Deconstruction Of Huayingxin'S Investment In Domestic Products: New Consumer Brands Usher In The Golden Age, Digital And Supply Chain Are Two Major Dividends

The PE / VC market in 2020 looks like a depression, but the undercurrent is surging under the water.

After the epidemic situation entered a stable period, investors quickly returned to busy. Moreover, at the annual meetings of major institutions and industry forums, crossover and boundary, greed and enterprising, and seeking certainty in uncertainty have become hot topics for investors.

"The external world is constantly changing. Passively accepting change is called" adaptation "; actively embracing change is" evolution "or" iteration. " According to Ji Wei, founding managing partner of Huaying capital, the consideration of boundary expansion is mainly based on: first, whether the track has opportunities; second, whether the team gene is suitable.

Huaying capital was founded in 2008, when the tide of domestic entrepreneurship was emerging, and it was also the origination of RMB equity investment fund. Today, the team manages more than 6 billion yuan of funds and invests in nearly 180 enterprises.

In the past 12 years, the layout of Huaying capital has changed from the initial digital content related industries to the entrance and Realization of scene traffic, and then to consumption, technology and enterprise services. At present, Huaying capital has formed two bases of large consumption and technology.

"Our capability circle has always been in the field of digital economy, focusing on two main lines of people and technology for investment." The content of this year's annual capital conference of Yinghua has been upgraded from the comfort zone in September 2020.

The era of new national products

While taoyinghua brand is still in its infancy period, taoyinghua's brand investment team is still in its infancy.

In 2015, Huaying capital officially entered the field of local consumer brand investment, and arranged a number of subdivided tracks, such as food and beverage, beauty and personal care, lifestyle and so on. The representative projects include panda brewing, weinian (Li Ziqi), zihi pot, ITO suitcase, Maia active, Xiaoqiao sports, etc.

Taobao launched B2C business Taobao Mall as the starting point, and a number of private brand entrepreneurial teams grew rapidly with the support of platform funds and flow. After Taobao Mall launched the "double 11" network, many Taobao brand operators entered the capital field of vision, which made the Taobao brand financing tide at that time.

A few years later, some of the first generation Taotao brands got rid of single dependence and realized multi platform development. Three of them, squirrels and bear electric appliances, had completed IPO listing, and Rongmei was in the process of listing on the gem; more brand entrepreneurship teams gradually declined and finally bid farewell to the market due to the flow dependence of a single platform.

"Their ceiling will be much higher than that of Amoy brand." Ji Wei believes that compared with entrepreneurs in the era of Taobao brand, the founders of emerging consumer brands in the new era of domestic products have a very strong ability to integrate resources, learn and iterate. At the same time, the maturity of the supply chain has helped them organize resources.

Jiwei divides the development of China's local consumer brands into three stages: the traditional brand era, the era of Taobao brand and the era of new domestic products.

In the traditional brand era, the channel mode highly relies on the traditional offline channel, and the marketing mainly relies on high-cost TV advertising and star endorsement; in the era of Taobao brand, it relies on the online traffic dividend of Taobao, which is also limited by the traffic squeeze brought by the single channel; the characteristics of the new era of Chinese goods are that the content helps brands and channels cover online and offline in a diversified way.

Brand investment strategy

In recent years, it has covered different consumption themes, such as new capital consumption and C-end consumer services in China.

According to Wang Weiwei, managing partner of Huayin capital, the next 5-10 years will be the golden dividend period for new consumer brands, with new consumer groups, new channels, new supply chains, and new teams driven by them.

"Brand is a long-term construction process, its fundamental is to be able to provide good products and meet the rigid needs of consumers." Ji Wei suggested.

When it comes to the selection criteria of new domestic brands and combing some of the invested projects of Huaying capital, we can find that they not only have outstanding performance in consumer insight and content marketing, but also have competitive advantages in product research and development ability, supply chain integration ability and innovation organization construction.

For example, Li Ziqi is a food brand starting from the content, micro idea is established by an MCN organization to establish IP and build its own brand product line; zihi pot is the re entrepreneurship of CAI Hongliang, the founder of Baicao flavor, which not only defines the "one person eating" scene, but also cuts into several sub product categories of self heating food with the label of "Hermes in the self heating food industry"; Xiao Qiao sports in In the field of family fitness, the mode of "content + hardware" has been explored, and the founding team is still laying out a number of product categories under the family health scene; polyvoly has created some popular online brands such as three Valley amino acid shampoo and the reverse small rainbow bath ball, and is exploring the possibility of creating multi brand incubation through innovative organizational structure design.

There is a similar path for the growth of the new generation of local consumer brands: cold start is realized through online marketing, the shortage of supply chain is made up in the growth process, the product capacity is improved, the expansion from single line to multi-channel is gradually completed, and the user's mind is quickly occupied before competitors of the same segment enter into the market.

"Today, it is not the ability of strong marketing and short-term rush to super explosive products that can retain users and create life cycle value. Big companies need to do all the new brands, in order to have the opportunity to form a real strong penetration. " Li Zijia, founder of polyvoly, told 21st century economic reporter.

On the future: efficiency + Innovation

For PE / VC investors, the market is in a transitional period of structural opportunities. In the current environment, the mobile Internet's monthly growth has peaked, and the disruptive opportunities brought by a new round of technology need to be explored.

"Everyone is still exploring the next direction of subversion." Ji Wei said that before the arrival of new structural opportunities, Huaying capital's investment keywords are efficiency and innovation, and its focus includes three directions: media reform and product innovation, industrial digital upgrading, scientific and technological innovation and domestic substitution.

Specifically, in the field of media reform and product innovation, Huaying's capital investment is subdivided into new brands, new services and new platforms, supply chain capability, brand going abroad, and some business restructuring of leading enterprises.

Ji Wei believes that the Chinese market has formed two major dividends in the past 20 years, namely, digitalization and supply chain, which "are the driving force of new brands and new domestic products, and have added wings for new consumption".

From the perspective of the theme of new domestic products investment, Huaying's earlier investment in content and channel, and digital empowerment is now the starting point to find and support local consumer brands. From the cases that have been invested, its projects in the new generation of consumer insight and new media channels include kuaimei, goumei and school hi. In the field of digital empowerment, it has invested in sparrow e-commerce, Jiahe technology, zero eye intelligence, etc.

"We can't follow the wind all the time, and we can't be bound to unchangeable boundaries." If we don't keep pace with the times, we will lose our living space. Ji Wei said that Huaying's choice in the face of industry reform is to find the ability circle of dislocation competition from trading to deep service.

Now, the emerging industry of consumption is forming in China. "Dislocation competition" strategy can be seen from its investment in the field of consumer brands, or more focused on the more recent, that is, the investment layout in the theme of new domestic products.

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