Brands may be the only weapon that home businesses can appeal to consumers

How important is a brand to the development of an industry? Looking back on history, looking at the development of all walks of life, we can clearly see that the vigorous development of an industry, will inevitably be accompanied by the emergence of a number of outstanding brand representatives.
there is no "cheap
according to a news release, Ali last year revenue of 50 billion yuan, profits of 20 billion yuan. Ali's revenue is inferior to Tencent's, but its profits are more than 20% of Tencent's. Moreover, Ali Group's valuation is likely to be close to $200 billion. However, the news also pointed out that Ali seller's promotion ROI (return on investment) is declining year by year,
the other side of the news, also confirmed the view that there is no "cheap" channels, all channels of distribution costs will eventually conse generalize. At that time, both Ali and the manufacturer, the promotion and understanding is that Taobao is a low-cost channel.
, a well-known marketing expert in China, said, "This kind of cognition is not only contrary to the basic principles of economics, in terms of my 20 years of marketing experience, but also unscientific." Our generation of marketers has witnessed the rise of modern retail channels in China, and about 20 years ago, modern retail channels for consumer goods (manufacturers later called K/A, KeyAccount) began to emerge, initially with high sales but very low distribution costs, no in-market fees, no festival fees, and no display fees. But before long, they quickly evolved into a bone-eating 'magic king', all kinds of high costs, manufacturers to enter the threshold is getting higher and higher, but not into the dilemma, modern retail channels gradually replaced the traditional channels into the mainstream of sales. Being excluded from the mainstream means being marginalized, but entering the mainstream also means accepting the stripping of modern retail channels.
will become the mainstream channel of furniture sales
Today, the home industry is also facing the expansion of red star Mei Kailong, actually home, moon star, Eurasia and other national stores, from a strategic point of view, over time, they will become the mainstream channel of national furniture sales. In the end, traditional home markets and regional stores don't exist, they either die out or are acquired by national sellers, and it's hard to see other ways to go. As national home stores expand, their asking power will grow, and they will repeat the path the consumer goods and home appliance industry has taken to compete with manufacturers for value chains. This year, Red Star McLaren has raised the cost of its software strategic alliance to $10m, a very important signal that it means a higher threshold for manufacturers or brands to access.
there's no doubt that the trillion-dollar home consumer market is going to get bigger, but does that mean there's going to be more and more home manufacturers? The answer is no. The evolution of channels determines the future trend of the home industry is that the bigger the bigger the smaller the disappear. This piece of the home industry is given to the strong, by no means the seer has a share.
In the process of the game between the manufacturer and the channel provider (the home industry is exactly the property side, but there is no essential difference), the manufacturer's only effective weapon is the brand, the essence of the value chain competition is who can better understand the consumer value, who is the spokesman for the interests of consumers. Brands, with such appeal, are the only chips available in the bargaining process with channels.
market competition is also regular, whether it is consumer goods or home appliances, the result of market competition is that there are fewer and fewer brands left in the store, home will be the same. In a fully competitive category market, which will eventually consist of polar markets, 80 per cent of the mass market and 20 per cent of the super-market segment, the corresponding enterprises are the mass-product enterprises competing for 80 per cent of the market and the expert product enterprises competing for 20 per cent of the super-market segment, with few exceptions.
And in the mass market, there will eventually be about three brands left, leading brands in reaching about 35% market share tend to stabilize, and enjoy the industry's highest profits, the second brand occupies a smaller share and less profit, the third brand is often referred to as a quagmire-type enterprises, struggling on the edge of life and death. "Twenty per cent of the supermarket segments are made up of specialist companies that may be designer brands, may be products that meet the needs of niches, and their profit margins, while substantial, are not very good."
the focus of the strategy should be to start with the end
the focus of the strategy should be to start with the end, and the formation of the above-mentioned market pattern is the end of the strategy. Only by knowing this point can we develop a brand strategy for our own business. Do you want to compete for the throne in the mass market, or do you want to make a profit in the supermarket segment? This is the wrong way of strategy. Objectively enough, the home industry still has time, our competition is far from sufficient to the point, red beauty, actually, but also far from the completion of the national strategic layout, this is precisely the brand's opportunity point.
home industry is now the so-called "channel brand" speaker, but also a moment in the development of the brand, this time will not be long, it only explains the channel dividend period. Enterprises that are not user- and consumer-oriented will eventually be abandoned by the channel. In the Internet age, user value is more important than ever, and it really determines the future of a brand.
And more than a decade ago, the indiscriminate "positioning theory", also need not be taken too seriously, positioning theory is in the traditional media era, the highly competitive market to compete for consumers' minds, in the Internet era has become obsolete, positioning theory is essentially just a traditional print and television media era advertising communication skills, not the brand Bible, user, consumer value is the essence of the Internet age, brand may not have to set limits for themselves, fixed in a certain category of competition. In the new era, the home industry almost every category can be redefined, and the future of the overlord, must be humble to listen to the voice of consumers, adapt to the changes of the times of the enterprise.
And the So-called de-branding, de-LOGO movement in the United States, that essence is also the performance of consumers more and more picky, it is the fundamental reason that consumers are no longer around the brand, but have been actively involved in the construction of the brand, this is the brand 2.0 era.
Braying brand will be the only weapon to appeal to consumers
but now and in the future, brands will be the only weapon for manufacturers to counter the intensive trading power of channels or to appeal to consumers, and behind the brand will be values and culture, and even faith, which will be the most important element in pulling consumer currency votes and gaining sustainable development, and the soul of the enterprise.
data show that in the long run, there is a very broad space for development in the future, including the home industry. But for home enterprises, opportunities and challenges coexist, enterprises to do bigger and stronger, to establish its unique brand strategy will be its inevitable choice, because the brand, is still the lifeline of the enterprise, is the only way out of home bigger and stronger!