Retail Competition Enters The Second Half. How Does Capital Look At Retail Consumption?

Affected by the "black swan" incident of the new crown pneumonia epidemic, the enthusiasm for investment in the market was frustrated. According to the data released by the electronic commerce research center, there were 40 financing in China's e-commerce industry in April this year, compared with 70 last year, the financing declined by 42.8%. The total amount of financing is about 3 billion 805 million yuan, down 50.04% from 7 billion 616 million in the same period last year.

In addition, venture capital has shown a downward trend in 2019. According to the data, the amount of VC investment in 2019 decreased by more than 2/3 when the new VC fund was set up in 2019. VC can not raise money, so the amount of natural investment will be greatly reduced. This phenomenon will continue until 2020, which will lead to strict fund management and private capital will be more cautious. So the fund is still not well received, and VC is still short of money.

In Pang Xiaowei's view, the new crown virus epidemic will bring about the collapse of very small businesses, and the compression of enterprise strategy is a huge uncertainty. But in the past, consumer confidence is expected to recover soon, while people's minds will think big and think more clearly.

However, many enterprises struggle on the line of life and death. Even if they survive, they will be more cautious in spending and investment. The rigid demand closely related to the core strategy will have a budget, and the amount will be reduced. There is a lot of false appearance and misjudgement in innovation, which will indeed eliminate a lot of entrepreneurial projects and virtual entrepreneurs. From this perspective, in fact, it is good for the innovative ecosystem.

Sequoia Capital investment partner Su Kai believes that entrepreneurs become an important driving force for innovation. In a sense, innovation is extravagant. It is an attempt based on the judgement of the future, and success is a small probability event. We are not sure what will happen in the future, but we can not stop and wait. We still have to make some predictions and do something. This is innovation.

Suke said that from the logic of consumption classification, enterprises need to make clear positioning and efficient supply. Enterprises think that business is bad because the goods and services provided by enterprises are not adjusted in time with the change of consumer demand. And because of the lack of innovation and upgrading of commodities and supply chains, it is easy to form homogeneous competition.

Whether it is a good convenience store business, or franchise formats are growing. As long as the enterprise positioning is more precise, providing distinctive and differentiated services, and continuously improving the efficiency of the supply chain, we can continue to win the favor of consumers.

In 2019, Internet shopping and other new retail scenes, as well as spiritual consumption and fashion industry, were popular. Wu Bin, founder of Dawson investment and vip.com angel investor, believes that the market size and competitive situation should be taken into consideration in selecting the right track. The demand of stock market is natural. Many new ways of playing in the old market are spelling together. These markets are very red, but through mode innovation, there will be a big market.

Creating racetracks is creating or nurturing new demands. "Generally speaking, we should focus on a rising star of a track and bet on excellent challengers. What is a rising star? It's a fast runner. All investment is to invest in the future, to see the amount of change tomorrow and the day after tomorrow, rather than the stock. " Wu Bin said.

How to look at the current retail business, Hong Yung capital's founding partner, Mr Weng Reno, said that "business" can be understood as a correspondence between traffic and supply chain as a whole. It has four quadrants, the left side is the traffic side, and the right side is the supply chain.

The flow end can be divided into two parts, one is the physical scene, the other is the virtual scene. The supply chain end can be divided into two blocks, one is the commodity supply chain, the other is the non physical supply chain (content) to meet the needs of human emotion and entertainment. The four combinations of the two quadrants form various forms of Commerce.

In the course of business evolution, the change of consumers often promotes the change of flow end, and the change of traffic side brings driving factors. After that, the rapid development of the supply chain has created new changes in the retail chain industry.

In the second half of the retail competition, the essence of "fast, good" consumption needs remains unchanged. Haitong Securities retail consumption industry chief analyst Wang Liting believes that in the stock economy era, retail competition entered the second half, and began to grow from opportunistic growth to capability growth. Efficiency was the first, business mode dividend period was shorter and shorter, the speed of returning to commercial essence was faster and faster, the application of new technology and new business mode really improved the consumer experience, but focused on "more". The essence of consumer demand is fast and good, and truly create value for consumers by sustainable efficiency, in order to achieve profitable growth of their own business models.