Return to reason, investors discuss new logic of consumption investment

China in 2021, in a new pulse of the old casting, the national strength is unprecedentedly high. At the same time, 8.1%of economic growth has been achieved under the severe situation of world economic growth, increasing international economic and trade frictions, and the severe situation of the epidemic, and the Chinese economy still plays the role of the "leaders" of the world economic recovery.

From August 17-18, 2022, the 2022 (eighth) China Industrial Investment Summit co-organized by Rongzhong Media and co-organized by China, Rongzhong Finance, and Rongzhong Mother Fund Research Institute was grandly held.

The summit focuses on industrial investment, chip semiconductors, integrated circuits, corporate services, specialized new, biomedicine, high -end manufacturing, new consumption, medical great health and other fields. The summit brings together many venture capital institutions, industrial capital, and governments to jointly analyze the depth of the industry and explore the trend of industrial investment. Stability of progress, keeping positive innovation, and proposing the reform and development of China's industries.

In the first quarter of 2022, a total of 137 financing incidents occurred in the new consumer track, of which 111 of the financing amount was disclosed, and the total financing amount exceeded 13.565 billion yuan. In the case where the overall investment environment is not optimistic, the investment and financing situation in the new consumer field is not as hot as in the first few years, but it still maintains a certain heat. Institutions judge the logic and trend of new consumer investment? The pros and cons? The US dollar funds from investment opportunities for local institutions that have been invested in new consumer investment? How to innovate the new consumption in the field of models and technology, consumption with the opportunity to combine with the Yuan Universe, Web3.0, and blockchain?

In Gen Z, consumption tide, new consumption investment choices and logic? How can capital help new brands from 0-1 to 1-10?

The theme hosted by Challenger Venture Capital Management Partner & CEO Zhou Hua is the new consumer special forum with "New, Emerging Consumption and Quality Consumption Investment Opportunities" as promised, Chen Shi, a partner of Fengrui Capital Investment, and Liu Capital Partner Liu Bo, Liu Zehui, founding partner of Xingtuo Capital Management, Tang Xiao Ming, the only capital founder Tang Xiaoming, and Zhou Lifeng, general manager of Jin Huifeng Investment, participated in the discussion.

The following is a wonderful record of the on -site forum, organized by Rongzhong Finance:

Zhou Hua: Consumption is a relatively cold industry in the near future, and I am glad that I am willing to give you an opportunity to communicate with you. This forum mainly wants to talk to you around the two topics: First, what is the difference between consumption investment and the past, and what kind of judgment of the investment logic and trend of consumption; second, I also want to discuss with you to discuss with you What are the advantages and disadvantages of these two institutions? Before starting to discuss the topic, please introduce your own institutions.

Let me introduce ourselves first. Challenger Venture Capital was founded in 2014. At present, it has a two -currency fund of RMB and US dollars. The cumulative scale of asset management exceeds 10 billion yuan.

Chen Shi: Fengrui Capital's investment is mainly in three directions, one is consumption and TMT, the other is industrial technology, and the third is biotechnology. We have always had our own investment strategy. One is to invest early, and the other is that there is a set of investment methods that are more willing to invest in the discipline. We always think that the cross -disciplinary discipline does not care about the two. One characteristic.

Liu Bo: This year is the ninth year of our establishment. Qingliu Capital is a focus of focusing on the middle and early funds. There are two investment directions of the fund, big consumption and large technology. We started to watch consumption in 2015, and the investment style of the entire fund is relatively restrained. At present, dozens of enterprises have been invested, most of which are good projects that hit early. Cargo pulling, monster charging, etc. we were investing in very early in the early days.

Liu Zehui: Xingtuo Capital is a young institution. I have been investing in veterans myself. I have been paying attention to consumption since 2006. Xingtuo Capital mainly invests in the consumer technology field. Our investment direction mainly focuses on the healthy life field, combining technology with consumption to make life healthier. There are several levels. One is to provide healthy and quality consumer brands, and the other is technology -driven technical companies that serve these consumer brands, including new materials, new equipment and consumables, and new supply chains. Our team has previously invested good projects in the consumer field. Everyone is familiar with Ruixing Coffee, Tongcheng Tourism, Divine Car Rental, Station B, etc. In the past two years, some projects have been invested in the fields of everyone's economy, fashion, and healthy life. For example, 4in look, Zhenwei Xiaomei Garden, good Macraltacker.

