VR Report: 2016 China VR Theme Park Market Analysis and Forecast

I. Overview of VR theme park


In 2015, China’s biggest contribution to the global virtual reality (VR) industry was to discover the product of VR offline experience stores. This form of similar video game hall broke unexpectedly strong vitality and quickly became an important part of the VR industry.

On the other hand, VOID (USA) and Zero Latency (Australia), two VR entertainment products under the two major foreign countries, have put forward the concept of Virtual Entertainment Center (VEC) and have attracted much attention from the industry. The birth of The VOID also stimulated the appearance of a number of similar products and enterprises in the country. The most recent is the SoReal super body space that Zhang Yimou has joined to promote the Qitian Group.

At the same time, the combination of VR technology and traditional theme parks is also underway. Some foreign companies have announced VR theme park projects with the intention of applying VR and AR (augmented reality) technologies to theme parks. These three forms are collectively referred to as VR theme parks. Their common feature is the application of VR-based technologies to the traditional field, which in turn has given birth to new entertainment products. In the foreseeable future, we believe that we will produce the ultimate entertainment products. Its core business model is "offline cash flow."

The value of VR theme parks lies in:
1 represents the future of entertainment
The VR theme park has an entertainment experience that surpasses everything and will strongly impact the traditional video game halls, cybercafes, real CS venues, 4D/5D cinemas, playgrounds and theme parks, becoming the main form of entertainment industry in the future.
The important offline channel in the 2VR era
VR theme park has VR hardware sales, VR content distribution, VR brand display and other three major functions. It has become an imaginary form of VR line attributes and is an extremely important force in the VR era.
Based on these two important values, the VR theme park has attracted a lot of attention from the capital, institutions, and companies that focus on the offline industry. We see that the Grand Group, which has become capital, has invested in The VOID company and plans to introduce it. China; Huayi Brothers has invested in the domestic company St. Witt. In contrast, traditional Internet companies and IT giants have yet to show clear enthusiasm.

Second, VR theme park form

VR offline experience shop definition: refers to the placement of a variety of VR entertainment products offline venues, through the payment experience to provide users with VR experience.
Main technical fields: head display and related, interactive, industrial design, equipment manufacturing, VR software development.
Profit model: Pay-based experience is the main factor, and brand promotion and product sales can be combined in the future.
Product Form: Most of them are small-scale operations, with an area of ​​about 10 square meters and no more than 100 square meters. At present, egg chairs are the main product form. The input cost for a single store is about 80,000 yuan (10 square meters), and the cost is normally recovered in 3-5 months. Some stores have losses. The main reason is that the flow of people is not enough; some storefronts have strong profitability, and monthly revenues are in the range of 200,000 to 300,000 (adequate flow of people). In the early days, the single store was the mainstay, and it quickly developed into a chain business model. It quickly replicated through large-scale methods and improved profitability. In terms of content, the company mainly focused on Oculus DK2 content and had copyright risks. By the end of 2015, it was gradually replaced with copyrighted content. The content is based on 3-10 minutes of experiential content. At the beginning of the year, interactive content such as FPS was added.



Tomb theme VR content

Industry status:
The estimated number of VR offline experience stores in 2015 is between 1,500 and 2,000 (not counting the venues for the purpose of displaying only for display purposes). Participating parties include planners (such as music player VR, Ruiyue information, etc.) and storefront operators (chain stores operated by individual stores and franchised chain stores. In 2015, the top domestic chain brands included first line of sight, super Captains, etc.), equipment suppliers (providing head displays, egg chairs, etc.), content developers (most VR game teams in 2015 involved), and venue providers (mainly shopping malls, gradually spreading to various types of people Dense areas, such as scenic spots).



