Source: 21st Century Venture Capital Research Institute

On September 26, 2024, "21st Century Business Herald" released the "2023-2024 Consumer Service Investment Competitiveness Research Report" and selected "2023-2024 Influential Consumer Service Investors."

Mr. Alan Song, Founding Partner and Chairman of Harvest Capital, was awarded "Top 10 Influential Consumer Service Investors of the Year" by 21st Century Business Herald.

Excerpts from Key Perspectives in the Report:

The fundamental role of consumption in economic development is self-evident. The recovery and development of the domestic consumer industry is imperative. Since the beginning of this year, a series of policies to promote consumption have been continuously launched, with accelerating effects. The 2024 State Council "Government Work Report" proposed that it is necessary to "organically combine the implementation of the strategy of expanding domestic demand with the deepening of supply-side structural reforms, better coordinate consumption and investment, and enhance the role of consumption in driving economic growth."

The Internet wave has driven channel transformation in China's consumer market. From offline to online, from shelf e-commerce to short-video e-commerce, from social media marketing to livestream commerce, various new channels have emerged continuously. Consumer brands relying solely on online channel competition face weak barriers, and simply driving traffic through capital investment is unsustainable.

While A-share listings for consumer companies face obstacles and M&A trends are emerging in the market, Harvest Capital believes that M&A represents an exit path that has always existed but has not become the primary route. Improving market liquidity and keeping various exit channels open represents the constructive approach to solving exit challenges.

According to Mr. Alan Song, Founding Partner and Chairman of Harvest Capital: "What the market most lacks now is thinking, capability, and genuine assistance to enterprises—completing the work with an altruistic heart." It is understood that Harvest Capital has always regarded post-investment services as its most important work, occupying nearly 80% of the investment team's energy. Each portfolio company is equipped with a dedicated team to conduct structural post-investment work around ROE, brand building, channels, marketing, and digitalization.

Technology and consumption represent two sides of the same coin in socioeconomic development. The purpose of developing technology is to empower consumption, and technology will ultimately be applied in consumption scenarios. Meanwhile, consumption provides data and revenue for technology companies to further advance technological development. Only the mutual development and promotion of technology and consumption can continuously drive social progress.