Iteration of investment must have logic and order.
Editor’s note: This article comes from WeChat public account “ Inspur New Consumption ” (ID: lcxinxiaofei), author Changge.
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Today, when everyone is shouting “Consumer industry is worth redoing again”, consumer investment is also being redefined. Compared to the investment in the previous era of the mobile Internet, it is more focused on deep cultivation and collaboration. The test behind this is the recognition of the value of time and the layout of longer-term resources.
So, although the consumer circuit has been hot these past two years, there are actually not many institutions that dare to throw big money. Investing in platforms such as Quickstart, Station B, and iQiyi, CMC Capital (formerly the Chinese Cultural Industry Fund) was a big player in the entertainment industry, but in the past few years, the in-depth layout in the consumer field has shown us different growth of investment institutions Iteration path.
For example, the perfect diary of CMC’s capital investment, beautiful food, Ding Dong shopping, Hong Jiu fruit … In terms of industry growth and industry status, it has very good results.
What is the industry thinking and investment logic behind this? Recently, Inspur New Consumer interviewed Chen Xian, a partner and chief investment officer of CMC Capital. Chen Xian is no stranger to consumption. He previously worked in the direct investment department of PE of Morgan Stanley and invested in Mengniu, Belle and other consumer companies. After that, he They focus on investment in the Internet technology and entertainment fields, and most of the other members of CMC Capital also have a composite industry background.
Chen Chen, Chief Investment Officer of CMC Capital
In Chen Xian ’s view, it is no accident that CMC Capital can bet a wave of consumer leaders in the new industry cycle. Behind it is the natural iteration and extension of entertainment-technology-consumption. Not only does it have very strong integration and commonality of different industries, but also the deep anchoring of important nodes in the industry under long-term research.
Despite the large consumer circuit giants,However, Chen Xian believes that in the segmented field, there must be things that they can’t do well. At the same time, it is necessary to analyze what the essence of this business is and where is its core competitiveness? What CMC Capital wants to discover is that innovative model companies that meet the mainstream needs of the mainstream population need to be the most likely to win in large industries in the future.
In addition to the discovery of head power, CMC Capital is also making in-depth layout around subdivided industrial chains. For example, in the fresh circuit, it has invested in many different types of upstream and downstream enterprises. As the last bastion of e-commerce, Chen Xian believes that by doing a thorough analysis of several core scenarios to form a scale effect, in the end, absolute barriers can be established.
Spoken | Chen Xian
Organize | Long Songs
“From entertainment, technology to consumption, it is a natural extension”
1. Dual logic from entertainment to consumption
Many people think that CMC is just a recreational fund. In fact, our positioning is more like an investment institution in the growth period. It does not depend on a certain industry, but it must invest in high-growth industries, such as The economic growth points after the year are all different, which requires us to continue to learn.
First, we used to do entertainment because of President Li ’s background, but currently the team members actually cover different industry fields. For example, I started out as a consumer goods investment. At that time, my PE department at Morgan Stanley invested in Mengniu, Belle and other companies. My future work is also to invest in the field of Internet technology.
Second, there is a certain path for our expansion. Beginning to invest in entertainment content companies, such as “China’s Good Voice”, etc., which has a strong personal color in General Li; then The investment is platform and service companies, such as Kuaishou, B Station, iQiyi, etc., and services such as artist brokerage companies.
After you invest in the platform, you will think about the monetization and retention of users. This makes us look at e-commerce, consumer, online education and other industries. There are two dimensions in it:
From the perspective of time, the new generation of consumer goods companies has completed the online and offline infrastructure, and the marketing channels and methods are particularly rich. After all these things match, Now there is really a place to focus It’s time to make good products and brands. So after investing in technology and media, it is easy to make consumer investment, otherwise you will be tired.
From the perspective of users, whether it ’s consumer, technology or entertainment, the first question you face is who are your users and where is the user level?
Like our perfect diary, maybe the first wave of users is high school students andCollege Students. Then what channel do you need to reach these users, in fact, it is vertical media. The user of the perfect diary may be the user of NetEase cloud music and station B. If you want to sink, it is through fast hands. Then we have a lot of resources. And you can cut in step by step.
In the past two years, under the premise that the basic conditions are mature and the dividends of the times have emerged, we have invested in consumer channels such as American cuisine, Dingdong shopping, Hongjiu fruit products, supply chain companies, and the perfect diary Brand company.