Tang Xiaoming: The only capital of capital to focus on consumption and technology has a history of about seven or eight years. Our fund has two characteristics in the field of consumption. The reasons for traditional history take cultural tourism as an important category of consumption and pay attention to long -term attention. In addition, the consumer field is more concerned about the departure market, China's supply chain and design. Just now, a counterpart of the investment industry is also emphasizing the continuous growth of foreign trade. Here, there is a good opportunity for growth in product design, production capacity, and supply chain capacity.

Zhou Lifeng: Jin Huifeng Investment was established in 2010. In the early days, it was more concerned about TMT and consumer fields. The fields that have been concerned about in the past two years are new energy, new materials, high -end manufacturing, medical health and consumption tracks. We have been participating in the consumer field in these years, and the early investment bubble Mart and other projects have obtained good returns. In the past two years, we have more attention to some new brands or consumer companies with differentiated characteristics. 01

Consumption is an industry that never disappears

Can be done forever

Zhou Hua: In the current environment, everyone's judgment on consumer investment logic and trends has changed? We see that many industries have established their own investment departments. What are the advantages and disadvantages of investment institutions compared with them? Ask Chen to share it first.

Chen Shi: I think this topic is very interesting. Feng Rui has invested in three companies such as squirrels, three and a half, Xinliangji and other companies. The stage of our investment is too early. In the past year, the consumption of consumption in the past year is more than last year. The main reason we continue to optimistic about consumption investment is that consumption is one of the most promoted driving forces of GDP development, and both technology or other aspects of innovation, finally have the opportunity to convert to TO C's consumption. From this perspective, to C and consumption are the driving force for continuous growth, and it is also an investment direction that continues to have long -term demand.

Second, there are still some incremental opportunities for consumption today. In addition to the domestic rolls, it can also be rolled overseas. This is an incremental opportunity, that is, an opportunity for internationalization. There is also the opportunity to sink, not to say that selling some low -priced products in the market, but because the consumption upgrade of the sinking market has obvious opportunities. Consumers can be released without housing prices in large cities. If we can upgrade excellent products in the sinking market, it is also a big opportunity.

It is also more interesting, always emphasizing investment in cross -disciplinary disciplines. Consumption has a great chance of combining technology and biotechnology, which is an important driving force. The three and a half coffee we invest in the application of biotechnology in the production of biotechnology to the production of coffee powder can also show that many of the driving force for new consumption comes from other industries.

Nowadays, sometimes everyone just sees a lot of partial sales and traffic players. I think that the traffic dividends are gone, and the bonus of consumption is over. However, we should see that there are many technologies including biological progress, which can bring a new round of changes to consumption. So the end of our internal discussion is technology. This is a great driving force for consumption, which is a logic of consumption.

Zhou Hua: Yes, consumption can never disappear, and can be done forever. How do you judge the future trend of Qingliu Capital?

Liu Bo: It is unlikely that consumption does not exist or does not grow. For VC, consumption will grow and it will always exist, but it is not that the company you invest in the end to carry these growth and consumption volume, which may be a huge problem we face.

Will there be changes in the consumption direction later, or will the idea change? Taking us as an example, most of the topics that everyone reads is the new category. It does need a startup company to spend a little time to educate the market, or the way of changing tires at a high speed. In one step, for the new population, it is a very habitual product that has evolved into a long love.

Fire began in 2018, and it started to be cold at the end of last year, mainly because of the continuity of these new categories of education suddenly stopped. For us, the direction of the direction has also changed, loose trial error, choosing a new category, the habit of educating users, may not be so friendly in the capital environment. Frankly speaking, everyone in the investment circle is also communicating. Now the difference is that they do not want to invest. They are the poor mentality of entrepreneurs. They believe that investors will be more difficult to judge for the education of new categories, so everyone does not spend too much too much. Find new categories. Taking our fund as an example, the new consumption projects seen every week have reduced very much.

This emotion takes a period of digestion, and there is a phenomenon that occurs in parallel, which is very interesting. Among the few new projects, the concentrated tracks include coffee, skin care products that have not been faked, and take efficient skin care products as an example. Believe in the power of light. In the track that has not been faked, new projects are constantly. For us, when looking at the project in the future, it will judge the establishment of the category with the expectations of low trial and error. You cannot pull the period cycle of the current period to three years or more. Whether the category will take root.

