Directly hit the soft edge of consumer-grade genetic testing, the company will use life data to empower health

In 2012, 23andMe launched a $99 consumer-grade genetic testing product that doubled its sales in nine months. As the originator of consumer-grade genetic testing, 23andMe opened the market first, and also spawned and bred a billion-dollar market. The genealogy company Ancestry also followed suit, and the two companies together pushed the US consumer-grade genetic testing market to a climax.

This has also made entrepreneurs flock to this place, the number of domestic consumer-grade genetic testing companies exceeds 200. Wang Xiaokang, founder and CEO of Jellyfish, and his team are also members of the large army.

Photo of the jellyfish gene team (Image courtesy of Jellyfish Gene)

Wang Xiaokang graduated from the Physics Department of Peking University and obtained a master's degree in economics from Peking University National Development Research Institute. Before the creation of the jellyfish gene, Wang Xiaokang actually founded an Internet company and had a deep understanding of choosing the track, creating a business and overcoming the challenges of growth.

At that time, the news that the cost of sequencing was reduced to $1,000 also shocked him. Any new technology will evolve from research, medical, and slowly to civilian and consumer processes.

He believes that this market will explode at an extremely fast rate after the cost of obtaining life data is low enough.

It is an entrepreneur in the Internet industry. Seeing such a new opportunity in the fast-breaking Internet era, he immediately began to consider whether to join the life sciences entrepreneurial tide.

His own background can be responsible for the company's product marketing and overall planning, but he knows that he is not a bioinformatics professional. He needs an expert in this field to support the technical aspects from research and development to production.

Thinking about it, Wang Xiaokang remembered Zhao Nan, an old friend for many years. At this time, he was an assistant professor at Mississippi State University. After introducing the situation here, Zhao Nan also felt that this is a good opportunity for a student information person to settle down some academic achievements and experience and transform and apply it in the industry.

The addition of Zhao Nan as the chief scientist of the jellyfish gene means that the company has identified the second founder. However, as the company's development and business matured, Wang Xiaokang realized that the company actually has more market expansion needs.

In his own circle, his friend Jiang Xiaofeng was a partner of public relations company and also has many years of entrepreneurial experience. His participation as Chief Marketing Officer has enabled Jellyfish genes to have a pillar in product marketing and marketing, and government public relations.

“I am responsible for the overall management of the company and products. Zhao Nan is responsible for technology research and development and laboratory production. Xiaofeng is responsible for brand marketing and growth. Our three people are complementary in the professional direction.” Wang Xiaokang told the arterial network.

The company was formally established in 2015, and at this time the US consumer genetic testing has experienced 10 years of development. In the field of consumer-grade genetic testing, the United States is the absolute mainstream, and both products and markets are more mature than domestic ones.

In the company's business model, the jellyfish gene will not only study star companies such as 23andMe and Helix, but also combine the local Chinese business environment with the health needs of the Chinese population to find a balance between the two.

"We are global technology, local wisdom. We need to explore our own characteristics according to local conditions in China," Jiang Xiaofeng concluded.

When asked about the design logic of the product, Wang Xiaokang replied: "There is a reference to the United States, but we are more from the application scenario, thinking about what needs to be used to support our product logic."

He revealed to the arterial network that the current interpretation of the jellyfish gene is second to none in the industry, covering all relevant projects in the industry. On the other hand, they will also think about the segmentation of the partner, what data support is needed for each product, and what the consumer portrait looks like. Consider the two aspects to carry out the design of the whole link.

Wang Xiaokang told the arterial network that the domestic consumer-grade genetic testing market is still in a primary form, but it is foreseeable that after five years, it will become a mature market.

“And the biggest application of this is definitely related to health,” he said.

As for the big health market, the US market is relatively mature. This is evidenced by their commercial insurance, family doctors, and community services. But from China, commercial insurance has just started, and family doctors have just begun signing contracts.

Wang Xiaokang believes that whether it is insurance or family doctors, the US big health market is relatively mature. The more mature the market, the more difficult it is to combine with new technologies.

“In China, the development of the entire big health service market is relatively lagging behind, and like the new technology, it is in the rising stage.” He added, “So at this stage, it gives us better opportunities for these new technology companies.”

Therefore, although they are both consumer-grade genetic testing products, the jellyfish genes are very different in product positioning. “Because the development stages of the entire industry are different.” Jiang Xiaofeng explained.

From another perspective, the US consumer-grade genetic testing has gone through more than 10 years since its birth to market maturity. For Chinese startups, it will be a great challenge to achieve the results of the US market in the past two or three years in the next two or three years.

