Steven Hu（胡斌）, Founding Partner of INCE Capital, was invited to present the award for the ChinaBang 2020 List by TechNode. There he shared his insights on the development of the new retail industry.
As one of early practitioners in China’s Internet industry and later being engaged in the venture capital business as a sophisticated investor, Steven Hu, when talking about the choice of startups, believes that startup entrepreneurs will be more adventurous if they are equipped with management experience in Internet companies. In addition, the success of startups is inseparable from the chosen market and fields to play. A large market must be massive enough, while the market segment must be sufficiently explosive.
In a time when people insist that the “capital winter” has come, Steven Hu believes that, the overall market is not chilling. The “chilliness” perceived in the primary market mainly comes from the previous over-investment, and now the market is undergoing more of a retracement. Therefore, Steven does not think that the winter is really here. On the contrary, it is the best time for enterprises to develop their internal skills. When financing becomes difficult, those truly excellent companies tend to stand out more easily. During the epidemic, online education, fresh food delivery, e-commerce and other online-related industries have achieved faster development. Tiered competition will enable better companies to win the race, which help accelerate their growth.
Steven Hu is still optimistic about the field of consumption. The epidemic has suppressed consumption in a short period of time, but it will be released afterward, because demand in the tourism and catering industry etc. is always there. Yet, online shopping during the epidemic is in surging demand. He believes that the epidemic may bring permanent changes to people ’s lifestyle and drive new form of business such as unmanned retail and online fresh food delivery, which will become a more acceptable way of life as people are trying reduce physical contact. These are fields of play that might need to burn up money in a long run; however, the soaring demand exploded during this particular time may push their growth even faster.
Steven also expressed that when deploying realms of investment, INCE Capital sees lots of potential in business innovation driven by technology. INCE Capital has also invested in companies that run live stream e-commerce business which, Steven believes, will continue to exist in the industry in the post-epidemic era even if its popularity may drop moderately. Still it will lead the trend in China. In terms of the field of online education that INCE invested, he believes that education, though regarded as a virtual item, also falls on the category of consumption because the behavior of its users is similar to that of consumption In China, education is still a frequently consumed product.
View the video here: