Analysis Of Investment And Financing In The Field Of Consumption: The Top Institutions Of High Altitude And Sequoia Continue To Capture Star Projects, And The Four Major Trends In The Industry Deserve Attention.

From the boom of new retail and social business to the right time for live telecast, dramatic changes in online and offline traffic channels have triggered waves of new consumption and venture capital. Many new consumer brands, such as perfect diary, Zhong Xue Gao and three half-hour, have come to the fore. Li Jiaqi and Wei Ya have become phenomenal goods anchors.

Many VC/PE agencies also heard the news. Even in the persistent capital cold winter of 2019, they maintained high investment in the consumption field. This reporter tried to analyze the data of the third party organizations, and interview the front-line investors in the field of consumption to decode the investment and financing situation and the future trend of the consumption field in the past year.

Decoding of investment and financing data

According to CVSource's data, there were 961 investment and financing events in the consumption field in the past year in May 2019 -2020 April. Among them, there were 466 wholesale and retail trades, accounting for 48.5%. Followed by the field of life services, 138 investment and financing incidents occurred, accounting for 14.4%. There are 131 investment and financing events in tourism sector, accounting for 13.6%.

In the field of wholesale and retail, new retail related projects are particularly favored by capital. Such as bubble Matt, Zhong Bai Rosen, Ding Dong buy vegetables, T11 and other projects, have won the favor of well-known investment institutions.

From the institutional point of view, the high head capital, Sequoia Capital, IDG capital and other integrated institutions, as well as Tencent investment such head CVC, continue to work in the field of consumption, to capture the favorite tea, perfect diary, ant beehive and many other star projects. Among them, Sequoia Capital Invested in the largest number of projects, domestic and foreign combined has more than 10.

In the past year, the vertical institutions such as sky capital and China capital have not made much investment in the consumer sector, but the accuracy of investment is very high. For example, Tian Tao capital invested three and a half half of its boutique coffee brand in 2019. After a year, it quickly gained the favor of Sequoia Capital. During the epidemic, Wen and friends who had invested nearly 100 million yuan in capital from China were also the best in the local catering industry.

Trend analysis of consumer industry

Through the above data analysis and interviews with front-line investors, the reporters found that there are several trends in the consumer industry.

First of all, epidemic consumption is heating up. Affected by the new crown pneumonia epidemic, the degree of consumer Internet is further improved. In 2019, China's online retail sales accounted for about 20% of total retail sales. Due to the impact of the epidemic, more consumers began to try online shopping, and the types of goods purchased were more diversified.

Even if the impact of future epidemic disappears, consumers will choose online shopping because of their consumption habits. There is a long-term positive impact on the online sales oriented consumer enterprises and the fresh electric business platform.

Second, strong content operation has become the core competitiveness of consumer brands. The content platform such as jitter, quick hand, little red book and so on become more and more consumers' shopping entrance. Consumer brand's content operation ability has become the core competitiveness of the company.

In the past, TV advertising was the main promotion channel for consumer brands, but only those giants such as P & G were able to get more financial strength. But now, due to the emergence of short video platforms such as jitter, many new brands in the start-up period can also get enough exposure with the innovation of short video content and innovation of products themselves.

The UGC content platform like Xiao Hong book provides a reference for users to make decisions in order to spread users' awareness. In addition, the emergence of live broadcast platforms such as Taobao's live broadcast led to online shopping and catalyzed users' buying behavior.

From communication to decision making, shopping guide and the emergence of different content platforms, the efficiency of all aspects of consumption has been upgraded. With the help of these infrastructures, new brands will be able to reach users at a lower level and will have a rapidly rising kinetic energy in this new wave of consumption.

Third, the rapid rise of new local brands. Under the dual role of changes in consumer groups and channel changes, local brands such as food and beverage, beauty care, maternity and infant products are rising vigorously.

The investment of local consumer brands has been heating up since 2018. The driving factors are not only the online channels, but also the rise of content platforms. Since 2019, the rise of direct seeding electricity providers has further realized the more efficient touch up from branding merchants to consumers, which together with the foregoing channel change and the rise of content platform to promote new brand investment continues to become a hot consumer investment.

Fourth, new technology applications bring new opportunities for consumption and investment. AI and big data technology enable precision marketing to be realized, and live TV providers also make product efficiency integration possible. On this basis, the application of new technologies such as AR/VR and IoT promotes the reconstruction of the elements of the consumer's freight yard, presenting the innovative product form and service experience in front of consumers.

Technology is further reshaping the relationship between brands and consumers. Behind the innovative products and services is the digital upgrading of the consumer retail industry. The industrial upgrading promoted by digitalization is irresistible. The typical representative in the consumption field is the reconstruction of production, circulation and retail mode. For the entrepreneurial team in the field of consumption, information and digital awareness has become a necessary condition for success.