How do you view the high premium paid by celebrities for branding?

Ouyang Nana’s first stop in “going to the sea” was scolded and became a hot search topic. On November 30, Ouyang Nana’s own brand appeared on the hot search list due to its high price and low cost. Many netizens said that "the price is too expensive and they can't afford it", "if there is no work, they are just cutting leeks" and "they are specifically trying to steal money from fans". Judging from the attention in the entertainment industry, although Ouyang Nana is not a big hit, she is still very popular, with tens of millions of Weibo fans.

Industry insiders said that when high traffic becomes the key to monetization, it is not uncommon for celebrities to go to the sea to make money. In addition to attracting attention with high traffic, celebrity-created brands also need strong product support to be competitive, otherwise they will be eliminated by the market.

High premium to “catch gold”

With the support of high traffic, celebrities all want to do business. On November 30, the entry “Ouyang Nana brand 988 yuan bathrobe costs less than 100 yuan” was on the Weibo hot search.

A few days ago, Ouyang Nana launched her own brand "nabi" and successively opened accounts on WeChat mini programs, Xiaohongshu, Weibo and other platforms. The "Yunduo Capsule Series" was officially launched on November 22, with 8 items, including bathrobes for 988 yuan, pajamas for 988 yuan, scarves for 388 yuan, socks for 168 yuan, etc.

It is understood that the company associated with the "nabi" brand is Shanghai Nabi Culture Technology Co., Ltd., which was established in August 2022. It is worth noting that the brand was on the hot search list because of its high price the day before it was launched. Many netizens complained that the price was too expensive. The first stop for Ouyang Nana's own brand was not smooth.

In fact, there are many cases where celebrities use their high attention to build brands. Previously, well-known singer Wang Jiaer’s company “Team Wang” launched several sets of Halloween-themed home products, including a ghost-shaped candle holder priced at 24,800 yuan, a pumpkin ghost rocking chair priced at 29,800 yuan, and a ghost expression carpet priced at 980 yuan. Idol star Huang Minghao also launched the trendy brand TWOEX2 in 2020. The product prices range from 500 yuan to 1,000 yuan, of which an ordinary T-shirt costs more than 500 yuan.

Although many netizens complained that it was too expensive and the product was not worth the price. But complaints are complaints, and the purchasing power of fans is not weak. According to the sales of the "nabi" WeChat mini program, many products under the "nabi" brand have been sold out; nearly 750 people have paid for T-shirts priced over 500 yuan in Huang Minghao's trendy brand store. Wang Jiaer’s candlesticks, which cost more than 20,000 yuan, were also sold out as soon as they were launched.

Wu Daiqi, CEO of Shenzhen Siqisheng Company, said that any company or brand has its own independent pricing power, and celebrities’ own brands have certain advantages, such as fashion resources, fan groups, and popularity. Although product pricing power is an enterprise's autonomy, brands and pricing that can comply with the laws of market economy can survive, otherwise they may be gradually eliminated by the market. Celebrity-created brands are priced high, perhaps based on multiple considerations such as strong appeal to fans and building brand power. However, whether they can succeed requires an answer from the market.

“It is normal for celebrities to make money by relying on their traffic, and it is also in line with the objective laws of market development. Traffic stars use their own traffic to monetize their traffic, and high premiums are the process of rapid monetization, but there are also factors behind this There are certain problems," added Jiang Han, a senior researcher at Pangu Think Tank.

What is left after excluding the traffic

For a time, as public opinion fermented, how much of the product itself can account for star brands with high premiums was also called into question.

In the opinion of the industry, the pricing of celebrities' own brands is too high, which is related to the celebrity's appearance rate and traffic. The higher the appearance rate and traffic, the higher the pricing. But relying on the fan effect to make money will not make a brand go far in the long run.

Ouyang Nana has more than 20 million fans on Weibo, and her Weibo topic "Nana's vlog" has been read more than 2.5 billion times; on Xiaohongshu, Ouyang Nana has more than 8 million fans. . Huang Minghao has more than 25 million Weibo fans, and his trendy brand attracted 140,000 fans when he launched 9 products; Wang Jiaer has 30 million+ Weibo fans.

With tens of millions of attention, a top figure in the entertainment industry, the star power behind the product is as good as anyone’s. However, regardless of the high premium behind the high traffic, it is difficult to guarantee the product itself. .

Xiao Jiang, who has been working in the clothing industry for many years, said that close-fitting clothing like bathrobes are mainly comfortable and skin-friendly. Good and expensive nightgowns should be 100% combed cotton and absorb moisture. It is skin-friendly. Five-star hotels generally use this kind of material, and the price rarely exceeds three digits. The bathrobes of Ouyang Nana's own brand are made of 86% polyester, 13% viscose, and 1% spandex, which is obviously not suitable for bathrobes. Polyester fiber is also called polyester. Its advantages are that it is strong and wrinkle-resistant. Its disadvantages are that it is stuffy, airtight, non-hygroscopic, prone to pilling, has poor dyeability, and is not suitable for close-fitting wear.

According to media reports, the cost of a polyester fiber bathrobe is about 50 yuan per piece. Including the logo and OEM fees, the cost is only 100 yuan. With the high traffic of celebrities, it has reached nearly ten times. of premium.

Look at Zhang Ting’s Tingmi skin care products, which sell for 100 yuan, but some products cost less than 10 yuan. It is also a premium level of more than ten times. At the same time, many consumers have reported that they have sore faces and allergies after using Tingmi. Although Wang Jiaer's Christmas series of home products have certain design elements, the price of more than 20,000 yuan is mostly reflected by consumers that the product itself does not match the price.

Jiang Han said that if a star's own brand does not have sufficient product quality based on celebrity traffic alone, it will be difficult to last long and it will be eliminated by the market sooner or later. Even if a celebrity's product has a premium, it must comply with market norms and the overall development logic of the market.

It is understood that when Huang Minghao’s trendy brand TWOEX2 was launched, many consumers questioned it as expensive and not cost-effective. In January this year, Huang Minghao’s fashion brand closed its Tmall, Taobao and Douyin stores. Zhang Ting's court secret was that he was accused of pyramid schemes and was brought to court.

“For celebrities to build a good personal brand, they not only need strong business capabilities and strong influence, but also need products that are professional enough and of good enough quality to be competitive in today’s consumer market. Otherwise, they will only be Market elimination."