2018.04.28 CoStone Capital Views:
In fact, CoStone is one of the first PEs to keep a watchful eye on the M&E investment, ever since the newspapers in 2005. CoStone has been paying great attention to the changes in this realm every single day for decades. From newspapers and broadcasting to the Internet and MICT (Mobile Information Connectivity Technology), CoStone lived the influence of these changes.
Lin Ling: Gen-Z and Consumption Divergence
On April 23-25, 2018, the 12th China Investment Conference Annual Summit hosted by Chinaventure.cn and CVSource and co-organized by Chinaventure Capital was held in Shanghai. Centered on “The Power of Value”, Lin Ling of CoStone Capital stressed in his speech that changes in technology would be a positive signal to the M&E industry. More application would emerge as new technology came into being. Investors would thus focus more on the influence of technology on different channels.
The huge population in China generates different demands, result in different consumer goods and consumption behaviors. It posts a grave challenge to the M&E industry. Platforms like Kwai and Tiktok and contents like online dramas and reality shows are in different shapes. The so-called consumption divergence and difference have birthed new consumption tendency, in which people play a more active role. Gen-Z stands out, quite different from millennials. Instead of shopping online like what millennials do, they live a life online, which will influence investment.
Macro policies and supervision will bring changes to the M&E industry. As the industry is highly linked to policies, the M&E industry is not only driven by profits but also social benefits. In spite of people’s obsession with entertainment products, the M&E industry is more than entertainment which may amuse people to death.
In fact, CoStone is one of the first PEs to keep a watchful eye on the M&E investment, ever since the newspapers in 2005. CoStone has been paying great attention to the changes in this realm every single day for decades. From newspapers and broadcasting to the Internet and MICT (Mobile Information Connectivity Technology), CoStone lived the influence of these changes.
CoStone jumped at the chance to invest the best newspapers and websites and then moved to TV dramas, short videos and online reality shows in the past decade. We keep our rhythm for investment and the projects go smoothly like MeWe Media. We are not necessary to amuse ourselves to death in M&E industry. Instead, we turned to this life short videos company. It can generate quality content and has a profound understanding on we media and the industry. Vancools, a M&E company specialized in online dramas that CoStone invested in, produced a representative Chinese drama, Day and Night, which was on Netflix. It is capable of industrializing products, producing excellent dramas and finding new channels, which leaves things clear for the rise of China’s video-streaming websites.
Above: Excerpt of the keynote speech delivered by Lin Ling in the 12th China Venture Investment Conference Annual Summit. Please refer to the link below to view the speech in full: http://stonevc.com/news_view.aspx?TypeId=4&Id=692&Fid=t2:4:2
Rewritten by: Luo Xinying, Edited by: Du Zhixin, Li Yunzhen
The year 2019 marks the fortieth anniversary of China’s Reform &Opening-Up, once again, we meet at the turning point of history. What’s the next step for the game, is there any clear guidance? The answer is affirmative.
Our country is enjoying a good momentum of development, which does not come from the Washington Consensus nor the Beijing Consensus. China’s experience has proved that both the visible hand and the invisible hand are crucial: the visible hand, stands for the government-led reform, and would yield benefits for reform and opening up; the invisible hand, stands for the Marginal Power represented by the private sector, and would improve economic efficiency and tax collection, create jobs and employment opportunities.
Provided that we want to protect and expand the benefits form reform, three simple but mandatory agreements are to be made and followed: No.1 Private ownership must be recognized, protected and treated equally with public ownership constitutionally, both ownerships are scared and inviolable;No.2 Make further clarification of the principal position of market economy, “deepen economic system reform by centering on the decisive role of the market in allocating resources”, as President Xi addressed in the third Plenary Session of the 18th CPC Central Committee;No.3 Implement the guiding principles of “comprehensively promoting law-based governance” of the fourth plenum. The rule of law is essential for economic growth, irreplaceable to protect private ownership, and necessary to encourage innovation and entrepreneurship.
Above are three rules for us to avoid falling into the Middle-income Trap. Assuming that we are breaking systematic barriers to private enterprises’ participation in market economy, and boosting innovation and entrepreneurship of our society, then we are heading towards a promoting direction. We are marching in the path of light, regardless of the ups and downs of Sino-US relationship, the drop in GDP growth rate, or the monetary policy.
These principals also apply on knowing how better to run a business: don’t be hedged by rules and regulations at the beginning, pay more attention to your survival, and you’ll learn more when you start your second business.
For many years, Huawei has been the only Chinese company on the list of the Top 50 R&D Spenders. Regardless of the economy and its income, what Huawei has been doing is investing in its future, dedicated to R&D, continuously and resolutely. This provisional work underscores Huawei’s accomplishments, making Huawei anindustry leader.
So, there are standard answers on how to run a company,which could be summarized as concentration and professional dedication, continuous investment on innovation and trying harder in R&D. Entrepreneurship is also important, every single company needs entrepreneurs to push aside all obstacles and difficulties, to implement strategies and ideas. We, as investors, are destined to look for such outstanding entrepreneurs and their companies, invest in them and partner with them.
At this key point of history, a country, a company, or asingle individual, will all need to find the right path. Four decades after the Reform and Opening-up, it’s time to learn from our experience and stop “wadding across
