In the past few years, the fluctuating moments of the new consumer industry have impacted primary market investment institutions. With consumer brands entering the second phase of exploring genuine needs, building real capabilities, and emphasizing growth quality over speed, consumer product investments have also entered deeper waters.

Previously, consumer investments were considered a track with the lowest entry barriers in the primary market, a pathway that almost anyone could enter. A large number of funds entered the consumer track against the backdrop of the waning mobile internet dividend and the higher investment thresholds of hard technology. This gave rise to a batch of hot new consumer brands, and the market saw widely discussed financing rumors such as "Three Meals Half-Written Essays" and "Huaxizi Exam Questions." However, since the second half of 2021, domestic consumer brands have been surpassed by international brands in sales on e-commerce platforms. Core indicators such as marketing conversion rates and repurchase rates have continuously declined. The "first stock of new consumption" that previously went public on the secondary market has also experienced a decline in stock prices. This has challenged the investment strategies and exit paths of investment institutions, prompting them to calm down and reconsider institutional positioning and project pricing.

The rational return to the primary market has led to a slight decrease in the enthusiasm for investment and financing in the consumer sector. According to data from Xiniu, as of the MAT 2022 period, the total number of financing events and the disclosed financing amount in the consumer industry have slightly decreased compared to the MAT 2021 period, with a decline of 10.11% and 3.58%, respectively. This implies that institutions are more cautious in their actions, and funds are flowing towards fewer projects. However, the disclosed financing amount remains at a high level compared to the MAT 2019 period, indicating that investment institutions still have confidence in the consumer industry.

Undoubtedly, investments in the consumer industry are becoming increasingly rational, and the selection of projects is becoming more stringent. Just like the challenging terrain of the consumer track, investing in consumer brands is a long-term endeavor. It not only has high entry barriers but also demands a discerning eye and steadfast determination from investment institutions, given the abundance of noise and temptations. An excellent consumer investment institution must synchronize and iterate with consumer brands, quickly learn and grasp the underlying industry dynamics, discover potential brands, patiently accompany them through different stages, seize new industry opportunities, and clarify industry noise. This goes beyond the scope covered by "investment methodology" and may be the result of differences in institutional infrastructure and mindset.

Based on these criteria, First Finance and Economics, in collaboration with CBNData (First Finance and Economics Business Data Center), has selected the "2022 China New Consumer Annual Investment Institutions," with a total of 12 institutions making the list. Harvest Capital, with over 15 years of establishment, has focused on consumer product investments. Through investments in brands like  Qiaqia Food, Babi, Dongpeng Beverage, and Laoxiangji, it has become a leading private equity (PE) firm in the consumer goods sector.

The natural progression of a consumer brand's growth, coupled with the sustained multi-round investments from investment institutions, tells us that a good consumer investment institution goes beyond merely discovering new brands. Instead, it involves accompanying consumer brands in their growth journey, becoming a genuinely resilient brand capable of withstanding the tests of time.