Reasons why tourism companies fail to produce good cultural and creative products have been identified.
Editor-in-chief | Yang Ming
Source | Light Vacation Tourism Research Institute
Cultural and creative products, with the continuous stimulation of the "billionaire" myths of the earliest Taipei Palace Museum cultural and creative products to the Beijing Palace Museum cultural and creative products, which are eager to find new profit outlets for the industry, cultural and creative products have become sexy overnight, and practitioners from various industries have plunged in, starting a gold rush in the ocean.
But a sad result is that "ten people doing cultural and creative work, fifteen don't make money (the extra five are intermediate suppliers who are also dragged down and lose money)", this industry has become something that looks beautiful but leaves you bruised when you get involved, except for those few absolute top companies and top cultural IPs, rarely have we heard of any project that has achieved a significant change in the proportion of income through cultural and creative work.
We have always wanted to ask a question: Why is the domestic cultural and creative industry always in a state of small-scale operations, and has not become a big business like Disney and Universal?
Today, I will try to share with my colleagues in the industry my observations and thoughts on cultural and creative products. This will be elaborated from four dimensions:
Dimension One: The Background of the Popularity of Cultural and Creative Products
Dimension Two: Reasons for the Failure of Cultural and Creative Products
Dimension Three: Core Logic Breakthrough of Cultural and Creative Products
Dimension Four: Cultural and Creative Products are Science, Not Mysticism
The Background of the Popularity of Cultural and Creative Products
I. The driving force for industry profitability.
The best performance of the integration of tourism and culture is actually the industry's first realization that culture can really provide impetus for tourism, which is driven by "resources + capital"! Therefore, amusement parks have themes and become theme parks, mountain scenic areas combine with culture to build large temples, agricultural and sideline products are made into beautiful and cultural-looking bags, and their value increases, and homestays are made in a wabi-sabi style or themed homestays, and a bed sells for the price of a five-star hotel... Suddenly, it is discovered that doing culture is such a productive thing. Compared to ten years ago, an animal-themed project would sell a plush toy, a cultural project would sell a T-shirt, and a coastal city would sell Sanya's floral pants and vests, today a large number of urban tourism investment, landmark scenic areas, and large-scale projects have set their sights on bookmarks, cakes, ice cream, and refrigerator magnets, which are obviously more advanced and have expanded the application scenarios of cultural empowerment of the tourism industry.
II. Corporate overtaking on the curve.
Many people are attracted by Disney's seemingly beautiful revenue ratio:
"30% tickets, 15% catering, 13% accommodation, 25% shopping, 17% other" and are following the path of high cultural and creative monetization.
Some companies have designed 10 categories and more than 100 styles of cultural and creative products at one time by professional agencies (drawing companies with assembly line operations);
Other companies have vigorously explored the agriculture, forestry, animal husbandry, sideline, and fishery industries in their locations, resulting in a pile of pseudo-cultural and creative products that look beautiful to themselves but tourists don't buy. You can see all kinds of non-local branded products and various goods from the Yiwu wholesale market in different scenic areas, museums, and urban tourism distribution centers.
Reasons for the Failure of Cultural and Creative Products
Reason One: Lack of professional "business talent".
Cultural and creative products are, after all, a "commercial proposition essay", but most tourism enterprises do not have the talent reserves in this area, and more than 90% are transferred or transferred. This may lead to the fact that the managers in charge of business in the best tourism enterprises do not understand the stacking of goods as well as an elderly couple who runs a community supermarket. For those who habitually think that "tourists should accept my high-priced products when they enter my closed space", you ask them to have cultural creativity, product design ability, product customization and storage ability, store management ability, sales management ability...
Reason Two: Many cultural and creative products are "created by the boss".
The boss goes on a business trip, sees a certain product, and may arrange to make a certain cultural and creative product when he returns; in some places, seeing some cultural and creative products in other cities, the cultural investment, tourism investment, and tourism bureaus in their cities will start to develop cultural and creative products, and finally a bunch of city gifts will come out, instead of souvenirs for the market. We have been to some large museums and seen those dusty cultural and creative counters, and we really have mixed feelings and don't know how to describe the memory of that scene.
