Analysis of Focus Media's Success in Jiangnan Spring

Jiang Nanchun, born in 1973, originally from Ningbo, was born in Shanghai. 1995 graduated from East China Normal University with a bachelor's degree in Chinese language and literature. 1994-2003, Jiang Nanchun served as CEO of Yongyi Communication Co., Ltd., and served as chairman and CEO of Focus Media since May 2003. 1994, Jiang Nanchun, a junior, established Yongyi Advertising Company as the general manager. By 200 1 year, Yongyi's income has reached10.50 billion, which makes her famous in the advertising industry in Shanghai. In May 2003, Jiang Nanchun founded Focus Media and served as the chairman and CEO of the board of directors. At this time, Jiang Nanchun decided to bypass the traditional media with fierce competition and take the road of "focusing" to specialize in the construction of LCD media. From June 5438 to February 2003, Jiang Nanchun was named the media figure of the year and awarded the title of "China Contemporary Excellent Advertiser". In March 2005, Jiang Nanchun was named "China Advertising 10 Man of the Hour". On July 13, 2005, Focus Media successfully landed on the NASDAQ stock market in the United States, becoming the first pure advertising media listed overseas in China, and set an IPO record at that time with the financing amount of 654.38+72 million US dollars. After the listing, Jiang Nanchun began to compete for territory in the domestic pan-advertising field: On June 4, 2006, Focus Media acquired Frame Media for $39.6 million, adding high-end apartment media resources to its territory. Four days later (June 5438+October 8, 2006/KLOC-0), Focus Media invested heavily again, investing 325 million dollars to acquire Juzhong Media, the second largest building video media operator in China at that time, further consolidating its dominance in the fields of building TV, community TV and outdoor big screen. On March 7, 2006, Focus Media wholly acquired Beijing Kaiwei Diangao Network Technology Co., Ltd. with150,000 US dollars in cash and150,000 US dollars in stock, launched the "Focus Wireless" mobile advertising media brand, and entered the field of mobile advertising. On August 3rd, 2006, KLOC-0, Focus Media acquired the cinema advertising company ACL. After the acquisition, ACL was renamed Focus Cinema Network and entered the field of cinema advertising. On March 1 2007, Focus Media announced that it would acquire the largest online advertising service provider in China with US$ 70 million in cash and US$ 65,438+55 million in common stock of Focus Media, and enter the field of online advertising. Forbes list in 2006: No.40 in Hurun list in 2006: 565,438+0 Total assets in 2006: 465,438+0 Borrow chickens to lay eggs, and then buy them back with the money laid. Jiang Nanchun, a 22-year-old junior, has 500,000 deposits and has his own advertising company. With the advantage of being both a referee and an athlete, Jiang Nanchun's Yongyi Communication has occupied 95% of the advertising agency market in Shanghai IT field. 1994, Jiang Nanchun, a third-year student of Chinese Department of East China Normal University, founded Yongyi Communication Company. Since the establishment of the company, except that the figures on the ID card prove that he is only 265,438+0 years old, he has become a sophisticated boss in business behavior and negotiation style. However, Jiang Nanchun only had the right to operate the company, and Yongyi Communication Company had to be affiliated with Yongyi Group at that time. Strictly speaking, Jiang Nanchun has no "ownership" in the legal system. In the process of changing from "management right" to "ownership right", Jiang Nanchun played "borrowing chickens to lay eggs" twice. 1994, Jiang Nanchun's financial strength is not enough to set up his own company, so he had to "borrow chickens to lay eggs" and rely on other people's money to help him register and set up a company. After the establishment of the company, he is not a legal person, but in order to get the company as soon as possible, he must make money desperately, and let Yongyi Communication Company change its surname to "Jiang" through "repayment" or "shareholding". As a referee and athlete, controlling resources is more important than Excellence! Jiang Nanchun's experience in running for the president of the student union during his college years made him realize this business truth and played a decisive role in leading Yong Yi to spread rapidly. Jiang Nanchun has a friend who is in charge of IDG venture capital business in East China. This friend is also an alumnus of East China Normal University. IDG, a world-famous IT publishing group, has invested a lot of IT media in China and hopes to set up a branch in Shanghai to promote its business. Jiang Nanchun has known this IDG friend privately for a long time. He often meets on many occasions, and he is quite familiar with it once and for all. This friend suggested that Jiang Nanchun cooperate with IDG to jointly develop the advertising market in China IT field. Before that, Jiang Nanchun knew nothing about IT products. He is used to doing mass advertisements for consumer goods, and he doesn't divide his business so finely. Although Jiang Nanchun had all kinds of IT contacts at that time, such as knowing Yang and representing Lenovo's advertisement in Shanghai, what did Intel do? Jiang Nanchun has no idea. However, Jiang Nanchun wisely realized the weight of IDG tree and sensitively smelled the future development of IT advertising market. He began to adjust the business direction of Yongyi Communication and concentrate on attacking the IT advertising market. 