Hai Lan'S Home Revenue Increased By 10%. Lin Renewal Really Saved It?

Entertainment marketing is bound to cost more and more costs, and this investment layout will inevitably make people worry about whether Hai Lan's home is changing its brand image. Before the success of the pformation, it will be overstretched because of the high advertising cost.

The French team reclaimed the trophy after 20 years. Vatti's full back advertising was painted overnight, and Lin, who was the spokesman for Vatti, was urged by fans to hand in the movie tickets.

This is not Lin renewal because brand endorsement is the hot topic for the first time.

Last year, Lin updated the latest advertising for Hai Lan's home, so that many netizens were pleasantly surprised. Is this "the home of Hai Lan" for two times a year?

After all, when it comes to Hai Lan's home, most of them still have four Yin Xiaotian in the Bollywood advertisements.

As a result, the former National Men's wear brand has been constantly mockery of the whole network group, and has become the representative of "Tu Wei Guo card".

Lin renewal, like the "savior", has brought a magnificent turn to the home of the territorial sea.

Hai Lan's most popular cold wind at home now explains the high style of luxury blockbusters, highlighting the determination to pform from the 18 line township entrepreneurs to Gao Ding series.

In the past two years, the Hai Lan home group has taken a lead in the head net ensemble, sponsoring the variety show such as "masked singing" and "Mars Intelligence Agency 2", and jointly launching the "Madagascar" movie series derivative products by the Oriental Dream Factory, hoping to achieve the pformation of word of mouth brand through entertainment marketing.

According to the report of Hai Lan home group, sales expenses, including advertising expenses, rose from 1 billion 347 million to 1 billion 549 million from 2015 to 2017, but their performance increased steadily. Total revenue rose from 15 billion 830 million yuan to 18 billion 200 million yuan, and net profit rose from 2 billion 953 million to 3 billion 329 million.

By 2018, Q1's net profit attributable to shareholders of listed companies was 1 billion 130 million.

Beginning in 2016, the Hai Lan home group started a crazy expansion. The number of offline stores including "Hai Lan home", "love rabbit" and other multi line brands reached 5243, and the number increased to 5792 in 2017.

But at the other end, there are frequent "high inventory difficulties" and growth crisis.

In 2015 -2017 and 2018 Q1, the annual revenue of Hai Lan's home was 27.16%, 8.98%, 7.06% and 12.2%, respectively, compared with the same period last year.

According to statistics, in 2017, the 100 enterprises in China's clothing industry "product sales revenue" totaled 657 billion 293 million yuan in sales revenue, up 12.53% over the same period last year, and the growth rate of Hai Lan's home was far lower than that of the entire garment industry.

Behind the thriving report card, the bold entertainment marketing reform means high cost spokesperson and implant investment. Can the brand pformation of Hai Lan home really get substantial results in the new marketing attempt?

Hai Lan's home has been operated on, but it is a pity that palliative care is not effective.

Zhou Jianping, the founder of Hai Lan's home, is very simple about the concept of brand promotion, that is, "celebrity endorser + a large number of advertising".

Therefore, he believes that the effect of TV primetime advertising is also believed that Ye Maozhong's single handedly created the "man only two times a year to visit the home of Hai Lan" advertisement, so that Hai Lan's home can set up a distinct image.

But Ye Maozhong's advertisement has been criticized for "vulgar and earthy", and the "local flavor" has become the label of Hai Lan's home for more than ten years.

In order to break the inherent impression of consumers, Hai Lan home launched a "younger offensive" and chose to cooperate with fashion circles. The first shot was to launch a "limited cooperation" marketing campaign with the designer Xander Zhou.

After the launch of the limited series, the Jingdong platform sold out in a day. At 4 a.m. in Beijing, fashion buyers queued up at haera's home store to greet each other, "did you grab XANDER ZHOU+HLA?"

But what really makes consumers aware of the dramatic changes in Hai Lan's home is the brand new blockbuster made last year by the Chinese advertising queen Xu Shun Ying.

After 3 months of intensive planning, Xu Shunying once again integrated his aesthetic ideology of "ideology" and "post-modernism" into Hai Lan's home advertisement to help Hai Lan's family display its brand style for the first time.

The key gene that Xu Shunying brings to Hai Lan's home is taste, the most indispensable thing of a clothing brand.

This advertisement has brought about a practical sales pformation for the Hai Lan home in the 2017 double eleven marketing war, which was the four in the smoke of smoke, which was ranked the top of the eleven eleven men's clothing with the sales of $400 million.

From Ye Maozhong to Xu Shunying, Hai Lan's home has tasted the sweetness of fashion pformation.

This year, Hai Lan's family invited Chen Shuo, director of tongue tip 2, to view the clothing materials from the microscopic perspective, and create a creative advertising film "scenery King Qian", from subliming the brand style to subliming the brand concept.

From the beginning of Lin's renewal, Hai Lan's family has made great efforts to pform itself. If we throw away the burden of "local flavor", Hai Lan's home is undoubtedly successful.

But apart from changing the brand image and grabbing the attention of young consumers, the action of Hai Lan's home on the product itself can not match the advertising marketing.

According to the visit of the amusement paste in the physical store, the T-shirt in Hai Lan's home has not gained the essential fashion sense, most of which are still basic, and there is no significant improvement in the sense of design.

It's a familiar taste in the home of the sea model in the show.

It seems to be able to see from the advertisement that the forest renewal in the dark blue coat in the autumn is very handsome, but on the summer T - shirt, Yin Xiaotian and Du Chun seem to be improving only the photographer's aesthetic and picture quality.

Moreover, according to statistics, since Hai Lan home group's sponsorship of variety shows in 2014, opening up the layout of entertainment marketing, its advertising expenditure is more than 500 million per year, and has continued to go up, which is 5-10 times that of the seven wolves and nine herds of the same period.

