New domestic products

Jingwei Venture Capital has invested in many new domestic brands on the consumer track. The investment ideas are summarized as: looking for "innovators of mature categories" and "definers of new categories".

"Innovator of mature category" refers to finding a brand that innovates in a gap in a mature category, such as Jane Eyre of yogurt category, the middle of ice cream category and so on.

The "new category definer" has defined a new track and created new demands, such as self-heating instant food brand self-cooking pot, baking instant cereal brand Wang Baobao and so on.

In the first part, I experienced a wave of new domestic products through IP cooperation in the Forbidden City, the joint breaking of the circle by the White Rabbit and the "China Li Ning" catwalk international fashion week.

This paper continues the topic of new domestic products, and probes into the surging new consumption field from the perspectives of "innovators of mature categories" and "definers of new categories".

More financing, faster listing, new growth story of domestic products

In the past year, the domestic new consumption track was marked by two listing ceremonies, which ushered in a blowout.

On the evening of June165438+1October 19, the parent company of domestic beauty perfect diary, Yixian E-commerce, was listed on the New York Stock Exchange, becoming the first beauty group in China to be listed on the US stock market. On the first trading day, the share price of Yixian E-commerce soared by more than 96% in intraday trading, and the closing market value exceeded 65.438 US dollars+0.22 billion yuan.

On June 5438+February 1 1 day, 2020, the Wan Chao brand POP MART landed on the Hong Kong Stock Exchange at an issue price of HK$ 38.50 per share. On the first day of listing, the opening price soared 100.26% to HK$ 77 10, and the closing market value of that day was HK$ 95.329 billion.

Some people predict that "2020 will be the beginning of golden decade, a new brand of consumer goods", and there is also a golden saying that "all consumer goods are worth doing again".

According to the official account of WeChat "New Consumer Daily", as of mid-February 2020, there were 195 investments and financing in the new consumer sector, and the financing amount of 28 companies exceeded 100 million, most of which were the head brands of sub-sectors.

This heat is still going on.

According to 36Kr, Yuan Qi Forest recently completed a new round of financing. As the star project of the consumer goods track, the financing of Yuan Qi Forest has made rapid progress. The last round of ongoing financing was valued at about $2 billion. After the completion of this round of financing, the valuation of Yuan Qi Woods has reached $6 billion. This means that in less than a year, the valuation of Yuan Qi Forest has soared by about three times.

On March 25th, the domestic beauty brand Betani was successfully listed on the Shenzhen Stock Exchange, and the "first stock of functional skin care products" was officially born. At the time of IPO, the issue price of Bettaney was 47 yuan, the opening price increased by more than 260%, and the total market value exceeded 70 billion yuan.

Beauty and skin care has always been a hot category of new domestic products.

According to the statistics of "Investment and Financing Trend Report in Consumer Fields in 2020" released by CBNData Consumer Station, beauty and skin care brands accounted for more than 60% of consumer goods that received three rounds of financing last year.

Huaan Securities also mentioned in the "New Consumer Industry 20021Annual Strategy Report": "Domestic beauty brands have achieved rapid rise with the help of social e-commerce dividends, and new brands have surpassed international first-line brands in sales scale. Under the background that domestic products are increasingly sought after by the post-90 s and post-00 s, the competitive advantage of domestic beauty brands will continue to expand, and more waist brands will have the opportunity to by going up one flight of stairs to realize the absolute dominance of domestic brands on this track. "

Perfect diary: a big-name OEM stands on the shoulders of giants.

20 16 Huang Jinfeng, who used to be the vice president of the domestic skin care brand Yu Nifang, left his old club and founded Yixian e-commerce with Sun Yat-sen University alumni Chen Yuwen and Lu Jianhua, the parent company of Perfect Diary. The company was named in honor of his alma mater.

In 20 17, the perfect diary was launched on Taobao and entered the field of beauty e-commerce.

Two years later, Tmall Double 1 1, Perfect Diary surpassed 20 18 pairs1/all-day sales in just 28 minutes, becoming the first cosmetic brand of Tmall with sales exceeding 100 million.

That year, a survey by Tmall showed that Perfect Diary was the second favorite domestic brand after 00, second only to Huawei.

The essence of make-up is a kind of fast-moving consumer goods, and many domestic beauty brands attract the younger generation who pursue freshness by improving their speed.

Yixian e-commerce prospectus shows that Perfect Diary can complete the concept proposal, development and listing of new products within 6 months, which is far lower than the 7 to 18 months that international brands usually need. Compared with the average inventory turnover days of domestic listed beauty companies in 20 126 days, the inventory turnover days of Yixian e-commerce in 20 19 are only 98 days.

This is inseparable from its strong supply chain integration ability.

The "light mode" of the perfect diary adopts OEM (OEM) and ODM (commissioned design and production). The three factories of Perfect Diary are Cosme, INTELI and Marco, and they have always cooperated with international brands. Cosme OEM brands include Dior, Lancome and Saint Laurent, Intel OEM brands include Armani, Gucci and Hailan Mystery, and Shanghai Marco OEM brands include L 'Oreal and Estee Lauder.

