Chairman of Yeah1 Group talked about the ‘Youtube tunnel collapse’ in 2019: When ‘standing on the shoulders of giants’, if they find themselves threatening their position, they will throw themselves down

Tram Ho

RISKS THAT CAN BE HAPPENED WHEN CHOOSE DIGITAL CONVERTER STRATEGY BY ‘standing on the shoulders of giants’

There are two digital transformation strategies that businesses in Vietnam and the whole world often use: build their own platforms or use existing ones. The application of available digital platforms to serve their businesses. development, can help me save platform investment costs or cooperate with units with compatible software to go up This is a strategy that Yeah1 has implemented quite successfully.

More specifically: Yeah1 has cooperated with big partners – ‘standing on the shoulders of giants’, such as Google, Youtube. They have software, apps, and a globally connected community; Partnering with them is a good opportunity for content developers to quickly develop their business model.

In general, the Yeah1 story is also quite funny: we built an online platform and community for young people through a third party, but because we went too fast, we had problems. In other words, we were one step ahead of the market, so we hit the abyss and fell.

Then Yeah1 considered going back to TV – offline channel, but it didn’t feel right. Next, we went back to digital transformation, because we have to combine both online and offline to go faster “, Mr. Nguyen Anh Nhuong Tong – Chairman of Yeah1 Group shared in the Talkshow “The nucleus in business digital transformation”. SME” is organized by BIT Group and Saigon Times.

According to this Chairman, if Yeah1 runs normally – making money normally will be fine, but they ran too fast and made money too fast in the field of digital entertainment…

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Nguyen Anh Nhuong Tong – Chairman of Yeah1 Group.

He recalled: Before the incident, Yeah1 was Youtube’s leading digital content development partner – ranked 3rd, managing tens of thousands of channels globally. It can be said that, after being listed on the stock exchange and with abundant new capital, Yeah1 has grown extremely fast! They even have the next plan to become Youtube’s biggest partner in 3 months.

“It’s like we don’t just stand on the shoulders of giants but also want to climb on top of people! At that time, Yeah1 was very proud of our achievements, wherever we went, we swept the market there.

When standing on the shoulders of giants, if they find themselves threatening their position, they will also throw themselves down. Experience when cooperating with Youtube, it is a great and profound lesson. Now the blood is still flowing! “, Nguyen Anh Nhuong Tong expressed.

In June 2018, Yeah1 stock with code YEG set a record in Vietnam when the floor price was up to 250,000 VND/share. After a few months, it also skyrocketed to the top with an unbelievable level – 343,000 VND/share.

But after the ‘Youtube tunnel collapse’ near the end of 2019, they fell from the peak to the abyss, although they quickly overcame the consequences by selling Scalelab back at cost as well as indirectly giving up the expansion dream. world or Hollywood.

Recently, Yeah1’s shares increased for many consecutive sessions, but only fluctuated in the range of 20,000 VND/share to 23,000 VND/share; even it is still in the category of ‘under control’.

When faced with problems, Yeah1 switched to a new strategy: self-developing its platform. However, the path was not simple: I kept thinking, spending a few tens of thousands of dollars will make a system or platform. But the truth is not so.

In the Chinese market, they have apps that invest up to 300 million USD. What I can see on that app can be likened to ‘the fin of the shark’, and the processing system below is ‘the body of the shark’.

To process transactions or activities of millions of members; It was a colossal effort on many sides. Yeah1 thought: I’ve had such a painful experience, I have to try to make a good foundation myself, but actually this is not a simple story!

In the past 3 years, Yeah’s profit problem is very poor, we are still losing. Although Yeah1’s core business, which is media, is still very good, but we are pouring a lot of money into platform investment. In the future, if it feels like the investment can’t be anymore, Yeah1 will go to a third party like FPT to ask for help. But I still think, digital transformation is a process, I’m still young, I still have to try “, Yeah1 President revealed.

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Compared to the beginning of 2021, the number of Yeah1 employees has decreased by 489 people (as of the end of September) when there are only 359 employees.

In 2018, Yeah1 had a revenue of VND 1,658.2 billion, up 97.3% over the same period last year; profit after tax increased by 118.8%, reaching more than 180 billion dong. In 2021, accumulated in the first 9 months of the year, Yeah1’s revenue is about 877.7 billion VND – nearly equal to 2020, negative after-tax profit is 253.5 billion VND. Compared to the beginning of this year, the number of Yeah1 employees has decreased by 489 people (as of the end of September) when there are only 359 employees.

Yeah1’s first lesson: because I’m a poor child – a young man starting a business, he has to use digital transformation, because this is the lowest cost development path but has the ability to create the highest efficiency. With Yeah1, digital transformation is an urgent choice in starting a business and also wanting to get rich fast!

Lesson two: when I cooperate with platform units, if I develop too quickly, I will not anticipate the risks that will appear.

When we participate in digital transformation, we accept a new game. Everyone knows that when we know the right technology application or digital transformation, it will create magical results; but, sometimes they do. We don’t know what the outcome will be at the beginning of the game.

There have been many businesses in this industry that have created successful revolutions thanks to digital transformation. However, everyone in the tech world knows: that’s the surface and there are only a few successful cases, there are still many projects that fail miserably – layering countless numbers behind, which we do not know. know, ” affirmed Nguyen Anh Nhuong Tong

BEFORE FLIGHT, Stomach MUST be full!

In another aspect, according to this Chairman, before digital transformation, we must know it is only a tool for our development. So first take care of the stomach first, then enter the game. The field of numbers is quite vast and sometimes it is addictive, sometimes it takes us away from reality, sometimes we plunge into illusions or aura of great success, we overspend – like he used to be.

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Yeah1 now also jumps into the e-commerce segment with the GigaGoods project.

Accordingly, it will adversely affect the cash flow of the company and sometimes when I come home, the wife will nag, like, ‘What’s the point of investing but it won’t bring money’, and then I’ll say ‘ah, this is this. Well done, you’re going to succeed’.

Digital transformation is a must these days, but we should only set aside a certain budget and be disciplined with it. Without digital transformation, it is not certain that your business will die, sometimes you will die! “, he warned.

Further advice: business owners should take advantage of all the applications and systems available in the market to improve their business situation. This is not something that should be considered ‘can do’ or ‘not do’, but in the new trend is ‘must do’.

Covid-19 does not create a ‘new normal’, but a ‘completely new’. Or they cook in their own home and use digital platforms to reduce costs and still have good results.

“I think, in the current world, digital transformation is not only worth zero, but it will grow explosively. Young healthy entrepreneurs, in addition to investing in their own businesses, should invest an investment in it. businesses working in digital technology or digital content.

In the past, there was a small game studio that asked us to invest 2 million USD for them, I agreed, but some of the older guys on the board of directors vetoed it, so the deal failed. Now they just released the token and went around the world. Now that game startup is also worth a few hundred million dollars. Now is no longer the era of ‘big fish eat small fish’ anymore. Those who dare to think, dare to do and go fast will succeed! “, suggested Mr. Nguyen Anh Nhuong Tong.

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Source : Genk