The marketing cost of such a big price can not change the plight of Hai Lan's "light assets and earn traffic" business mode from the root causes, but adds to its burden on marketing cost.

Big step, rapid expansion, brand promotion's ambition and risk

As a local brand, Hai Lan's home has always been dominated by middle-aged and elderly consumer groups.

In 2002, Zhou Jianping, the founder of Japan, was inspired by the UNIQLO model when he visited Japan. He carved the complete range, the price civilian and the supermarket self selected purchase method to the domestic market, and successfully occupied the three or four line city market.

Zhou Jianping also created a "Hai Lan mode".

In view of the upstream credit sale system, most of the production and sales channels are outsourced. The focus of their operation is on brand operation and supply chain management. The downstream part adopts the financial franchise system. Franchisees only need to invest money and do not need to participate in the specific management of the store.

There has been a lot of controversy about its business mode, and inventory risk is the most prominent one.

According to the latest quarterly report released by Hai Lan home in the first quarter of 2018, the total revenue of the group was 5 billion 786 million, and its net profit was 1 billion 131 million. Compared with the same quarter in 2017, it increased by 10.7%, and its profitability remained stable.

Correspondingly, its stock is astonishing.

According to the financial report, inventory was 8 billion 632 million yuan in 2016, and 8 billion 493 million in 2017. Such a huge inventory has brought great risks to its continued increase.

Moreover, this inventory data is much higher than that of peers. According to the data obtained from amusement paste, the inventory of seven wolves was 1 billion 197 million yuan in 2017, and the stock was only 323 million yuan.

To this end, Hai Lan's home had to introduce a new brand of "cheaper clothes" to handle the inventory of Hai Lan's home and resolve the contradiction caused by the shift of inventory risk to suppliers.

But in the past two years, Hai Lan's family has focused its efforts on external expansion, and the problem of high inventory has never been fundamentally solved.

Eager to get rid of the image of "men's Wardrobe" and compete with the international fast fashion brands such as Zara and H&M, Hai Lan's family has launched a multi line brand to expand women's clothing, children's clothing, home and other business markets.

The second controversy brought by the rapid expansion of stores is that brand positioning has long been rooted in Hai Lan's home in the three or four tier cities. The supply chain reaction is not keeping pace with the new slow growth. How can we compete with the international fast fashion brands?

The characteristic of fast fashion brand is "fast".

From product design to rack, Zara takes only 10 days. All stores can do two times a week, and is the only fashion company in the world that can distribute garments to more than 850 stores worldwide in 15 days.

The supply chain of Hai Lan's home management mode can not reach that speed.

The two is "fashion". Zara company nearly 500 "designers", they walk in the famous brand show, collect the latest fashion trend, in less than two weeks, the "trend" from the show to Zara store.

On the other hand, Hai Lan's home is dominated by street stores, and its product design is serious, business style, and lacks "fashion sense" and "personalization". It is dubbed "the wardrobe of an old man".

The mainstream crowd who is more sensitive to fashion is mainly concentrated in the second tier cities. This market is just the short board of Hai Lan's home.

Even though it has opened up online business in recent years, and has developed its own independent APP, it has accounted for less than 6% of its revenue for several consecutive years.

At that time, the dilemma of its pformation.

Another attempt of the sea Lan's family to seize the first tier market is to imitate the Muji model, integrate clothing into home life, and open chain store Heilan Home, changing from clothing brand to lifestyle brand.

In recent years, this market has been divided into cake by various electric business bigwigs. NetEase's strict selection, Taobao's heart election, Mi Jiayou's products and Su Ning poles are typical examples.

These lifestyle brand based on the electricity supplier channels rely on the huge user base and traffic of BAT, strictly control the upstream of the industrial chain, directly connect with the big brand manufacturers, and eliminate the premium and intermediate links of the brand.

Hai Lan's home has no experience in electricity supplier, and the supply chain is not dominant. It's hard to achieve overtake in the curve.

This also reflects from the side that the obstacle of the pformation from the middle to the low end is not only the pformation of brand image, or the creation of a brand-new brand, it can be easily solved.

The misunderstanding of Hai Lan's home lies in the fact that with a series of entertainment marketing, we can gain a firm foothold on the edge of fashion, and hope to win the international fast fashion brand with the rapid expansion.

However, entertainment marketing can not save Hai Lan's home from the "high inventory" and "slow growth". Perhaps the supply chain reform is the key point that Hai Lan's home really needs to solve.

Regardless of the challenge of Hai Lan's home

Whether it is successful or not, it is valuable for us to go out of the comfort zone and arrange for a second tier city to compete for consumers and to carry out the brand reform.

However, when its "light asset mode" promotes the rapid replication of stores, the implementation of the terms of return of unsalable goods can easily lead to the insensitivity of the product platform to the unsalable products, which may ignore the needs of consumers, lax the quality and style of clothing, and affect the real lifeline of the brand.

It is reported that this year Hai Lan's home has closed its largest flagship store in Wangfujing, which seems to give us a signal that behind the rapid expansion of Hai Lan's home, it may not be directly proportional to the advertising benefits of the commercial circle and the proceeds from the stores, so that it can not afford to expand the store's business.

On the other hand, entertainment marketing is bound to cost more and more costs, and this investment layout will inevitably make people worry about whether Hai Lan's home is changing its brand image. Before the success of the pformation, it will be overstretched because of the high advertising cost.

Moreover, marketing is always a terminal strategic means to pass the brand idea and promote the purchase. If the problem of brand production chain can not be solved, the dilemma will always exist.

Entertainment can only improve the brand recognition of Hai Lan's home, and what Hai Lan's family needs to do now is probably to seize the opportunity in the early stage channel game and later channel integration.