The annual blockbuster business evaluation activity "2021 Top 100 Domestic Products Innovation List" held by the New Retail Laboratory of Nandu Big Data Research Institute has entered the countdown.
After preliminary visits and surveys, self-declaration by domestic brand enterprises, nomination by expert jury, and massive data collection and collation, we have preliminarily screened out 200 candidate brands from more than 10 hot selling categories such as beauty and skin care, food FMCG, clothing, shoes and bags, focusing on six dimension indicators such as channel innovation, brand/category innovation, operation innovation, design innovation, scene innovation, and model innovation. Next Wednesday, the list of the top 100 domestic product innovations will be officially established.
Through the research and analysis of the financing situation of candidate brands, it is found that since 2019, the number of financing obtained by these brands has increased year by year, showing a trend of fighting the impact of the epidemic, and 2021 and 2015 have ushered in two small peaks in financing frequency. The household appliance category has the largest number of listed companies, while the clothing and footwear category prefers to go public in Hong Kong. The beauty and skin care category has received great attention in the capital market, and 3C digital has become the category that can "absorb gold". In general, hot money flows more to high-profile brands or relatively large-scale brands in various fields, and the head effect is obvious.
In 2021, the number of domestic financing rounds accounted for more than 50%.
After studying and analyzing the investment and financing of 200 candidate brands, the New Retail Laboratory of Nandu Big Data Research Institute found that the financing time of brands was mostly before 2014, of which the largest number of financing rounds was in 2021, with a total of 258 rounds, accounting for 54.8% of the total financing rounds, which was more than half.
In addition to 2021, the 200 candidate brands also had 66 rounds of financing in 2020, accounting for 14% of the total number of financing rounds, which is the second year of the number of funding rounds. In 2019, there were 43 rounds in total, accounting for 9.1%. From 2018 to 2016, the number of financing rounds decreased year by year, and rebounded slightly in 2015. Among them, there were 40 rounds in 2018, accounting for 8.5%; in 2017 and 2016, there were 17 rounds, accounting for 3.6%; in 2015, there were 21 rounds, accounting for 4.5%, and 9 rounds of financing in 2014, accounting for about 2% of the total. It can be seen that the financing frequency of these 200 candidate brands has peaked in 2021 and 2015, respectively.
Qiao Jianhua, an expert in the jury of the top 100 domestic innovation list and CEO of Qingtong Capital, told Nandu reporters that the changes in the channel traffic side in 2015 were relatively large, not only the rise of new traffic channels, but also the momentum of mobile traffic was also very rapid, such as self-media, community, etc. "The traffic brought by these new channels has boosted brand consumption." By 2021, the brand capabilities of different consumer categories in China will stand at a higher level.
Zhang Yi, an expert of the jury of the top 100 domestic products innovation list and the CEO and chief analyst of Ai Media Consulting Group, told Nandu reporters that the core consumer group of many new domestic brands is post-95, and this generation grew up in the country's prosperous environment, has a natural good feeling and confidence in domestic brands, and naturally drives the rise of the national tide, and then attracts capital attention.
From the perspective of different categories, beauty and skin care has become the track with the most attention of capital in 2021, and the number of financing rounds in this category reached 19 rounds in that year, accounting for 7.4% of the total number of financing rounds in that year. The number of financing rounds in the food FMCG category reached 17 rounds in 2021, ranking second, while the tide play and pet department store categories completed 5 rounds of financing respectively, ranking third in addition to the equal division.
Beauty and skincare brands have the highest frequency of financing
It can be seen that in the three years with the largest number of financing rounds, the beauty and skin care category has always occupied the first place, and the financing frequency is far more than other categories. 2019 is known as the first year of domestic beauty, and with the rise of the new sales model of live streaming with goods, many domestic beauty and skin care brands are expanding brand awareness with the help of new channels at this time. Tencent's "Domestic Beauty Insight Report" released in 2019 also shows that the market share of domestic brands in that year has exceeded 50%.
Beauty & Skincare also received the largest number of financing rounds of all categories, with a total of 67 rounds. It was followed by food FMCG, with a total of 53 rounds, and the third place was living appliances, with 43 rounds of financing.
