Inman CEO Fang Jianhua bombards traditional brand profits with suspected acquisition

March 4 news, Inman CEO Fang Jianhua suddenly high-profile bombing of traditional brands yesterday, saying that "the profitability of the brand real estate model has disappeared, to remove the huge profits in order to save the traditional brand," and pointed out that excessive marketing led to the development, resulting in a brand "Internal guilty". Contact Inman had previously revealed that he would absorb the traditional brand under the line, or pave the way for the next acquisition.

Fang Jianhua bluntly stated that it is unfavorable to reflect on the “touch net” of traditional brands. The etiology is that the traditional traditional retail ecology runs counter to the nature of the Internet. The entire traditional retail chain of profiteering relies on brand support, so that consumers can not enjoy the cost-effective surprises.

“The brands under the line take the channel regional agency model, the traditional brand from the brand to the consumer, after the provincial agency, municipal agency, county agency and then to the store, plus the first-tier city shopping mall deduction 25-30% , 30 square meters or so pavement rent is greater than 500,000 / month, fell into the hands of consumers have been added several heavy profits; count overwhelming advertising, offline brand increase rate of at least 6-8 times, more than ten times more , luxury goods even up to several times."

On the other hand, Fang Jianhua abandons traditional brands by relying on crazy advertisements to make a position, and sells high prices to make profits. This kind of ridiculous marketing method is spreading to Internet brands. “Now it's an internet brand starting price of at least 100 million yuan. It's not that the brand's advertising costs are high, but the cost of the product's cost-effectiveness is increased. Just looking for a factory, you can make a product. Burning money and advertising can make a brand. The time has passed. ."

Fang Jianhua compared the success stories of Apple and Xiaomi's mobile phones and pointed out that the user's digestion of the products is a phased process. Consumers shopping online will experience a brand from the aspects of product quality, logistics, after-sales service, brand proposition, and materials. Push can gradually understand what kind of brands and commodities can be accepted by the Internet.

Fang Jianhua so high-profile bombardment of the traditional brand "profiteering" phenomenon, has also been interpreted by the industry as a result of Inman's acquisition strategy.

“In the early days of the brand, it was a comprehensive rollout of the network and a focus on training strategies to capture the market's commanding heights; the second phase was 'spending money under the moon' to open up branches and leaves; the third phase was an opportunity, integration, and layout.”

It is understood that since 2011, Yinman's product line and product quality have been transformed, gradually extending from a single women's category to women's shoes, accessories, bags and other categories. In the same period, Inman also "still holds a cover" to acquire the personality of Amoy brand early language.

Obviously, Inman is seeking greater development so that it can meet the criteria for listing in the next two to three years. After obtaining the latest capital injections from Alibaba and IDG, the abundant cash flow guarantees that they can achieve their goals by using mergers and acquisitions.

It is reported that Inman is looking for suitable traditional offline brands, and some companies have been extremely close. In the category layout, Inman tends to have original design homes, rattan chairs, bamboo stools, ceramics, and essential oils.

Fang Jianhua stated in the connection with Yibang Power Network that there are two main considerations for Inman's merger and acquisition: one is the originality of product research and development, and the other is to have Internet thinking in business operations. After the acquisition, Inman or the brand will be streamlined and transformed to meet the fine, niche market.