Offline store common egg chair

The booming development trend in 2015 promoted the development of related parties. In the second half of 2015, there were more than 40 egg chair manufacturers. Several major chain brands have achieved rapid development. The first-line company (formerly Lectronics) has achieved an annual flow of 150 million yuan. At the same time, there are also many participants who are favored by investors in this field, especially program providers.
Vendors are facing fierce competition and prices are gradually falling. Chain operators are involved in the production of equipment, and the development of self-owned brand equipment also poses a strong pressure on equipment manufacturers. Some equipment vendors turned to differentiated device development (including software content).
For content developers, through the cooperation with solution providers and equipment manufacturers, they have developed their ability to develop technologies, survived the most difficult period in 2015, and laid the foundation for the next financing and development.
For venue providers, VR offline experience stores provide new ideas for their business form and improve user stickiness.

development trend:
1. Expanding scale effect: The number of experience stores is expected to grow to more than 4,000, and chain stores will be stronger. At the same time, with the increase in product categories, it will become more mature. The area of ​​single stores will gradually expand, and some experience stores with an area of ​​500 square meters or more will begin to appear.
2. Revenue sharing has become the norm: Before the day-to-day storefront returns are owned by the operators, they are now not only distributed to the solution providers but also to content developers. In the current distribution plan, the developer’s return is 1-2 yuan for a single time. Although it seems to be small, if it is considered in terms of scale, it can still bring developers tens of thousands of monthly income (this can at least Ensure the basic survival of the team.) In addition, revenue sharing is expected to soon involve the site provider.
3. Quality improvement, introduction of IP: In order to enhance the user experience, the business life of the offline store is continued, and quality is improved from VR content to hardware devices. In terms of content, the picture quality is better, the experience is better, multiplayer interaction occurs, and IP is gradually introduced. In terms of hardware, content is varied and types are increased, such as racing, tumble seats, skiing, and bicycles.
4. A variety of offline stores to get involved: the previous VR offline store is basically set up separately. With the gradual maturity of VR products, the traditional video game room is believed to enter soon, even including some offline entertainment venues will also intervene or Is involved, including some children's places, cinemas, traditional shops.
5. Confusion of participants: Now that the ability to attract gold at online offline stores has become a cause for concern for all participants, not only does the planner step in and the equipment vendors are trying to become planners and even operators, but the venues also have a tendency to switch to the operators. Even the media and content platform 87870 will enter this market. If the ability to attract gold is further amplified, I believe that more planners + operators will be born.

Risk Analysis:
1. Health risks: If the content is not strictly controlled, part of the terrorist or stimulating content may bring about potential health hazards; including children's vision (this is inconclusive).
2. Operational risks: This includes losses due to mismanagement or change in venue flow.
3. Policy risk: If the government considers the offline experience shop to be of the same nature as the gaming hall (there is the possibility of gambling content such as VR fishing), it will be subject to strict supervision.
4. Competing risks: Although the offline store density is not high at present, if other forms of VR shops are opened next to them, leading to price competition or content competition, it will greatly affect revenue.

Business advice:
1. VR content developers: to provide content for existing solution providers, operators, and equipment vendors, and to obtain more stable revenue through one-time sales or proxy distribution mode; and to slightly adjust content to adapt to other online VR content. platform.
2.VR product integrators: that is, to integrate software content and hardware equipment, to create software and hardware integrated products, and then sell themselves to offline stores, or to agents and operators, and even open their own stores directly (this is equivalent to the following VEC mode).

VEC offline virtual entertainment center

Definition: Combines location tracking technology with specially designed venues to allow one or more users to move more freely to complete the VR entertainment experience on a particular topic.
Main technical fields: head-display and related, interactive, industrial design, equipment manufacturing, VR software development, multi-user interaction, wireless transmission or portability, position tracking, motion capture, natural simulation (such as wind, rain), force feedback.
Profit model: Paid experience + peripheral sales, sustainable exploration.
Product form: With an area of ​​more than 100 square meters and a specific designed venue, the user experience is basically not subject to too much restraint and can move freely to experience a piece of VR content. Currently, in order to achieve this goal, a method of wearing a PC-type head display and carrying a PC host (or a notebook) is adopted, and a wireless transmission technology is also adopted, but the content that can be carried may be limited. In order to make the user have a more realistic experience, you also need to consider physical factors, such as The Void use heaters, sprayers and fans to deepen the user experience.
Status of the industry: At present, it is still in the layout stage. Since the beginning of January this year, several VEC theme stores have been opened in China. However, the quality and methods of content experience still need to be improved. However, there are more than 10 companies engaged in research and development of VEC programs, and more companies are targeting this direction.

