For the CEIBS Innovate China business competition, my teammates and I developped Red Coin - a Social Wealth Management Platform to Engage, Educate and Reward Chinese Retail Investors
10. Market outreach
5,000,000 users
Referrals
2.4% success rate
30,000 new users
Acq. Cost - ¥8.13
Partner Websites
1.3% success rate
10,000 new users
Acq. Cost - ¥7.50
Baidu Wagmeng
1.6% success rate
20,000 new users
Acq. Cost - ¥12.50
SEO
2.3% success rate
40,000 new users
Acq. Cost - ¥7.19
Year 1 Year 2 Year 3
New Customers 100’000 200’000 400’000
User Engagement 28% 35% 45%
Revenue (3% commission) ¥ 3,427 ¥ 9,373 ¥24,649
Marketing & Retention ¥ 1,800 ¥ 3,375 ¥ 6,750
SG&A ¥ 5,000 ¥ 6,000 ¥ 6,000
R&D ¥ 7,000 ¥ 1,000 ¥ 2,000
EBIT ¥ -10,373 ¥ -1,002 ¥ 9,900
Financial Projections
Red Coin is Projected to Breakeven within Three Years After an Initial Investment of ¥14 Million
Acquiring the First 100,000 Users3-Year Projections (in 000’s)
¥612
Customer Lifetime Value
11. - Allows Baidu to enter personal wealth
management
- Can be integrated with online bank in
partnership with Citi group
- Offer seamless financial ecosystem for
users
- Leverage Baidu Wangmeng for targeted
advertising and increased customer
lock-in
- Integrate with
existing wealth
management
platform
- Leverage mobile
payment feature
with Red Coin for
suggested
investments
- Increase digital banking presence to
compete in Fintech space
- Save costs through robo advisor
integration to investment accounts
- Leverage big data mapping to attract
new customers
- Promote awareness on consumption,
saving and investment in Tier 2 and Tier
3 cities
Exit Strategy
Red Coin’s integration into the Chinese Fintech market