Reason Three: There are "cultural and creative geniuses" everywhere.
In many cities, there are "cultural and creative geniuses" who don't believe in evil everywhere. This cultural and creative industry should be a process of persistent investment in brands, product improvement, and channel expansion, but those geniuses always regard this industry as a "idea" industry, believing that a creative idea can accomplish something. They seriously underestimate the difficulty and tenacity required in this industry. "Middle-aged and elderly people do wine, ornaments, and thermos cups; young and middle-aged people do notebooks, bookmarks, refrigerator magnets; young people do coffee cups, ice cream, and cakes." There are too many "warehouse-dusting cultural and creative products" around, and very few can run through life scenarios and enter the circulation channels. Many places are doing it one after another, and failing one after another.
Reason Four: A name is an IP.
Many people understand cultural and creative products as choosing a nice name, making exquisite packaging, and selecting a culturally packaged product, and then it becomes a cultural and creative product. Rice costs 5 yuan per kilogram, put it in vacuum packaging, add a box, the rice is still the same rice, it becomes 10 yuan per kilogram, to be honest, this is a small business, it can't become a big IP.
Reason Five: Joint names are wishful thinking.
There are many joint names of well-known animation brands and electronic products, which enhance the recognition of their own products. However, it is difficult for tourism enterprises to succeed in this. For example, some enterprises try to make porcelain and U disks as joint names. It seems that no one makes joint names with LV bags, because 99% of cultural and creative products are one-way value output, but if the cultural and creative enterprises find a big enough brand, relying on the pricing power of the cultural and creative enterprises, it is also difficult to form a price increase on the basis of that big brand, 1+1 is always less than the stronger 1!
Reason Six: Lack of Creativity
Many products are simply pieced together. Looking at various cultural and creative competitions and tourism cultural and creative exhibitions in recent years, there are very few creative products. Most are simply combinations of well-known local brands, and some local products haven't even had their packaging changed before being showcased as cultural and creative products. Although they incorporate local culture, the lack of creativity makes them indistinguishable from products found in markets or even supermarkets.
Reason Seven: "Too far from daily life to have a market, too close to daily life and there's Taobao."
Our online shopping and commercial systems are too developed. Except for the uniquely offline products of top-tier cultural and tourism enterprises, most products cannot withstand a quick scan; one scan and the desire to buy is gone. Many years ago, when visiting Hainan, people would buy a lot of Chun Guang products to give to friends. Now, similar products are readily available in supermarkets and online, often with promotions. This is the root cause that kills most impulsive purchases.
Compared to foreign countries, the social function of cultural and creative products as a neighborly interaction is weaker, reducing sales scenarios; there is a lack of full-process capabilities (creativity, production, circulation, branding, sales, quality control, customer service, R&D, etc.). Many engage in small-scale operations, while fewer invest substantial resources and build strong teams; those with cultural understanding lack market knowledge, those with money don't recognize brands, those with market access lack resources. There is an abundance of single-point capabilities, but a shortage of systemic capabilities...
Core Logic of Cultural and Creative Breakthroughs
Core Logic One: From the Hundred Regiments War to the Three Great Battles.
Cultural and creative products must be restrained; strive for fewer, high-quality products that resonate with and address consumer pain points, rather than producing a large quantity of products, each selling only a few units. Focus on a single point of breakthrough to create brand value, thereby driving the development of second and third star products, and ultimately forming a product system.
Core Logic Two: Maintain Respect for This Industry, Less Self-Importance.
In our articles analyzing cultural tourism project planning and the construction of cultural tourism business capabilities, we have repeatedly proposed a viewpoint: the cultural tourism industry has entered a state of precision instruments. It is a highly complex scientific undertaking, no longer a simple and crude industry where anyone can succeed and make money.
Core Logic Three: "Refine the daily life aspects, thoroughly understand the emotional aspects, and fully develop the scenario aspects."