The beauty and skin care category has become a capital darling, and in Qiao Jianhua's view, it has its industry characteristics. "The beauty and skin care itself is in China, and the marketing channels are also in China, such as WeChat, Little Red Book, Douyin, Big V Live, etc., and the category of beauty and skin care is also suitable for promotion in these marketing channels." In addition, Chinese itself has strong productization capabilities, whether it is Perfect Diary, Huaxizi, or other brands, they are all making efforts in the direction of creating 'products that are more suitable for Chinese'. ”
However, Qiao Jianhua also said that in some subdivisions with higher core technology requirements, domestic brands are still in the stage of catching up with foreign big brands, and have not really impacted to a relatively peak position. He believes that "young domestic brands need to accumulate more precipitation, such as suitable for Chinese consumers, especially their own product research and development capabilities, which is not achieved overnight." ”
3C digital category into the gold king
Most of the hot money in the capital market began to pour into domestic brands after 2014, with a total of 288.2 billion yuan, and 2020 was the highest financing amount of 200 domestic product candidate brands, totaling 245.3 billion yuan, mainly due to the fact that Glory completed more than 40 billion US dollars of acquisitions, making the financing amount in that year account for 85% of the total financing amount.
It was followed by 2018, with a total financing of 17.062 billion yuan; the third place was 2021, with a total financing of 13.9 billion yuan, accounting for 4.8%.
Overall, the 200 domestic product candidate brands have shown an overall growth trend in terms of financing amount in recent years, but they have also experienced two capital cooling-off periods in 2019 and 2017, of which financing in 2019 can be described as a cliff-like decline, which was also called "capital winter" by the market that year.
From the category point of view, the category with the largest financing amount is 3C Digital, reaching 260.5 billion, in addition to glory, UBTECH and Xiaomi have obtained financing many times. It was followed by the household appliance category, with a total financing amount of 15.65 billion yuan, and the number of brands that received these financings was a total of 14. The total financing of the beauty and skin care category reached 9.55 billion yuan, ranking third among all categories.
Another category with high capital concentration is the new scene brand, with a total financing amount of more than 8.3 billion yuan, of which a large part comes from the two brands of Luckin and Heytea, of which about 3 billion yuan of heytea D round financing is the largest single financing in this category.
The head effect of domestic brands "absorbing gold" is obvious
Further analysis of the top five categories with financing amounts can be found that although the brands in the 3C digital category that have obtained financing are relatively concentrated, the hot money has basically not been crowded in a certain year, except for Xiaomi and DJI, which have gained capital favor, and the entry of funds in this category is relatively evenly distributed. The same is true of the financing trend of the household appliance category.
For the 3C digital brand is prone to high financing, Qiao Jianhua said: "Everyone still has expectations and recognition of the scalability of the 3C brand, and feels that China can make products with international standards and can be sold globally in terms of technology. Online and offline, from home to abroad, these need huge financial support. ”
In contrast, in the beauty and skin care track, capital's preference for head brands is relatively obvious. In 2020, The first perfect diary parent company of beauty, Yixian E-commerce, was listed, not only taking away 840 million yuan of strategic financing, but also raising more than 3.6 billion yuan.
The same is true for new scene brands, Xicha and Luckin sucked up most of the hot money in the category in 2021 and 2018 respectively, Heytea has been rumored to be the last financing before listing this year, so the amount is not small, reaching 3 billion yuan, and 2018 is the period of crazy expansion after the rise of Luckin, which also made many capitals start to pay more attention to tea and coffee tracks. In the sports equipment category, hot money is highly concentrated, KEEP almost includes all the largest single financing amounts in the category from 2014 to 2021, and its 2.16 billion yuan F round of financing has become the largest single financing in this category.
Overall, the categories of beauty and skin care, new scenes and sports equipment have been incubated in recent years, resulting in a relatively concentrated entry time for hot money. The development of 3C digital and household appliances is relatively more stable, and the capital has been laid out from an early stage.
In Qiao Jianhua's view, many fields actually follow the "law of two eight", but compared with other industries, after the consumer field obtains capital injection, it can quickly rise up at the offline point and online traffic, and obtain a certain return. "Whether it is opening a store offline or online shopping traffic, it needs timing. At the right time, it is easier to generate opportunities for high-speed growth when large funds are laid down. Once the dividend period has passed, it may not be easy to produce. ”
Producer: New Retail Lab of Nandu Big Data Research Institute
Planner: Zhen Qin Tian Aili
Coordinator: Tian Aili Written by: Nandu reporter Xu Bingqian
Data collection: Nandu reporters Huang Pei, Tian Aili, Xu Bingqian, Ma Ningning, Fu Xiaoling, Wang Chenchen