If you take a look at the financial reports of many new consumer brands in recent years, you’ll notice a common trend: negative net profit. 🔻
Many businesses follow the logic of capturing market share first, eliminating competitors, and then making money later.
But here’s the reality: After 3–5 years, many still aren’t profitable, and some even go bankrupt. 🤯
🤔 Is this really the only way to build a brand?
💡 Wantun Media thinks differently.
❌ The “Burn Money for Growth” Model Is Flawed—But Why Does It Keep Repeating?
🔍 1️⃣ Structural Issues in Large Consumer Brand Groups
The marketing department controls the budget and decision-making power, while other functions—especially finance—are relatively weak.
Corporate managers prioritize their team’s interests, spending more money means securing more resources, and overall company profitability isn’t their concern.
Some companies even force spending unused budgets because “if we don’t use it, we lose it.” 💸
🔍 2️⃣ New Brands Copy Big Corporations and Overspend
After receiving funding, many startups hire senior executives from major consumer goods companies.
These executives are deeply influenced by the “spend to dominate” mindset, making it hard to escape the same flawed approach.
As a result, small brands burn cash unsustainably and struggle to stay profitable. 📉
🔍 3️⃣ The Most Successful Consumer Brands Thrive on Profitability
Coca-Cola, Nestlé, Kraft Heinz—global consumer giants all follow the same principle:
✅ Create a best-selling product → Generate strong profits → Use profits to expand → Acquire and grow
❌ They don’t expand while losing money—they expand because they’re making money. 💰
🚀 Wantun Media’s Perspective
Marketing without rigorous financial planning is NOT a sustainable strategy.
✔ Brands don’t succeed just by spending money—they succeed when consumers genuinely love the product.
✔ Marketing should be a driver of profitability, not just a budget-spending exercise.
📩 Contact us:
📧 contact@wantunmedia.com
🌍 www.wantunmedia.com
🔹 Let’s build brands the smart way—sustainably and profitably! 🔹
Wantun Media 