---
title: "The Disappearing Brand Department: A Wake-Up Call from the Marketing 3.0 Era?"
description: "Brand professionals are anxious as companies like Jiaoxia, JD.com, Shiseido, Estée Lauder, and Unilever cut brand and marketing roles. This reflects a shift in the marketing 3.0 era, where brand departments must evolve from traditional roles to become more integrated, data-driven, and agile."
author: "执牛耳"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2024-10-07"
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# The Disappearing Brand Department: A Wake-Up Call from the Marketing 3.0 Era?

> Brand professionals are anxious as companies like Jiaoxia, JD.com, Shiseido, Estée Lauder, and Unilever cut brand and marketing roles. This reflects a shift in the marketing 3.0 era, where brand departments must evolve from traditional roles to become more integrated, data-driven, and agile.

"Is it now trendy to sacrifice a brand department to the gods?" lamented brand professional Xiaowei.
Recently, news emerged that Jiaoxia (Banana Umbrella) had completely disbanded its brand department, with all PR staff leaving and the marketing department being merged into sales. This event triggered anxiety in Xiaowei.
Not just Jiaoxia, but since the beginning of the year, brands such as JD.com, Shiseido, Estée Lauder, and Unilever have also reported layoffs, mainly targeting office positions like marketing.
Tracing the source of this impact, we hear the sound of gears grinding in the big wheel of the times and enterprises. In the Marketing 3.0 era, the role and function of brand departments are undergoing unprecedented transformation, and the relationship between brands and consumers is being reshaped.
There are only enterprises of the times, not so-called times of enterprises. A series of events seems to declare to us: traditional brand management models are gradually fading from the historical stage, and a new brand era is approaching.
Is the 'disappearance' of brand departments a helpless move under cost pressure, or an inevitable choice for brand strategy transformation? What new challenges and opportunities will the Marketing 3.0 era bring to brand departments? The author will deeply analyze the underlying reasons behind the disappearance of brand departments and explore how they can find new footholds in the digital wave.
# **Jiaoxia, Heavy on Marketing**
# **Yet 'Adjusts' Its Brand Department**
"Spring thunder moves, all things startle." The echo of the song "Jingzhe Ling" (Awakening of Insects) has not yet faded, and Jiaoxia's brand and PR departments have already 'returned to the outdoors.'
In August 2024, news spread that Jiaoxia had completely disbanded its brand department, all PR staff had left, and the marketing department was merged into sales.
According to sources close to Jiaoxia, besides the brand and PR departments, this adjustment also involved the new small-category product studio, design department, and camp business. From a sales perspective, Jiaoxia's layoffs were not due to 'poor performance.' The impact on subsequent spokesperson collaborations this year is unlikely to be significant.
"Jiaoxia's layoff operations basically happen every year." This statement aligns with Jiaoxia's official response to some extent.
Jiaoxia officially stated that this is a routine internal adjustment, unrelated to IPO, and operations are normal, with revenue growing steadily compared to 2023. Additionally, Jiaoxia said that due to merging overlapping positions like product marketing and brand PR, less than 1% of personnel left after mutual agreement due to not adapting to new roles.
Despite this statement, Jiaoxia's 'all-in-one' operation still had a significant impact on brand professionals. Many people commented on social media, 'When the environment is bad, is it trendy to sacrifice a brand department to the gods?' 'They built their business on brand marketing, but now they cut the brand department first.'
Observing Jiaoxia's development, it's clear the brand department played key roles. For example, in the early stages, it successfully shaped Jiaoxia's market positioning, and later drove the transformation from a single sun-protection brand to a 'lightweight outdoor lifestyle brand.' The brand and PR departments also contributed to enhancing brand awareness, market share, and brand image maintenance.
**Jiaoxia is just a slice of the industry under the times. New consumer brands and fashion beauty brands have faced dual pressure from market and capital in recent years, making office positions like brand and marketing the hardest hit in layoffs.**
In July, Migo's co-founder and CFO Jin Chang and the PR business head left, and the brand-related team was basically disbanded; in May, JD.com suddenly had large-scale layoffs, with the marketing department being one of the main targets; since the beginning of this year, brands like Shiseido, Estée Lauder, and Unilever have also reported layoffs, mainly targeting office positions.
"Abandon illusions, face reality, bow to survival," said a brand professional with years of experience, while also questioning, 'Where is the way out for brand professionals?'
# **Behind the 'Disappearance' of Brand Departments**
Brand department layoffs may be related to various factors, including but not limited to market changes, company strategic adjustments, performance pressure, IPO processes, etc. In the current market environment, rather than saying companies are seeking more effective cost control and operational efficiency improvement methods, it's more accurate to say the role and importance of brand departments are being repositioned and reevaluated.
## **1. Cost Pressure Under Changing Market Environment**
"When the company has no money, they cut the brand department first, after all, brand and sales are not directly linked." In the view of senior brand/marketing professional VCeast, this is a reasonable move for many companies in the current market environment.
If the brand department is seen as a cost center rather than a profit center, when the company decides to cut or merge certain departments due to economic pressure and cost control needs, the brand department bears the brunt.
