Bra Asks Geng Le: The IPO Journey of a Leading Homosexuality Social Platform
Guest: Ma Baoli (AKA: Geng Le)
Founder, Chairman, and CEO of BlueCity (Nasdaq: BLCT) and founder of the Danlan Public Interest. In 2012, Geng Le resigned from his police officer position to start his own business, launching the world-leading LGBTQ community product Blued. In 2016, he was shortlisted for the Boldness in Business by the Financial Times. In 2017, he was selected for the Global Thinkers list by the American magazine Foreign Policy. In May 2020, Geng Le was recognized as a “Beijing Role Model.” In July, BlueCity went public on Nasdaq, becoming the “first stock of the global pink economy.” In September, Geng Le was selected for the Business Insider list of 100 Business Transformers in Asia.
Hosted by Sam Ng (AKA: Bra)
Founder of ServBay, Secken and DNSPod, former General Manager of the SME Product Center at Tencent Cloud, cybersecurity expert, domain and DNS technology expert, webmaster, China Europe International Business School (CEIBS) EMBA.
Bra:
In 2012, with the explosive popularity of WeChat, various social platforms were launched one after another. However, homosexual dating was an area few dared to venture into. What made you think of creating a social platform like Blued at that time?
Geng Le:
2012 was a special year in the history of China’s mobile internet development.
On the one hand, China’s mobile phone market transitioned from feature phones to smartphones, with the market share of smartphones reaching 51.3% in the second quarter of 2012, surpassing feature phones for the first time, according to research firm IDC. On the other hand, the embryonic forms of super apps, including WeChat, emerged, and traditional websites began to migrate to the mobile internet in terms of content.
The precursor to Blued was a website I founded in 2000 called “Danlan,” one of China’s earliest and most influential LGBTQ online community. At that time, I believed that the PC internet would rapidly iterate to the mobile internet and saw the immense opportunities it presented. Therefore, in 2012, I launched the mobile homosexual social platform Blued. Unlike other heterosexual dating platforms, the most attractive feature of a homosexual platform is the ability to find people like oneself based on geographic location, whereas heterosexual dating can be achieved through many channels and methods.
Bra:
Over the past eight years, Blued has undergone several transformations, from an early website forum to the current social platform, gradually introducing membership services, health services, and more. What are the main reasons for these changes, such as market positioning or the influence of the times?
Geng Le:
Initially, Blued was an LBS-based social app that helped more members of the sexual minority community find people like themselves. As more users began using our product, we started to enhance Blued’s community attributes to meet everyone’s needs in entertainment, health, and personalized expression, among other areas. For example, we provided users with features like live streaming, super topics, and bases to meet their entertainment needs; in 2019, we launched the Mr. Heer to provide professional and private health solutions for users.
On the other hand, compared to the heterosexual community, the LGBTQ community’s needs in socializing, entertainment, and life were not well met, and the pink economy itself contains huge market opportunities. We hope to provide comprehensive services for the global LGBTQ community.
Bra:
I understand that live streaming currently makes up a significant portion of Blued’s revenue. Indeed, from the early forum to today’s live streaming, Blued’s product form has undergone a “major transition.” During this process of product form change, what stages has Blued’s business model gone through?
Geng Le:
Blued is in a completely new track, and we can only feel our way forward, which inevitably requires more exploration. In 2016, we launched our live streaming business, which is currently BlueCity’s most important revenue source. Blued is also exploring more diversified revenue models.
Currently, our membership income, advertising income, and other incomes are growing rapidly, and we will prove the commercial value of vertical communities with more diversified income in the future.
Bra:
With the popularity of Blued, various social platforms targeting the LGBTQ community seem to have emerged in abundance, yet none have been able to shake Blued’s position as the champion of domestic homosexual social software.
What do you think allows Blued to maintain its leading position in the long term, and what are its moats?
Geng Le:
I always believe that BlueCity is a startup truly rooted in the sexual minority community; we can feel and understand the real needs of this group. From Danlan to Blued, we have always hoped to provide a space for our users to express themselves, allowing everyone to have the courage to face themselves, face this complicated world, and bravely pursue their inner selves and a beautiful future. In terms of competitive advantages, unlike other competitors with a single social function, we are committed to providing LGBTQ users with comprehensive products and services throughout their life cycle. For example, Danlan Public Interest is BlueCity’s corporate social responsibility platform, which uses the internet advantage to provide public health services for HIV prevention and treatment. Mr. Heer focuses on men’s health, providing convenient and professional internet health services.
Bra:
GitHub is currently the largest open-source software repository in the world. Due to its predominantly male user base and built-in social features, many people jokingly refer to it as the “largest homosexual dating platform in the world.” Do you think if such tools with strong user stickiness venture into social networking, it would be a “dimensional strike” against Blued?
