2016 Luxe.Co Annual Event: An Unusual Feast for Fashion Entrepreneurs and Investors

On 18 November 2016, the ‘Luxe Grand Celebration’ was held in Beijing Yintai Centre. This multi-faceted event included the Luxe.CO Global Fashion Innovation and Investment Forum, the InnoBrand 2016 Fashion.VC Innovation Competition Finals and the InnoBrand Fashion Exhibition—‘In the eyes of fashion’, as well as a Luxe reception.

The event attracted over 500 elites, including representatives from renowned investment organisations, industry capitalists, major clothing companies, start-ups, commercial retail enterprises, Internet giants, and designers, artists and journalists. As the most influential media source on fashion and business in China, Luxe.CO crosses the borders between fashion, finance and technology, and bridges the gap between entrepreneurs and investors in the fashion and lifestyle industries.

With a professional, multi-disciplinary, progressive and pioneering spirit, and a global view, this year’s Luxe.CO Global Fashion Innovation and Investment Forum comprised eight round-table forums and a keynote speech, covering topics on venture capital; private equity funds; how industry capital can seize investment opportunities in the fashion industry; how women have driven the upgrading of consumption; the cross-overs in technology, sports and fashion; and Chinese designers’ brand development strategies, all of which are among the most topical issues in the field.

After seven national preliminary rounds, in the finals of the InnoBrand 2016 Fashion.VC Innovation Competition, the final 25 brands out of the initial 90 contestants were on show. In the end, Discovery Adventures Moganshan Park won the top prize, while Zhizao and WEI Retreat came second and third respectively.

Luxe.CO Global Fashion Innovation and Investment Forum

Keynote Speech: Luxe Observes 2016—the Latest Trends in Fashion Investment and Acquisition

Speaker: Alicia Yu, Luxe.CO | Founder of Fashion.VC

Ever since its establishment, Luxe.CO has focused on innovation in the global fashion and lifestyle industries as well as on the latest investment trends, and therefore it has accumulated a rich database and a comprehensive range of case studies. Ms Alicia Yu started by taking a look at the four most representative investment cases in the fashion industry in 2016. She analysed the strategies used by two international brands to achieve transformations while extending their global market share via acquisition, and revealed the investment and acquisition opportunities on offer in the fashion industry, their challenges and the latest trends. She also shared with the audience Luxe.CO’s latest data on investment in Chinese fashion, as well as details about the development of Chinese designer brands. She made the projection that in three to five years’ time we will be entering a golden age for the rapid growth of Chinese start-up fashion brands, fuelled by capital investment. 

The role of venture capital and industry capital in emerging consumption areas

Round-table Forum: How to discover outstanding fashion projects as young investors

Participants:

• Xin Wang, IDC Capital, Consumer Goods/Brand Investor
• Momo Chen, Vision Capital, Principal, Early Stage Consumption and Culture Projects
• Hai Huang, FreesFund, Principal, Early Stage Consumption Projects
• Aiming Yang, Chengdian Lianchuang Investment, Founding Partner; Fi Capital, Partner

Mediator: Hong Wu, Legend Capital, Vice-President

Young investors are naturally keen on consumer fashion investment projects since they can easily relate to young consumers. Participants shared their investment strategies in the areas of clothing and food, while diving deep into a discussion on the transformation of the consumer fashion industry due to the benefits of the Internet in terms of communication and supply chains. In the discussion of the discovery of a good project, participants shared their observations through big data analysis, studies of consumer demands, category research and recommendations.

Round-table Forum: Venture Capital Seizing New Opportunities in Fashion

Participants:

• Mengqiu Wang, Crystal Stream, Managing Director
• Yanhua Sun, Eastern Bell Venture Capital, Partner
• Ye Yuan, Ce Yuan Ventures, Managing Partner
• Hongliang Chen, Vision Capital, Partner
• Shunchang Qiao, LeBox Capital, Founding Partner
• Yilong Zhang,Hongdao Capital, Partner

Mediator: Yuan Shen, Fashion.VC, Director of Investment

Through concrete case studies, participants shared how the projects they have chosen to invest in have moved them. These projects are usually built on innovative business models that meet new demands, by founders who are perfectionists when it comes to their products and brands, as well as by a core team with the ability to offer integrated commercial operations. Participants concurred that it is difficult to make investment decisions about consumer brands due to the increasingly personalised tastes of the consumer, and that the ceiling price for a single product has been lowered. In addition, there’s a natural quality to the growth of a brand, which means it takes time for brands to mature. On the other hand, a notable brand can more easily generate capital flow and become a healthy company. In addition, once a brand is established and becomes well known, shrinkage is less likely. The participants believed that there’s a chance in every category to produce a notable brand: the key is to pay attention to the audience and understand consumers’ real needs through frequent interaction.

