In July 2021, at the “From the Heart— 2021 Founders & Investors Conference on China’s Consumer Brand Innovation,” David He, Managing Partner of BA Capital, delivered the keynote speech titled “Consumer Entrepreneurship in the New Era—Creating Value for Users.” The following is the main content of the speech.
Today is the best era to build Chinese brands, and this stems from several key fundamentals of Chinese consumption.
First is the enormous advantage brought by China’s economic growth and population size. Without a large population base, consumer goods companies would lack the efficiency advantage brought by scale. When China’s per capita income reaches a certain level and is coupled with a sizable market, there are bound to be opportunities for local brands. This is because consumption is an extremely localized industry—consumers’ dietary habits, aesthetic preferences, family structures, living environments, and lifestyle philosophies are all completely different.
Second is the emergence of a new generation of consumers in China who are culturally confident, have a broad perspective, and diverse interests. Rising income levels have led to greater consumer confidence, which further fosters independent aesthetics and deep product awareness. It also gives rise to social needs, the need for respect, and more demands for self-fulfillment—all of which need to be met by brands. In the future, outstanding Chinese consumer brands will not only serve the domestic market but also have the potential to become part of the country’s cultural IP and go global.