---
title: "Behind the Scenes: How 'Internet-Famous Brands' Are Actually Operated"
description: "The article discusses how to build internet-famous brands, highlighting the trend of differentiation among new brands: some old national brands are revitalized through IP empowerment, while many short-lived internet-famous brands fade due to lack of IP. It emphasizes the importance of IP in brand building, using game theory to distinguish between one-off and repeated interactions, and outlines three strategies for sustainable brand success."
author: "IMS创始人李檬"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2019-09-11"
categories: "Brand Marketing"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/Cxz3qtaxmQMOlUhRLmcmjQ"
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attribution: "New Distribution — https://xinjignxiao.com/en/articles/behind-the-scenes-how-internet-famous-brands-are-actually-operated-c39da12f/"
citation: "IMS创始人李檬. “Behind the Scenes: How 'Internet-Famous Brands' Are Actually Operated.” New Distribution, 2019-09-11. https://xinjignxiao.com/en/articles/behind-the-scenes-how-internet-famous-brands-are-actually-operated-c39da12f/"
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# Behind the Scenes: How 'Internet-Famous Brands' Are Actually Operated

> The article discusses how to build internet-famous brands, highlighting the trend of differentiation among new brands: some old national brands are revitalized through IP empowerment, while many short-lived internet-famous brands fade due to lack of IP. It emphasizes the importance of IP in brand building, using game theory to distinguish between one-off and repeated interactions, and outlines three strategies for sustainable brand success.

The article received positive responses upon publication. Here, I want to further discuss how to build internet-famous brands.

In recent years, some emerging internet-famous brands have faced a trend of differentiation:

> First, many time-honored national brands have been revitalized by leveraging big-name influencers, achieving brand IP upgrades and iterations.
>
> Second, many short-lived internet-famous brands have gradually cooled down due to lack of IP empowerment.

For example, the ice cream shop owner on Gulangyu Island who is great at flirting, or the noodle-pulling guy in Huanglongxi, became popular through short videos and a few catchy moves. Audiences found them entertaining, which quickly boosted store consumption and gradually turned them into internet-famous brands.

However, because these brands lack substance and the ability to sustain output, they quickly fade away.

**This type of internet-famous brand gives the impression of being short-lived.** In contrast, under the recent "national trend" wave, time-honored brands like White Rabbit perfume, Forbidden City lipstick, Liushen cocktail, and Huang Cuixian fermented bean curd have continued to gain popularity online because they have IP support. No one worries about these brands being short-lived. Therefore, the core key to making an internet-famous brand big and long-lasting is to inject IP into the brand, not just traffic and hype. A paint layer cannot support a building; IP empowerment gives the brand a solid skeleton.

**Brand is a Repeated Game**

IP is an old term, not the IP address of a website, but intellectual property, such as music, literature, and various creative works, discoveries, and inventions. A brand is intellectual property formed by multiple creative elements combined with lasting confidence, trust, and credibility. Here, I want to re-examine brand value from the perspective of Game Theory. One premise is that a brand is formed in the game between sellers and buyers, with the difference being one-off or repeated interactions.

What is a one-off game? Let me give an example: There is a type of internet-famous store called a "pop-up store" that uses a "surprise attack" approach, suddenly appearing in a place and then suddenly disappearing, mainly targeting consumers with fleeting enthusiasm. For instance, after "Heytea" became an internet-famous brand, the teasing pop-up store "Sang Tea" appeared, promoted by Ele.me, and operated for only 4 days.

After opening, the two best-selling drinks were "Come on, You're the Fattest Black Tea Latte" and "Your Life is an Oolong Macchiato." Another example: On 520 Valentine's Day, someone opened a "Breakup Flower Shop" in Shanghai, operating for only 1 day, targeting single people with complicated emotional histories. This is also a pop-up store.

Quickly commercializing creativity and not expecting fans to return after the hype fades is called a one-off game.

What is a repeated game? Let me give an example: Suppose you go to a restaurant multiple times. If you have a good experience, you'll come again. But if you have one or two bad experiences, such as poor service or unreasonable price hikes, you won't return.