2 , seize opportunities in long-term research, industry iteration
These things will not happen three or five years ago, it needs to be in harmony with the people. For example, we invest in beauty. In this industry, we have studied for more than three years and will make a lot of analysis and judgment. For example, before CMC invested in an e-commerce operation company called Leqi, which has more than 200 brands. The first is Beauty, the second is mother and baby, and the third is health products.
Through them, we can see what is happening in the industry. After a long time of industry knowledge iteration, we will feel ready to invest again this year, and there will be later results. In fact, we have seen a lot of sub-sectors and outlets in the middle, and none of them have invested, such as bike sharing and cross-border e-commerce. The CMC capital selection industry has its own logic.
Including the perfect diary, we can also get a very strong supplement. On the one hand, it is promoted. It is almost 100% online. Before us, it hadn’t talked to B stations and quick hands thoroughly, only to be a little red. Books and other channels, After we voted, we introduced it to station B and fast hands.
In addition, how to improve the image as a local brand? We have a lot of artist connections, especially co-branding with big-name artists, content cooperation with big directors, etc. We may not know how to make a beauty product, but promotion and brand building are very good. This combination will be very strong.
Therefore, investing is not so mysterious, it is the same way, it is iterating in nature , but iteration must have logic and order.
Discover structural variables and seize the future leader of the industry
1. Discover the structural variables of consumption and future leaders
In general, we are investing in three directions now, Entertainment, technology, and consumption. These three are not divisive and there is a lot of interaction between each other. The first main line is consumer insight. For the continuous research and analysis of users, the second main line is technology empowerment, which will always be the underlying logic. Around these directions, we will invest in innovative and growing companies.
CMC ’s investment logic falls on the consumer trackIt can be summed up in three sentences:
First, discover structural long-term opportunities and forces for change. We will not invest in small industries or short-term things.
The fresh market represented by Dingdong’s grocery shopping is a very structured opportunity. The make-up and beauty market represented by Perfect Diary is a new demographic dividend under structural changes, and they will not disappear in the short term.
Second, to find the company that is most likely to win. We do n’t invest in tradition, we always invest in innovators. We believe that the first and second in the industry have the ability to win in the market, even in fast hands At a valuation of more than 20 billion US dollars, we still think that it is an innovator rather than a stock, and it hits the online entertainment time of the users.
Third, the goal is to become a future leader in the industry. We choose companies according to this standard and the main line.
2 If the big platform does, how can consumer startups differentiate their competition?
Investing according to these directions is unavoidable. In the end, competition from giants cannot be avoided. What if Ali, Tencent and Meituan do? For example, as long as the Meituan does grocery shopping, isn’t Dingdong’s grocery shopping anymore?
I think, First, in China, there is no industry in the giant that does not touch, we have to believe that there are things they can’t do well. If you doubt this, many things will be impossible. Done.
Second, specific analysis of specific issues, Do you still want to know what the essence of this business is? Where is the core competitiveness?
For example, the core of e-commerce is how fast and cost-effective to buy food. In the field of fresh e-commerce, based on our user research and industry analysis, it is found that good is necessary, and no one will use it well. you. Therefore, how fast to save these variables becomes very core. For example, the user wants to send the order 20 minutes after the order, hoping to purchase it in one stop.
Ding Dong’s front-loading store model has made several core changes:
The first is to control the SKU within 1500-2000. It mainly meets one-stop cooking, so that it has a platform effect.
The second is to adjust the area of the front warehouse to two or three hundred square meters. It defines the user needs to cook at home, so the front warehouse does not fall beside the office building, but beside the community.
Third, Dingdong buys food 100% of the customers are offline, When it delivers food, it will push coupons to a very precise crowd.
Another logic is that each of your positions actually covers an area.
Many people think that CMC is just a recreational fund. In fact, our positioning is more like an investment institution in the growth period. It does not depend on a certain industry, but it must invest in high-growth industries, such as The economic growth points after the year are all different, which requires us to continue to learn.
First, we used to do entertainment because of President Li ’s background, but currently the team members actually cover different industry fields. For example, I started out as a consumer goods investment. At that time, my PE department at Morgan Stanley invested in Mengniu, Belle and other companies. My future work is also to invest in the field of Internet technology.
