Cultural Industry Comment: The creative economy, also known as creative industry, innovation economy, creative industry, creative industry, etc., refers to those enterprises that obtain development power from individual creativity, skills and talents, as well as those that develop intellectual property rights Activities that create potential wealth and employment opportunities. This article starts with the difference between the creative industry and other industries. It mainly focuses on creating fashion trends, catering to consumer trends, and creating brand value. Content is king, and one source is used for multiple purposes. It explains the cultural and creative industry, especially Taiwan's cultural creativity, with examples. In addition, the author provides detailed theoretical explanations and examples on the five core methods of cultural and creative brand management that need to be mastered in these categories, which is worth learning and thinking about.
Author: Qiu Zhengsheng, General Manager of Dream Market Co., Ltd., Chairman of Taiwan Cultural and Creative Industry Alliance Association
Source: Dream Market
Editor: Wang Yang
Regarding the theme of "Cultural Creativity and Brand Management", we must first talk about it What is more important is the industrial logic of the creative economy. Whether it is the UK talking about the creative industry, the US talking about the entertainment industry, or Taiwan talking about the cultural and creative industries, there are different opinions and definitions from all parties, and each has its own opinion. As a result, everyone quarrels when it comes to the "cultural and creative industry", and there are many different interpretations. Therefore, this article will not talk from the perspective of industry classification (EX: advertising, publishing, visual arts industry), but from the perspective of "What is the difference between the creative industry and other industries? What are the mental methods to master in these categories?" To sort it out.
Create popular trends or cater to consumer trends
A big key point in the industrial logic of the creative economy is the MODEL that "creates popular trends" rather than "catering with consumer trends" . Big data is very popular now, such as game creation. Through the verification platform, you can know which ones will sell and which ones will not! Digital marketing accurately grasps consumer habits through big data analysis. In the past, businesses could also collect consumer opinions through questionnaires to know where people like to go shopping, what movies they watch, and whether they like to travel to Southeast Asia or Japan. However, companies that want to pursue the "creative economy" must have a deep understanding of It is very important to realize that "creating fashion trends" is not just catering to consumer trends and following big data analysis .
Portuguese egg tart and the egg tart effect
Take the "Portuguese egg tart" as an example. In early 1998, the well-known artist KK Peng Weihua introduced the Portuguese egg tart to Taiwan, and it became a popular trend in Taiwan for a while. Even the Sheraton Hotel and Ambassador Hotel at that time launched Portuguese-style egg tarts. Because it is so popular, even KFC, which sells Western fast food, has joined the ranks of selling Portuguese egg tarts. At that time, Peng Weihua may have introduced Portuguese egg tarts just because he missed the taste of his hometown, or he may have discovered that although Taiwanese people love to eat egg tarts, they don’t have flavors like Portuguese egg tarts! But because it has never appeared on the market before, there is no way to analyze whether such a taste will be accepted by the market based on past consumer experience and data. Therefore, the "Portuguese Egg Tart" was a very original idea at the time. However, due to the popularity of
, the market followed suit, and the term "egg tower effect" later evolved into a negative term, which represents the plight of Taiwanese people who like to swarm when doing business, and in the end the entire market turned into a red ocean. also sells egg tarts, some are representatives of the creative economy, and some are just swarming. So the point is not what to sell! Instead, it proposes creative thinking and services that are unprecedented in the market.
Pearl milk tea and Chun Shui Tang
Another example is pearl milk tea, which is now the representative of leisure drinks in Taiwan. As early as 1983, a teahouse called Chun Shui Tang appeared in Taichung. It added traditional bubble black tea and bubble green tea to powder balls and mixed milk to create pearl milk tea with a unique flavor. However, the most innovative thing about Chun Shui Tang is not only to launch the original flavor of precious milk, but also to change Taiwan's traditional practice of selling bubble black tea and green tea. It puts the casual cold drinks that were originally very common in night markets into a decoration that invests tens of millions in decoration and is full of humanities. It sells flavor in teahouses, and introduces Taiwanese specialty snacks such as braised dried beans, edamame, etc. into such humanistic teahouses.Since then, traditional snacks and drinks such as have entered elegant halls and stores with tens of millions of decorations, and the prices have also increased. This is an innovative .
At that time, in the 1980s, there was no information on the market for your reference. Can a store with an investment of tens of millions selling bubble black tea and pearl milk tea be successful? But it created a new trend and a new business form. Later, "Hanlin Teahouse", "Shuiwu Cuisine", and "One Tea and One Sit" sprung up in the central and southern parts of the country, and are now popular in mainland China, Southeast Asia, and Japan. Everyone knows that there is "bubble milk tea" from Taiwan.
