Partner of Da Chen Ventures He Shixiang He Shixiang, partner at Da Chen Ventures, stated at the 4th FMCG + Internet Conference that for investors, the most important thing is to predict industry trends, and to be able to see the future first and bet at the right time. The following is the content of Mr. He Shixiang's speech at the conference, compiled by New Distribution for readers. Da Chen Ventures invested in Zhongshang Huimin in 2014. Zhongshang Huimin was one of the earliest companies to do FMCG B2B and community O2O, and is also known as the "Whampoa Military Academy" of the FMCG B2B industry. Let me first share with you some of Da Chen Ventures' observations on FMCG B2B: Observation 1:

Since last year, AT (Alibaba and Tencent) have extended their reach into the retail sector, making nearly crazy investments and acquisitions. Alibaba acquired Sun Art Retail and invested in companies like Easyhome. Tencent also invested in Yonghui and Bubugao.

Some time ago, iQiyi went public after eight years of hard work, having burned 20 billion yuan in the past, and now has a market value of 10 billion.

Also, Alibaba's Hema Fresh and Wanda's cinemas. According to our judgment, the future terminals or retail will mainly be two formats. One is comprehensive shopping malls, meeting people's daily leisure and entertainment needs; the other is community stores, around residential areas, meeting people's daily rigid demand for consumption. Observation 2: In the consumer goods sector, Moutai has a market value of one trillion, Yili 190 billion, Haitian Soy Sauce 160 billion. These three brands all have market values in the hundreds of billions.

In the cultural sector, "Honor of Kings" has revenue exceeding 10 billion, "Wolf Warrior 2" has box office of 6 billion, "In the Name of the People" broke an 8% viewership rating. In the past few decades in China, only "Yearning" broke 8% on TV, with streets empty. Also, the art film "Kangrinpoche" broke 100 million. I cite these two sectors mainly to illustrate that whether it's consumer goods brands or games, movies, TV dramas, etc., they are all doing content, but the "volume" of culture is very small, while the "volume" of FMCG is very large. After the observations, let me talk about some of Da Chen Ventures' viewpoints: Viewpoint 1: The future terminal channels will be dominated by "ATM". Alibaba and Tencent have market values in the trillions and huge cash reserves. Xiaomi may have a market value of 200 billion US dollars after its IPO.

The founders of ATM are all very young, in their 40s, and what's more lovely is that they still maintain an entrepreneurial mindset. You can see this by visiting their offices in the early morning. What's most frightening is not only their strength, but also their strong sense of crisis, always maintaining an entrepreneurial mindset. Our prediction as investors is that future terminal channels should be dominated by ATM, but this does not mean that others have no opportunities. First, make yourself strong, whether it's being the king of a region, or making a province or a certain link extremely strong and extreme. Only by doing well can you make them (ATM) come to you proactively for negotiation. In Alibaba and Tencent's investment sectors, for the B2B industry, there is Alibaba Retail Link, which they do themselves. Alibaba also invested in Zhanghe Tianxia, and Hushan Shannan invested. The largest shareholder of Best Store Plus is Alibaba. I think whether it's dealers or B2B, you must strengthen a certain part. Only then can you cooperate with them, otherwise you will be eliminated. Viewpoint 2: First, it must be clear that dealers with traditional business models must transform. But there are several directions on the transformation path, and the success probability in each direction is different. The first direction is service provider. This has a relatively high success probability and is suitable for transformation based on your original business. The second direction is vertical categories, such as specializing in fresh cold chain or beverages. This type also has a relatively high probability. The third direction is brand owner. So far, I haven't seen particularly successful examples; being a brand owner is relatively difficult. The fourth direction is channel terminals. I think this probability is very low. Especially the latter two are very low. The success probability for service providers and vertical categories is relatively higher. The above can be used for your reference. Viewpoint 3: From the film industry, there are action films like "Wolf Warrior 2" with nearly 6 billion box office, and art films like "Youth" breaking 1 billion. The consumer goods sector is the same. No matter how big Moutai or Coca-Cola is, there are still many opportunities for segmented consumer brands. By segmenting consumer groups and meeting the needs of a specific label group, there are many such opportunities. Brand owners, as long as you use all channels, all channels, and new marketing models, there will always be opportunities. No matter how monopolized cinemas are, there must be good content; no matter how monopolized channels are, there must be good products. Of course, there is an important point here: the choice of entry point. For channel-type companies, including retail chain convenience stores and B2B platforms, I think 2018 is the year of integration. As long as you are big and strong, you can talk to giants like Alibaba and Tencent about cooperation. According to my own judgment, the FMCG B2B industry is a protracted war. The current penetration rate is still very low. It may be three to five years, or of course seven or eight years. Startups must persist and continuously build their own competitive barriers. Even if acquired by giants, you must have your own unique advantages. Being acquired by a giant does not mean you are unsuccessful. Click Read the original text to see more highlights of the 4th FMCG + Internet Conference... -END-