Second, there is a certain path for our expansion. Beginning to invest in entertainment content companies, such as “China’s Good Voice”, etc., which has a strong personal color in General Li; then The investment is platform and service companies, such as Kuaishou, B Station, iQiyi, etc., and services such as artist brokerage companies.
After you invest in the platform, you will think about the monetization and retention of users. This makes us look at e-commerce, consumer, online education and other industries. There are two dimensions in it:
From the perspective of time, the new generation of consumer goods companies has completed the online and offline infrastructure, and the marketing channels and methods are particularly rich. After all these things match, Now there is really a place to focus It’s time to make good products and brands. So after investing in technology and media, it is easy to make consumer investment, otherwise you will be tired.
From the perspective of users, whether it ’s consumer, technology or entertainment, the first question you face is who are your users and where is the user level?
Like our perfect diary, maybe the first wave of users is high school students andCollege Students. Then what channel do you need to reach these users, in fact, it is vertical media. The user of the perfect diary may be the user of NetEase cloud music and station B. If you want to sink, it is through fast hands. Then we have a lot of resources. And you can cut in step by step.
In the past two years, under the premise that the basic conditions are mature and the dividends of the times have emerged, we have invested in consumer channels such as American cuisine, Dingdong shopping, Hongjiu fruit products, supply chain companies, and the perfect diary Brand company.
2 , seize opportunities in long-term research, industry iteration
These things will not happen three or five years ago, it needs to be in harmony with the people. For example, we invest in beauty. In this industry, we have studied for more than three years and will make a lot of analysis and judgment. For example, before CMC invested in an e-commerce operation company called Leqi, which has more than 200 brands. The first is Beauty, the second is mother and baby, and the third is health products.
Through them, we can see what is happening in the industry. After a long time of industry knowledge iteration, we will feel ready to invest again this year, and there will be later results. In fact, we have seen a lot of sub-sectors and outlets in the middle, and none of them have invested, such as bike sharing and cross-border e-commerce. The CMC capital selection industry has its own logic.
Including the perfect diary, we can also get a very strong supplement. On the one hand, it is promoted. It is almost 100% online. Before us, it hadn’t talked to B stations and quick hands thoroughly, only to be a little red. Books and other channels, After we voted, we introduced it to station B and fast hands.
In addition, how to improve the image as a local brand? We have a lot of artist connections, especially co-branding with big-name artists, content cooperation with big directors, etc. We may not know how to make a beauty product, but promotion and brand building are very good. This combination will be very strong.
Therefore, investing is not so mysterious, it is the same way, it is iterating in nature , but iteration must have logic and order.
Discover structural variables and seize the future leader of the industry
1. Discover the structural variables of consumption and future leaders
In general, we are investing in three directions now, Entertainment, technology, and consumption. These three are not divisive and there is a lot of interaction between each other. The first main line is consumer insight. For the continuous research and analysis of users, the second main line is technology empowerment, which will always be the underlying logic. Around these directions, we will invest in innovative and growing companies.
CMC ’s investment logic falls on the consumer trackIt can be summed up in three sentences:
First, discover structural long-term opportunities and forces for change. We will not invest in small industries or short-term things.
The fresh market represented by Dingdong’s grocery shopping is a very structured opportunity. The make-up and beauty market represented by Perfect Diary is a new demographic dividend under structural changes, and they will not disappear in the short term.
Second, to find the company that is most likely to win. We do n’t invest in tradition, we always invest in innovators. We believe that the first and second in the industry have the ability to win in the market, even in fast hands At a valuation of more than 20 billion US dollars, we still think that it is an innovator rather than a stock, and it hits the online entertainment time of the users.
Third, the goal is to become a future leader in the industry. We choose companies according to this standard and the main line.
2 If the big platform does, how can consumer startups differentiate their competition?
Investing according to these directions is unavoidable. In the end, competition from giants cannot be avoided. What if Ali, Tencent and Meituan do? For example, as long as the Meituan does grocery shopping, isn’t Dingdong’s grocery shopping anymore?
I think, First, in China, there is no industry in the giant that does not touch, we have to believe that there are things they can’t do well. If you doubt this, many things will be impossible. Done.
Second, specific analysis of specific issues, Do you still want to know what the essence of this business is? Where is the core competitiveness?
