Spring Festival Consumption War | Get together to promote joint brands, casual wear companies seize Spring Festival traffic

Who wouldn’t want to buy clothes with rabbits on them when they go home during the Chinese New Year? A reporter from the Beijing Business Daily learned that brands such as Peacebird, Semir Clothing, and Meibang Clothing have come together to launch a series of clothing for the New Year of the Rabbit. Judging from the sales situation, it is difficult to say that these joint products are significant, and some are even only in double digits. However, when a brand promotes a Spring Festival co-branding that brings far more traffic than sales, it is not difficult to understand why it is necessary to do a co-branding even if the sales are not high.

The Spring Festival of the Year of the Rabbit is approaching, and various clothing brands are gathering together to promote joint models to cut traffic. PEACEBIRD joins hands with Disney to launch a PEACEBIRD Disney Zootopia co-branded series with the theme of “Together, with you”. Balabala, a subsidiary of Semir Clothing, teamed up with paper-cutting artist Chen Fenwan to launch a New Year series that combines the Chinese zodiac rabbit with paper-cutting art. Smithsonian Apparel has teamed up with Disney to launch a New Year’s co-branded model with the theme of Mr. White Rabbit in Alice in Wonderland.

Regarding issues related to this new year launch, reporters from Beijing Business Daily conducted interviews with Peacebird and Meibang Apparel, but did not receive any response as of the time of publication.

According to Wu Daiqi, CEO of Shenzhen Siqisheng Company, the Spring Festival is a traditional festival that consumers pay high attention to. It is closely related to the clothing category and is also the peak period for consumer purchasing and consumption. Therefore, companies take the opportunity to launch joint brands. Series is a marketing need, and it can also be used to increase popularity and increase sales.

“Companies rely on traditional Spring Festival marketing, which is not just a marketing behavior, but also the key to improving brand power. Catering to users’ needs such as scenarios, beliefs, and cultural experiences can not only enhance brand power, but also improve sales and services. Strength, kill two birds with one stone.” Cheng Weixiong, an independent analyst of China’s footwear and apparel industry, added.

It is worth mentioning that from the perspective of sales, the “heated” competition among brands to jointly launch new products is not reflected in sales. Sales data from Taobao’s official flagship store show that the number of people paying for various Disney co-branded models of PEACEBIRD is only in double digits. The number of people paying for various products in the Balabala Year of the Rabbit New Year series is around 200, and the highest number of people paying for a single product is 1,000+. The number of people paying for various co-branded models of Meibang Apparel is around 400.

From the perspective of industry insiders, relying on traditional holiday hot-button marketing may not necessarily have immediate results in terms of sales or performance. However, compared to the actual sales brought by the Spring Festival co-branded models, the traffic and attention brought by the traditional Spring Festival may be more important to the brand.

It is understood that the Weibo entries of the PEACEBIRD Disney Zootopia co-branded series have been read 1.768 million times, and the PEACEBIRD Disney co-branded Little Red Book recommended notes are 3,900+; the entries of Metersbonwe’s 2023 New Year White Rabbit series have been read over 10,000 times. ; Balabala’s “TU Breaks Imagination” Weibo entry has been read 14.769 million times in total.

In fact, when it comes to the benefits of co-branding, PEACEBIRD knows it best. Previously, crazy collaborations once became synonymous with PEACEBIRD. Throughout 2020 alone, Peacebird has jointly launched more than 50 IPs to attract young consumer groups. Although Peacebird did not disclose the specific contribution of the joint brand promotion strategy to performance, Peacebird’s performance growth in 2020 against the trend has benefited to a certain extent from the promotion of this frequent joint brand strategy. At the same time, the growth of Semir Apparel’s performance in 2021 is also affected to a certain extent by its development strategy of frequent co-branding with national fashion elements. In recent years, Semir Clothing has successively launched co-branded models such as the Shaolin Temple series, the Forbidden City·Baoyun Tower, the National Furious, and the Pinyin series.

However, in Wu Daiqi’s view, it is a need for competition and business development for brands to use popular festivals to carry out marketing activities. However, there are situations where companies may give up profits or need to invest more marketing resources, but even so companies It is also impossible to give up the marketing opportunities of these New Years.

It is undeniable that popular co-branded IPs can indeed obtain good traffic with the help of traditional festival marketing, but whether this traffic can be monetized at an equal value or even become the password for continued growth of corporate performance still needs to be questioned.

Financial report data shows that in the first three quarters of 2022, Peacebird’s revenue fell by 16%, and its net profit fell by 72.45%; Semir Clothing’s revenue fell by 10.76%, and its net profit fell by 71.21%; Meibang Clothing lost 759 million yuan. At the same time, due to crazy marketing, PEACEBIRD’s “sales expenses will be 30 times the R&D expenses” in the first half of 2022 were once criticized by the industry.

“Excessive marketing to gain traffic will eventually erode profits, and may also be becoming a problem faced by various casual clothing companies.” Industry insiders said.

AAA

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