We are also watching new energy recently. CVC and financial investors are not as big as new energy in consumption. New Energy CVC does have a very big advantage, but consumption is actually okay. Some CVCs do have substantial resource output, which is very attractive to entrepreneurs. Most of them are mainly financial investors.

Zhou Hua: From the previous development of new categories to the old category, it is actually in the process of groping. Also please share the thinking of investment in the current investment in Xingtuo Capital.

Liu Zehui: I am a more optimistic person. I think that consumption is particularly good now. Because I think it was too abnormal in the past two years. A group of people who did not understand consumption rushed in for consumer investment, making the entire industry's smoke. Now it feels normal. Entrepreneurs come to make products and serve them. Investors who really love consumption will firmly feel that the field of consumption can be done for a long time. I have invested in in 2006. The first successful case was the Saturday shoes industry on Saturday, and it has been listed. It is not because of investment, but because of the consumer industry, investment is valuable. In simple terms, China has a 1.4 billion yuan unified market, which is not available in the world, and the good life of the Chinese people has just begun. We have long -term longing for a better life. At present, brand companies with competitive consumer products are far from satisfying our longing. From the perspective of the world's top 500, American companies such as Wal -Mart, Coca -Cola and other American companies have lived on the list for many years. Among the top 500 lists, there are a lot of American consumer companies. So far, it has a history of more than 100 years, but China's consumer companies have only one or two decades.

We have been studying the old names of China. Now there are 1,128 Chinese time names in China. These old Chinese names are the so -called Internet celebrity brands that year. There is a reason to survive today. To sum up, there is no problem in China from the demand side. Semiconductors, chips, and upstream materials, finally to 3C products, the buyers of the Chinese economic terminal are ordinary consumers, and it is impossible to pay by the government forever. From the economic positive circulation band, consumption is a very important part. Whether it is the historical development law, status quo, and the development of China's economic development, consumption must be a very important part of the entire economic closed loop.

Of course, consumption itself is also changing very much. It is not possible to use the logic of investing 5 years ago and 10 years ago to look at the companies that consume today. In the 40 years of reform and opening up in China, China's consumer groups have changed huge compared to before. In the past, the design was a little better, and the marketing was cooler, and it might get consumers to pay. Today's Chinese consumers have traveled all over the world, and the world information is smooth. Today's consumers are a very difficult group of people. They must, also, and also have high value, good products, and good products. Cost -effective.

Today's consumers have put forward new demands and new demands for today's entrepreneurs or many consumer products. The company I am particularly admired is Japan's Kobayashi Pharmaceutical. Although the scale and volume are not particularly large, the scale of one billion US dollars a year, but today it is already the fourth -generation founder. For example, its user consumption experience, we used to wear glasses often to wash glasses. In the past, we rushed with tap water, and the body felt very poor. Suddenly I found that there was a so -called wiping glasses, and then a company named Kobaya Pharmaceutical launched glasses wipe paper. In order to ensure the clean and hygiene of glasses, its products also include daily healthy consumer goods such as oral cavity and warm baby. From this perspective, today Chinese companies have used a lot of glasses to wipe their glasses. The quality is not good.

In short, today’s consumption is to improve the sense of technology. The so -called sense of technology is not to say that the surface is cool, it is really from the inside to the outside, including its materials. Efficacy, manufacturing process.

Prefabricated dishes are not new industries. The improvement of the entire industrial chain technology level such as processing technology, frozen and dry technology, and cold chain transportation can allow today's products that consumers to eat at home to restore the level of restaurants.

Love beauty, fear of death, and loneliness are the eternal theme of human beings. Stay up late to 3 o'clock today, and will still look at the spirit tomorrow.以前谈到的包装是不是够酷够炫，营销是不是到位，是不是请了代言人，这些基本的配置，一定是所有企业和消费公司要做的，但水下竞争，科技感、产品、材料The production process includes digitalization and informatization of internal operations is the core of future competition.

The consumer industry is very good and exist for a long time. In the next 5-10 years, a number of world-class enterprises will emerge!

