Ying Tong Business: Blue Ocean Business Of Movie Derivatives

In 2010, the domestic movie let the bullets fly.

By the end of May this year, he had just set up his own company in Shanghai -- Ying Tong Trading Co., Ltd., specializing in film derivatives.

In just over a month, he signed a cooperation agreement with 12 first-line cinemas in Shanghai, including BELLE, Hong Kong, UME and so on.

In the past, "Ha fan" might have to run around the mall in order to buy a scarf similar to Harry. "Transformers control" had to search for a model shop in the street to buy a desirable combination.

Now, Jiang Han Guang has every reason to give his career a special meaning. He not only wants to move Transformers, The Smurfs and Harry Potter directly into the cinema to get close contact with the audience, but also to develop specialized areas to sell related products and accept on-site orders.

"Not only Chinese, but the world is still strange to this model.

In fact, it's very simple. People often go to toy stores, but the moment when they want to buy these products is just the moment when they just finished watching the movie, this is impulse consumption.

At this stage, as a retail channel, he first needs to contact the distributors directly, strive to authorize the products, then skip hypermarkets and toy stores, and purchase and sell them in the cinema.

His cooperation with cinemas can be divided into three categories, one is divided into no rent, one is divided into additional rent, and some only rent.

"I prefer to divide into patterns. When the interests are tied together, the enthusiasm of both sides is higher naturally."

Every movie theater has a special counter for selling drinks and popcorn, but no one has ever really done the market for derivatives.

Several years ago, Wanda and other cinemas began to try to synchronously sell derivatives in the cinema, but still used the traditional mode, that is, using shelf display.

"It's more like a museum than a store, and the latter is to provide services," he said.

"My employees will see the movie in the training stage, fully understand the plot of the movie and the relationship between the protagonists, and understand the characteristics of the toys, so all the questions of consumers will be answered during the purchase process."

On the other hand, the cooperation between shadow and film investors is also very important.

Taking the global film industry in the United States as a whole, all the brand licensors will gain more than 70% of the profits in the derivatives business, while box office profits will only account for 30%.

They usually think about derivatives before they start filming, and even shoot for derivatives.

"China's film market is very large. The government is now investing in 100 billion scale, and at the same time, it develops at 4 screens per day.

At present, there are less than 2000 cinemas in China, and I think there will be no problem of doubling this figure by 2015.

So the derivatives market is already a huge blue ocean.

In the profit distribution process of Ying Tong, the first is the brand authorizing business. They charge the authorization fee of 10%-15%, and the next is the manufacturer, whose profit depends on the added value of the product; finally, the movie is divided into shadow and cinema.

"And I want to do more than two dealers". Although the entrepreneurial team has not been built for more than a year, their professional level has intervened in the early development of many derivatives.

When Transformers 2 was released in 2009, the sales volume of derivative products in a movie theater in Pudong reached 3 in 3 days.

Roughly calculated, this is equivalent to 10-15 times the sales volume of toy stores in central Shanghai.

If I have a boutique in 200 cinemas, multiplied by 10-15, it is equal to the power of 2000-3000 toy stores.

In the past 20 years, The Smurfs, who will meet the Chinese audience again, has three authorized businesses in China. BOSSINI, China, Europe, PPW, Ying Tong and three have all worked together.

As we all know, the shape of plush toys is the most important.

I dare say that The Smurfs's plush toys are of the highest standard this year.

We stepped in at the stage of product development. For the image design of blue dad, The Smurfs and blue sister, we propose to make a beautiful suit and add a rope that can be hung on the hat.

Ying Tong's proposal was later fed back to the manufacturer. Although the purchase price was 4-5 times that of the past, The Smurfs's "buttocks were warped and his chest was quite good."

"I want them to carry every spectator's imagination, become adults' memories, children's luxury," he said, which is the original intention of his choice to do this job.

The biggest risk of derivatives is that they can't sell. "TOYOTA used the concept of" zero inventory "in that year, and we are a" negative stock "mode.

The rights of suppliers to consign us, we basically have no inventory risk because they can be returned.

At the same time, he also accepted the order mode. "The movie theater space is small, 80 centimeters of The Smurfs may not put a few in the warehouse, but we may sell dozens of items per day.

So we accept orders and send them directly to customers with third party services.

As a result, the processing of goods also has buffer time.

He admits that most of his main competitors are still in Shanzhai, such as privately taking derivative products to discuss cooperation with other brands, or even selling fake and shoddy products.

"What we want to compete is not mode, but innovation.

Each movie is different. Being able to do "Kung Fu Panda" does not mean Transformers can be done.

Domestic film and related industries are not in line with international standards, but many people have been concerned about the deep diamond mine in the movie derivatives market.

When he first came to Shanghai 6 years ago, Jiang Han Guang was still a returnee in Hongkong who could not speak Mandarin.

However, he not only knew that he had become the first person to dig the earth and dig mines, but also understood that the development rhythm of good control was "going smoothly" in some cities. I did not want to expand quickly.

There will be 50 next year, and there should be 200 in three years. "

For him, the most important task at this stage is to integrate resources and establish market rules. In contrast, making money may be a good thing to do.