Chapter 691 Subsidiary Listing Plan: First Test the Waters with Storybook Town
"Toy Story" officially launched, and thanks to its excellent reputation, the box office soared. On the first day, it grossed a whopping $274 million worldwide, a box office that made countless film and television companies jealous.
With such a first-day box office and such a good reputation, based on past experience, I'm afraid the global box office of this movie will reach $1.5 billion again.
The box office dividends from "Toy Story" alone will make Qingyao Group a fortune again. What's more, Qingyao Group operates all copyrights. Now that "Toy Story" is a big hit, many peripheral products will definitely have a wave of sales, and then they will make a lot of money again.
The most important thing is that this IP can obviously last for a long time. There is no problem in releasing four or five animations every two years.
Another big IP, another big IP that makes people jealous.
The success of "Toy Story" also caused a huge reaction within Disney. Internal discussions began to escalate, with discussions about whether to shift funds toward animation and whether to create new IPs, similar to the Qingyao Group.
However, there is a disagreement within the company: Compared to creating new IPs, Disney can now invest less in adapting well-known IPs, earn more money, and take less risk.
Creating a new IP carries significant risks. After all, animated feature films require significant investment, and developing an animated IP takes time. The combination of high investment, high risk, and slow returns has led to internal disagreements at Disney.
Qingyao Group can't see Disney's dilemma, and even if it did, it wouldn't pay attention. What Qingyao Group needs to do now is to proceed steadily and step by step.
At the Qingyao Group headquarters, in the exclusive conference room of Fairytale Town, Su Yang and Tang Qing were carefully looking at the specific data of Fairytale Town.
Looking at these data, both of them had smiles on their faces.
The development of Storybrooke exceeded the expectations of the two people. Even the employees of Storybrooke did not expect that Storybrooke could expand so fast.
Not only has the store expanded rapidly, but its reputation has also been remarkably strong. Customer traffic has been staggering, and the brand has established itself as a premium children's product brand. Its reputation has been built on quality, affordability, and quality.
There are now a lot of products under the Once Upon a Time brand. As long as it is something that children can use, Once Upon a Time has it.
Clothes, shoes, school bags, toys, snacks, stationery, cosmetics, diapers, etc.
Storybrooke is a children's grocery store with a lot of stuff, and the items are very diverse. If you take out one item individually, it's not really a big brand.
But the products from Storybrooke are not bad at all, on the contrary they are very useful, and the price of individual items is much cheaper than those from big brands.
Take baby diapers for example. If some well-known brands of diapers cost one yuan each, then the same quality diapers from Fairy Tale Town only cost 60 or 70 cents.
For the same quality, Fairytale Town products are about a third cheaper than some so-called big-brand products. Yet, the products are practically identical. In fact, the cheaper Fairytale Town products are even better quality than the more expensive ones from some big brands.
The reason they can keep prices so low is that Once Upon a Time spends almost no marketing. This expenditure is extremely minimal. For these things, brand marketing is crucial. While major brands spend vast sums on marketing, Once Upon a Time passes this money on to consumers.
Secondly, the sales method of Fairytale Town is direct sales, without middlemen making a profit. It is truly from the manufacturer directly to the hands of customers.
This model is envied by many brands. They also want it, but unfortunately they lack the funds or the influence. Because behind Once Upon a Time stands a man with extraordinary powers. It is this man who has made the Once Upon a Time brand famous.
At the same time, StoryBible has another major advantage: its IP. This is something other brands only dream of, but StoryBible can easily achieve.
For example, with the current "Toy Story" craze, Once Upon a Time was the first to launch products based on the "Toy Story" IP. From clothes to backpacks, from toys to snacks, a large number of Toy Story IP products are directly profiting from the popularity.
This is Storybrooke, a storybrooke that no one could have imagined how powerful it was. Even Tang Qing and Su Yang hadn't expected Storybrooke to become so powerful.
"Mr. Tang, Mr. Su, we currently have over 1,000 stores nationwide. Our brand influence is very strong among low-end consumers. While all brands are trying to move into the high-end market, the low-end market actually holds the largest market share. The number of registered users on our Fairytale Town official mall has reached 160 million, with 80% of accounts actively registered. The average monthly spending per account is around 30 yuan..."
A staff member said with a smile. This data made the two people gasp.
Thirty yuan a month might not seem like a lot, but it's a significant amount if you calculate it carefully. A single account could spend six hundred yuan a year on the Storybrooke Mall—a significant amount.
There are currently 160 million registered users in Storybook Town and over 120 million active accounts. If each account spends an average of 360 yuan per year, the total annual spending by these consumers would be a staggering 43.2 billion yuan.
The net profit of the products of Fairy Tale Town is actually very expensive, although the price is cheap and looks affordable. But the cost of these things is also low.
Therefore, the net profit margin of Storybrooke exceeds 15%. If calculated based on the sales volume of 43.2 billion, the annual net profit will be as high as 6.5 billion yuan.
This is a terrifying profit. Look at those giant domestic groups. Although they seem extremely powerful, if you really look at the net profit, there are very few groups that can earn 6.5 billion yuan per year.
"I didn't expect Storybrooke to be so powerful now..."
Tang Qing couldn't help laughing.
A giant, Storybook Town had unknowingly become one. And it was rapidly expanding, a giant brimming with potential. If Storybook Town expanded to 3,000 stores in the future, it would surely attract even more users, and profits would be even greater.
"It seems like the time has come. I think Fairytale Town is a perfect fit for our Qingyao Group's first listed subsidiary. Fairytale Town, it's time to set sail..."
Su Yang said with a smile, which made everyone laugh.
Qingyao Group's initial public offering (IPO) strategy was to spin off its subsidiaries. Now, Storybook Town has become the first brand to test the waters. Given its current performance and profitability, its market capitalization is sure to be a major surprise once it officially goes public.
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