New Blind Box, New Consumption

On 11 29, Chang'an Elite Circle partnered with the University of Chicago Booth School of Business Beijing Alumni Association to host a successful "New Blind Boxes, New Consumption" panel discussion at the Chang'an Club. The event brought together numerous venture investors and elite university alumni. Michael Tu, Founding Partner of Fengqiao Capital and early investor in Pop Mart, and Jason Zhao, Chairman of Sizhi Investment, shared deep insights on new consumption investment, brand growth, and global expansion.

The Essence of Investment: Insights from the Pop Mart Case

As a core investor who backed Pop Mart early and accompanied its growth, Tu Zheng deeply dissects the investment logic behind this phenomenon. When first engaging in 2012 and making the initial investment in 2013, Pop Mart operated only two stores yet achieved a valuation of 8000 million—a decision that was not favored by mainstream investors at the time.

He shared that investing boils down to two key factors: first, identifying the right macro trend. At the time, we foresaw huge opportunities in offline experiences and youth-oriented consumption, allowing us to sidestep intense competition in the internet sector. Second, choosing the right team. Founder Wang Ning's deep understanding of the brand, precision in operations, and steady, "quietly strong" leadership were critical to our decision to keep doubling down.

From introducing IPs to launching robot stores and independently curating the BTS convention, Pop Mart's key decisions have consistently reflected a contrarian, innovative mindset. Over more than a decade of meticulous operations, this approach has created an industry milestone: single stores generating $10 million in monthly sales.

Zhao Jinsong shared insights on cross-industry experience by shifting from tech investment to consumer investment. He noted that while both fields share similar logic—prioritizing sector selection and team execution—the consumer sector demands deeper insight into public psychology and emotional value.

Traffic Secrets of New Consumption and Global Opportunities

When asked about Pop Mart's "traffic formula," Tu Zheng stated that the core isn't about forced promotion, but rather "focusing on planting seeds for success and winning before fighting." As a brand that barely spends on sales, Pop Mart's success stems from the emotional value of its products and the international DNA of its IPs.

From Magic to Labubu, IP characters naturally break down cultural barriers. With refined overseas operations, a single Bangkok store achieved 1500 million in monthly sales by the end of 2023, demonstrating the global potential of Chinese consumer brands.

Regarding current new consumption investment trends, Tu Zheng stated that Fengqiao Capital remains focused on early-stage opportunities, prioritizing female and youth consumption in Tier 1 and Tier 2 cities across categories including lingerie, outdoor gear, pet products, and emotional spending. He emphasized that exceptional consumer brands require time to mature and must withstand market scrutiny to achieve strong brand premium.

Unlock the core topics that matter most to investors

During the interactive session, audience members posed questions on topics such as "the logic of emotional consumption amid spending downgrades," "when early-stage startups should seek funding," and "IP lifecycle management." On the debate over spending downgrades, both guests agreed that what's often called a "downgrade" is actually a shift in spending structure. Once basic needs are met, demand for emotional value and community belonging has increased rather than decreased.

For early-stage founders facing fundraising challenges, Tu Zheng advises: "Avoid raising capital whenever possible." Prioritize steady growth through organic cash flow, and bring in investors only when expansion becomes truly necessary. This approach gives founders greater control over their brand's development pace.

Addressing concerns about IP dependency, Zhu Zheng responded that Pop Mart has built a diverse IP portfolio. Its 10-billion-level IPs continue to grow steadily, supported by over 20 mid-sized and small IPs developing consistently—much like a pharmaceutical company's pipeline strategy, ensuring sustained long-term momentum.

Long-term impact of educational journey

As University of Chicago alumni, both guests highlighted how their academic experiences profoundly shaped their investment careers. Zhu Zheng noted that UChicago education didn't provide standard answers but equipped students with foundational tools to "analyze problems based on facts and logic"—a principle that now guides core investment decisions.

Zhao Jinsong believes that the University of Chicago's brand endorsement and open-minded training enabled his transition from engineer to venture capital, emphasizing that the ability to see the essence of things is key to success across fields.

This initiative is another milestone in the Chang'an Alumni Network's mission to connect global top-tier expertise and empower alumni and industry partners. Leveraging 30 years of accumulated experience from the Chang'an Club, we are dedicated to building a platform for deep engagement, knowledge sharing, and innovative collaboration. Moving forward, we will focus on cutting-edge sectors and host more high-quality events to help all stakeholders achieve meaningful value creation.

Thank you to the University of Chicago Booth School of Business Beijing Alumni Association for their excellent organization, to over 20 co-organizing institutions including the University of Pennsylvania Beijing Alumni Association and The Hong Kong University of Science and Technology (HKUST) Beijing Alumni Association for their support, and to our two distinguished speakers for their insightful presentations. We also appreciate all alumni and guests who attended. We look forward to welcoming everyone at the Chang'an Club to witness the continued growth and rise of more Chinese consumer brands!