Brand incubation

A brand incubation platform, also known as a brand incubator, is a professional organisation that can help companies with market research, new product development, brand registration, brand planning and promotion, providing them with systematic brand development and planning and promotion. There are also many quality brand incubation platforms in China and abroad which are able to provide professional and customised services for brands.

-The platform provides professional and customised project services, with dedicated project consultants providing professional guidance, timely resolution of project issues and control of project progress at all times.

-Unique intelligent design model. An intelligent algorithm that helps companies find the design style they want.

-Targeted brand information, covering 500+ shops; cooperation with core offline stores/retailers: Shanghai K11, Beijing Yintai, Hong Kong I.T., fashion group TRENDS BOITE, Guangzhou Yishangmen, D2C, Macau Branco, etc.; cooperation with online platforms: Xiaohongshu, Youxiang, OFASHION, HIGO, Singapore Styletheory, etc.

-The platform accumulates media/stylists/celebrity agents/styling studios and other core circle resources for celebrity/media lending to further promote brand awareness and increase order conversion rates

-Discover potential fashion icons, cultivate long-term cooperation with KOL, regularly shoot high quality scenes for the brand's quarterly new products, provide buyers' shops to drive retail sales, and precisely radiate the fashion clientele faced by the buyers' shops

-Provides participants with an enhanced customer journey, better return on time and a higher return on investment through more choice and a personalised experience. Meet the buyers and suppliers that really matter and make the connections that matter

-Create a year-round platform using digital marketing solutions and rich educational content to drive community, outreach, engagement and connection throughout the year.

Based on the services of brand incubation platforms in the market, Lanxuan has its own set of brand incubation content system, for quality brands, we can provide the following services:

The first point is VC direct investment funds. We cooperate with the largest venture capital institutions in China in terms of management scale, for example, the direct investment scale of 600 billion yuan by High Tide Capital, 330 billion yuan by Deep Venture Capital, 400 billion yuan by IDG Capital, 50 billion yuan by Sequoia Capital China, 50 billion yuan by Junlian Capital, etc. At present, our main investment direction is in large consumer categories, such as beauty, personal care, and The main investment direction is in large consumer categories, such as beauty, personal care, apparel, etc.

The second point is that Lanxuan cooperates with the currently emerging consumer goods collection shops, H.E.A.T, HARMAY, THE COLORIST, etc. There are more than 100 shops in total, with an average monthly sales volume of 20 million RMB+ per shop, which allows brands to open up offline sales channels at a lower cost.

The third point is that we have rich channel resources in the FMCG industry, such as department stores, Wangfujing Department Store, Yintai Department Store, New World Department Store, supermarket chains, China Resources Vanguard, RT-Mart, Beijing Hualian Group, Wumai, and Yonghui, 50,000 small shops nationwide, and more than 700 regional distribution agencies, and in terms of e-commerce platforms, we have Jingdong, Tmall, and TIKTOK, etc. In addition, we have the resources of duty-free shops, which can carry out efficient business linkage.

The fourth point is that we successfully manage and operate 300+ international brands, all of which have achieved quality results in China. Examples include AHAVA, IPSA, DKNY, etc.

In addition, Lanxuan will also ask the brand some questions, which is also the criteria for Lanxuan to select the brand, a total of four parts. The first part is the team, the annual experience of the founders and the percentage of shareholding; the second part is the product, who are the users? What is the product offered? What is the point of attraction for the user? The third part, data, MVP data; description of the acquisition model; what is the number of paid users? What is the number of repeat users? The fourth part, price, valuation of the round? How much equity was offered? Description of the current profit model; monthly revenue and profit?

CASE STUDY

AHAVA

The first brand is the Israeli skincare brand AHAVA, which was founded in 1998 and is a unique and precious national high-tech product of Israel. In 2015, China's Fosun Group acquired 100% of AHAVA's shares, registered its trademark in China in 2016 and officially entered the country. Since 2017 AHAVA has grown its global sales by more than 15% every year and has opened its first offline shop in Shanghai K11 Art Mall. In 2019, AHAVA achieved revenue of RMB455 million and net profit of RMB18 million, at which point Lanxuan helped AHAVA make strategic adjustments to its brand positioning, product design, and marketing strategy. In terms of offline strategy, AHAVA opened six offline brand shops in first-tier cities such as Shanghai, Beijing and Nanjing in order to maintain high-frequency interaction with consumers. In terms of online strategy, based on the offline brand shops and spa shops, AHAVA looked for more quality beauty bloggers and KOLs online to popularise the brand history and product efficacy. In May 2020, AHAVA announced its first beauty spokesperson, Ji Ke Junyi, and combined with the Tmall single brand day, the single day sales were nearly AHAVA has made a leap from the niche to the forefront of the industry in just 3 years.

AHAVA.png

Perfect 倍加洁

The second brand is Perfect, the first oral care company to go public in China. In the face of the changing Chinese market, Lanxuan helped Perfect to open up e-commerce channels, opening brand flagship shops in Jingdong and Tmall, and in 2012 Perfect's Tmall flagship shop was opened. After 10 years of operation, the flagship shop has grown from 0 to 105,000 followers and its popularity continues to grow. The average annual growth rate of the Tmall flagship shop has been growing steadily since its opening. In February 2022, the monthly sales of a range of products in the Tmall flagship shop were 1,000+ and the sales of the best-selling single product were 6,000+. In 2021, Perfect was officially listed on Xiaohongshu, a channel that has also boosted sales for Perfect products through content marketing on the Xiaohongshu platform. In the same year, Perfect also entered the TIKTOK platform and opened an official flagship shop, cooperating with many bloggers with millions of followers. The exposure of its products on the platform exceeded 10 million, and after the announcement of Liu Yuxin as the spokesperson, the number of likes and comments on the relevant brand topics reached tens of thousands from double digits at the beginning.

perfect.jpg

DKNY(唐可娜儿)

The third brand is DKNY, which was founded in 1989 and is an avant-garde, fashionable and casual fashion brand. It was officially registered in China in March 1991, and in late October 2007, DKNY's first shop in China was located in CITIC Pacific Plaza in Shanghai. In 2017 it entered Weibo and currently has 142,000 followers. In early 2019 DKNY officially entered Jingdong and opened a brand flagship shop, which was also operated by Lan Xuan and reached 64,000 followers, with sales of US$3.2 billion that year, an increase of 3%. In 2020 it opened a Tmall flagship shop with 17.7w followers, and in late 2021 it opened a TIKTOK account, which currently has 30 works, with 3.1w followers, and no official account for Xiaohongshu, which is counted as having 1,746 related notes. After the design of the brand logo as well as the brand efficacy, the brand image has been enhanced. There are currently 36 offline physical shops and they are all in first and second tier cities, with a history of more than 20 years in China and a certain level of awareness for specific groups of people, most of whom have a high appreciation for the environment of the shops, the variety of products, the richness of colours and the more trendy styles.