Zhou Hua: At present, some noise has been reduced. The entire market is becoming more and more rational. The consumer industry still has the opportunity to upgrade iteration. That's the only capital to share your point of view.

Tang Xiaoming: First of all, my basic judgment on consumption may now be the most difficult time for consumer goods companies. Residents' savings are indeed rising, income has not risen, but savings are increasing. Only one reasonable explanation is that the total retail sales of social social in the country decline. These months are the most difficult time for consumer companies, but on the other hand, I also think that the consumer industry and the direction of cultural tourism contained in are the best investment time points. Reverse investment is very simple, but most people cannot do it. If we go to consumption and invest in cultural travel, it is easy to be questioned, "have already invested so much?"

The concept of reverse investment is easy to understand, but the action of reverse investment is difficult to make. Investment cycle is the most golden investment time for the investment industry.

Second, I think that there is no new consumption. The post -60s, 70s, 80s, and post -90s are the same. Do not recognize what special places in the Z generation. The new consumption is nothing more than a change in the field of each consumption. For example, marketing platforms have been completely converted from large TV advertisements to fragmented mobile Internet, and the channels have a few more e -commerce platforms. Integrate with the means of supply chain finance. Logistics has moved from extremely decentralized to large logistics, structural changes in the logistics industry, and the rapid development of cold chains. Consumer taste changes. People who invest in consumer investment are looking for opportunities for value to provide value in various industries and sectors to provide consumers with a better sense of value. To meet the social needs in a cheaper cost. There are many opportunities for consumption. In addition to the so -called new consumption, when you mention new consumption, you mentioned a new generation of consumer brands. Major consumer companies, trying to try their own new brands each year, are already skilled in the application of new media and new marketing. They are far better than many founding companies in the in -depth grasp of channels and capillaries.

The consumer brand field has never lacked new things. It has come here in the past ten or twenty years. There are many things that can be followed in the consumer field, including the integration of upstream supply chain, how to shorten the links of supply chain, logistics and warehousing, and transportation, the changes in the intermediate marketing channels, the trend of supermarkets, the integration of offline channels and Internet channels and Internet channels As well as the development of new channels, the development of independent stores or independent vertical chain stores, and even integrates the supply chain and stores to do upstream and downstream integration models. Everyone needs to provide services with better cost -effectiveness, so that new consumer goods brands can survive better.

In the field of consumption, companies that can survive healthy are excellent investment opportunities. In the long run, it is more optimistic about the long -term development trend.

Third, China's supply chain integration ability in the era of intelligent manufacturing is very strong. Because the Chinese are very hard, not only the components, supply chain integration capabilities, and system capabilities are relatively strong. At the same time, Chinese engineers can also quickly and efficiently do product design and intelligent research and development. The efficiency of the supply chain is very powerful, so I think that in the past two years, Chinese companies that consumer goods can be consumed can consider entering the global market. We have deployed a large number of companies in this field, including Africa, South America, and North America Waiting for a lot of gains, it has once again verified the power of China's system capabilities, and also confirmed from local work that the trade has been relatively healthy in the case of China's overall economic pressure. This is also our expectations for the new generation of consumer goods and supply chain companies.

Chinese consumer companies can make their own products with a global pattern when they start to conceive the company like the United States, especially in the field of smart manufacturing in the new generation.

Zhou Hua: Ask Jin Huifeng's Chief Zhou to share your views.

Zhou Lifeng: Consumption is a track that continues to be optimistic in the future. However, in the short -term perspective, whether it is consumer company or investor, whether it is an early investment or a mid -term and even secondary market investment institutions, it faces a lot of greatly facing a large number of investment institutions. challenge. In the final analysis, it depends on the national economic indicators, such as employment, the income of the people, and consumer preferences. Now ordinary people prefer to "strict" their pockets. The data in the second quarter is not optimistic. The data consumption in the third quarter has rebounded, but the rigid consumption has rebounded faster, and the non -rigid consumption rebounds relatively slowly. This shows that more The common people "tighten" their wallets.

