--- title: "Haojiayi Founder Li Lei: Peppa Pig - Super IP Wins the Future" description: "At the 5th FMCG + Internet Conference hosted by New Distribution, Haojiayi founder Li Lei shared his experience with IP branding, emphasizing that IP is not just a product but a strategic asset that requires significant investment, professional execution, and a focus on product quality to empower distributors and retailers." author: "李雷" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2019-03-21" language: "en" canonical: "https://xinjignxiao.com/en/articles/haojiayi-founder-li-lei-peppa-pig-super-ip-wins-the-future-1ca5c93d/" markdown: "https://xinjignxiao.com/en/articles/haojiayi-founder-li-lei-peppa-pig-super-ip-wins-the-future-1ca5c93d.md" original_source: "https://mp.weixin.qq.com/s/eCsaLc_D3yAeRryWsk-INQ" translation: "https://xinjignxiao.com/zh/articles/%E5%A5%BD%E4%BD%B3%E4%B8%80%E5%88%9B%E5%A7%8B%E4%BA%BA%E6%9D%8E%E9%9B%B7-%E5%B0%8F%E7%8C%AA%E4%BD%A9%E5%A5%87-%E8%B6%85%E7%BA%A7ip%E8%B5%A2%E6%9C%AA%E6%9D%A5-1ca5c93d.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/haojiayi-founder-li-lei-peppa-pig-super-ip-wins-the-future-1ca5c93d/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Haojiayi Founder Li Lei: Peppa Pig - Super IP Wins the Future > At the 5th FMCG + Internet Conference hosted by New Distribution, Haojiayi founder Li Lei shared his experience with IP branding, emphasizing that IP is not just a product but a strategic asset that requires significant investment, professional execution, and a focus on product quality to empower distributors and retailers. The **5th FMCG + Internet Conference**, hosted by New Distribution, was grandly held from March 15 to 18 at the Chengdu Longemont Hotel. The event attracted over a thousand industry professionals, including distributors, manufacturers, and internet companies from across the country, filling the venue to capacity. The following is a transcript of Mr. Li Lei, founder of Haojiayi, from his speech at the "IP Brand Empowerment" forum on March 17, published for our readers. Let me share our experience with IP at Haojiayi. We started acquiring IPs last year and have obtained six in total. We encountered many issues with these IPs, from copyright holders to distributors. Since acquiring them, we've been pondering whether to treat them as products or use them for short-term gains. After reflection, I realized that IP is meant to empower brands and products. The brand itself is the main chain of the supply chain: upstream, we have copyright holders; downstream, we have terminal stores and distributors. How to empower them through IP is what we as brand owners should focus on. Many distributors don't understand what IP is and what it can bring. Last year, we held the first Animation Industry Alliance in Jinan, with over 1,000 attendees. I trained all our distributors, saying that doing IP requires a lot of effort. All our thinking and efforts aim to empower the entire channel, but how? First, for licensors, how can you empower them to extend the IP's lifecycle? (Of course, a continuously popular IP will bring more profits to the licensor.) Its cycle can be prolonged, and they can earn more. Second, how do we empower distributors? It's simple, three points: **First, good products; second, good sell-through; third, good profits.** Let's see how we do it. This year, we won a Marketing Golden Tripod Award. I come from a military background and have limited education. If someone like me can win this award, I believe anyone can, though it certainly required more perseverance than the average person. Marketing is hard work; northerners don't have a concept of marketing. Don't look down on us. Copyright holders prefer large companies, but sometimes large companies don't value you, and small companies can't handle it due to high costs. Not everyone can do IP. It's like everyone thinks that just getting Peppa Pig will make money, but it's not that easy. Let's start with Wanda. Why did Wanda partner with Octonauts? Why transform Baby King with animation characters? Essentially, it's to build a cultural center based on children's IP strategy. So remember, we're not just doing products with IP. I tell many distributors to treat it as a strategic sector. I just want to ask: do you have more children coming to your flagship stores? Do you want to create a children's zone? I can empower you. Don't talk about it in product logic; that's not what we do. I tell everyone to treat it as a strategic sector. The distributors here deal with milk, food, etc. The future landscape will definitely have distributors doing IP. Yesterday, we had dinner with