1At the end of 995, Yongyi Communication cooperated with IDG through an agreement, and Jiang Nanchun became the director of IDG's Shanghai office without spending a penny. Imagine that IDG has invested a lot of IT media in China, and Yongyi Communication has accumulated a large number of IT customers in Shanghai. On the one hand, Jiang Nanchun has the right to speak in the IT media. On the other hand, IT customers want to find Jiang Nanchun to be a "referee" and "athlete" when advertising. Jiang Nanchun's Yongyi communication can't make money. In a short time, Yongyi Communication has become the largest advertising company in Shanghai IT field. By 1998, Yongyi Communication has occupied 95% of the advertising agency market in Shanghai IT field, with the highest turnover of 70 million yuan. "200 1 this year has been very hard and I feel exhausted. We are not in an advantageous position in the industry, but in the weakest position in the industry. At that time, I finally understood that my industry was wrong, and my industry was the most vulnerable link in the value chain. Although the company is very big, there are still many companies competing with us. They all have good professional teams. I felt particularly stressed, so I decided to transform. I don't think business can go on like this. " The great thing about Jiang Nanchun is that he doesn't lose his mind because of temporary success, nor does he lose his calm thinking because of temporary failure. He treats "gains and losses" and "success or failure" rationally, making "vanity" his own "motivation" rather than "stumbling block" and calmly discovering what is under the iceberg. The third part: ingenuity, a new industry was born next to the elevator. The advertisement in the elevator lured Jiang Nanchun, who had been in business for ten years, to give himself seven days off and do nothing. From the beginning of New Year's Day, he sat in his favorite Hanyuan Bookstore, "thinking behind closed doors". "From 1992 to 2002, I have been in the traditional advertising industry for 10 years. 10 years later, I think I should change. In the field of traditional advertising, I find myself less competitive. I wonder if what I did at 10 was right or wrong. Finally, I came to the conclusion that what I do must be experienced, but this is wrong, because as long as I continue to do it in this industry, then you have to pay a lot. " Jiang Nanchun told reporters what he really thought after thinking that year. In fact, in the past 200 1 year, Jiang Nanchun has started to "deny" his choice for ten years from time to time. Because of business contacts, Jiang Nanchun met Chen Tianqiao before Chen Tianqiao became "the richest man in China". But after several in-depth conversations, Jiang Nanchun admired Chen Tianqiao's business mind and strategic vision, and even more admired Chen Tianqiao's "vanity" because of his success. "Chen Tianqiao has good industrial judgment. The biggest inspiration he gave me was that he always created a new industry, instead of squeezing it with others. " Jiang Nanchun said, "So, you should create an industry by yourself and quickly gain a monopoly position in this industry. Only in this way can you really leave all your competitors behind. " Therefore, after seven days of "behind closed doors", Jiang Nanchun decided to create a new industrial model, so that he was no longer an agent advertiser sandwiched between enterprises and the media, but a new type of media. But what should we do? Just as Jiang Nanchun was thinking hard about how to find a new industrial model and how to create new media, an elevator experience made him suddenly enlightened. On that day, Jiang Nanchun went to Xujiahui Pacific [18. 10 4.32%] department store to do business. As a result, he was attracted by the advertisement posted on the elevator door. He found that at the moment when people were waiting for the elevator, idle people did nothing but concentrate on reading the pasted advertisements, which was a simple ten seconds. Isn't it a good new media to pack all the elevators in the office building and post advertisements? "I think the idea of elevator advertising is quite fun and I have a strong interest in elevators. At that time, when I was in Shanghai International Trade Center, I asked the people of International Trade Center if they could contract elevator doors. People in the international trade property said that this is impossible, and no office building will turn the door into an advertising carrier. Later, I gave up the idea, but I thought from another angle, if I don't post this door, is it possible for me to hang a small LCD TV? Because I am an