“If you rely solely on online sales, it will be difficult to reach the US level in two years.” He revealed to the arterial network, “so we need to have another channel and another product model to enable us to achieve corner crossing in this field. ."

The products of the jellyfish gene can be divided into two main directions: one is a large health product related to the disease, and the other is a personal genome product that is biased towards health management.

“Life Coach” is a big health product based on their personal genome and gut flora testing. They first proposed the concept of “application of genetic data to design a healthy lifestyle for users”.

In addition to detecting the user's health through testing, the jellyfish gene has also independently developed an app for the service user.

Through a team of jellyfish gene life coaches composed of professionals in different fields such as nutrition, kinematics, genetics and advanced machine algorithms, based on human-led, machine-assisted, user-based test results Dedicated to the user's professional and accurate health guidance, tailor-made and efficient health management solutions.

They hope to break through the “report only” limits in the industry, allowing users to actually use the data.

At the beginning of this year, the jellyfish gene cross-border joint China National Geographic magazine launched the first "China's surname gene mapping plan" and the "Life Map" product, which opened the Chinese people's journey of seeking roots and quests, traced behind different surnames. Family change story.

Image courtesy of jellyfish gene

The product includes three tests of family, paternal and maternal ancestral sources, 286 personal health genetic tests and one-year life coaching services, including surnames, personal traits, dietary nutrition, transportation traits, disease risk and many other contents.

"China is different from the United States. The United States is an immigrant country. Its detection is more about drawing a migration route and revealing the country's ancestry." China is a relatively homogenous country dominated by the Han people. Our ancestors have been rooted here for more than 5,000 years, but after many ethnic integrations and population migrations, population migration maps are more difficult to draw.” Zhao Nan, chief scientist of jellyfish genes, said, “At the same time, China’s history is even longer. The 5,000-year family changes are far more complicated than the migration of an ancestral source."

Image courtesy of jellyfish gene

As a consumer-grade genetic testing product, users are less likely to find a doctor to communicate with them after receiving a report, just like clinical testing. This is also a problem that has long plagued consumer-grade genetic testing products. It is difficult for a user to find a person to interpret the data after obtaining the data.

Therefore, these data are difficult to provide guidance and reference for the daily life of users.

“So we are more inclined to provide users with a complete set of services, integrating the user's personal genome, gut microbiome, and even physical examination data, and analyzing the data to outline the user's health.” Wang Xiaokang said "For example, our 'Life Coach' will help users to better understand their physical health in the life scene and work life stage through audio, video and text push. These pushes are based on his Customized with life data."

Wang Xiaokang said that this is like a combination of longitude and latitude. A single longitude or latitude does not have a way to determine where the target is, but if you place two numbers on a map, you can determine the exact coordinates. Such coordinates can achieve navigation in life.

Putting such logic on genetic testing products can also provide accurate health guidance for life.

"This is a very new product model. From the current user activity, it also proves that our products can bring a very good experience for users." Wang Xiaokang said.

"From the dimension of concern, the jellyfish gene is not to contract all the links, but to use our ability to use life data to empower partners in all major health consumption scenarios." Wang Xiaokang said.

He believes that genetic technology should be like the mobile Internet in the past decade. The mobile Internet has not created all industries, but has been a tool that has subverted many industries.

For example, in June 2018, the jellyfish gene, the famous brand in the United Nations (PICOOC), snail sleep, and the original life, held an offline event in the HITIE gym in Chaoyang District with the theme of “X-GENE, opening the future lifestyle”. There were 25 genetic testing users at the scene to participate in the exercise program developed by the jellyfish gene “Life Coach” team based on their respective genes, and there was a domestic network red fitness coach Guo Zihao personally guiding the training.

In addition, a variety of interesting aspects of the event site also allow the participating users to deeply experience the relationship between genes and fitness, fat loss, diet, sleep, etc. For example, how to choose the correct one after exercise based on the results of genetic testing diet. The Jellyfish Gene “Life Coach” team will interpret the gene report and answer questions for everyone.

X-GENE event site: Fitness coach Guo Zihao leads the group to exercise

It is understood that the well-known fitness coach Guo Zihao has also officially become the "life coach" of the jellyfish gene contract, and will soon be stationed in the jellyfish gene APP, together with the professional team of the jellyfish gene, to provide lifestyle guidance for jellyfish genetic users.

“For us, we hope to use this tool to help our partners identify users more accurately and better build their user portraits. Ultimately, we can provide customers with more precise and personalized services. Come to greater value," Jiang Xiaofeng said.