three distributors. Honestly, they came from other industries and had no FMCG experience, but they're doing very well. I asked if we could empower them, and they said yes, otherwise they wouldn't keep our products. We've enabled distributors new to FMCG to achieve 10 million in annual sales, but we haven't found large distributors doing well. Why? I'm confident in helping you build the market and make money. Large distributors worry like they're selling milk powder but earn like they're selling drugs. We need to earn from children, women, and young people. Bosses must understand the strategy before executing. Why is the IP era coming? I acquired IPs last year. Since last year, everyone has been talking about animation IP or self-owned IP. But there's a difference from IP brands. IP is a new term from the internet. **What is IP? Three dimensions: first, intellectual property; second, traffic. IP must have these two keywords.** Having traffic alone isn't IP; it's a brand. **The third keyword is crucial: fans.** Just now, I picked up a drink I made—this is One Piece. It's niche and expensive, selling for 8 yuan. Those who love One Piece aren't drinking a beverage; they're drinking brotherhood and friendship. If you have dreams, you must drink One Piece. Let me explain animation. What stages does it go through? Three stages: The first is 1995 to 2008, with Disney and Ultraman. The second is 2008 to 2015, with Pleasant Goat and Boonie Bears. Now from 2015 to 2018, it's Octonauts and Peppa Pig. Foreign animations have excellent universal values; they don't harm the environment or show domestic violence. That's why you see that in China, the more educated first- and second-tier cities prefer Peppa Pig. Why did Wanda buy Octonauts? If you can't negotiate, you acquire. Second, PAW Patrol. I won't dwell on Peppa; even young people can drink it. It's built around family. If I'm not mistaken, this IP will continue to be popular due to content dissemination and secondary refinement. This is the Douyin challenge we did, achieving 1.3 billion views. **Why is the IP era coming? What factors contribute?** First, self-media; second, mobile devices. We now watch on phones. The first stage was TV, the second was computers, and the third is mobile. What's the third? It's genuinely good content. Peppa Pig has a rating of over 9. Let me share practical insights on IP. Doing IP is really tough. When we started, I told our old distributors that we initially collected tens of millions, but actually we didn't get a cent. I said, boss, we really persisted; it took us six months to turn the team around. Doing IP is not easy. First, you need a big vision, especially for children's products. This product is for kids to drink. Food must be made with conscience. Is the essence of business IP or something else? Many say, "Can you make money just by getting Peppa Pig?" Is it really all due to IP? It's the product itself! If your product is bad, the better your marketing, the faster you die. IP only empowers you, but if the product is poor, even with the top IP, you won't succeed. Because product reputation matters; now people check ratings first, and if it's low, they won't even look. Look at how we make products. We don't just talk; we do. We never consider cost in R&D; we provide the best products to our children and parents. We forget about cost in the company; it's meaningless. Conscience and original intention: if you wouldn't serve a product to your own parents, don't serve it to your consumers. Our product is truly good. In China, I dare say no one can claim to be better. Second, we rely on aseptic cold-fill technology, currently the most advanced packaging in China. The walnut milk we make for children is organic. We've achieved "four no's" in product quality. We also make nut milk. Products for children must first appeal to parents. Parents worry about picky eating and excessive sugar. Sugar used to be good, but now it's bad. We've made a product with zero added sucrose. Second, doing IP requires a big strategy. Short-term behavior is not recommended because it harms the industry. If you take a bad product, you damage the industry. For example, Peppa Pig was initially given to a company, but they returned it. When I communicated with the copyright holder, I said I could be their advisor on which manufacturers not to license. Our Peppa Pig sells for 12 yuan; others can sell for 5. When we started IP in June, our team had 60 people. This year, we announced 60 middle and senior management appointments. This requires significant investment. All our talent is for building platforms; they come from big companies