Two-faced Zhou Hongyi: The veteran internet celebrity embraces new traffic

Zebra Consumer 任建新

Recently, the hottest figure in the tech, internet, and new energy vehicle markets is undoubtedly Zhou Hongyi, the founder of 360.

By commenting on Lei Jun and Xiaomi's SU7, as well as launching an online 'car replacement campaign,' Zhou Hongyi turned the small square in front of 360's headquarters into a satellite exhibition of the Beijing Auto Show at 798. He smoothly took over the 'key to the treasure chest of traffic' from Lei Jun.

In fact, in the not-too-distant history of the internet, Zhou Hongyi was not only a traffic magnet but also a long-lasting IP. However, in his early days, he projected an image of a combative, sharp-edged, and somewhat 'gangster-like' figure. Coupled with his signature red attire, he was dubbed 'Red Cannon' and 'Red Cult Leader' by netizens.

What transformed this first-generation internet tycoon into a 网红 (internet celebrity) investor? And what enabled him to seize this massive wave of fortune? Now that he's at the center of industry attention, how will the stories of 360 and Neta Auto unfold?

Internet Celebrity

These days, the internet and automotive circles have turned their attention to 360's headquarters near Beijing's 798 Art District.

On April 18, Zhou Hongyi posted a video on Douyin titled 'Red Cannon's Car Replacement Campaign,' announcing his decision to sell his Maybach S600 and switch to a domestic new energy smart-connected vehicle. He invited netizens to vote for their preferred car and welcomed domestic manufacturers to provide test vehicles.

Major automakers quickly jumped on the bandwagon, recommending models like the Avatr 12, Yangwang U8, Changan Shenlan G318, and Zeekr 009. XPeng even drove its MPV model, the X9, straight to 360's headquarters, sparking a wave of similar stunts as various new energy vehicles gathered outside 360's building.

360 proved exceptionally 'open to suggestions,' deciding to host a mini auto show at its headquarters square from April 25 to 29, dubbed the '798 Mini Auto Show,' to 'charge up' China's new energy vehicle industry. Zhou Hongyi and 360 successfully capitalized on this massive wave of attention.

On March 28, Xiaomi's SU7 launch, fueled by enormous traffic, became the 'hottest new star' in the new energy vehicle market. Zhou Hongyi, ever the adept imitator, quickly followed Lei Jun's footsteps, embarking on his own 新一轮网红之路 (new round of internet fame).

By critiquing Xiaomi's SU7 product and marketing strategy—and repeatedly praising Lei Jun and Xiaomi in live streams—Zhou gradually built up his own traffic momentum. His 'Red Cannon Car Replacement Campaign' then pushed this momentum to new heights. At Neta Auto's April 22 launch event, CEO Zhang Yong spoke for less than an hour, while Zhou, as an investor, took the stage for a full 40 minutes.

Although Neta Auto's newly launched model, the Neta L, did not disclose post-launch order numbers, Zhou's involvement undoubtedly boosted the brand's visibility.

Moreover, Zhou transcended his role as a Neta investor, positioning himself as a 'spokesperson' for China's new energy vehicle market—elevating his influence to new heights.

By April 24, Lei Jun's Douyin followers had grown to 18.75 million, while Zhou's surpassed 5.4 million.

In truth, Zhou Hongyi is no newcomer to fame. Anyone familiar with China's internet knows he's a long-standing IP among internet moguls, rivaling even Lei Jun.

The Mogul

After earning his master's degree from Xi'an Jiaotong University in 1995, Zhou joined Peking University Founder Group, rising from a junior programmer to deputy director of the R&D center and general manager of a business unit in just three years.

In 1998, as the internet 创业大潮 (entrepreneurial wave) swept China—giving birth to 网易 (NetEase), 搜狐 (Sohu), 腾讯 (Tencent), and 新浪 (Sina)—Zhou founded 3721, which became profitable within three years. However, this early venture also embroiled him in controversy.

In late 2003, Yahoo acquired 3721, and Zhou became president of Yahoo China. After a transitional period, he left, briefly working as an investor backing projects like 迅雷 (Xunlei) and 酷狗 (KuGou).