An article entitled "12000 word comprehensive interpretation of the perfect diary" mentioned: "Almost all the world's strongest cosmetics OEMs and ODM factories are rooted in the Yangtze River Delta and the Pearl River Delta. The OEM of big-name cosmetics has become very systematic for many years, and even the rapidly rising domestic brands can easily stand on the shoulders of giants. "

In order to better cooperate with the foundry, Perfect Diary recruited many resident representatives. He is like a buyer, stationed in various sources. As long as there is a new product or packaging material, he will arrange the combination immediately and can iterate quickly.

Huang, vice president of e-commerce in Yixian, shared such an example. Perfect Diary once launched a 16 color eye shadow tray, and several sequins were particularly popular with consumers. The company captured this preference through big data technology and launched an independent sequined eye shadow tray in just a few months.

It is the "perfect password" of the perfect diary to meet the needs of consumers in the shortest path and realize the product development and response speed beyond peers.

China: the comprehensive effect of time, location, human harmony.

Among the new beauty brands in China, the perfect diary is followed by the flowers that follow the national trend route and are circled by the face value.

Last year's Double Eleven, Perfect Diary and Huaxi Zi ranked 1 1 and 15 in Tmall skin care cosmetics and daily personal care products, respectively.

In just three years from 20 17 to 2020, Huaxi has achieved a sales quota of more than 4 billion, becoming the fastest growing brand among the cutting-edge domestic cosmetics brands.

Hua, the founder of Hua, whose real name was once the operation director of Yichuang Baique Ling. Wang Yichuang led the development of Baiqueling e-commerce. From 20 15 to 20 18, Baique Ling has been the first in Tmall's domestic beauty category for four consecutive years.

Hua Mantian believes that the rapid growth of flowers is the comprehensive result of weather, geography and human harmony.

First of all, the promotion of the country's comprehensive national strength has enhanced the national pride and cultural self-confidence of the Chinese people, and the recognition and love of domestic products among young consumers in China has increased unprecedentedly. At the same time, their pursuit of beauty and fashion is getting higher and higher, so the domestic makeup market has ushered in the spring of development. This is the right time.

Secondly, China has the most mature and perfect cosmetics industry chain in the world. In research and development and technology, it is also in the forefront of the world. At the same time, China has a mature e-commerce and new media ecology, which has created great opportunities for the incubation and development of cosmetics brands. This is the right place.

Third, China has a user-centered, professional and extreme team. At present, 654.38 million+product experience officers have joined hands with HUA * * to create products and services. This is human nature.

Following the trend of domestic products, China combines traditional culture with modern fashion. For example, after exploring the intangible culture and crafts of the Miao nationality, I got inspiration from the silver ornaments of the Miao nationality and created a series of make-up called "Miao Impression" together with * * *.

In Huaxizi Tmall flagship store, the best-selling series includes traditional elements of China, such as relief, concentric locks, Miao silver ornaments and ceramics.

Live e-commerce promotes domestic consumption

In 20 16, mobile live broadcast broke out and domestic e-commerce live broadcast rose. After technical iterations and the stimulus of the epidemic, it achieved explosive growth last year.

According to the 46th statistics of China Internet development by CNNIC, by June 2020, the number of live webcast users in China had reached 562 million, 2.48 million more than that in March 2020, accounting for 59.8% of the total number of Internet users. Among them, the number of e-commerce live users was 309 million, an increase of 44.3 million compared with March 2020, accounting for 32.9% of the total number of netizens.

Forward-looking Industry Research Institute's China E-commerce Industry Market Foresight and Investment Strategic Planning Analysis Report shows that the overall scale of live e-commerce will exceed one trillion in 2020, and it is expected to maintain a high growth trend in the next two years. With the deep integration of content platforms and e-commerce transactions, it is estimated that the scale of live e-commerce will be expanded to 2 trillion yuan in 20021year, and the penetration rate will reach 15%.

E-commerce live broadcast broadens the conceptual boundaries of core elements such as people (consumers), goods (commodities) and fields (scenes) in the original consumption scene, and builds an ecological closed loop with anchor+platform+brand+users as the main participants.

According to the data of "Domestic Consumption Trend Report 2020" released by Suning.cn, in 2020, the purchase of live broadcast rooms and the purchase recommended by the community will become two new growth points of domestic consumption. Among them, the domestic consumption in the live broadcast room increased by 126.3%, and the recommended consumption in the community increased by 147.2%.

When the epidemic is serious, offline business is blocked. Sun Laichun, the founder of Lin Qingxuan, led the company into the e-commerce live broadcast. Overall sales still increased by 20%, the average performance of stores reached 122. 19%, and the unit price of offline customers reached 164.3% in the same period.

In the "Double Eleven" in 2020, Adolf, a domestic fragrance care brand, created a live e-commerce record of more than 87 million items in 10 minute, with total online sales exceeding 328 million.

If e-commerce platform is the process of accelerating new consumer goods from 0 to 1, then live e-commerce is the next process of completing from 1 to n, from explosion to continuous explosion, from niche brands to categories, and gradually accelerating the fission effect of brands.