From the perspective of investment, a consumer track that is optimistic, without running out of the prescribed time and specified model, may face greater risks. Of course, in the future, there are still many investment opportunities in the consumer field. For example, high -end consumption, differentiated consumption, personalized consumption, quality life consumption, healthy life consumption and silver -haired consumption. Taking silver -haired consumption as an example, this group that retirement after the next ten or fifteen years may have stronger consumption capabilities than the previous generation. New domestic goods and new brands are also very opportunities, but it is required that startup companies must have continuous innovation capabilities. For example, the Dadong Catering we invested in, it has been established for nearly 30 years, which is enduring. There will be a life cycle of catering, but Datong's catering has been continuously innovating.

02

Technology empowerment consumption

Opportunity to explore cross -disciplines

Zhou Hua: Choose a track with long -term value, and then use technology to empower.

In the past few years, the entire consumer market was very hot, and many US dollar institutions poured in, which led to the high valuation of some companies. Now they have been pulled away. What do you have to view on the impact of the US dollar funds?

Chen Shi: We posted an article in Fengrui Nu a while ago. Why did China and the United States VC go away? The current investment path of China and the United States VC is already different. The VC in the United States is deficient and becoming more virtual. China is a realistic and realistic. This is because the industrial development stage of the two countries is different. Today China is mainly the real economy, including the manufacturing industry. The industrial Internet invested in China, the chips are all serving the real economy, and the NFT and Web3s invested by the United States are soft. The US dollar fund is also a good thing. You can invest in your own cognition and investment ideas.

Zhou Hua: Yes, so it is more realistic, more rational, and not so many bubbles. In the long run, it is also good for the industry.

This year, there are also many people who consume consumers to vote for web3.0 and Yuan universe. What are the combinations between technology and consumption? Mr. Liu, who is Capital Capital, let's talk about it. Liu Bo: Just mentioned some technologies of serious products in the medical industry, which became popular on consumer goods. In the past two years, China 3C products are very rolled. Basically, from ten years of products (cars) to two -year product (mobile phone), terminal electrical appliances have an iteration, but the iteration process is reverse projects. Many 3C products are 3C products. It is easy to use, including software and hardware, first used in the field of small home appliances or women's black technology. Finally, it is applied to this 10 -year product on the car. This product is more serious, and it is manufactured on a large scale. very low.

Today, so many investors flood to new energy vehicles because new energy vehicles are very interesting. Unlike traditional cars or traditional manufacturers, new energy vehicles are willing to go to a lot of new things. In a society or consumption atmosphere, the window that is willing to try and error is precious. Back to a new technology, no matter whether it is software or hardware technology, how can we land in a mature product? The premise is that there are often many early cannon fodder. Although this category can not hear today, at the time, some technologies were stacked in this category, some effects were tried, and then used in mature categories. This is a very common state.

Zhou Hua: Science and technology must find the application scenario, and then go to the consumer industry after exploring and practice.

The "Millennium Baby" has graduated from college this year. For this generation, the concept of consumption is actually very different. Liu is always a veteran who consumes, witnessed the 60s to 00. What are the differences between these people extending to the field of consumption investment?

Liu Zehui: At that time, we voted for B Station. At that time, the second dimension had just risen in China or when it entered the inflection point immediately, it was about 2016. Station B was a very typical representative of Gen Z at that time. When looking at this project, we compared with the community Tianya, which had previously invested in the post -70s, and found the similarities in it. We have studied Japan's relatively core two -dimensional culture, and Japan has similar companies. At that time, China compared B to the spiritual home of Gen Z. At that time, there was almost no income from station B, relying on core fans. When I was commercialized for the first time, I was beaten back. Fans questioned, how could it be advertised above? However, today everyone can commercialize the B station. Whether it is games, rewards, e -commerce, everyone can accept it. Explain that such people are slowly growing.

Following Station B, we have made a successful way in the new lifestyle of young people. For young people, the lifestyle of outdoor sports is very typical. The young people who participate in the Strawberry Music Festival are wearing tide cards, which is different from the style of clothes we wear. So we began to explore whether young people in China have their own local tide cards? Following the mind, we voted for the representatives of the younger generation of the trendy brand in China. Now China is slowly taking the high -end product route, and will be extended to sports and outdoor to find projects.

I am very interested in camping and experience it myself.

When the most difficult time for the Beijing epidemic this year, the somewhat scenery around Beijing was full of families. Many of them are people who are preparing to spend the night and camping at night. It is difficult to book a little camping accommodation in the first -tier cities in Beishangguang, and it may not necessarily be ordered one week in advance. Therefore, I am very confident in consumption. In different times, there will be a lot of new consumption content. A shares have the first camping share, and the stock price rose a lot last year.