In this regard, Zhou and his fellow Hubei native Lei Jun share not only similar ages but also parallel career trajectories.

In 2005, Zhou founded 360, revolutionizing China's cybersecurity market with its free model.

This was the golden age of the internet, before BAT's 垄断 (monopoly) took hold, as 中小巨头 (mid-sized giants) rose and the tech scene flourished.

If early Zhou was somewhat restrained, post-360's cybersecurity dominance, he fully embraced his combative persona.

The '3Q War' against Tencent, the search battle with Baidu, and the smartphone clash with Xiaomi—all legendary internet feuds—were recently put to rest when Zhou and Pony Ma shared a public laugh.

These three 'internet wars' mirrored 360's own business evolution. Figures like Zhou and companies like 360 acted as 'catfish,' ensuring the industry retained some diversity.

Today, Neta Auto's push for '科技平权 (tech equality)'—challenging automotive giants' dominance—likely bears Zhou's influence.

During 360's quieter years, the internet scene felt dull without Zhou, prompting the viral article 'The People Miss Zhou Hongyi.'

The Turning Point

2018 marked a high point for Zhou. In February, 360 returned to the A-share market via a backdoor listing.

Originally listed on the NYSE in 2011, 360 delisted in 2016 amid widespread undervaluation of Chinese stocks. While peers like Alibaba and 京东 (JD.com) opted for Hong Kong secondary listings, 360 (601360.SH) stood out as the only internet giant to relist on the A-share market, peaking at a ¥500 billion market cap.

But the party didn’t last. The stock plummeted, and despite a brief AI-driven rally last year, 360's market cap now languishes below ¥60 billion.

The reason is simple: weak performance. Post-2019, 360's earnings declined, with losses in 2022 and 2023.

360's failures in key battles—losing to Tencent in the '3Q War,' falling short against Baidu in search, and flopping in smartphones—cost it a seat in the mobile internet era.

Even 360's 港股 (Hong Kong-listed) subsidiaries struggle:鲁大师 (LuDaShi,$LUDASHI(3601.HK)) saw its core software user base shrink, while 秀场直播 (livestreaming) platform 花房集团 (Huafang Group, 03611.HK) saw revenue halve amid regulatory crackdowns.

The sole bright spot is 奇富科技 (Qifu Technology,$QFIN-S(3660.HK)), parent of 360 借条 (360 Jietiao), which posted a ¥4.285 billion net profit last year. Its repeated rebrandings—from 360 Finance to 360 DigiTech to Qifu—reflect efforts to distance itself from 360's image.

The Comeback

Born in Henan, educated in Xi'an, and career-launched in Beijing, Zhou—with his ancestral roots in Wuhan's Xinzhou—embodies the '不服周 (never submit)' spirit of Chu.

His reputation as a combative, sharp-tongued figure, cemented by the '3Q War' and other internet dramas, lives on in nicknames like 'Red Cannon.'

Yet few know that behind the bluster, Zhou is a warm mentor to his team. While other internet firms face scandals over layoffs and non-competes, 360 remains unscathed. Last year, its average employee compensation hit ¥570,000—high even for the industry.

Though Zhou publicly criticized Neta Auto in livestreams, his tough love stems from concern. Neta has lagged in China's cutthroat new energy market, and as an investor, Zhou is putting his weight behind its 2024 turnaround.

Zhou and 360's latest success hinges on his public 亲和力 (approachability), the mutual support among moguls, and his big-picture advocacy for industry progress.

Has Zhou changed? Not really. His duality—combative yet nurturing—reflects pure pragmatism, shaped by circumstance.

As long as his 网红 (internet celebrity) pivot benefits China's AI and new energy sectors, why not? Thankfully, more moguls like him are emerging: Wang Xing resurfaced, Jack Ma is reflecting, and the once-quiet circle of 大佬 (big shots) is buzzing again—perhaps signaling a revival of entrepreneurial spirit.

For Zhou, after riding the traffic wave, it's time to refocus on his core: whether 360's【security】and【AI】or Neta's new energy vehicles, products must speak for themselves.

What he missed in mobile internet, he might reclaim in the AI era—only then can he reclaim his place in the internet 江湖 (arena).