The core of cultural and creative products is the "sense of gain" and "emotional value" that consumers purchase. For example, when we arrive in Lanzhou, we want to eat a bowl of the most authentic and expensive Lanzhou hand-pulled noodles, just like eating a bowl of noodles with locals in an alleyway, sitting on a small stool. In this case, the cultural and creative aspect of the noodles should be the city's most focused industry; when we arrive in the Gobi Desert, seeing the unprecedented starry sky, buying a miniaturized meteorite cultural and creative product, giving our girlfriend a "star," becomes the best cultural and creative gift; at the oceanarium, we would definitely buy the most anthropomorphic and star animal doll, not one of every animal, creating a scenario of choice paralysis.
Core Logic Four: It Must Have Commercial Value.
Cultural and creative products should not be aloof and "high-cold," but should "first ask yourself if you would buy it, then consider whether there is a market." By putting yourself in the consumer's shoes and thinking about product selection, creativity, and pricing, you can grasp consumer psychology, meet consumer psychological and life needs, and create greater product viability.
Core Logic Five: Never Try to Compare Yourself to the Forbidden City, Disney, or Universal Studios.
Lower expectations, invest less, and experiment more to find the right needs and concentrate your investment. There aren't many logos that can be printed on a mug without looking awkward and still be presentable. Show off If done poorly, it reveals a crude and cheap feel; you wouldn't give it as a gift, nor would you use it yourself. Don't try to monetize your brand through cultural and creative products if you're unwilling to invest in branding.
Core Logic Six: Increase Brand Investment to Support Cultural and Creative Value.
The transformation of cultural and tourism enterprises' brands into lifestyle brands requires significant investment; otherwise, it is difficult to form regional industrial impetus. This has been demonstrated in many local agricultural, forestry, animal husbandry, sideline, and fishery cultural and creative products. Systematic brand investment and maintenance are essential to ultimately reap the rewards of brand value supporting cross-border empowerment of cultural and tourism brands.
Core Logic Seven: From the Industrial Age to the Handmade Age.
Create star intangible cultural heritage artisans, producing limited editions, signed editions, and commemorative editions, rather than factory-produced items.
Core Logic Eight: Deeply Explore the Value of Culture, Don't Superficially Scratch the Surface.
Only by truly digging into the "connotation and focusing on emotion" of culture can you create products that touch people's hearts. What is culture? Recently, our team designed a "bamboo-node cannon whistle" for a Great Wall project. The basic logic is: the bamboo-node cannon is one of the representative objects of the Ming Great Wall, and the whistle, as an essential item for the city guards, is the best signal transmitter besides the smoke signal. With cultural origins established, we envisioned application scenarios. We believe that primary and secondary school students have a need for it, outdoor tourism also needs it, and even couples should have a pair: if you have something, I'll be right there. When the whistle blows, I'll be there immediately... It could even become a key chain, with a built-in locator so parents can use it to locate their children and prevent them from getting lost, creating a wealth of application scenarios.
Cultural and Creative Products are Science, Not Mysticism
Why do the Forbidden City's cultural and creative products sell so well? Because its cultural and brand value are top-notch. You might not wear a Forbidden City logo suit, but you would definitely accept a phone case with its theme.
Including various young cultural products, this is something that no museum or art gallery possesses; why does Disney sell so well? Because it is a full-scenario brand, not just a cultural and tourism enterprise. Before there was Disney World, there were its cartoons; in the years without its cartoons, there were still its brand-authorized stationery and daily necessities. Universal Studios sells well because it has designed a complete internal consumption scenario. In the Minion area, you will definitely buy a cultural and creative ice cream to check in; in the Harry Potter magic world, you will definitely buy a magic wand, because the merchandise is part of the complete experience in the park.
Many people think this article is critical and negative towards the industry. In fact, I want to remind friends in the industry that the cultural and creative industry is just beginning. Maintain patience and long-term investment, cultivate professional teams to form systemic capabilities, slow down, lower desires, focus less on policy subsidies and more on market results, so that this nascent industry can develop more steadily.
(Article has been abridged
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Special Research on Investment in the Cultural and Tourism Industry
To gain a deeper understanding of the development of investment in the cultural and tourism industry, the China Tourism Academy, in collaboration with the China Amusement Machine and Amusement Park Association and other organizations, is conducting a special research project on investment in the cultural and tourism industry. We sincerely invite all member units and cultural and tourism enterprises to participate in the research.
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