Financial Associated Press "TMT Times" Shanghai report The haze of the epidemic continues to hang over China, the world's second largest consumer market. Countless consumer service companies have been struggling to support themselves in the industry's cold winter for two or three years. During the consumption contraction cycle widely felt in the market, many companies are still emerging in the capital market, such as Dongpeng Special Drink , which IPOed in 2021, and its market value once exceeded 100 billion yuan after its listing; Babi Food, which has its business listed on the market, has won 8 daily limit boards in a row; Fellow Chicken , which is sprinting to become the first Chinese fast food stock, is expected to obtain an IPO on the Shanghai Stock Exchange. Behind these companies, there is Canadian Capital.
Song Xiangqian founded Canadia Capital in 2007. Over the past 15 years, has always focused on large consumption and modern service industries in the Chinese market. Adhering to the principle of "supporting the private economy and boosting Chinese consumption", it has not only invested in Juran Home, Wenheyou, Qiaqia Food, Lai Star consumer companies such as Yifen and Aimu Group also participated in the financing of , Meituan-Dianping, and Didi Chuxing.
Song Xiangqian particularly emphasized the importance of the consumer industry. He told the "Science and Technology Innovation Board Daily" that the consumer service industry has become the stabilizer and ballast of China's economy. After the epidemic stabilizes, if the economy wants to resume its previous rapid growth, it must Provide basic support to the consumer service industry, stabilize expectations, and take multiple measures to restore consumer confidence.
Support consumption to stabilize the economy
Regarding the impact of this round of epidemic on the consumer industry, Song Xiangqian said, “Epidemic prevention and control measures have an impact on the offline contact commercial consumer service industry: the flow of people is blocked, logistics is blocked, It also has a certain impact on consumers. Overall, the degree of impact on various companies is uneven." Song Xiangqian said that at present, basic livelihood enterprises with strong needs and high frequency are in good operating conditions, such as Cana Capital. The investments in Jinmailang , which provides drinking water, instant noodles and other products, and Babi Foods , which provides breakfast items such as steamed buns, steamed buns, siu mai and other breakfast items, not only have stable operating conditions, but have also made great contributions to Shanghai's supply demand. But for offline contact businesses, companies that rely on normal activities of people to generate revenue do encounter certain difficulties.
He specifically mentioned that for larger companies, the impact of the epidemic may only be a matter of profit and loss, but for the majority of small, medium and micro enterprises, the challenges brought by the epidemic are more concrete and real. He said sincerely, "The epidemic must be prevented and the economy must be stabilized. Under the dynamic epidemic prevention requirements, we must quickly and effectively promote the resumption of work and production, let people and logistics return to normal flow as soon as possible, and let the production and operation activities of enterprises "Get up."
Song Xiangxiang analyzed to the "Science and Technology Innovation Board Daily" that it can be seen from the fiscal and taxation system that my country's tax revenue mainly comes from taxes such as value-added tax and income tax. The economic contribution of consumption in society is very high, and the contribution of consumption to GDP growth reaches About 60%. Consumption has become the stable cornerstone of China's economy. If the economy wants to quickly recover from the impact of the epidemic, it must underpin and support the consumer industry. Therefore, he suggested that first, steadily accelerate the resumption of work and production, speed up the flow of logistics capital, and promote the normal operation of enterprises; second, use methods such as issuing consumer coupons to stimulate the supply and demand side and enhance consumers' spending power. Increase expectations of per capita income.
"Through practical measures to boost consumers' spending power, we can achieve twice the result with half the effort in restoring rapid economic growth." Song Xiangqian said.
Investment is essentially two things.
In recent years, news about layoffs, declining sales, store closures, and financing difficulties in the new consumer industry have been spreading. Does this mean that the enthusiasm of VCs and PEs for the new consumer industry is cooling down?
In this regard, Song Xiangqian believes that objectively speaking, new consumption has been overheated in the past two years and there is a huge bubble. Recently, the market performance, profit performance and growth performance of a large number of new consumer companies have actually fallen short of expectations.Under the superposition of the epidemic, supply-side costs have risen rapidly, demand has weakened, and expectations for improvement in income levels have weakened. Therefore, "the entire market has declined rapidly."
"So, valuation reduction is necessary, and the valuation of new consumption is indeed declining. But valuation is not equal to market value, and market value is not equal to value . We still have to create the long-term value of the enterprise." Song Xiangqian believes, Investment is essentially two things: One is to buy liquidity, and the liquidity must be good enough. Even if the company develops very big and there is no liquidity, it will not be able to get out; the second is to buy growth, which is essentially what investment is. Long-termism, whether you like it or not, cannot come out in the short term, so we can only coexist and grow together with the enterprise, and build and win together.
How should companies respond to the cooling trend of new consumption? Song Xiangqian believes that new consumers of must understand one truth today. Pure traffic is just an online channel, not a complete company. can only compete from online to offline in all areas, all scenarios and all traffic, to make up for the supply chain course, to make up for the product development course, to make up for the on-site lean management course, and to make up for the real respect for the consumer market and consumers. Only with recognized courses can hedge the risks of when the market goes down, and can be the first to take the lead when it recovers in the future.
Not afraid to make mistakes and find the right direction
Song Xiangqian, who places special emphasis on confidence, also pays attention to the "newcomers" in the industry who are stuck in the market atmosphere and have stalled. For entrepreneurs who are confused and hesitant under the impact of the epidemic, Song Xiangqian gave clear suggestions.
first, If you made a mistake, now is a good opportunity to correct it. In the past, many entrepreneurs relied on small traffic, small functions, small emotions, small value, or grasped the small weaknesses of human nature. The current mistakes are also manifestations of market correction.
Second, choice is more important than effort. It doesn't matter if you are wrong, companies can upgrade, iterate, and find the right path. Love consumers, respect consumption, and honestly create value for society, people, and the market. The future business competition in China will be an era for good people to do business and make hard-earned money. Yangming's theory of mind is very good: if you sharpen your mind on things, if you grind through small things, big things will naturally come true. For entrepreneurs who want to seek opportunities in the consumer service industry, he suggested that choose people's livelihood enterprises with high frequency and urgent needs, especially focusing on daily products that meet consumer needs. As the saying goes, "The smell of fireworks in the world is the most soothing to mortals' hearts."
Third, correctly understand the relationship between technology and consumption. China's scientific and technological progress requires a lot of tax revenue. Where does the tax revenue come from? It is mainly contributed by the consumer service industry, which is eaten and bought by the common people. China is a country that needs massive employment support. Only the development of the consumer service industry can create enough jobs for the new generation of young people. Song Xiangqian called on us to pay attention to the consumer service industry and the importance of final consumption to GDP. Only by effectively boosting consumption can we provide more time, effective venues and a mechanism for stable development for the development of science and technology and the digital economy .
Fourth, The waves and new trends in the future consumer market must have two characteristics, which are technology and innovation. Technology-empowered brands can resist risks, so they must make use of the digital economy, modern digital communication media, and modern digital distribution systems to make good use of the power of technology empowerment while building their own brand connotation.
Finally, he expressed his sentiments to the investors and entrepreneurs who persisted in moving forward during the epidemic, "We cannot be indifferent, we cannot not be ignorant, and we cannot fail to think carefully. What cannot kill us will definitely make us stronger." Powerful.”
