In the dynamic world of venture capital, few players navigate with the unique finesse that defines Baojiehui FundEstablished in 2013, this institution emerges not from the conventional mold of frantic investment rounds or closed-loop operations characteristic of industrial capital but stands as a testament to resilience and strategic foresightAnchored by the Procter & Gamble Alumni Association—hailed as the "Whampoa Military Academy of the consumer industry"—Baojiehui has cultivated exceptional ties with distinguished consumer goods enterprises and industry stakeholders over the past eleven years, forging a distinct survival philosophy.

To date, the fund has managed an impressive portfolio approaching 2 billion yuan, investing in more than 50 projects across the consumer and digital technology sectorsNotably, 70% of these ventures originated from the fund’s independent explorations, unearthing billion-level enterprises like YXG, INTO YOU, usmile, and GOSO from what many perceived as dormant territories in the consumer landscape.

Unlike traditional investment institutions which often follow a linear model of fundraising and deploying capital, Baojiehui has knit a robust ecosystemAt the core of this network are executives from P&G affiliated companies, with entrepreneurs acting as the intricate threads that tie it all togetherThis intricate web fosters unique resource integration and empowering capabilities within the consumer industry.

When competitors flaunt gleaming LP lists during fundraising pitches, Baojiehui diligently hones its model of a "capital + talent + industry resources" trinityThere, alumni seamlessly connect channels from brands like Oulotel and Aikucun with emerging consumer titles, while hundreds of executives from Fortune 500 companies lend their expertise as "external brains" to solve challenges faced by portfolio companies.

One pivotal investment occurred in 2020 when Baojiehui became the first and only institutional investor in YXG

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This partnership guided YXG through challenging periods, such as the times they sold their first bottle of dual grapefruit juice in ChangshanToday, YXG stands as a benchmark enterprise in China's rural revitalization efforts, expanding its horizons across the nation.

In 2022, the fund further demonstrated its prowess by acquiring two brands under Shiseido—Za and PomeiMobilizing industry resources, Baojiehui assisted in swiftly pulling the companies out of the red, ultimately leading to a successful valuation release during the acquisition by Betaining in September 2023.

Behind each investment is a tale of what can only be described as a "non-standard approach," absent from conventional business theory and textbooksAs we stand on the precipice of 2025, with consumer investment rarely discussed among institutional investors, Tian Media's venture capitalists posed a question to Baojiehui’s founding partner, Huang Yong:

Why maintain an investment focus on consumption and technology? Where are the growth points in the consumer sector?

According to Huang, 2024 is shaping up to showcase a consumer market that is paradoxical and intricate.

On one hand, consumers consistently seek high-quality products endowed with emotional value; on the other, the economic backdrop has heightened price sensitivity, prompting ultra-cost-effective products and brand alternatives to dominate the market.

These dynamics manifest in various phenomena—Pinduoduo surpassing Alibaba in market valuation, scratch-off lottery tickets becoming an unconventional caffeine fix for youth, and Ultraman cards captivating the student demographic—all reflecting the shifting currents within the marketplace.

In this multifaceted landscape, the question looms: where lies the growth point for the consumer industry?

Reflecting on the past few years, the investment domain has weathered a journey from fervor to rationality, with the industry generally entering a phase of cost reduction and efficiency enhancement

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Nonetheless, Baojiehui remains steadfast in its belief that "consumption + technology" serves as the central force for navigating economic cyclesTechnology accelerates efficiency, transforming consumption into a smarter experience, while the essential nature of consumer demand helps solidify commercialization cycles for technological innovations.

During this year’s opening meeting, the core logic centered around identifying investment trajectories and focal areas for 2025, continuing to delve deep into the "consumption + technology" narrativeThe highlighting of several niche sectors manifests this vision:

First, the intersection of AI and consumption is set to unveil fresh growth avenuesThe tempo of AI development has far surpassed expectations this yearRepresentations span smart wearables, AI-generated content (AIGC), AI in education, and smart home innovationsAI is no longer a mere technical term; it has effectively permeated the consumer space.

An increasing number of brands are exploring how AI can enhance supply chain dynamics, refine user insights, and innovate in content marketing—a transformation that optimizes operational efficiency and enriches consumer experiences further prompting Baojiehui to focus extensively on identifying AI and consumption integration models with substantial commercial viability.

Second, cultural IP and consumption within the tourism realm offer pathways for emotional value commercializationIf the notion of the "lipstick effect" epitomized consumer psychology during economic downturns, today’s culture is characterized by phenomena such as blind boxes, cards, scratch-offs, and overseas short dramas.

Consumers are driven to seek emotional solace through their purchases, thus brands must find business models that resonate with these emotional valuesThe significance of IP becomes critical in this contextObservations indicate that IP applications are not only growing within the realms of film and gaming but are also rapidly expanding in cultural tourism and offline business scenarios

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A successful IP can catalyze product sales and extend into immersive experiences and cross-industry collaborations.

The focus for 2025 continues to encompass the commercialization of cultural IP, including the rise of overseas short dramas, offline cultural tourism experiences, and collaborations between new consumer brands and IP.

Third, the sectors of food and agricultural technology emerge as promising realms for essentialsWhile the consumer market adjusts, food remains an absolute necessityRecently, agricultural technology and advanced food processing have become hotspots for investmentFrom healthier food ingredients to novel proteins and optimized supply chains, opportunities abound in this spaceWithin the past year, Baojiehui has already celebrated successes in agricultural tech investments, supporting companies with unique raw material advantages in watermelon, corn, and Qingke.

In 2025, the intention remains to deepen agricultural tech investments, seeking enterprises that can simultaneously enhance agricultural productivity and cater to newly emerging consumer demands.

Fourth, brand globalization projects a new vista for most businessesUnquestionably, venturing internationally remains a direction laden with certaintiesThe global market’s appetite for Chinese supply chains is unwavering, revealing significant growth potential across various categoriesWhether through cross-border e-commerce, brand development in emerging markets, or Chinese brands carving out a niche in high-end sectors, the logic of going global becomes increasingly lucid.

In 2025, the focus will pivot towards organizations with supply chain advantages capable of establishing brand premiums abroad while also exploring fresh opportunities that marry AI with globalization endeavors.

Ultimately, Baojiehui's core reflections span far beyond merely identifying investment fields; it increasingly revolves around maximizing investment closureUpholding the philosophy of "enhancing investment success rates while pinpointing exit opportunities," the essence of investment occurs not solely in selecting lanes but in generating value at the post-investment stage

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