New channel: the secret of the success of cutting-edge brands

Yiou think tank once defined the new domestic products as those newly created or spread by China brand based on the traditional cultural connotation of China.

One of its main characteristics is that domestic brands rely on the new generation of information development technology, use diversified digital platforms and marketing resources, broaden consumers' awareness of brands through multiple channels, and strengthen brand customers' acquisition and repurchase power.

It can be said that the rise of domestic brands such as Perfect Diary and Huaxi Zi is inseparable from the marketing model of "planting grass" through online channels.

Yixian e-commerce stock book also mentioned that popular traffic platforms such as Xiaohongshu, Bibi, Tik Tok and A Aauto Quicker "play an increasingly important role" in influencing consumers' shopping. Yixian e-commerce has cooperated with 1.5 million kols with different popularity, and is currently incubating kols belonging to the company.

20 18, Hua took the initiative to contact and promote a loose powder at the price of 159 yuan.

Li Jiaqi compares a cheap Korean Loose Powder from 49 yuan with a big-name loose powder from 200-300 yuan, and thinks that 99 yuan can only enter his live broadcast room, and there is a price.

China cut its products into the middle and high-end price segment, with the goal of becoming a middle and high-end makeup brand.

After studying China, I brought this loose powder to my own studio and promoted it to be the king of categories, creating a sales miracle of 20 19 double eleven 700 thousand boxes.

The beauty insight report released by Xiaohongshu shows that 36% of users get beauty information through social media, and 70% of beauty users will be "implanted" after using social platforms.

On the platform of Little Red Book, it has more than 30 million KOC. Brand influences users' consumption behavior by influencing KOC to establish word of mouth in the community, and users share consumption experience, which in turn affects brands and other users, forming a positive cycle. This shows that the brand's content marketing will gradually move from KOL*** creation to consumer creation.

Beauty brands are taking new channels and new platforms as the main positions to reach target users. Building user trust through "word of mouth creation" has become a key link in the rise of beauty brands, especially new brands.

Overtaking in corners, double micro, one shake and one focus.

It is worth noting that since last year's 10, Huahua began to make efforts in offline media, and the flower spokesperson Du Fu and Miao impression promotion ambassador can be seen everywhere on the elevator screens of office buildings and apartments.

During the double 1 1 last year, Perfect Diary also built a brand moat by using the offline media platform, and the advertisement of Perfect Diary endorsed by Zhou Xun was screened in the elevator.

The fiery vitality of the forest is also pinned on high-frequency and efficient advertisements, which frequently appear in variety shows and focus elevator advertisements.

Wang Xing, CEO of Kaidu China and global president of BrandZ, mentioned an important point at the release conference of BrandZ 2020 Most Valuable China Brand 100 held last year.

She said that for advertisers and brands, effectively combining online and offline, content and scenes, and detonating brands through "double micro, one shake and one focus" will be the most effective paradigm for future communication.

The daily life scene brands represented by Focus Media have been widely detonated, and the social media brands represented by Weibo, WeChat and Tik Tok have been deeply planted with grass. The interaction and vibration between them will be the core position to help the brand recover and grow strongly in the post-epidemic era.

According to Yisop's research, 47% of the popular, highly recognizable and mind-occupied advertisements before 2020 10 come from TV advertisements, 56% from Internet media and 83% from elevator media. 83% of the popular slogans are made of "elevator". Compared with last year's data, 54% came from Internet media, 50% from TV advertisements and 8 1% from elevator media.

The concept of "two micro, one shake and one focus" also appeared in the Wu Xiaobo 2020 final show. He mentioned: "Today, brands that don't appear on the scene have nothing to do with you. This scene may be an elevator, a high-speed train, or a social interaction, just like two micro-shakes, focusing on the public scene, and then calling for preservation in the private sector. Only brands that can make you look more at the scene are called brands related to you. "

For advertisers and brands, it will be the most effective paradigm for future communication to combine online and offline, content and scenes efficiently and detonate the brand through "double micro, one shake and one focus".

The 2020 China Consumer Brand Development Report released by Ali Research Institute summarizes the success secrets of cutting-edge brands as follows:

1, abandon complex physical channels, actively embrace e-commerce channels, and maximize the brand building role of emerging channels;

2. Make full use of diversified digital platform marketing resources;

3. Grasp the ever-changing consumer demand, aim at market segments, implement product innovation portfolio and iterate quickly;

4. Pay attention to direct communication and service with consumer groups;

5. Brand visualization.

In the past year, the new consumption of domestic products showed an explosive growth trend. Perfect Diary, POP MART, China, China, Forest, etc., the first brand of domestic beauty cosmetics, have broken the oligopoly market pattern of each sub-category.

The thinking and mode of "innovators of mature categories" and "definers of new categories" to achieve "overtaking in corners" in competition has been traced. It can be expected that more new consumer brands will become the next "perfect diary" in the future, and more cutting-edge online celebrities will become mature brands to seize consumers' minds.