Huaqiang Fangte joint venture model of light asset expansion "bombing" marketing to push the brand

2016 is a year worthy of special books for the theme park industry, but the infinite scenery on the surface also makes the theme park bear the doubts of "impetuousness" and "overheating", and the industry urgently needs a real "medical report" as the basis for future development. For this reason, the reporter went to Beijing-Tianjin-Hebei, Pearl River Delta, Yangtze River Delta these three regions and the central and western regions, selected the most representative theme parks for field investigation, for the theme parks standing in the development tuyere period suggestions.

Original title: Huaqiang Fangte marketing weapon after the "light" mode

suddenly like a night spring breeze. 2016 is a year worthy of special books for the theme park industry. Disney is aggressive outside, and there are major strategies of local brands such as Happy Valley, Fangte and Wanda City. It is expected to form a joint attack through rapid expansion and regional layout. However, the infinite scenery on the surface also makes the theme park bear the "impetuous","overheating" and other doubts, and the industry urgently needs a real "physical examination report" as the basis for future development. For this reason, multi-channel reporters went to Beijing-Tianjin-Hebei, Pearl River Delta, Yangtze River Delta these three regions and the central and western regions, selected the most representative theme parks for field investigation, truly reflected the survival status quo of enterprises, but also stood in the development tuyere period theme parks suggestions.

In 2007, Huaqiang Fangte took the first step towards a theme park in Wuhu. Now nine years later, Huaqiang Fangte has embarked on the theme park expansion fast lane. Recently, Huaqiang Fangte revealed to reporters that it will continue to promote the layout of domestic theme parks in a light asset mode. It is estimated that the number of theme parks built in 2020 will reach about 40. This means that in the next four years, the company will open about 20 theme parks, so fast layout speed caused concern. In fact, any company that uses the asset-light model is inseparable from marketing bombing to keep the brand fresh. Huaqiang Fangte's large-scale marketing investment also attracts attention. Huaqiang Fangte can be seen in many entertainment products such as variety shows and network dramas, but the accompanying liabilities and costs have also become problems that must be faced.

On

the expansion speed of domestic theme parks, Huaqiang Fangte is undoubtedly one of the most eye-catching enterprises. In 2007, Huaqiang Fangte opened its first theme park. Nine years later, Huaqiang Fangte has 20 theme parks covering more than ten cities and even overseas expansion in countries such as Iran. It is understood that Huaqiang Fangte will continue to rely on the light asset model in the future to quickly realize a wider range of layout.

In July this year, Huaqiang Fangte's first Datong Fangte Happy World built in authorized investment mode officially opened. Data show that one hundred days after opening, Datong Fangte Happy World has received 530,000 tourists, which is a good report card. Chen Huijun, vice president of Huaqiang Fangte, told reporters that Huaqiang Fangte's light asset model in the development of theme park industry is mainly cooperative investment, authorized investment is only a model under Huaqiang Fangte's light asset expansion, and the future cooperation mode is diversified.

Chen Huijun further explained: "Different light asset models mainly depend on specific project conditions, but also according to local conditions." At the same time, Chen Huijun also revealed that Huaqiang Fangte will continue to promote the layout of domestic theme parks through cooperative investment mode in the future, and it is estimated that the number of theme parks built accumulatively will reach about 40 in 2020.

As far as the layout of Huaqiang Fangte in the whole country is concerned, while expanding the enclosure, Huaqiang Fangte avoids the first-tier cities in the north, Guangzhou and Shenzhen in the construction site of theme parks, but develops in Wuhu, Qingdao, Zhuzhou and other second-and third-tier cities. Its theme parks have formed a tendency to surround the first-tier cities in North China, Central China, Southwest China, Yangtze River Delta and other regions, which is just within the radiation belt of the first-tier cities, forming regional linkage. In addition, Huaqiang Fangte also further penetrated into the domestic hinterland to seize the market. This siting approach will also apply to future expansion plans. It is understood that Huaqiang Fangte is mainly concentrated in coastal developed cities, provincial capitals or municipalities directly under the Central Government, tourist destination cities and historical and cultural cities. Chen Huijun said: "Huaqiang Fangte will avoid the theme park's regional layout is too dense and homogeneous, at the same time will combine the site selection situation to carry out differential construction, so that the theme park forms linkage, increase the stay time of tourists."

Zhang Jinshan, director of the Institute of Tourism Industry Economics of Beijing Union University, believes that Huaqiang Fangte has avoided direct competition with strong brands to a certain extent. "Beijing has Happy Valley and Universal Studios, Shanghai has Disney and so on. In the first-tier cities and these brands compete, Huaqiang Fangte does not necessarily have an advantage. Starting from the strategic development of the enterprise and the domestic theme park market pattern, Huaqiang Fangte is actually a city with market prospects." Taking Wuhu as an example, Zhang Jinshan pointed out that Wuhu is located in the radiation zone of the Yangtze River Delta tourism circle and the source of tourists is guaranteed. At present, Wuhu has also become the city with the most theme parks opened by Huaqiang Fangte.

As

an important part of light asset expansion, Huaqiang Fangte spares no effort in brand construction. In 2016, while developing the original film and television animation IP, Huaqiang Fangte announced the full launch of entertainment marketing. From variety shows to network dramas, from link customization to title linkage, Huaqiang Fangte has gained huge exposure in programs, networks, self-media and terminals. In terms of effectiveness, Huaqiang Fangte can be called "bombing" marketing efforts, which has significantly increased the number of tourists.