When an entrepreneur decides to create a business form and business model, he relies on his keen observation of the market! It meets the potential needs of the market or creates new needs of the market. It does not follow consumers' preferences and habits. It creates new works, new flavors, and new service types to attract consumers to fall in love with it. These things about "cannot be investigated", this is the "creative economy"!
Apple Computer and AppStore
Apple Computer is another typical representative of the creative economy. Everyone thinks that Apple's entry into the mobile phone market from the computer industry is the most successful transformation. But I think the most disruptive innovation of Apple is the launch of App Store. The launch of the App Store has completely changed the behavior model of all consumers using mobile phones. The mobile phone is no longer just a tool for making calls and sending text messages. It is a platform tool that integrates messaging applications, audio and video content, social chat, and games and entertainment. This platform is not the hardware of the mobile phone, but the AppStore!
There are now countless programs, videos, and games freely available on the App Store. So, does the iPhone have a greater impact on us, or does the App Store have a greater impact? Actually it's the latter. It was not until later that Google opened the Android system to other mobile phone manufacturers to develop mobile phone systems and established the Android Market that a situation between the two powers was formed. Otherwise, I am afraid that Apple will now have a monopoly on the world. Apple is driving the trend of smart phones, switching from hardware to software, extremely original and disruptive innovation, creating a new industry situation, no longer just a computer and mobile phone manufacturer, but providing the best example of a total consumer solution.
Therefore, if modern people forget to bring their mobile phones, they will immediately run home to get them! Without a mobile phone, I would be uneasy all day long! Because communities (FB, Line) are all on mobile phones. Can't stay away from my phone for a moment. With the complete integration of modern people and mobile phone applications, it seems that without a mobile phone, an organ is missing. It is also difficult to borrow a mobile phone because it carries many private secrets.
Recently, a Taiwanese manufacturer launched a new mobile phone, emphasizing that its functions are better than Apple's, but also emphasizing the value of "functions". Without Apple's thinking of "creating popular trends", product life cycles are bound to be short.
cost down or value up?
When talking about the industrial logic of the creative economy, the second important concept is "cost down or value up?" and how to "create brand value"!
Ordinary tea cups and branded tea sets
Why can a cup from a pottery workshop sell for 2,000 yuan? When you go to Yingge Old Street, you can easily buy a variety of ceramic teacups for 200 to 1,000 yuan, but why are so many people willing to spend 2,000 yuan or even higher to buy a teacup from a pottery workshop? The key is the value of the brand. The brand value of is the result of years of accumulation. Exquisite craftsmanship, excellent quality, careful design, marketing, customer management...many efforts and long-term accumulation can achieve brand value. All efforts are made to enhance the value of the brand. This is what I call Valueup! People who write and create brands cannot only think about Cost down, but also think about Value up! The brand symbolizes a taste, a lifestyle, a persistence and an attitude.
A ton of steel and MUJI’s trimming knife
Let’s take another example to illustrate the increase in added value. In the past, the profit from one ton of steel reached about 1,000 yuan at its peak, and then gradually dropped to the level of one kilogram of pork and a bottle of mineral water.In the logic of manufacturing, once supply and demand are out of balance, no matter how much you control your production costs, you may still lose money. But the factory is open, the machinery and equipment have been invested, and there are tens of thousands of workers. It is impossible not to start work. If we do not accept orders, we will suffer huge losses, and the factory will close down. If we accept orders, we have to hold on to small losses for a small month, hoping that the economy will turn around. However, if the steel is processed and developed into a trimming knife, and the functional applications of daily life are added, the price value and profit and loss calculation model will be different.
Take Muji’s contouring knives as an example. Two trimming knives cost NT$80. Anyone who works in retail channels knows that a gross profit of 40 to 50% is a minimum. This means that an 80 yuan trimming knife has a gross profit of 32 yuan. Just a little bit of metal steel, plus a handle made of plastic, is much higher than the profit created by a ton of steel. What is the concept? From this example, we can know that if "increases functions, increases design, and adds branding", it can enjoy a better gross profit margin.
About the value and price of TIFFANY sterling silver lock ring hoop pendant
Another example is TIFFANY's metal and sterling silver lock ring hoop pendant, the asking price is NT$47,500! In terms of materials, the cost may not be high. But in terms of price, it is amazing. Because of the long-term brand value of TIFFANY, her necklaces can be sold so expensively. If your boyfriend earns 30,000 yuan a month from work, but spends $47,500 to give you a pendant like this, although you may feel sorry for him, but you will be very happy inside! Why? Because you feel that your boyfriend loves you very much, and you feel that you are very important in his mind. What you care about is not necessarily the price, but the heavy and cherished heart. Right! Only with value comes a price!
