Strong Rise Of Local Fashion Brands: Product Iteration Speed Up, Brand Vitality

According to the public data, in 2020, there will be nearly 200 financing for new local brands, among which 28 new brand enterprises will raise more than 100 million yuan, and Yixian e-commerce and bubble mart will land in the capital market.

In May last year, we mentioned in the report that the emerging trends in the consumer sector include: the epidemic situation catalyzes online consumption warming, strong content operation has become the core competitiveness of consumer brands, the rapid rise of new local brands, and new opportunities for consumer investment brought by the application of new technologies.

This has been verified by time. In recent years, Shuo Yin, Kuaishou, xiaohongshu and other content platforms have become more and more the entrance of consumers' shopping. Yixian e-commerce, the parent company of perfect diary, is a typical beneficiary of new media. Short videos and live broadcasting bring goods to perfect diary station.

Bubble Mart let the capital market witness the power of new people. Delicate mothers, new white-collar workers and generation Z (born in 1995-1999) are the three core consumers of fashion blind box.

Strong rise of local brands

In addition to the perfect diary and bubble mart, many new consumer brands, including Zhong Xuegao, Santan and a half, have begun to emerge. Under the dual effects of changes in consumer groups and channel changes, the local brands of food and beverage, beauty and personal care, maternal and infant products and other subdivision track are growing up.

Although investors have different opinions on the duration of investment window period of new consumer brands, it is generally believed that the next 5-10 years will be the golden dividend period for new consumer brands. It is a common view that a number of new brand enterprises with a market value of more than 10 billion US dollars will appear in the Chinese market. Some respondents also said that there will be consumer enterprises with a market value of more than 100 billion US dollars.

According to the data, among the investment and financing transactions that have been disclosed in the whole year of 2020, the transactions related to the theme of new consumer brands mainly appear in the two major tracks of food and beverage and beauty care. In addition, maternal and infant products, small household appliances, health products, clothing accessories, pet products and other racetracks have capital concerns.

Recently, with the publication of the perfect diary financial report of tide brand, the vitality of new local brands has become a common topic of many consumer investment institutions. Can revenue growth be sustained through huge marketing expenditures? The problem of supply chain itself is not easy, but it still needs a long way to go to get rid of dependence on media.

New brand enterprises are changing

Through the analysis of investment and financing data under the theme of new brands in 2020 and interviews with first-line investors, we summarize the representative changes of new brand enterprises as follows:

First, consumers in the new brand era have a greater voice. With the change of media form, brand companies can establish direct connection with consumers and move from product manufacturing to service-oriented. In this case, the brand not only needs to occupy the user's mind before purchase, but also needs to "persuade" consumers through service after purchase, and then carry out word-of-mouth communication, thus giving consumers more discourse power.

Second, the value of the brand as the core asset of the enterprise is really revealed. The high concentration of the supply chain is reducing the difficulty and threshold of starting a new brand in each sub category. With the further maturity of the supply chain and technology, it will be difficult for enterprises to open the gap only by quality and competitive products, and the weight of brand power in seizing users' minds will be further increased.

Third, the product iteration speed is accelerated, and digitization further improves the R & D efficiency. With the continuous change of consumers' access to information, the increasing richness of information presented by media, and the aggravation of business competition environment, the market puts forward higher requirements for the iteration speed of new brand products. With the penetration of digital technology, it is possible to analyze consumer demand and new application scenarios by combining big data.

Fourth, interdisciplinary technology makes it possible for more new brands or even new products to appear. The application of interdisciplinary technology in the field of consumption also brings more possibilities for the emergence of new products and new brands. For example, freeze drying technology in the field of biopharmaceuticals is applied in the field of coffee processing, and more interdisciplinary technologies are still emerging in the field of consumption.

Fifthly, the investment window continues and the role of capital integration needs to be reflected. The value of capital in the initial stage of the industry lies in providing capital for the development of enterprises, especially in the period of brand cultivation. After the enterprise grows to a certain volume, the construction of brand matrix will become the general choice, and the capital will continue to play a role in this stage. At present, except for some leading enterprises, most new consumer brand financing is still concentrated in the early stage of investment, and the role of capital in M & A integration needs to be further reflected.

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