Summary of Key Points
This report delves into the latest strategy of the once-popular internet celebrity sunscreen brand, Jiaoxia. Over the past two years, Jiaoxia has actively "disappeared from the public eye," cutting back on its brand department, ending partnerships with major endorsers, and reducing large-scale advertising spending. Instead, it has reoriented its resources towards expanding product categories and expanding distribution channels. In less than three years, the number of its physical stores has increased from 300 to nearly 900, and its product range has expanded from the initial "small black umbrella" priced at 200 yuan to include sunscreen clothing, jackets, underwear, thermos cups, and home wear, among nearly 20 other categories. The brand aims to transform from a sole sunscreen brand into a consumer goods brand that covers all everyday light outdoor and lifestyle scenarios. This shift reflects Jiaoxia's pragmatic approach of "not chasing the latest trends but focusing on survival" amidst competition in the sunscreen market and its inability to establish a strong presence in the professional outdoor sector. It has become a typical example for other consumer brands that have thrived on traffic-driven growth.
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Detailed Analysis
1. Jiaoxia's "quietness" does not mean failure; it's a change in approach
Many people have noticed a decrease in Jiaoxia's advertising and new endorsements, leading them to assume the brand is in trouble. However, this is because Jiaoxia has abandoned its previous "internet celebrity-driven" strategy. A few years ago, Jiaoxia was known for its aggressive marketing efforts, spending 1.1 billion yuan on advertising in 2021, accounting for nearly half of its annual revenue. It collaborated with thousands of KOLs across various platforms and hired celebrities like Jay Chou and Yang Yang, producing three high-quality promotional videos that relied entirely on traffic to boost brand awareness. Now, Jiaoxia has eliminated its brand department and stopped spending heavily on top-tier endorsers. Its "sunscreen recommenders" are small bloggers, and all promotional content is directly linked to product sales in live streaming sessions, with no waste on superficial brand building. In other words, while it used to focus on making itself known to consumers, it now focuses on making its products easily accessible to them, shifting from a traffic-driven to a sales-driven model.
2. Jiaoxia's expansion beyond sunscreens is not out of greed but necessity
Critics accuse Jiaoxia of diversifying into unrelated categories, questioning its focus on sunscreens. However, the barrier to entering the sunscreen market is relatively low, as products with an UPF value of 40 or higher are considered qualified. Jiaoxia's patents mainly relate to the design of umbrella patterns and clothing styles, lacking core防晒 technologies that set it apart. As a result, brands like Decathlon, Luotuo, and even smaller manufacturers produce similar sunscreen clothing at lower prices. Additionally, Jiaoxia's attempts to enter the professional outdoor market were unsuccessful, as its jackets failed to compete with those from established brands like Decathlon, Berghaus, and North Face in terms of functionality and price. With no clear advantages in either market, Jiaoxia had to adopt a strategy of expanding into multiple categories. Since many consumers have a positive impression of the brand's sunscreen products, it entered adjacent markets such as underwear and backpacks, leveraging existing brand recognition to generate revenue in various daily scenarios.
3. Doubling store numbers in three years: Jiaoxia is on the right track
Jiaoxia has rapidly opened new physical stores and launched specialized flagship stores for different product categories online, even participating in Meituan's flash sales. This strategy reflects the new consumer landscape where product quality and price differences are minimal. By being more accessible to consumers, Jiaoxia has increased sales conversion rates. Although most of its revenue previously came from online sales, it now has a physical presence in shopping malls and various online platforms, making it easier for customers to purchase its products. However, this expansion comes with challenges: most physical stores rely on sales to cover costs, and managing a large network of franchise stores can be challenging. Moreover, some customers have reported issues with the quality of Jiaoxia's products, which could undermine the brand's reputation.
4. Jiaoxia's approach to marketing sets an example for other brands
By reducing advertising and focusing on physical stores, Jiaoxia has found a practical solution to the common dilemma of brands that rely on short-lived trends. Many brands that surged to fame through traffic-driven growth faced a surge in competitors after the trend faded, leading to thin profits. Continuing to spend heavily on advertising only exacerbated losses. Jiaoxia, instead, has prioritized direct sales channels, ensuring a steady cash flow. The current consumer market no longer relies on a single hit product or marketing campaign for long-term success. Jiaoxia's approach suggests that brands should focus on providing products that meet consumers' needs in all daily scenarios, rather than chasing fleeting trends.