In the first half of this year, the fourth season of the well-known variety show "Running Brothers" and the second season of "Extreme Challenge" were broadcast, both of which chose Huaqiang Fangte as the designated theme park. At the same time, Huaqiang Fangte also exclusively named iQiyi self-made online drama "The Best of Us."

The reporter inquired about the Baidu index of Huaqiang Fangte related keywords. The data showed that Huaqiang Fangte, especially Fangte Happy World, ushered in the highest search volume and attention in recent years after the program appeared.

According to Baidu data, during the period from early June to early September 2016, the Baidu index of Fangte Happy World as a whole exceeded several times that of previous years. Among them, the Baidu index of Fangte Happy World reached its peak of 21892 in early June, more than twice the highest data in 2015. And this period of time, just in the variety show broadcast after the summer travel peak. During the National Day holiday, Huaqiang Fangte once again ushered in a search peak.

The results of Huaqiang Fangte's marketing efforts can also be seen in the semi-annual report. According to the data provided in the management discussion and analysis, in the first half of 2016, Huaqiang Fangte's revenue reached 1.435 billion yuan, an increase of 20.59% compared with the same period last year; net profit was 280 million yuan, an increase of 11.9% compared with the same period last year. Among them, the revenue contributed by theme park operation was 643 million yuan, an increase of 23.21% compared with the same period last year.

Chen Huijun said: "At present, Huaqiang Fangte domestic theme park visitors on the whole compared with the same period last year has increased significantly, which is inseparable from the company to increase marketing efforts." In the Beijing Business Daily reporter's on-site visit to Tianjin Fangte Happy World, there is also a tourism-related practitioner said that after the broadcast of "Running Brothers," the number of tourists in the theme park has increased significantly.

At the same time, as one of the few theme parks with original IP in China, Huaqiang Fangte also took pains to build IP. Huaqiang Fangte now owns more than 20 original animation works IP such as Bear Haunting series, as well as original IP of special films such as Hailuowan and Nuwa Butian, theme performing arts projects and IP of Chinese traditional culture re-creation.

"In the future, we will develop new series IP through independent development and cooperation, especially youth business IP." We will also acquire some quality IP." Chen Huijun said,"These IP will be used in the theme park, with a point belt surface to produce drainage effect, to maximize the fan into tourists, to maximize the theme park benefits."

However

, while Huaqiang Fangte continues to expand and invest heavily in marketing, the accompanying risks cannot be ignored. Despite the need to take the road of light asset expansion, Huaqiang Fangte's debt problem still exists. According to Huaqiang Fangte's 2016 semi-annual report, by the end of the reporting period, Huaqiang Fangte's liabilities totaled about RMB 9.419 billion yuan, a decrease of 8.88% compared with the initial period of the report. Although Huaqiang Fangte regards cooperative investment as the main means of expansion, Datong Fangte Happy World, which authorizes investment, can still explain part of the problem.

Yan Yuejin, research director, said: "The authorized investment model can promote rapid brand expansion and achieve the combination of capital and brand effect. But in reality, this pattern may be related to a certain tightness in its funding."

In addition, with Huaqiang Fangte accelerated expansion investment, there have also been uneven profitability in various places. According to the financial information of six important non-wholly owned subsidiaries listed in the 2016 semi-annual report, only two have positive net profits. For example, Hunan Huaqiang Culture Technology Co., Ltd. has a net profit of-26.4 million yuan, and in addition to operating Zhuzhou two theme parks, the company will also be responsible for the operation of Changsha Fangte Theme Park in the future.

It is worth noting that Wei Pengju, president of the Cultural Industry Research Institute of the Central University of Finance and Economics, said in an interview with reporters that Huaqiang Fangte's rapid expansion has certain policy catalysts and inductive factors generated by policy dividends. In the future, government attributes should be weakened to reduce the adverse impact of "government dependence" on enterprise development. However, according to the semi-annual report, in the first half of 2016, Huaqiang Fangte's government subsidy still increased to 153 million yuan.

On the other hand, Yan Yuejin believes: "The promotion of new business will inevitably cost more cash flow, and the key is how to compress the investment cycle." From the actual situation, this kind of business investment itself has a good prospect, and the follow-up key is to actively obtain new financing to ensure that the operation of the project is relatively consistent."

Continue to enhance the attraction of original IP

Tianjin Fangte Happy World is located in Binhai New District, Tianjin City. Although it is a certain distance from the urban area, it is still very convenient to drive there.

When checking review websites, many people said they were influenced by variety shows. However, after actually entering the garden, it was found that original IP such as "Bear Haunting" could be seen everywhere.

In terms of style, the design of Tianjin Fangte Happy World tends to be lively and dreamy, and the appearance of buildings and projects is very suitable for children. The local elements advocated by Huaqiang Fangte are also reflected in the garden. Projects such as the Crystal Palace and the Legend of the West are also prominent in the park, but compared with other traditional exciting amusement projects, the attraction of original IP to tourists needs to be improved.

In addition, some tourists in watching magic castle and other film and television content think, picture quality still needs to be improved. During the tour, the reporter noticed that there are many shops in the park, but many of them are not open. In addition, the reporter went to Halloween, many theme parks have launched Halloween activities, including Tianjin Happy Valley, but Tianjin Fangte Happy World has no relevant action.

Editor: Yvette