Does the company burn money for branding?

As for the word "burning Money", Internet users should know all about it. The four portals of the year were Infinity scenery, with tens dollars in the Chinese advertising/media industry caused by the earthquake, is the late recognition of the richest "advertisers", but also the representative of the new economy, the achievement of a variety of "burning the money Miracle", as if the internet has led the future economic , traditional businesses like Procter and Gamble have become second-class.

Sometimes things come too fast and then they go faster. With the bursting of the internet bubble, the four major portals through the burning of money although on the "Na City", but because there has been no profit expectations, share prices all the way down, NetEase even to the point of being delisted. The internet's deep understanding of "burning money" has become more profound at this time! After this the entire Internet for the second time into a "low-key" state (the first "low-key" due to the war service), began to emphasize model innovation and the desire for profit, and then appeared the SP and the Internet, under the pressure of shareholders, in order to profit, Internet companies (most of the time are portal types) began the reputation of "corruption", completed from the "Prodigal" to "rogue" change, during this period in addition to SP is the famous "Pay Mailbox" event, there are later virtual currency.

The old upstart into a rogue, how many people are difficult to accept, can be under the monopoly market, in the flesh is not devastated circumstances, netizens are like the frog in warm water is slowly cooked. The ultimate fruit of this wave of internet-burning money is that China has several more listed companies in the city of Na. A group of foreigners share the fruits of China's new economic development, the bosses and employees of these listed companies have harvested "name and profit" and become "part of historical development", but this part of the interests of the Chinese people do not seem to gain much, Because we are "and gifted", and do not care about money!

The second wave of burning money to stir is Taobao! has been adhering to the first wave of internet burning the pain of money "ebay" dare not have money to burn, from the beginning has been in the form of Word-of-mouth in the development, although occupy the Consumer-to-consumer market at that time 98% of the market share, but still follow suit, and finally found a big buyer ebay, priced on billion; Alibaba was set up in the same period is directly gone "Telemarketing + Conference Marketing," the traditional old road, using "a small boss to eat a meal of the money can sell your goods to the United States (the World)," a routine, with nearly 8 years of time to obtain the second wave of capital to burn money. So 300 million of the investment Taobao embarked on the road to burn money, until the Alibaba burned "Yahoo and Japan soft silver" children, again staged the first wave of the end of the money, we won the "reputation and small profits", the capital again to obtain long-term stability of the absolute "big profit"! At this point, China's best flow and profitability of the Internet companies are all foreign children!

The second wave of the burning of the money Taobao although not listed, can solve the "fake" problem, the listing has been a certainty. After all, the six months of sustainable profitability to the capital market are easy for Taobao today. Thus, Taobao, which burned so much money, became "low-key".

The third wave of the burning of the Lord began to go up and down, that is, the main players! In the e-commerce industry for more than 7 years, now one is asked to "burn money" will be very cautious, including the current operation of the show car network Car Boutique mall CEO (My direct boss) will always have this doubt, I am afraid I can not very well grasp the "investment" and "Burn Money" difference, carelessly a lot of money to "burn" No!

Where's the burn money? Basically, which industry is burned in the promotion of more, the more light mode of the company the more so (heavy and light manufacturing is burned on the equipment). Just why burn the money?

In the traditional enterprise, burning this money I want to build is "brand threshold", to build their own brand, whether it is a service brand or product brand, so you can enter more supermarkets, to obtain higher pricing power and recruit more merchants to join. The purpose is very clear, is "hundred Years", as for the listing or find the wind, they did not think, but did not think so urgent, after all, this matter is not "reliable", also not steadfast! The company's 1 billion-year advertising fee in China is aimed more at making its brands more consumer-aware, resulting in more purchases. A random brand of Procter and Gamble is valued at billions of dollars and never worries buyers.

Now we look at the failure of the customer burning money case--ppg,8000 million dollars burned out, PPG this brand auction is not a buyer! Look at the money.

This is to reflect on, if VANCL can not be listed, no money to continue to burn, who will buy this brand? It's a matter of thinking carefully before you burn the money. If you have 10 billion of your hands, it's probably not the bottom of your mind to buy VANCL.

In fact, the term "burning money" instead of "putting in" is a statement that the money is not reliable, the "purpose" is ambiguous, too vague, or even "unreachable: Listing!"