Round-table Forum: The Cross-over of Investment and Acquisition in the Fashion and Lifestyle Fields

Participants:

• Cen Wang, Sequoia Capital China, Partner
• Yisheng Yan, IDG Capital, Partner
• Chengang Cao, Permira, Chairman and Head of China
• Lin Chen, Yifei Investment, CEO

Mediator: Alicia Yu, Luxe.CO, Founder

How should we view ‘cross-border investments and acquisition in the fashion and lifestyle fields’? Can established Chinese brands achieve the next step of growth through acquisition? What’s the difference between the investment environments and brands in China and abroad, and the maturity levels of professional managers? How could these differences affect investment organisations? What kinds of entrepreneurs and teams do investors favour? How should the structure of a deal be designed? Is it best to be a minor shareholder or a controlling shareholder? Mr Cen Wang, Partner of Sequoia Capital China; Ms Yisheng Yan, partner of IDG Capital; and Mr Lin Chen, CEO of Yifei Investment shared their years of practical experience. Permira’s Chairman and Head of China, Mr Chengang Cao, who was abroad at the time, shared Permira’s investment strategies and classic case studies via video.

Round-table Forum: Industry Capital’s Role in the New Consumption Fields

Participants:

• Guoxin Yin, Chenfeng Group, CEO
• Yi Xiao, Strategic Investment Department, New Hope Group, General Manager
• Shaodong Yang, Fusun Kinzon Capital, Managing Director

Mediator: Alicia Yu, Luxe.CO, Founder

The loyal readership of Luxe.CO not only includes investors from venture capital and private equity funds, and entrepreneurs of fashion and lifestyle brands, but also a group of corporate senior executives. The journey to growth for new consumer brands can be long and winding: as well as financial capital, which can provide support, industry capital is another important force that cannot be ignored. Mr Guoxin Yin of Chenfeng Group, which has deep roots in the textile industry, offered a careful analysis of the pain points of the current situation where designers found and operate brands. He shared with the audience the insights of Chenfeng Group regarding supporting the development of designer brands, and made a suggestion to designers that was very much to the point, ‘be sure to make the products competitive’.

‘Fashion+’, a New Pair of Wings for the Fashion Industry

Round-table Forum: Fashion + Technology, Opportunities and Challenges

Participants:

• Qingwei Mo, ETi Group LED Chip, Deputy CTO, Member of the 1,000 Talents Plan, State Expert
• Gehong Wang, CYPA, Founder
• Jie Min, EasyRetailPro, Founder & CEO
• Zhongsheng Huang, Haomaiyi, CEO

Mediator: Xiaolu Wang, MyDreamPlus, Founder

Technology has changed our lives. Participants shared information about the application of materials technology, big data and AI in the areas of fashion and commerce from their respective fields of expertise. They also shared their vision of how materials technology and fabric will change fashion and our lives. Innovation in technology itself can be hard, but innovation through the application of technology is a topic that every consumer brand should pay close attention to.

Round-table Forum: Fashion + Sports, Riding the New Tide

Participants:

• Sichen Huang, Beetle Sports, Founder; Prestige Angel Investment, Partner
• Xiaohua Li, Bozhongtiancheng Culture Sports Development Company, CEO
• Huali He, Love Tennis, Founder & CEO
• Zhao Wang, Family Wealth Inheritance Centre, CEO
• Michael Zhang, Blue Hawaii Surf, Founder & CEO

Mediator: Yin Zhang, Transcendent Capital, Partner

In the past year, Luxe.CO’s media platform has reported on the many new trends in the convergence of fashion and sport. Policy support, market maturity and new technologies, as well as the entrance of a large amount of capital and entrepreneurs have created a rising tide of sports and outdoors projects with fashion sense. However, it’s not a ‘quick business’. These projects require time to be developed as well. From their respective fields of expertise, the participants shared their experiences of how to discover sports projects with good potential, which cater to the tastes of the new generation of consumers. In addition, they discussed the key elements needed to build successful IP for sports matches, and their personal sporting hobbies.