Consumers always have the opportunity to punish the merchant. If the merchant doesn't maintain the relationship well, the positive interaction may be broken. This is called a repeated game. McDonald's has thousands of franchise stores worldwide, but on highway service areas, McDonald's does not allow franchising.

Because on highways, customers eat and leave, and it's hard for them to return. Some merchants might overcharge or neglect customers, treating it as a one-off game, and consumers have no chance to punish them.

But McDonald's is a global chain, and the brand engages in a long-term repeated game with consumers. It must carefully maintain positive interactions with every consumer at all times and places. **Generally, internet-famous brands are mostly one-off games, seizing a consumption hotspot and going from 0 to 1 to N in one go, not expecting consumers to return after the hype fades.** Consumer brands that have stood the test of time need to manage their IP long-term, using IP to lower cognitive barriers. This IP could be a catchphrase, a big influencer, or even an emoji. The strategy combination can be flexible, but the goal must be to maintain consumption heat and lasting positive interaction with consumers.

**Three Types of Internet-Famous Brands, Three Strategies**

In the process of internet-famous brands integrating into the consumer mainstream, it is absolutely necessary to plan and deploy brand repeated games.

Currently, domestic internet-famous brands that truly engage in long-term management and repeated games generally adopt three strategies:

**First, directly turn the CEO into a celebrity and IP;**

**Second, collaborate with social platforms and KOLs at all levels, targeting concentrated investment during consumption peak periods (Double 11 or 618);**

**Third, take a long-term approach, continuously adding new elements to the brand IP.**

Several concepts need to be clarified: only symbols with topics and content can be called IP. IP activates the brand, and the brand radiates to products.

**1. CEO IP-ization (Applicable to manufacturing and real estate brands)**

For products like Gree air conditioners, Xiaomi phones, or Vanke/Wanda properties, can ordinary people discern the differences? Probably not. In the minds of ordinary people, these brands only have functional attributes (you know they sell houses or appliances), with limited emotional perception. How to add emotional perception to these brands? Often, the CEOs of these companies personally become influencers, creating buzz and guiding topic trends.

Among them, the most classic is the "1 billion bet" between Lei Jun and Dong Mingzhu. If Xiaomi's revenue doesn't exceed Gree's within 5 years, Lei Jun would lose 1 yuan to Dong Mingzhu, but Dong Mingzhu naturally wouldn't back down, betting 1 billion. In the end, the "bet" wasn't cashed in, but Gree and Xiaomi frequently became hot topics on social media, greatly expanding the brand's contact with consumers. A brand is an instant association, an instant recognition. A brand doesn't need much introduction; it's a moment in people's minds.

Especially for general small and medium-sized enterprises, it's necessary for the boss to personally guide topic traffic. Many small startups can't afford large marketing budgets, so they will definitely choose low-cost, network-based product promotion methods. If the boss can become an influencer and direct traffic to product sales, this tests the marketing creativity of the startup team. If the boss can be managed as a company IP resource, marketing functions will gain more emotional energy, and fan traffic can directly convert into product sales. For post-90s and post-00s consumers, accepting an interesting person is much easier than accepting a monotonous product.

**2. Collaborate with KOLs at All Levels, Concentrated Investment (Applicable to consumer brands)**

An investor once said bluntly: "If you want to start a business but don't have many resources, I most recommend entering the cosmetics or specialty food industry." There are two main reasons:

> First, the "gross profit margin" is extremely high. Generally, the product cost for cosmetics or specialty foods is only 7%-10%, but marketing costs exceed 30%. As long as you have marketing ability, you have a great chance.
>
> Second, the beauty or specialty food industry has huge growth space. Once user habits are formed, it becomes an unstoppable rigid demand.

The most critical point is that this is the segment where KOLs (influencers or opinion leaders) have the strongest ability to drive sales, and there are many opportunities for IP empowerment. For example, Perfect Diary, founded only two years ago, leveraged IP power and product reputation to thrive in the Tmall "618" battle, even outperforming international brands like L'Oréal. **KOLs are the biggest IP force; they dominate topics, create buzz, and truly guide user brand preferences.** Another example is Huang Cuixian, a specialty food brand with internet-famous potential, relying on Yunnan's unique subtropical products, offering fermented bean curd and small broad beans with distinctive flavor. With this foundation, and leveraging KOL buzz, the brand IP is easily activated.

One key action is to collaborate with platforms and KOLs at all levels. Perfect Diary and Huang Cuixian use KOLs at multiple levels:

Perfect Diary doesn't just seek endorsements from big-name celebrities but widely invests in niche KOLs below the waist. Its top-down investment ratio is 1:1:3:46:100:150:690. For the "passerby" type, it's basically user-generated spontaneous dissemination.

Huang Cuixian, based on the food category attributes, activates diverse, multi-platform influencer buzz, planting seeds on platforms like Weibo, Douyin, and Taobao Live. For example, phenomenal video influencer @Li Xueqin, pet blogger @Wang Bocai, food blogger @Big Stomach Fish Roe, and other bloggers create original content, as well as cross-industry collaborations with major brands for new media interactions. This broad-based self-propagation often carries more brand energy.

**3. Continuously Add New Elements to Brand IP (Applicable to time-honored brands)**

The true value of brand IP lies in how much new content can be injected into it.

In the recent "national trend" wave, it's hard to imagine that Mayinglong could be associated with lipstick, or Liushen with cocktails. For example, Mayinglong's previous brand strategy was to position itself as the "Hermès of hemorrhoid ointments."

However, Mayinglong lipstick went viral online, and the company was also surprised. They stated that it wasn't company hype, but that online influencers noticed the lipstick news and promoted it, driving market attention. This is clearly the result of IP empowerment.

Mayinglong has deep roots in the hemorrhoid ointment field for many years, with strong public recognition and accumulation. When Mayinglong produced lipstick and eye cream, the trust of its hemorrhoid ointment customers became fan power, making its lipstick and eye cream quite competitive in the market.

Just like Yunnan Baiyao back then, with IP support, it crossed over to sell toothpaste and became the best-selling toothpaste brand in China. The key to continuously adding new elements to brand IP is to upgrade taste.

Japanese life aesthetics master Yataro Matsuura once said, "Taste" means "choice and judgment." Good taste means that when interacting with others, including the way you speak, the use of time and money, you leave a good impression. These are embedded in life details, and one or two items are not enough. Classic Japanese lifestyle brands, like Daiso, their core employees don't just stay in the store; they pay more attention to cultural heritage, visit art museums, and read more. To refine taste, you need to be exposed to things of good taste.

In Japan, compared to visiting trendy stores, it's more worthwhile to go to art museums. In spaces with good taste, people of good taste naturally gather. You'll be amazed by their elegant manners and can learn "oh, this can be paired with that."

**Summary**

**IP empowers the brand, and the brand also empowers IP. It's important to constantly inject new things, but more importantly, to hold on to the most fundamental things.** Once, Marlboro and its advertising agency had two bosses who collaborated for 50 years, both old men. The Marlboro boss asked: "We've worked together for 50 years, and I've paid you for 50 years. You've used the first draft you gave me for 50 years. Isn't it too easy for you to earn this money?" The advertising agency replied: "Was it easy for me? For these 50 years, I've put in so much effort to prevent your people from changing this design." Managing a brand IP is a systematic project that requires investing many resources. Influencers at all levels provide you with more strategic choices, but the most important thing is to know what you can settle on. That is the most fundamental thing for the brand.

Source: Li Meng (ID: imslimeng)

Tips will be paid 400-2000 yuan upon adoption.


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## Citation metadata

- Publisher: New Distribution
- Author: IMS创始人李檬
- Published: 2019-09-11
- Canonical: https://xinjignxiao.com/en/articles/behind-the-scenes-how-internet-famous-brands-are-actually-operated-c39da12f/
- Original source: https://mp.weixin.qq.com/s/Cxz3qtaxmQMOlUhRLmcmjQ

## Copyright and AI use

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