Going to the sea (ID:wow36krchuhai) participated in the event as a top cooperation media.
Organization: Deng Yunwei, Kong Lingchen, Wei Pei Lin, Huang Yumeng, Zhao Xiaochun
On July 28th, the India/Southeast Asia Investment Summit co-sponsored by Fosun Ruizheng Capital and Yinxing Capital was held in Guangzhou. As one of the GMIC sub-meetings hosted by the Great Wall, the summit attracted top investors and celebrity start-ups from China, India and Southeast Asia to discuss new opportunities for middle-class consumers and e-commerce in the Indian and Southeast Asian markets. Ecology, financial technology, content market and investment opportunities are the top topics of concern for the five venture capital circles.
Going to the sea (ID:wow36krchuhai) participated in the event as a top cooperative media, and discussed the market situation in India/Southeast Asia and the practical experience in the process of going to sea with guests and visitors. The following is a wonderful view of the scene.
New opportunities for middle-class consumption in India
Bobby Reddy, co-founder of community retail company DusMinute: The average monthly income of Indian middle class is about 50,000-60,000 rupees (about 5,000-6,000 yuan), and the monthly income of 1-5 million The group is also included in the Indian middle range. They account for a large proportion of the entire economy. This is exactly the range we are concerned about. Their lifestyles and consumption patterns are constantly changing. This is the fastest growing area in India and there are many opportunities. Indian urbanization is very rapid, and more and more Indians come to the big cities from small rural areas. In the next 5-10 years, the consumption pattern will definitely change, and the needs of the residents of the city are different, which will definitely bring great challenges. There are still many business opportunities in the retail industry in India in the future, because there are also great demands not only in cities but also in rural areas.
“India version of where to go” Ixigo CEO Aloke Bajpai: Indian small towns also have more and more needs. Many people have neglected their needs because they thought it was difficult to realize their needs by solving their needs. If we can meet them, there will be many opportunities. There are very few countries on this planet like India, people have different voices and different lifestyles. Therefore, the Indian market needs a diversified strategy.
E-commerce ecology
Andy Zheng, the investment director of Fosun Ruizheng: The users of the Internet in India are growing very fast, but the real e-commerce development is not very large, maybe only 80 million to 100 million people have E-commerce consumer experience.
Last mile logistics serviceLetsTransport CEO Pushkar Singh: There are many traditional brands that originally appeared in the mall, and now move to the online, and also to some large platforms. There are some old shops in India that are now opening online malls. When India’s per capita disposable income has changed from quantitative to qualitative, this has the potential to make e-commerce a great development. This must be prepared to face the same as China.
“Indian Little Red Book” Sheroes CEO Sairee Chahal: Those who control the wallet will affect the e-commerce, and 70% of the money is spent by women. With the increasing number of female Internet users, more and more women hope to establish their own identity on the Internet. Product parameters, parenting sharing are the basis for women to shop or sell online. The proportion of Indian women in the workforce is arguably the lowest in the world, but they are still responsible for most of the family’s expenses.
Finance Technology
Duncan Kuo, Managing Director of FinUp Strategic Investment: India has a large market, as a single market, but multiple languages, except English as a lingua franca In addition, there are at least 20 major dialects, so localization is very important. Secondly, compared with Southeast Asia, India has sufficient talent supply, for example, in the technology, marketing and engineering industries. In terms of policy and law, India’s regulation is relatively clear, and companies can operate in accordance with relevant regulations. In addition, India’s financial services coverage is low. For example, there are only about 21 million credit card holders among the 1.3 billion people. The demand for financial services is huge, including young people aged 18-29.
In India, compared with Southeast Asian markets such as Indonesia, its laws and regulations are relatively clear, such as what kind of business is licensed, what is the interest interval of different groups of people, what should be observed by financial institutions and non-bank financial institutions (NBFC)? Regulations, etc. On the whole, due to the relatively clear regulations, the regulatory environment in India for financial technology services will be more comfortable than in Southeast Asia.
In addition to the “conventional” challenges of compliance, data, risk control, operations, etc., for Chinese investors, perhaps one of the challenges is the judgment of the speed of business development and psychological expectations. China’s financial technology entrepreneurial market and many startups have experienced rapid growth of two to three digits per year three to five years ago, and this is considered normal. We believe that India should not simply compare directly with the past Chinese market environment, and should focus on quality and scale. There will be long-term development in this area, and the future will grow very large, but it will also face many risk management issues.
Content Market
“Southeast Asian Baby Tree” TheAsianParent CEO Roshni Mahtani: Southeast Asia’s infrastructure is very diverse, with different languages and religions, not a unified market. In terms of advertising, whether it is user realization or income, Southeast Asia is different from China. I think Chinese companies that want to enter Southeast Asia want to change their expectations. In Southeast Asia, growth will be much slower and the amount of cash will be smaller. Profitability is a long-term job.
Dhawal Gusain, TVF CEO of “Indian Iqiyi”: The secret to making explosive content, one is the choice of consumers. Not only look at structured data, but also unstructured data. We collect the content of most users, collect evaluations from their own platforms and open platforms, deconstruct unstructured data with deep learning algorithms, and mine the hidden information to understand what potential users have. The second is the choice of content. In addition to quantitative, there is qualitative analysis. Short videos are analyzed by quantitative analysis. If they are long videos, they are qualitatively analyzed. For example, what about this story? This question cannot be answered by analyzing the data. It depends on how the story itself is written. In addition, as a startup, it is important for us to generate revenue.
Investing in India
Karrat Mohla, partner of Chiratae Ventures: In the past few years, someone has asked a question, “Why do many people say that India is the next China?” But in the past decade, India has not yet reached Such development. There are many reasons behind this . First, the market for India’s 1.3 billion people is split, and the Chinese market is relatively more uniform. India’s per capita disposable income will also affect the development of some industries such as e-commerce. In addition, we must see the difference between the two markets in China and India. In the next five years, we will see more and more Chinese investors investing in India. The key is to understand the difference between China and India. In addition, we can see that there are already two entrepreneurs, and there are many opportunities for cooperation between investors and entrepreneurs in China and India.
Joon Sung Park, Managing Director of Junlian Capital: Investing in India, the competition is much smaller than in China, we can see the number of VCs in China (excluding angel investment) There are about 2,000 or so, and there are hundreds in Shanghai. The overvaluation is a problem. Now is a good time to invest in India. When all the signals are sent out, everyone thinks there is a chance. In fact, the investment is too late. Of course we are still at the stage of learning.