Classic Round-table Topic—The Power of Women and Chinese Designer Brands

Round-table Forum: The Female Power that is Forcing the Upgrading of Consumption

Participants:

• Moxin Song, Camelia, Founder
• Yingying Zhou, AtoG, Founder & CEO
• Mengyuan Liu, YCLOSET, Founder & CEO
• Haiyin Lin, Renowned Fashion Photographer
• Yu Kang, NetEase Yanxuan, Brand Director

Mediator: Yushan Li, Chuxin Capital, Partner

In the fields of fashion and lifestyle, women are the main consumers. Participants discussed the shopping habits of female consumers, and the characteristics of the shopping environment. In addition, they covered the topics of female consumers’ demands of high-end services, their definition of quality of life, the varying maturity levels of fashion brands’ visual presentations and the many aspects of the future consumption experience. They also compared the relevance of fashion bloggers in China and the US.

Round-table Forum: The Brand Development Strategies of Chinese Designer Brands

Participants:

• Tao Wang, Taoray Wang, Founder & Designer
• Shuai Zhang, Fashion Designer, Renowned Stylist
• Wei Li, Awaylee, Founder
• Seven Oo, One Grey Day， Wool Designer, Founder

Mediator: Qiong Wang, Luxe.CO, Fashion Director

Through Luxe.CO, a group of designers and designer brands with good market appeal has come together. Each of the designers attending this round-table forum discussion has had a unique personal experience before founding their brands. During the discussion they shared insights into how their prior working experience has helped their later careers. Under the grand topic of the commercialisation of design, the designers took part in honest discussions about the influence of social media, new consumption channels and the challenges facing brands in terms of the supply chain. In addition, these designers, who have already built a strong personal IP and accumulated rich resources, suggested that they would continue to focus on product development and providing high quality services.

InnoBrand 2016 Fashion.VC Innovation Competition Finals

This year’s competition attracted applications from nearly 200 brands in the fashion and lifestyle fields, both from within the country and from overseas. Some ninety brands passed the review stage and participated in the preliminary rounds. In September, after the preliminary rounds held in Guangzhou, Changzhou, Shanghai, Hangzhou, Beijing and Chengdu, as well as an online overseas competition, 25 brands had emerged and qualified for the finals of the InnoBrand 2016 Fashion.VC Innovation Competition.

On 18 November, the InnoBrand 2016 Fashion.VC Innovation Competition Finals were held in Conference Hall B as part of the Luxe Grand Ceremony. Twenty-five brands put on their shows while the judging panel made their assessments. The judging was just and transparent.

Regrettably, the president of the judging panel of the InnoBrand 2016 Fashion.VC Innovation Competition, ZhenFund founder Mr Xiaoping Xu, was unable to attend the final. To make up for this, he had recorded a video message to send his blessings to all the contestants.

[youku width="600" height="350"]http://v.youku.com/v_show/id_XMTgyNTY5MDc3Mg==.html[/youku]

As well as prizes for the winner and second and third places, the competition also awarded five other prizes for Product Innovation, Sales Innovation, Business Model Innovation, Public Welfare Innovation and Network Popularity. The winners were as follows:

• Winner: Discover Adventures Moganshan Park
• Second Place: Zhizao
• Third Place: WEI Retreat
• Network Popularity: Knight App
• Product Innovation: Zhizao, Bifu
• Sales Innovation: Viva Nutrition
• Business Model Innovation: Discovery Adventures Moganshan Park, Taste Analytics
• Public Welfare Innovation: Discovery Adventures Moganshan Park, Zhizao, Qin-Life Pads
• Outstanding Awards: abcense, Cindy Soong,Dears, FooMext, in Kids with Line Friends, Souffle Song, the Neverlands, VBros, YIBOYO, Aisha Tarot, Cong, Flying Crab, Lashiguang, Fuju 24 Solar Terms, MS Bonbon Catering, Knight App, Xushi Stir Fried Rice, and Xiyouji

To read a detailed report of the finals, please see Luxe.CO: ‘InnoBrand 2016 Fashion.VC Innovation Competition Finals’ News Express (which contains a complete list of the winners).