One of the domestic VEC companies

development trend:
This year will be a year of initial growth of VEC. It is estimated that more than 100 VEC stores will appear during the year, mainly in commercial shopping centers, as well as in scenic areas and other densely populated areas. On the other hand, The VOID enters China and will pose some pressure on similar domestic products. However, because the domestic market is large enough, similar domestic products will also have much room for development.
In terms of VEC types, there will be a variety of situations, such as the Space VR Hall, Ocean VR Hall, VR CS, VR Arena, VR Werewolf Hall...



The killing hall under the line can use Ubisoft's "Wolfman Game VR"

Risk Analysis:
1. Topic selection error: The topic of VEC is very important. If the theme is not properly selected, users will not recognize it and it will result in loss. Combining with IP is a shortcut.
2. Operational risk: Due to the large input cost of VEC, if the operation is poor or the target population is not enough, it will result in losses.
Business advice:
1. VEC business: It is recommended that entrepreneurs with site resources and management experience directly become VEC operators, and cooperate with better VEC solutions for the characteristics of people near the site.
2. VEC solution provider: There are many camps for VEC solution providers, but they are not yet confirmed. The key point of the VEC program is the maturity of content quality and location tracking technology, and the importance of IP can not be ignored. Entrepreneurial opportunities are still there, but team strength needs to be weighed.

VR theme park

Definition: A theme park that combines VR technology. In an extreme situation, it refers to a theme park that is completely represented in a virtual world. All the contents are presented and experienced in VR. This can be called a VR theme virtual park.
Main technical fields: head-display and related, interactive, industrial design, equipment manufacturing, VR software development, multi-user interaction, wireless transmission or portability, position tracking, motion capture, natural simulation (such as wind, rain), force feedback, construction design.
Profit model: Paid experience + peripheral sales, sustainable exploration.
Product Form: The primary form is the transformation of an existing theme park, which is generally not complete. The intermediate form is a theme park designed for VR with more VR elements. The ultimate form is a VR theme park that exists entirely in the virtual world. Users wear VR headsets to enter the park and select projects for experience. This form of project is currently only conducted abroad.
Industry status: China's theme park is expected to include 2020 theme parks, including 59 theme parks and 5 water parks. The disordered competition will likely bring a series of problems. VR can really express the theme of the theme park, with a strong appeal and stickiness. At present, some of the theme parks in the country's primary form are undergoing transformation and are still relatively backward compared to other countries. For example, some foreign amusement parks have already undergone VR transformations. For example, tourists who ride roller coasters wear VR heads to experience different scenery. The mid-level theme park needs about two years of design and construction and is currently under preparation. The ultimate form of VR theme park is currently at least one in the world, the cost is not low, the cycle will be longer, the country has not heard.



Roller coaster increases VR experience

Risk Analysis:
1. Cost control and marketing: How to stabilize the high cost of VR theme parks and attract enough users to experience it is a problem that needs careful consideration.
2. Scourge: ...

Business advice:
1. Become a solution provider: The VR theme park's demand for VR solutions is clear, and the cost will not be low. However, this is a project nature. It is more difficult to obtain capital favors and the cycle is longer (more than 2 years). The risk is not small either.
2. Become a supplier of peripheral products: The use of VR theme parks to create peripheral products is a path that can be explored. However, VR theme parks have not yet been established. This road is for reference only.

In general, the three forms of VR theme parks have their own characteristics and attributes, which apply to different regions and people, and have different construction cycles and operating methods. In the future, these three forms will also coexist for a long time, and bring different colorfulness to our lives, and accomplish many successful companies. We issued this report on the one hand to enable practitioners to understand this area and to help entrepreneurs choose their own direction. On the other hand, they also hope that its development can be more healthy and orderly.


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