advertising agent of LG, I am very familiar with LCD TV. I went to ask about the properties of some office buildings, and they felt that the problem was not big and they were quite interested. So I decided to try. " With his impeccable tongue, Jiang Nanchun persuaded the first batch of more than 40 high-grade office buildings from June 2002 to June 65438+February. By June 5438+ 10, 2003, 300 LCD screens of Jiang Nanchun had been installed beside the elevators of 50 high-end office buildings in Shanghai. At the same time, corporate customers such as China Merchants Bank [18.04 4.64%] credit cards and Hennessy wines have also become the first advertisers. Jiang Nanchun stepped out of the era of "Yongyi Communication" and entered a new era of "Focus Media". Traveling around the world requires a new capital model. Although the new advertising model attracted the first batch of customers' advertising orders, due to the huge investment, Jiang Nanchun is increasingly "riding a tiger". The average price of the first batch of LCD screens is 8,000 yuan, and the price of 300 LCD screens is 2.4 million yuan, excluding the related expenses of the property contract. More importantly, the coverage of only 50 office buildings is not enough to attract more customers to invest in long-term advertising. Jiang Nanchun must quickly expand the coverage area of office buildings in a very short time, so the product cost and labor cost will soar, and the profit needs a critical point. But how many office buildings need to be broken through at this critical point, Jiang Nanchun has no bottom, but he left himself a bottom line of burning money of 30 million. "By May 2003, the number of office buildings had expanded to more than 100, but I was still burning money, which was quite embarrassing. After all, I burned my own money. I felt very painful at that time and stayed up all night. Later, I was numb, feeling that I was not burning money, but ten years of youth. Ten years of hard work was spent in just a few months. The pressure at this time has never been encountered. " Recalling the scene at that time, Jiang Nanchun, who had already walked out of the predicament, still smiled a little bitter. If Jiang Nanchun doesn't invest more at this time, not only will the money invested in the early stage hit Shui Piao, but the new media model obtained after hard thinking will also be stillborn. But if you continue to burn money, when will it end? In case of "losing my wife and losing my soldiers" in the end, the achievements of ten years may be wasted because of this decision-making mistake. "There is no doubt about mountains and rivers, and there is another village." Just when Jiang Nanchun was under the greatest pressure and was ready to hold on, a person with a lot of venture capital took the initiative to find Jiang Nanchun. That man is Yu Wei, the chief representative of Softbank's Shanghai office. Focus Media is headquartered in Zhaofeng World Trade Center on Jiangsu Road, which was once the headquarters of Softbank Asia in China. Focus Media happened to be on the same floor as Softbank, so Jiang Nanchun and Yu Wei looked up and didn't look down, so they became friends who could talk when they met. At first, Yu Wei only knew that Jiang Nanchun was advertising. Later, she learned through chatting that Jiang Nanchun was focused on creating LCD advertisements. The speaker has no intention, but the listener has intention. Wei Yu learned more about Jiang Nanchun's initial new media projects and his entrepreneurial experience in the past ten years from other channels. After careful investigation, Yu Wei decided to have a good talk with Jiang Nanchun. After three hours of chatting, Yu Wei has reached a preliminary financing agreement with Jiang Nanchun. Finally, Softbank decided to inject capital into Focus. "One of my business habits is never lending money to others, and the other is never lending money to others. As for financing, I have never opened such an idea in my heart. But after burning for half a year, there is still no improvement. I know that my previous valuation of this project is too simple, and there are many difficulties in terms of funds and various resources. So, if I wanted to do it, financing was the best choice I could decide at that time. After all, everyone collects firewood with a high flame. " From "burning one's own money" to "burning other people's money", Jiang Nanchun was honest with reporters about his change of heart. The participation of venture capitalists has greatly helped Jiang Nanchun. With the entry of Softbank, after several rounds of financing, several investment companies such as CDH International Investment, DFJ and Goldman Sachs have injected huge amounts of money into Focus. With money, Jiang Nanchun quickly raced around the country with his LCD screen, not only in office buildings, but also in supermarkets, apartments, golf courses, hospitals and other places. By the end of 2004, the total business income had reached 240 million yuan, and there were 654.38+0.5 million LCD screens and some plasma TVs hanging on the wall next to elevators in different buildings all over the country.