Geng Le:
No. Tools like GitHub are relatively loose interest exchange platforms based on technical topics.
Given the LGBTQ community’s unique characteristics, Blued is distinctly different from general internet companies in both business model and corporate culture.
Bra:
Currently, Blued mainly serves male customers. How do you view the female homosexual social market, and does BlueCity (Blued’s parent company) have any plans to enter this market?
Geng Le:
In terms of population size, female sexual minorities account for about 40% of the total LGBTQ population (including lesbians and bisexual women). According to a Frost & Sullivan research report, the global LGBTQ population exceeds 450 million, with nearly 200 million female sexual minorities. In terms of user behavior, LGBTQ community members have similar situations and needs, but there are still differences among different subgroups within the community.
BlueCity is an internet company dedicated to providing comprehensive services for the LGBTQ community throughout their life cycle, including the establishment of Mr. Heer and family planning-related businesses based on this strategy.
Previously, we mainly served the male homosexual community, but lesbians are also a group we research and focus on. Not long ago, we completed the acquisition of the female vertical community LESDO, BlueCity’s first acquisition since going public and the first acquisition in China’s LGBTQ field. We have advantages in the male homosexual market, with our own set of mature models in technology, talent, capital, and market operations. We hope to have a more professional team to provide professional and intimate services for the lesbian community.
Bra:
Many people may not know that before founding Blued, you were a public servant. The pandemic in 2020 made many people lament that it’s better to have a “guaranteed income” within the system. However, others say the system is a wall, and they want to give up the “iron rice bowl” to try a new career path. Compared to you eight years ago, do you think the cost of trial and error for them is higher now?
Geng Le:
No matter what environment you work in, the most important thing is to realize your own value and social value through work practice. The cost of trial and error is objectively present. Making any choice requires thorough preparation and a strong inner self.
Bra:
Going public can be said to be a highlight moment for Blued’s parent company, BlueCity, but it also means that you will face more scrutiny from all walks of life in the future. Personally, does this bring you additional pressure?
Geng Le:
Going public represents the maturity and recognition of BlueCity’s business and business model, a milestone event in the company’s development, with profound social significance.
For me personally, pressure is also a motivation. Going public means that BlueCity and this community have moved from the margins to the forefront, from hiding to the sunlight, which is a subtle change. I just feel the burden on my shoulders is heavier.
Bra:
The term “rainbow economy” has gradually become popular in recent years. There is a saying: “Apart from women’s and children’s money, the easiest money to earn is from the LGBT community.” Because most businesses lack understanding of this group, in a situation where supply is insufficient, products and services that can meet the needs of sexual minorities (LGBT) are in high demand. How do you view the rainbow economy? Can you give us a rough estimate of how big this market is?
Geng Le:
For a long time, the needs of sexual minorities were not well met, which actually contains considerable opportunities.
According to a Frost & Sullivan report, in 2018, the global LGBTQ population was about 450 million, accounting for 5.9% of the total population. Based on consumer spending and marketing expenditures, the global online LGBTQ market size was 261.5 billion in 2018, expected to reach 580.4 billion by 2023, with a compound annual growth rate of 17.3%. E-commerce, online advertising, online travel (OTA), and pan-entertainment will be rapidly growing segments.
Bra:
As the founder of Blued, I believe you are very sensitive to domestic public opinion trends about this group. Do you think that in the past ten years, people have become harsher or more tolerant of sexual minorities (LGBT)?
Geng Le:
Overall, it is definitely more tolerant, and this change is subtle. As a domestic internet company in China, BlueCity’s listing on Nasdaq as the first stock of the global pink economy is the best proof.
Bra:
In China, there are not many institutions and companies that can openly support sexual minorities (LGBT). With Blued’s listing, it means that the product and BlueCity’s influence are further expanding. What plans do we have for serving more sexual minorities in the future?
Geng Le:
As an internet company focused on serving the LGBTQ community, we will explore more new product and service models based on user needs in the future.
In terms of horizontal expansion in the circle, we completed the acquisition of the female vertical community LESDO in the second quarter. The LESDO founding team is composed of several female sexual minority members, who have more acute user insights and valuable operational experience in providing internet services for female sexual minority users. After LESDO joins, BlueCity will better realize the vision of “providing comprehensive services for the LGBTQ community throughout their life cycle.”
At the same time, we will also increase our investment in the public welfare field, promoting diversity and social recognition of minority groups in a broader community and establishing a positive image for the LGBTQ community.
Bra:
Having worked on this product for nearly ten years, you must have heard many stories about your users. Are there any stories that have particularly moved you?
Geng Le:
There are many stories. A few days ago, I received a handwritten letter, which is rare nowadays. The writing was very beautiful, spanning several pages. The sender lives in a small city and, through using our product, met someone they love and are now very happy.
Bra Asks Geng Le: The IPO Journey of a Leading Homosexuality Social Platform
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