At the “From the Heart— 2021 Founders & Investors Conference on China’s Consumer Brand Innovation,” David He, Managing Partner at BA Capital, engaged in a deep dialogue with Zhang Wei, founder of The New Things (media). They discussed the evolution of the new generation of consumers, the rise of emotional and spiritual values, and new possibilities for brand entrepreneurship. Below is a summary of David He’s remarks from the conversation.
In today’s consumption landscape, emotional value has become a very important part of overall consumer value. Consumption is no longer just about meeting functional needs—it also “cares” for users through products and services, helping them achieve their desired psychological and emotional state. Consumption is a carrier that can embody a great deal of meaning and value. It is a way for people to interact with the world. From morning to night—whether it's clothing, food, housing, transportation, or entertainment—people are engaging with the external world. Much of their emotions and consciousness are expressed through consumption.
China’s new generation of consumers is becoming more adept at living well. They have broader awareness, better income conditions, and strong educational backgrounds, which allows their lifestyles to be more relaxed from the start. As a result, their expectations for products and experiences are higher. With such a group emerging, we now truly have the opportunity to build brands that carry spiritual value.
China’s consumer industry is becoming more vibrant—this is a shared pursuit between consumers and entrepreneurs. The emergence of Xiaohongshu (Little Red Book) is epoch-making because never before had such a large group of Chinese users begun discussing products, writing highly detailed notes, and sharing their focus on product quality. The shift toward experiential and content-driven commerce is also happening in content e-commerce today, and this trend is tied to the evolution of consumers. Offline channels will inevitably follow the same direction.
Consumers are paying more attention to products, and so are entrepreneurs. One of the most difficult parts of consumer entrepreneurship in the past was building distribution channels, so brand founders had to build strong sales teams—which used to be a decisive factor. But today, startups are moving closer to the user. Abilities like user insight, product development, and brand building have become far more important.
Today’s consumer industry is indeed a fascinating space—with fascinating users and fascinating entrepreneurs who will reshape our lives and redefine the appearance of cities.