VCeast is so calm because he had a similar experience five years ago. At that time, he worked in brand for a well-known domestic jewelry brand. "Long-term high expenditures on entertainment marketing and spokespersons had already weakened the jewelry industry in that era, and the entire brand department was gradually laid off and disbanded."
As a marketer, he decided to accept change, objectively examine himself, and transform.
**The market environment is changing, consumption structures are changing. For enterprises, when previous strong marketing investments cannot satisfy their growth ambitions, and with tight budgets, cutting the brand department is also a move to survive. However, this also sounds a wake-up call: when enterprises pursue rapid growth, they also need to consider sustainable development and long-term brand value construction.**
## **2. Company Organizational Structure Adjustment, Business Focus Shift**
There are various reasons for company organizational structure adjustments, such as meeting new consumer demands and expectations, changes in competitive strategy, etc.
It is worth noting that **brand and marketing are amplifiers of products. Some brands are high-profile in marketing and brand strategy, even stunningly popular. But the products fail to enter consumers' hearts, even backfiring on the brand.**
When there is a disconnect between brand and product, companies adjust their organizational structure, placing product innovation and cost control in a more core position, even making moves to disband the brand department.
This situation presents different meanings from different perspectives:
Consumers: Heavy marketing, poor product. Buying such products is worse than buying white-label products.
Brand professionals: Clearly, the company's strategy and tactics are flawed. Is doing a good job in branding also a reason to be laid off?
Enterprises: The brand department needs to be reevaluated. Rather than continuing to play to strengths and explaining high-sounding tech concepts in brand promotion, it's better to shore up weaknesses and invest more in patents, technology, and R&D.
Some companies have also made internal structural adjustments and business focus shifts due to market environment changes and industry characteristics. For example, some consumer brands have made the live-streaming and e-commerce departments the focus, with budgets even larger than before. But on brand and PR, they save wherever possible, spending as little as possible, 'only accepting market investments directly linked to sales.'
## **3. IPO Sprint Failure**
Generally, when a company sprints for an IPO, brand building is essential, and many companies invest heavily in marketing.
Xiaoyou is a former financial PR for Hong Kong IPOs and now a brand consultant. According to her, from preparing to submit the prospectus to hearing, and then to the official bell-ringing, to enhance brand power and market confidence, the brand department needs to follow the publicity rhythm at every step and coordinate with multiple partners.
The brand department, which does not generate direct profits, spends money like water on this path. If the IPO is hopeless, especially when cash flow problems arise, the company will reconsider its organizational and cost structure, and the brand department may be seen as non-core and affected.
In such cases, some companies choose to reduce brand department budgets or lay off relevant personnel. 'Hibernating' may be a survival choice. However, this also raises reflection: Is it truly worth it for some new consumer brands, during expansion or IPO sprints, to invest large sums in brand content, creative design, and advertising films, and open super offline flagship stores in remote areas?
**Should listing be the end point for an enterprise's sprint? If not, what is the power for an enterprise to cycle through cycles?** This is a question worth pondering for the industry.
# **Marketing 3.0 Era: New Changes and New Roles**
If we take a longer view, the 'disappearance' of brand departments is a footnote of the times. Having passed the product-centric Marketing 1.0 era and the consumer-centric Marketing 2.0 era, we are now in the Marketing 3.0 era.
**The Marketing 3.0 era, also known as the value-driven marketing era, emphasizes combining brand mission, vision, and values with consumers' emotional needs to establish deeper connections. It emphasizes the resonance of humanistic spirit and values, and focuses on consumers' self-actualization needs.**
**—— [Marketing Business Research Institute] under [Zhiniuer]**
Compared to before, the Marketing 3.0 era is characterized by digitalization, omnichannel, and extreme user experience. Specifically:
**Brands use big data, AI, machine learning, and other technologies to better understand consumer needs,** provide personalized experiences, and optimize marketing effectiveness. At the same time, brands enhance consumer experience through omnichannel marketing touchpoints. Brands need to maintain consistent brand image and messaging across multiple channels and platforms to achieve a seamless consumer experience.
**Communication between brands and consumers has shifted from one-way to two-way and interactive,** and brands need to listen to consumer voices and respond. Additionally, through social media and other interactive platforms, brands encourage consumers to participate in brand building, making consumers part of the brand story.
Furthermore, in the Marketing 3.0 era, brands pay more attention to the combination of globalization and localization, emphasize content marketing, emotion and story-driven approaches, and focus on social responsibility and sustainability. These elements are integrated into brand value and marketing strategies.
To adapt to the digital, social, and value-driven market environment, the role of brand departments has become more diverse and complex:
  * **Value creators.** Brand departments need to go beyond traditional product promotion, creating and curating content that aligns with brand values to attract and retain consumer attention and loyalty. Build emotional connections with consumers through brand stories, mission, and vision, meeting their needs for respect and self-actualization;
  * **Data analysts + technology integrators.** Using big data and analytical tools, brand departments gain insights into consumer behavior, understand consumer needs, provide customized products and services, predict market trends, and use data-driven decisions to optimize marketing strategies. At the same time, integrate new technologies (such as AI, AR, blockchain, etc.) into marketing activities to provide innovative consumer experiences.