This is like what the nail is doing. This app can all understand the company's routers, printers, and attendance machines. But nailing itself is not doing all the things, but serving the business.

This philosophy also makes the jellyfish gene attract more and more partners to launch joint products.

In addition to the "Life Map" launched by China National Geographic magazine, they will have more products released in the second half of 2018.

In marketing, the jellyfish gene does not rely solely on the Internet model as the mainstream DTC genetic testing company, but combines the application scenarios to deliver products to customers with partners.

On the one hand, the partners have their own sales channels, and the jellyfish genes can be used to give products to the user groups of the partners. On the other hand, the jellyfish genes themselves have established sales networks through APP, WeChat, Jingdong Mall and other channels. . In this way, at the same time of product marketing, it is also possible to integrate the resources of both parties and jointly launch better products. This is why the jellyfish gene can attract partners to launch joint products.

“If you want to sell shoes to people who don’t wear shoes, this marketing cost is definitely high.” Jiang Xiaofeng said, “Our logic is to make the products more valuable for users who need them, so even if they sell online. The cost will be lower."

He hopes to integrate the products into the daily needs of users, allowing users to experience the new experience brought by technology in their daily lives.

"We don't intend to copy the 23andMe model. Although online promotion only saves the intermediate price difference, the marketing cost brought by advertising is also very large." Wang Xiaokang added. He hopes that by working with partners, consumers can see the value of their products and make their partners more valuable.

In the choice of partners, Wang Xiaokang believes that the most important thing is to see if the two have a combined value, to confirm that genetic data can bring value to products and users in this industry.

"You can't blindly launch a product because it's fun. If the data doesn't bring value to the industry, even if the sales are good at first, it will be difficult to follow up later," he explained to the arterial network.

After identifying cooperating industries, they will select partners in the industry that truly enable data and product integration. “If you simply integrate in marketing, and the two teams themselves have no way to interact, it’s hard to get the product done,” he added.

In short, they hope to find partners who can have a higher degree of fit in product, team and brand to enhance the value that both industries can bring to users.

However, he also admitted that the current cooperation channel has just been opened, which is the first attempt in the industry, so it still needs to be polished. At present, the sales of products are mainly based on the company's own sales channels. He hopes to attract more partners and resources through the growth of sales through its own channels.

"The engine is definitely the growth and sales of the jellyfish gene itself," he stressed.

It is understood that the business direction of jellyfish genes can be divided into two parts, namely the enterprise side and the DTC side. The DTC business started from the end of 2017 and is currently growing at a 50% monthly growth rate.

The Jellyfish Gene has a new self-built biological laboratory located in the Yizhuang Fengchuang Science Park in Beijing. It uses the most advanced automation technology in the world and has an annual production capacity that can reach the domestic top.

“Our laboratory started production in March this year and has been able to achieve capacity in May.” Zhao Nan said, “So we will have a faster capacity expansion.”

At the beginning of its establishment, the jellyfish gene obtained the angel round financing from the venture capital fund of Xi'an Jiaotong University. After the products were gradually matured and put on the market, the company launched the A round of financing in 2018.

“We pay attention to the efficiency of fund use. The speed of financing of jellyfish genes in the industry is relatively slow, and it is not expected to consume excessive funds in the early stage.” Wang Xiaokang explained to the arterial network, “Our financing rhythm is better grasped, mainly It is due to long-term steady development."

Next, the jellyfish gene will continue to explore how to reveal the value of life data to consumers along the previously planned route. The first to bear the brunt is the investment in research and development.

Jiang Xiaofeng revealed that the detection cycle of the jellyfish gene is leading the industry, and the personal genome test can be completed in 10 days, while the industry average cycle is 15-20 days. They will invest more money in new biometric research and development to provide users with more dimensional life data.

"We have a lot of reserves in talent and technology, and will release new products after the products can be commercialized." Wang Xiaokang added.

On the other hand, the input is to find the core application scenarios for the data and continue to help users and partners create value.

These are the company's next two strategic lines. Around the two main lines, the company will also have a certain expansion in the team size.

“We will open new production bases in two regions, and we have completed basic negotiations with the governments of the two places. This will support our capacity expansion.” Jiang Xiaofeng revealed, “Correspondingly, our business team will also expand appropriately. Scale. The entire R&D team and business team will grow very fast."

It is reported that the company's Beijing laboratory has been officially put into production. Wang Xiaokang revealed that there will be two new production bases and apply for third-party clinical laboratory qualifications.

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