For example, the core of e-commerce is how fast and cost-effective to buy food. In the field of fresh e-commerce, based on our user research and industry analysis, it is found that good is necessary, and no one will use it well. you. Therefore, how fast to save these variables becomes very core. For example, the user wants to send the order 20 minutes after the order, hoping to purchase it in one stop.
Ding Dong’s front-loading store model has made several core changes:
The first is to control the SKU within 1500-2000. It mainly meets one-stop cooking, so that it has a platform effect.
The second is to adjust the area of the front warehouse to two or three hundred square meters. It defines the user needs to cook at home, so the front warehouse does not fall beside the office building, but beside the community.
Third, Dingdong buys food 100% of the customers are offline, When it delivers food, it will push coupons to a very precise crowd.
Another logic is that each of your positions actually covers an area.
1. Discover the structural variables of consumption and future leaders
In general, we are investing in three directions now, Entertainment, technology, and consumption. These three are not divisive and there is a lot of interaction between each other. The first main line is consumer insight. For the continuous research and analysis of users, the second main line is technology empowerment, which will always be the underlying logic. Around these directions, we will invest in innovative and growing companies.
CMC ’s investment logic falls on the consumer trackIt can be summed up in three sentences:
First, discover structural long-term opportunities and forces for change. We will not invest in small industries or short-term things.
The fresh market represented by Dingdong’s grocery shopping is a very structured opportunity. The make-up and beauty market represented by Perfect Diary is a new demographic dividend under structural changes, and they will not disappear in the short term.
Second, to find the company that is most likely to win. We do n’t invest in tradition, we always invest in innovators. We believe that the first and second in the industry have the ability to win in the market, even in fast hands At a valuation of more than 20 billion US dollars, we still think that it is an innovator rather than a stock, and it hits the online entertainment time of the users.
Third, the goal is to become a future leader in the industry. We choose companies according to this standard and the main line.
2 If the big platform does, how can consumer startups differentiate their competition?
Investing according to these directions is unavoidable. In the end, competition from giants cannot be avoided. What if Ali, Tencent and Meituan do? For example, as long as the Meituan does grocery shopping, isn’t Dingdong’s grocery shopping anymore?
I think, First, in China, there is no industry in the giant that does not touch, we have to believe that there are things they can’t do well. If you doubt this, many things will be impossible. Done.
Second, specific analysis of specific issues, Do you still want to know what the essence of this business is? Where is the core competitiveness?
For example, the core of e-commerce is how fast and cost-effective to buy food. In the field of fresh e-commerce, based on our user research and industry analysis, it is found that good is necessary, and no one will use it well. you. Therefore, how fast to save these variables becomes very core. For example, the user wants to send the order 20 minutes after the order, hoping to purchase it in one stop.
Ding Dong’s front-loading store model has made several core changes:
The first is to control the SKU within 1500-2000. It mainly meets one-stop cooking, so that it has a platform effect.
The second is to adjust the area of the front warehouse to two or three hundred square meters. It defines the user needs to cook at home, so the front warehouse does not fall beside the office building, but beside the community.
Third, Dingdong buys food 100% of the customers are offline, When it delivers food, it will push coupons to a very precise crowd.
Another logic is that each of your positions actually covers an area.
Investing according to these directions is unavoidable. In the end, competition from giants cannot be avoided. What if Ali, Tencent and Meituan do? For example, as long as the Meituan does grocery shopping, isn’t Dingdong’s grocery shopping anymore?
I think, First, in China, there is no industry in the giant that does not touch, we have to believe that there are things they can’t do well. If you doubt this, many things will be impossible. Done.
Second, specific analysis of specific issues, Do you still want to know what the essence of this business is? Where is the core competitiveness?
For example, the core of e-commerce is how fast and cost-effective to buy food. In the field of fresh e-commerce, based on our user research and industry analysis, it is found that good is necessary, and no one will use it well. you. Therefore, how fast to save these variables becomes very core. For example, the user wants to send the order 20 minutes after the order, hoping to purchase it in one stop.
Ding Dong’s front-loading store model has made several core changes:
The first is to control the SKU within 1500-2000. It mainly meets one-stop cooking, so that it has a platform effect.
The second is to adjust the area of the front warehouse to two or three hundred square meters. It defines the user needs to cook at home, so the front warehouse does not fall beside the office building, but beside the community.
Third, Dingdong buys food 100% of the customers are offline, When it delivers food, it will push coupons to a very precise crowd.
Another logic is that each of your positions actually covers an area.