  * **Community builders + cultural leaders.** Through social media and other online platforms, establish and maintain interaction with consumers, cultivate loyal fans and advocates; through brand activities and marketing communications, guide and shape consumer lifestyles and values.
  * **Brand ecosystem builders.** Brand departments should integrate online and offline channels to ensure consumers receive consistent brand information at every touchpoint. At the same time, extend brand building to constructing a brand ecosystem, creating greater value through cooperation with other brands and organizations.
# **Transformation Paths for Brand Departments**
The strings of the old era cannot play the bell of the new era.
**When traditional brand department structures cannot adapt to current digital transformation and technological development, adjustments are needed to better fit the market. Brand departments should also proactively seek innovation to support the company's overall strategic planning and new consumer demands.**
The author notes that there are currently two main transformation paths for brand departments in the market:
## **1. Integration of Brand Department with Sales and Marketing Departments**
Companies may strategically restructure to merge brand functions into other departments like marketing or sales, or brand departments may work closely with other departments such as marketing, sales, and product development to jointly promote long-term brand development and success. The transformation of brand departments is not only to address current market challenges but also to seize future opportunities.
  * **Integration of brand and other departments ensures consistency of brand information and strategy across all business areas.** Based on this, implement Integrated Marketing Communications (IMC) strategies, communicating with consumers through unified brand messages and stories across all channels and platforms to achieve overall marketing goals.
  * **Technical integration across departments, data-driven decision-making.** Use marketing automation tools and CRM systems to integrate workflows and technology platforms of brand, sales, and marketing departments; share data and insights across departments to drive data-informed marketing and sales strategies.
  * **Cross-departmental collaboration improves operational efficiency and synergies.** Brand departments work closely with marketing and sales to ensure marketing activities align with sales goals, improving overall marketing effectiveness. By integrating resources, technology, and data from various departments, brand departments can enhance marketing efficiency, improve user experience, and drive sales growth.
  * **Omnichannel marketing and focused channel strategies.** Integrate online and offline channels to provide a seamless customer experience, ensuring brand information is consistent across all touchpoints. With limited marketing budgets, choose key channels for concentrated resources and precise targeting to achieve breakthroughs.
## **2. More Lightweight, More Data-Driven, More Human-Centric**
Also laying off employees, some companies have established a better brand image.
Since April 2024, Tesla has conducted multiple rounds of layoffs, with the sales and service departments in China being the 'hardest hit.' The layoffs aim to reduce costs, improve productivity, and restructure for the next phase of growth. Its candid attitude and N+3 severance package sparked discussion on social media, winning employee respect and establishing a good company image.
From public information, it's unclear whether these layoffs affected the brand department, but Tesla's brand strategy exhibits characteristics of the Marketing 3.0 era.
Tesla's vision of 'accelerating the world's transition to sustainable energy' is central to its brand communication, running through all communications, product design, and customer interactions.
In marketing strategy, Tesla uses a direct sales model and focuses on word-of-mouth marketing. In customer experience, it emphasizes customer loyalty cultivation, maintaining customer relationships with personalized support and services, including test drives and free Supercharger access. It is reported that over 80% of Tesla's new customers come from referrals by existing owners.
On social media, Tesla and its CEO Elon Musk establish direct connections with consumers, leveraging social media's multiplier effect to achieve widespread brand communication and awareness with zero advertising budget.
Tesla does not rely on traditional advertising, achieving exponential brand growth at minimal cost and successfully positioning itself as a symbol of innovation and sustainability, remaining competitive in the Marketing 3.0 era.
In the communication context of the Marketing 3.0 era, brands need to establish emotional connections with consumers and meet their self-expression needs. Consumers are not only product users but also content creators and word-of-mouth spreaders, requiring brands to focus on product experience and user emotional value.
Driven by technology, brands will also place more emphasis on data-driven innovation, and there will be a shift in thinking, such as moving from long-termism that ignores short-term profits to a strategy that coexists with data-driven profit considerations and long-termism.
**To improve efficiency and response speed, a lightweight brand operation model will become the main mode for enterprises in organizational operations. The shift from large-team process-oriented brand departments to agile small units may become popular.**
**Conclusion**
**In this consumer-centric, value-driven era, the disappearance of brand departments does not mean the weakening of brand power, but rather a profound reflection and reconstruction of brand strategy and operational models.**
We are in a new marketing era driven by data, empowered by technology, and with high consumer participation. The role and function of brand departments are being redefined. Lightweight models, thinking changes, emotional connections, product experience, social attributes, digital capabilities, and global strategies—these keywords constitute the demand landscape of the Marketing 3.0 era.
**If product and operations are the lower limit for a company's survival, brand symbolizes spirit and strength. Brand departments must not only be the wall-breakers between the enterprise and the outside world but also pioneers and leaders in their fields.**
**So-called brand power means carrying the enterprise spirit upward and outward, not brand personnel disbanding in place and moving outside the company.**
(Xiaowei is a pseudonym at the interviewee's request.)


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