Handbags at roadside stalls and LV boutique bags with added value by artists
Another example is women’s handbags. One is priced at $1,780 at a roadside stall, and the other is a collaboration with artists such as Takashi Murakami, Yayoi Kusama, and the asking price is about What’s the difference between a 50,000 yuan LV ladies bag? Why does it sell for this price? Careful selection of first-class materials, exquisite craftsmanship, designer designs, and long-term brand reputation and value are all reasons for its high price and why consumers are willing to pay. But good should be better. As the world's top boutique brand, LV must choose a partner that is well-matched and can continuously add value to its brand power.
Therefore, it has chosen world-class artists such as Takashi Murakami and Yayoi Kusama to cooperate. He will not refuse to pay because the artist's design fee or licensing fee may be sky-high. What wants is the brand image of the "top of the pyramid", so he is willing to spend huge sums to invite the most famous contemporary artists to cooperate.
From these examples, we observe, what is the brand doing? Doing added value. Therefore, when doing brand strategy, it is absolutely necessary to take "How to enhance brand value?" as the central thinking. All strategies cannot conflict with this.
Content is king, one source for multiple uses
The industrial logic of the creative economy, the third important concept is " content is king, one source for multiple uses "!
About Disney and the Thunderbolts The Puppetry
Disney and the Thunderbolts Puppetry is the best example. With original content as its core, Disney's peripheral services include: celebrities, TV, movies, mobile games, merchandise, stores, memberships, and parks! Pili Puppetry has a comprehensive entertainment business, and its extended peripheral services cover: membership and organizational activities, satellite TV stations, original soundtrack production and distribution, theater performances, print publications, peripheral products, film business, Internet business, physical channels, 3D animation, DVD production and distribution, etc. The layouts of these two brands are very similar.
It can be seen from the above that the more original creation is, the better it can grasp the subsequent long tail effect. The services and ecosystem that can do are also broader. For Disney, Donald Duck , Iron Man, Thor... are all his assets! All value comes from the IP (intellectual property) at the core of creation.
Given the current highly competitive state of the gaming industry, what is everyone doing? Grab the IP! In Taiwan, almost every game developed with the Thunderbolt theme is a hit.Because it has a huge base of fans. Not only Taiwan, but also mainland manufacturers are coming to compete. Pili is a company that produces original content. This is where the value of Pili lies.
PS:Five-minded methods of cultural and creative brand management
Regarding cultural and creative brand management, here are the five aspects of concepts and methods to share with you.
Creation and Creation: Creation determines market positioning
The primary perspective of cultural and creative brand management: "Creation and Creation". For example, making digital content, games, writing novels... they are all creating. I need to ask, what do you create? What do you create? Your creation determines your market positioning. For example, those who like Qiong Yao's novels and those who like Harry Potter are different groups.
The more people who are engaged in original art, writers such as Sanmao, Ni Kuang, Jin Yong, artists Picasso and Van Gogh, all of them do not pay much attention to worldly needs, so they can write masterpieces. Their creation itself is "creating popular trends", not considering whether consumers want it or not! It’s the story they want to tell and the inner world they want to convey. They create trends that listeners and readers follow voluntarily. But because of this, it will have limitations. ’s creation itself determines its market positioning! What you create determines who will use and consume it.
Creativity and Innovation
If a creator just wants to rest and eat and drink for a lifetime based on one classic, it is impossible to run a successful business. can only sustain with continuous creativity and innovation. Take Pili Puppetry as an example. It has been a feature-length unit drama since 1988 and has produced more than 2,000 episodes so far! It has been nearly 30 years since a drama was produced, and the protagonists are still characters like Su Huanzhen, Yip Shu, Ye Xiaochai, , which is really amazing. If you always sell old jokes, you will have been cast aside by theater fans long ago. Regardless of scripts, shooting techniques, animation post-production, distribution methods, and peripheral product development, every part must be refined and constantly innovated in order to compete with various film and television entertainment programs for the hearts of audiences and fans in the past 30 years. Among Perak's 500,000 online members, the main audience is still young adults aged 20 to 35, which means that new audiences have been coming in for the past 30 years. This is the success of Perak.
Fan management
Celebrities of any era have fans. In the past, superstars were very popular, such as Lingbo. In the era when Huangmei tune was popular, women dressed in men's clothing and captured a large number of fans with their heart-breaking Liang Shanbo look. The heart of a fan girl. It is said that the grand occasion at that time was that fans lined up from Songshan Airport to Sections 3 and 4 of Minquan East Road just to wait for pick-up. For celebrities at that time, it was best to have a mysterious dragon that only saw its beginning but not its end. But it is difficult for celebrities nowadays to do this. Because modern online self-media is so popular, those who engage in Line, FB, and live broadcasts can use all available self-media. In the past, support clubs were organized by theater fans themselves, but now they must operate official accounts on Line and Facebook to send messages and interact with fans every day.
