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A company that started out with a brand actually gave up on the brand? Recently, there was news that the lightweight outdoor brand Jiaoxia has recently made internal adjustments, abolished the brand department, all public relations employees have resigned, and the marketing department has been merged into the sales department.

Some people believe that the organizational adjustment of Jiaoxia may be related to the unsuccessful progress of the IPO. Jiaoxia started out as a sun umbrella and made some popular products in the sun protection field. Today, Jiaoxia's product line has expanded to multiple categories such as sun protection clothing and sun protection masks.

As a leading company of new consumer brands that were popular a few years ago, Jiaoxia is a leader in the sunscreen category. In April 2022, it first submitted its prospectus to the Hong Kong Stock Exchange. After it expired, Jiaoxia submitted its prospectus again in October 2022. But since then, there has been no further news on Jiaoxia's road to listing.

After two failed IPO attempts, Jiaoxia has not updated its prospectus. Some analysts believe that the difficulty in advancing the IPO process of Jiaoxia may be due to its insufficient research and development and excessive marketing investment.

As a DTC brand, Jiaoxia has invested heavily in marketing expenses, using top influencers such as Li Jiaqi to promote products, cooperating with thousands of KOLs in half a year, and using social media platforms and e-commerce live broadcasts to increase its popularity. The prospectus shows that nearly half of Jiaoxia's revenue is spent on marketing, of which advertising investment accounts for a quarter.

In addition to the lack of research and development, the prospectus of Jiaoxia also mentioned that it did not build its own factory, but adopted the OEM model, that is, the manufacturer produced according to the design and instructions of Jiaoxia, and for the raw materials used in some products, Jiaoxia required the manufacturer to purchase them according to the specifications. This undoubtedly buried hidden dangers for its quality.

For a new consumer brand like Jiaoxia that focuses on marketing, the importance of the brand department is self-evident. Now that it has been revealed that it has laid off employees, it can be seen that Jiaoxia is facing both defensive pressure and offensive difficulties.

Therefore, the failure of the IPO and the subsequent layoffs may be an opportunity for Jiaoxia to re-examine its development strategy and return to the essence of its products. Next, how will Jiaoxia balance the relationship between short-term interests and long-term development, and handle the proportion of marketing investment and R&D innovation? Daily Financial Report will continue to pay attention.