Feng Shui Capital The Yellow Sea: Product Innovation And Excellence, Let Net Red Consumer Brand Burst Vitality.

"When a consumer startup company makes a net red brand, investors should pay more attention to the process behind it, rather than the result." Recently, Feng Rui capital executive director the Yellow Sea said in an interview with the twenty-first Century economic report.

In the Yellow Sea's view, the net red brand is emerging one after another, and its refining process deserves special attention. Brand marketing can attract a lot of attention. Brand can enhance user experience and product quality, and can also attract users to queue up and spread spontaneously on social networks. These two different phenomena will lead to brand becoming a net red, and investors need to have good identification ability.

Feng Shui capital group, which has long been concerned about investment in the consumer sector, has thrown three squirrels in the national snacks brand. In recent years, the team has voted out of the consumer brands, such as Xin Liang Ji, Zhong Xue Gao and three half-hour. Behind these classic cases, what is the investment logic of Feng Rui capital?

Product innovation company instead of net red Marketing Company

The Yellow Sea said that in the field of consumption, Feng Rui capital is especially concerned about competition, such as eating, drinking, cosmetics, mother and baby and so on. "Net red brand, which has long vitality, has its own bright spot in product innovation, and keeps improving on product details." He said.

At the end of 2018, Feng Rui made an early investment in the three and a half of the instant coffee brand. Follow up, three and a half get the capital of Tian chart and Sequoia Capital, and become the hottest brand of the domestic coffee brand category.

Why invest in instant coffee instead of coffee shops? The Yellow Sea said, first of all, in China, because of the convenience of people, instant coffee has a larger market scale than ground coffee. Second, in the view of Feng Rui capital, online innovation space is bigger than offline. The coffee shop under the open line may be a more traditional business. The premium coffee brand with the help of the Internet channel is more innovative and expansibility, which is more suitable for VC to invest.

In addition, three and a half of its own product level innovation, it quickly emerged in the instant coffee category. "It is a product innovation company rather than a net red marketing company." The Yellow Sea stressed. In the past, instant coffee can only be dissolved in hot water, and three and a half hours are made by freeze drying and cold water brewing technology, so that coffee powder has the same good solubility in cold water, which is convenient for users to carry and brew. At the same time, it has a highly recognizable packaging (Lego Mini coffee cup) to make it more special.

Online consumer brands are easier to start quickly.

The choice of consumer brands starting from the Internet is another important investment logic of Fung capital. The Yellow Sea explained that in the new wave of retail sales, Feng Rui capital recognized the need for consumer brands to combine online and offline development. Those brands that burst out enduring vitality, starting from online or offline, will eventually move towards a full scene and multi-channel business model. But in early investment, Feng Shui capital will still prefer the online consumer brands.

"When a company is just beginning to develop, it can not be comprehensive. It must first find a breakthrough point. Generally speaking, companies that choose online as breakthrough point are more likely to get a quick start and development. The Yellow Sea said.

Zhong Xue Gao, for example, claims that there is no added ingredient in the raw material of the ice cream, and the unit price of the product is higher than that of the general ice cream. If it starts off at the beginning, maybe people near the store will buy it every day. But it chooses to start from the online channel, and with the advantage of the Internet, it can get tens of thousands or even hundreds of thousands of people who have the ability to consume and have higher quality ice cream pursuit.

From the beginning of 2015, we began to pay attention to the consumption field. Now, the Yellow Sea obviously feels the promotion of investment and financing in the consumer market, and the competition for good projects between organizations is more intense. The Yellow Sea believes that Feng Shui capital has accumulated certain advantages. First of all, the team takes longer to take root in the consumer domain, and has better networking resources to accumulate and determine the ability to get access to early projects earlier. Second, Feng Rui capital itself in the field of consumption expertise, but also in post investment aspects, to provide more help to entrepreneurs.