like Yili and Mengniu. Second, we need infrastructure. We have the first aseptic cold-fill production line north of the Yangtze River. Our team grew from 75 in 2017 to 281 in 2018, now 380, and by the end of the month, we'll be 480. We've built a complete organizational structure; without it, you can't do IP. At the top, we have five operation centers, including an IP Research Institute, marketing, operations, and financial management centers, as well as business units for distribution, KA, juice, foodservice, infant, and partnerships. Our operations management center has full staffing, including HR and brand and market management. Additionally, doing IP requires significant investment. It's not just about getting the IP; you need R&D and shelf space. This year, we'll enter all major retail outlets. You can't enter these without spending tens of millions. Our Peppa Pig products will be in Beijing, Shanghai, Guangzhou, and Shenzhen. We're going urban. Let me tell you about "守正出奇" (upholding integrity while surprising). Is it true that just getting Peppa Pig makes money? I say that's wrong. Without high investment, how can you talk about IP? For years, no one has been as dedicated to IP as we are. Second, speculation is a trap. Doing IP isn't easy. If you think you'll make money immediately, don't take the money. We invest real money, with no room for falsehood. Every product we sell has an anti-counterfeit label, and we can track data. We've collected extensive data and privatized it. We know how much inventory we have today and how many stores we've opened. We also know all the mothers in our database. Data is only valuable when precise. **Customer empowerment: First, cost reduction—many distributors won't negotiate fees; second, trends—we can create a relatively blue ocean; third, strategic transformation; fourth, channel upgrade.** Many of our distributors' channels are still in rural areas, which is very problematic. I say distributors must choose good products. Many distributors started with products. What is the essence of distributor strategy? Three sentences: **First, quality**—never do without quality; the righteous path is rugged; don't go against natural laws. **Second, profit**—distributors definitely want profit. We are nature's porters, no, making money isn't easy. **Third, sell-through**—the hardest issue for distributors is sell-through. What is the essence of distributor operations? It's high traffic with precise fans. For example, One Piece, unlike Peppa Pig, has precise fans. It's sold only in special channels, using niche to trigger mass appeal. If you're good brothers, you must drink One Piece; if you have dreams, you must drink One Piece. Second, we bring distributors high profits and high viral growth. Premium pricing creates profit; we must win together. When a company grows big, it can't exploit its distributors; when an IP grows big, we can't exploit distributors. For retail empowerment, we create IP zones for one-stop shopping, making it the child's third home. How to attract young people to supermarkets is what we should consider. Put all food and drinks here. On weekends, bring kids to the supermarket; someone watches your kids while you shop. That's what we do. I say the highest realm is making the other party money; that's what I consider. So for infant products, we first create four profit points: first, milk powder; second, diapers; third, pacifiers and related items; fourth, infant promotion. Second, IP requires professionalism. Without a professional team, it's hard to sustain. This professionalism extends to negotiating with retailers. Before the New Year, we had over 20 stores and sold 1.4 million in 15 days. When we presented this data, I asked to see the general manager. He didn't believe it and eventually wanted to discuss a robot project. That's professionalism; they want you to create sales and ask about cluster potential. We enter supermarkets like Yonghui on a long-term basis with very low fees. How professional are we in supermarkets? This is part of it. Why am I telling you this? "Externally train muscles and bones; internally train breath." We break down store sales to the level of each store and each day, then complete the monthly target. All actions revolve around this. That's true professionalism. Our company does this breakdown very meticulously. Let me share some heartfelt words: Holding an IP is only the first step. To succeed, you need craftsmanship, applicable strategy, and continuous investment. Whether we build or create IPs, the next decade is the decade of IP. --- ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671