It’s not just the entertainment industry that needs to manage fans, every business needs it. Datong Rice Cooker attracts netizens to become fans by giving away cute stickers of Datong babies, and then vigorously promotes marketing messages. All banks and insurance companies have also joined the ranks of running fan groups and giving away stickers.
Another example is Breeze Department Store, which closes once a year and is exclusively open to VIPs for consumption. On this day, these top customers can relax with friends and family and purchase limited-edition products. Because of such VIP activities, Breeze not only creates high turnover, but also consolidates its top consumer customer base. . In the process of running a brand, we must think about: How can my brand gather fans? How to strengthen the connection with fans? How to attract people who were not fans to become fans?
Taking the Thunder Puppet Show as an example, you need to pay NT$1,800 per year to become an official member. Only members with official membership qualifications can initiate and organize an official support club. To organize a support group, a threshold of 200 people is required. Perak has 25 official fan clubs, which means it has 5,000 die-hard fans. It is a great thing for a company to allow theater fans to organize their own activities and follow the theater for many years, and to do so deeply, instead of just promoting it through news. In the creative industry, "fast is very important; but more important is to make "deep" .
Cross-border innovation
Back to the beginning, the first industrial logic of the creative economy: "Creation determines market positioning" , so only through "cross-border" can people in different fields see you! In 2013, Pili endorsed ASUS and launched the Transformer laptop, which was an attempt by the two companies to collaborate on cross-border innovation.
Another example is the "Perak Fantasy Martial Arts World ~ Puppet Show Art Exhibition" planned by Pili in 2013, which showed another brand-new thinking and lofty ambitions. Ms. Lin Yujie, a well-known curator in the art circle, was invited to serve as the curator of this exhibition, and the team with the best understanding of drama and modeling in the company joined the curatorial team. plans a world-class exhibition that combines culture, art and digital technology from the perspective of "Taiwan's original and the only one in the world". At the same time, it uses this exhibition as a platform to demonstrate to the public the "one source, multiple uses, cross-border innovation" of the cultural and creative industry. ” practice model. This is a milestone for Pili from the field of film and television entertainment to the creative economy and experience economy. This art exhibition of combines the equipment and technology of more than ten domestic technology software and hardware companies, using new techniques of technology and art to successfully demonstrate the complete history and style of the inheritance and innovation of Taiwan's puppetry.
Integrated Marketing
The so-called integrated marketing is either organizing an event or integrating marketing. Rather, it is integrated marketing that concentrates all activities at a certain point in time and allows them to occur uninterrupted. takes Jimmy as an example. In the summer vacation of 2013, it cooperated with Hualien Hanpin Hotel to integrate the story of the picture book "Embrace" into the hotel space. At the same time, the "Jimmy Fun Picture Book Museum" was opened at the Yilan Children's Play Festival, and the "Jimmy Plaza" was launched next to the Yilan Railway Station in cooperation with China Airlines to license the "Hug Machine"! All events happen continuously within one summer vacation. This is integrated marketing!
is another example of Pili (Pili International Multimedia), which originally planned to apply for submission of documents for listing in the third quarter of 2013. Therefore, the management team began to plan a series of continuity plans that combine business development and brand marketing. In order to let the general public or the capital market have more understanding of Pili and build Pili into a cross-border innovative brand image, it is necessary to launch a series of integrated marketing-style brand projects.
In June 2013, a large-scale press conference was held in cooperation with Taiwan Mobile to announce the comprehensive cooperation between Perak and Taiwan Mobile in value-added telecommunications services. At the end of June, the company held a press conference with Zhongtian TV station for "Legend of Thunderbolt Dragon" to be broadcast on Zhongtian Comprehensive Station, and began to enter other film and television multimedia platforms. At the end of July, a press conference was held jointly with ASUS to announce that Su Huanzhen would endorse the ASUS Transformer series of laptops, tablets, and mobile phones. From July to September, we cooperated with Yilan Chuan Yi Center to organize a series of Chuan Yi Summer Festival activities. On September 26, the pre-Xinggui Dharma Talks simultaneously announced that the "Perak Fantasy Martial Arts World ~ Puppetry Art Exhibition" that has been prepared for nearly a year will be launched on December 27, successfully allowing all media and investment legal persons to understand Perak Subsequent major business developments will allow investors to understand the company's future layout plans. Important events such as
must be carefully planned and promoted more than a year in advance to achieve such results. Only in this way can the media continue to actively pursue relevant information, and the company does not need to spend more on advertising in the process to achieve good marketing effects. This is called integrated marketing.
Integrated marketing must be based on the mastery of the company's core main business and future planning, taking stock of the internal and external resources that the company can control, integrating the company's staged development strategies, and proposing sequential strategies and practices, so as to be successful in the brand management project to exert long-term and far-reaching results.
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