Recently, at its fifth anniversary celebration, Three Squirrels unveiled a new brand—Squirrel World trendy apparel. Additionally, Zhang Liaoyuan revealed plans for an amusement park and other products like a three-piece set. The internal launch event for the squirrel trendy brand, along with a signing session by the 'old dad,' was held at Squirrel Nest, signaling that the internet-famous nut retailer is indeed entering the clothing business. The trendy brand is named 'Squirrel World,' which, in the eyes of reporters, truly represents a new squirrel world. According to Shu Xiaofeng, Chief Brand Officer of Three Squirrels, the Squirrel World trendy series will officially launch online in early August, featuring 6 trendy T-shirts, 3 bags, 4 hats, and phone cases. In the future, the brand will expand to spring, autumn, and winter collections to cater to different seasons, with more bag and phone case varieties and models, as well as new trendy categories. This is not the first time Three Squirrels has crossed industry boundaries. Previously, it launched products like toothpaste, eye masks, and pillows. It also collaborated with Leshi Pictures on a film and attempted to enter the fresh produce sector, though the 'Squirrel Cloud Fresh Orange' was quickly taken down, ending in failure. Currently, the first Squirrel Town is under construction in Wuhu, with an expected opening in 2019. According to Zhang Liaoyuan, Squirrel Town is a themed entertainment complex integrating amusement facilities, offline retail stores, and restaurants, with plans to expand to third- and fourth-tier markets. Building a town costs 300 million yuan, indicating Zhang's significant investment in tourism. However, he denied that the trendy apparel is for profit, stating that 'Squirrel Town will have free admission.' The cross-industry moves are aimed at serving consumers in a multi-dimensional way, allowing them to experience Three Squirrels as a fun and loving brand. Amid these frequent cross-industry moves, Zhang's grander strategic blueprint is evident. He stated that using the Three Squirrels brand image, they will extend from snacks to apparel, mineral water, red wine, animation, and cultural entertainment, building a squirrel kingdom by disrupting the ecosystem like an internet player, strengthening the Three Squirrels IP, replacing traditional advertising, and enhancing fan engagement. He emphasized that the core business remains selling snacks, and the goal is to boost product sales through IP reinforcement, expanding 'from nuts to snacks to all categories.' The development path of Three Squirrels now resembles Zhang's name, which means 'a single spark can start a prairie fire,' but some are skeptical of this widespread expansion. 'Cross-industry,' a seemingly fashionable term, is often a brand extension trap that many companies fall into. Done well, it can be highly successful; done poorly, it can backfire. Zhang Liaoyuan has resolutely boarded this ship with Three Squirrels, spreading so wide that it inevitably invites criticism. As a leading internet nut food brand, Three Squirrels has established a strong 'nut' perception in consumers' minds. Now, with film production and ventures into unfamiliar territories, while short-term sales may grow, in the long run, it could confuse consumers, blur the original brand positioning, and lead to unforeseen consequences. Three Squirrels, a super-popular internet sensation relying on 'looks,' has sold 5 billion yuan worth of nuts over five years. Now, it seems to be straying from its core business with frequent cross-industry moves. What exactly is it trying to achieve? New Distribution invited two industry experts to share their views: Nalan Zuotian's Comment: Opening physical stores is understandable as a shift from online to offline. But clothing? That's a different category. It's not just about allocating a space in your store. With this mindset, should Three Squirrels next venture into real estate and build a squirrel home? Green and eco-friendly. Then enter the paint market—there's already 'Three Trees' in that market; I could grow three squirrels on them for more liveliness. It feels like they're inflating this so-called IP to the max, then cashing in, expanding quickly while everyone is hyped, going public, and then running away. Otherwise, a snack seller, already questioned for profitability, dabbling in other things it's not professional in. From opening physical stores to smashing them, if they were truly profitable, they wouldn't do such degrading things. They talk about strict self-requirements, but in reality, they hadn't even designed it properly before building physical stores. Similarly, opening clothing stores is even more far-fetched. Lu Shengzhen's Comment: The core of business logic is maximizing efficiency. After Three Squirrels passes the danger zone and the profit breakeven point, it will inevitably shift from not focusing on profits to maximizing economic benefits. The main line for this benefit is the Three Squirrels IP symbol. Three Squirrels' future trend is to build an ecological empire similar to Xiaomi or LeEco. In the nut business itself, there's little room for further expansion. Developing culturally related products is a need for Zhang Liaoyuan to maximize the brand effect of Three Squirrels and for capital providers to seek maximum investment returns. Three Squirrels' multi-pronged attacks and expansion into various fields have a logic for success but also a risk of overextension. The biggest guarantee of success is brand maturity and acceptance by fans. The potential danger is not to follow a path like LeEco, where expanding into real business is a facade and the real goal is to transfer funds. This article is compiled and edited by New Distribution -END-