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Making up a story about a fake demand cannot be solved with money.

There was a big news in the advertising circle recently. Jiaoxia laid off the entire public relations team and merged the marketing department into the sales department.

Let me explain it to those who don’t know much about it. Jiaoxia is a new consumer brand that started out as a sunscreen brand and is now marketing around the concept of “light outdoor”.There is no connection between Bananain and another underwear company except for the same surname. However, both companies are expanding their business scope, both make sun protection clothing, and there is overlap in many products, so it is no wonder that many consumers cannot tell them apart.

Why did this layoff cause such a big stir in the advertising industry, with many people coming out to discuss it?Mainly according to the standards of traditional advertisers, Jiaoxia's marketing team is actually a very good team.The previous "Awakening" produced by Qun Yushan was widely praised in the industry and won many awards. With such a team, it was removed just like that. It's like an ordinary student who sees that the top student in the class who scored 90 points was expelled. The first reaction is definitely anxiety and worry about his own survival.

The layoffs at Jiaoxia are also very simple. They originally wanted to go public, so naturally the louder the better.Whether it is making advertisements like "The Awakening" or spending a lot of money to hire Jay Chou or Yang Mi as spokespeople, the bottom line is to make the capital market believe in the story of "light outdoor".Now that the IPO has failed twice, the financial pressure has increased sharply. The brand department, as a department that spends money, has lost its value for listing, so it was the first to be removed.

This has also triggered controversy in the advertising industry, which has been repeatedly discussed in recent years: Do brands still have value? Does the marketing department have to bear the KPI and be responsible for conversion? Since the story doesn't make sense, is the only way for consumer products to go to Pinduoduo to make white-label products? And so on.

01

I think the biggest problem with new consumer brands like Jiaoxia, especially those in the footwear and apparel industry, is that they tell the wrong story. They use false demands to tell stories, which consumers won’t believe and capital certainly won’t buy into.

How did Banana become so popular?

Jiaoxia first became popular with its 200-yuan sun protection "little black umbrella", and then started selling various sun protection equipment, such as sun protection hats, sun protection clothing, and sun protection sleeves, all at high prices. It just so happens that in recent years, sun protection has been closely linked to the concept of anti-aging, and physical sun protection is a very strong demand. You should have noticed that in the past two summers, there have been more young ladies wrapping themselves up like dumplings on the street. Jiaoxia is a leader in the sun protection field.

But the sunscreen market is still too small, and most importantly, it is very seasonal. No matter how you popularize the fact that ultraviolet rays are present all year round and sun protection work should be done 365 days a year, it cannot change the fact that sunscreen products are only sold well in the summer.

So in 2022, Jiaoxia came up with the concept of "lightweight outdoor".

Probably, after 2019, people's health awareness has increased, and there are more outdoor sports scenes. But traditional outdoor activities, such as climbing a snowy mountain, are too hardcore for ordinary people. Most people just drive a car to the suburbs to hike or camp on weekends.

Their requirements for equipment are not that high. They want it to be light and portable, and can be worn for daily commuting. Sunscreen products like Jiaoxia are very suitable. For example, if you go out fishing, you will definitely not wear a hard shell jacket, but a sun protection suit is very suitable.

Well, at first glance, this story seems quite logical and interesting. It's a good story.

But that’s what brand stories are all about. A story that makes sense is not necessarily an effective story.Most companies tend to equate the two, and even become so obsessed that they get stuck in a quagmire. Because the story makes sense, they believe it more and more. Even if the real market does not accept this story, it is not the problem of the story, but the story has not been fully communicated.

Mainly, the formula of several successful brands in the field of footwear and apparel in recent years is basically the same, which is to transform from functionality to daily use and finally to fashion.

A typical example is Lululemon, which started out as a brand of yoga pants. Because of their comfort, they became the commuting choice for white-collar workers and allowed them to switch seamlessly between the office and the gym. They even entered the men's market because they were so comfortable to wear.

There is also Arc'teryx, which made its mark with its jackets. Although that level of waterproofness is not needed in the city, it was given fashion value by trendsetters and became a luxury product.

It’s no wonder that other brands want to copy our homework. In the past two years, every clothing brand has to get involved in the sports and leisure and outdoor fields.

Lightweight outdoor equipment sounds more promising than sun protection.

02

But the reality is that the sales volume of outdoor products of Jiaoxia has not accounted for a large proportion of its sales share so far. Its best-selling products are still sunscreen products.

In order to shape the concept of "light outdoor", Jiaoxia has spent a lot of money on marketing, but its investment in research and development is not high, and the gross profit margins of many products are above 60%. These factors combined give people the feeling that they are here to tell stories and cut the leeks of the middle class.

The problem is that the concept of lightweight outdoor products is too vague. In this field, if you say you are lightweight, there are all kinds of products from professional players such as Arc'teryx, Kalendar, Patagonia, etc. above, and giants such as Anta, Uniqlo, and Decathlon below. The moat you want to build with great effort turns out to be a ditch that the big guys can easily fill up.

I have always hated the terms consumption upgrading and downgrading. In my opinion, consumption can only keep up with the times.

The most interesting thing about sunscreen is that the people who need it the most are actually the deliverymen, couriers, and workers working outdoors under the scorching sun. But new consumer brands can’t see them. It seems that only white-collar workers who are willing to pay a premium and trendy people on city walks are the only ones worth serving. They try their best to tell this story or that story and create a trend. Once the middle class refuses to be exploited and young people don’t want to pay a premium, they blame the market, the customers, and the downgrade of consumption.

The difficulties of IPOs in recent years have at least awakened some companies. In the consumer industry, it is difficult to create concepts, then spend a lot of money on marketing, and seek to go public in the short term. Brands will not die, only companies that do not conform to the version will die. Making up a story of false demand cannot be made up with money.

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