I just said that the most important thing for consumption was the crowd. After the crowd iterated, there would be a lot of content. Food, food, housing, and transportation still existed, but the food, clothing, clothing and lifestyle may be different from before. For example, men's cosmetics are unimaginable things before. Chinese girls do not make up. Today boys make makeup a more common phenomenon. Although it is a very small category, it will also bring a lot of opportunities.

Zhou Hua: The requirements of generations Z are getting higher and higher, and the demand has become more and more personalized. I also ask President Tang to answer this question. What do you think of the requirements and changes in consumer goods in generations?

Tang Xiaoming: I tend to focus on the three levels of consumption, the basic needs of clothing, food, housing, and transportation, leisure time and spending power. The basic demand level is more suitable for the century -old stores that have been precipitated for a long time. The longer the survival time, the larger the scale, the more systematic advantages, stronger risk ability, stronger supply chain capacity, stronger channel capabilities, and so on.

According to the growth of consumption power, each generation of newcomers will have some extra consumption power released. Following the new consumption power to find new growth points. Or it is called category differentiation. According to this logic, the first is the extra time. The corresponding time is the time logic of Internet users. Whoever can create a large number of platforms to occupy young people can succeed. After all, the working hours are getting shorter and shorter, the production capacity is getting stronger, the material supply is getting richer, and the free time is getting more and more. This is the first thinking to closely observe the new entertainment and consumer varieties that occupy the time of young people.

Second, new material demand direction. The premium of new brands or new brands is often not the pursuit of material sense, but the spiritual pleasure brought by the pursuit of IP symbols or product image. The entire consumer industry is increasingly like the cultural industry and entertainment industry.

03

Capital Empowerment Consumer Enterprise

Time

Zhou Hua: Consumption is actually a relatively broad industry, and everyone may feel that they understand. Then how can I really help entrepreneurs go from 0 to 1, from 1 to 10, and want to listen to Zhou Lifeng always shared.

Zhou Lifeng: At present, Jin Huifeng's investment in entrepreneurial projects is more reflected in finance, fiscal and taxation. At the same time, the industrial chain, including channels and marketing, will also integrate and collaborate on resources for enterprises.

How to help enterprises from 0 to 1, 1 to 10, as an investment institution, the most direct is funding support. The consumer industry has a typical characteristics of capital -driven. For example, the two types of channels for consumption, one is offline, the other is online, and the combination of online and offline. Traffic is important for offline and online. Now the traffic is so expensive, and capital empowerment and synergy are required. To open a store offline, capital is the most direct support for it to make it the most directly bigger and stronger. Of course, everything has a degree, and any company must choose a financing model and financing scale that is suitable for its development stage.

At the same time, in our investment cases, Jin Huifeng Investment will achieve the coordinated development of the ecosystem of the enterprise as much as possible. For example, in the field of prefabricated dishes, Da Dong has strong innovation advantages and dishes research and development capabilities. We will consider whether the capabilities of these track heading companies can empower the small and medium -sized projects of other tracks.

Zhou Hua: Lifeng always helps consumer enterprises grow from capital and synergy effects.

In the challenger venture capital, we often discuss some directional discussions with entrepreneurs and discuss the essence of things. Instead, we rarely discuss financing.

When communicating with enterprises, challengers often ask them a few questions. First, there are many great companies in the consumer industry, and some companies have a history of hundreds of years. Why do they do well when they are established without financing? Second, why do you need to keep financing? What is the purpose of financing? Is your money valuable? Third, when can you make money? The consumer industry is not the same as many industries. Investors still have expectations for consumer companies. When they can make money, and the specific goal of profitability, this needs to be considered clearly.

In recent years, many companies that have not been so solid have fallen off, and companies that really create value have survived. If it is a pseudo -demand, or the products and services provided are not what consumers really want, the company will be difficult to survive. On the contrary, it can survive, and it may live better after crossing the cycle.

When companies need to care most, we will also provide funding support. This support may be mainly based on short -term loans, helping the invested enterprises through the most critical moment and spending difficulties together. This approach is more common in challenger venture capital, which is also the biggest difference between us different from many institutions.

Because of time, our conversation today is over, thank you!

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