively common fusion format in the market. Not only KTV will join hotpot, but also some restaurants will be integrated into KTV design to win the attention of consumers. At the same time, KTV will also be integrated with board games, and supporting a variety of board game cards for consumers to choose.
This setting has also attracted the attention of some consumers. Among them, Ms. song, the consumer, believes that KTV integrating other new formats is indeed more attractive than traditional KTV. After all, previous KTV can only sing and at most have some simple catering, but the addition of other consumer products such as hotpot or board games means that the leisure activities in the space are more diverse and add more different experiences.
There is no doubt that with the rapid “innovation” of offline entertainment industry in consumer categories in recent years, consumers now have more choices. When more and more people regard KTV industry as a sunset industry, many operators and investors still have confidence in it.
Liu Qing, who has been in the KTV industry for nearly 20 years, told Beijing Business Daily: “after the Spring Festival, I basically didn’t do anything else, just looking for land everywhere. I want to invest in another KTV.” In his view, the traditional KTV is going through the stage of bottoming out and rebounding. For people who understand the industry, they should seize the opportunity instead.
Nowadays, in order to cope with the industry competition and ease the pressure of operation, operators are taking different measures to increase revenue channels. However, compared with the loss caused by the cessation of business, the above income can only offset part of the loss. In the view of practitioners, businesses can diversify their service projects, develop more creative projects suitable for young people, expand their business scope and reduce the impact on themselves.
Mr. Zou, the person in charge of a KTV Shangdi store in Beijing, said that from last year to the beginning of this year, even when the epidemic broke out, all employees didn’t think of giving up. Now, with the gradual recovery of offline entertainment industry, they have to redouble their efforts. “As an operator, first of all, you have to know what you can give consumers. I personally think that the entertainment experience now is always online technology Technology can not be replaced, and KTV can provide consumers with a comfortable social platform. Therefore, in this process, how to improve the service quality and strengthen consumers’ offline experience is the key to our next work.
Beijing Business News (reporter Zheng Rui)
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