Doing high-end seems to be an old topic. Old topics are mentioned again today because of its particularly important strategic significance and immediate practical significance. Why must be high-end, is a major issue that paint business owners need to clarify first.
First, the low-end marketing has no money to be made, no way to go. As we all know, in 2011, HC Coatings Network unveiled several furniture paint production companies in the 5th Top Ten Coatings Forum to release 2011 furniture paints. Resisting the use of dichloroethane as a raw material to produce products harmful to human health, why is it known to be harmful to human health and uses dichloroethane as a raw material? In addition to the causes of moral downturns and regulatory loopholes, there is also an important "objective" reason: formal business does not have any money to make, because there is no money to make, so it is mixed with fake or lower-cost raw materials! But why can't formal business be profitable? A: It is because of the homogenization of low-level marketing competition! The underlying reason is this.
From the perspective of cost and profitability, companies can only make money in two ways. One is “lower marketingâ€: lower costs, attract consumers by low prices, and win the market. In the words of Philip Kotler, "There is no loyalty without a penny" (Kotler, of course, refers to the advancement of security and compliance with the national standard). Another way is to “higher-end marketingâ€: to make product values ​​more real and long, to increase brand value, to make difference, to satisfy people with the value of product filling, to attract people with value-added brands, bright and noble Make money.
Because the effect of price competition is direct and effortless, most paint companies nowadays invariably adopt low-price means to compete. As a result, everyone returns to the same starting point, the competition is completely homogenous, and the competition has become completely complete. The price of the edgeless battle.
Things didn't stop here. When all of us are doing low-end marketing and are ultimately forced to earn without money, the entire industry will start to get distorted. When the entire industry, especially the leading companies, has made a trend toward lower marketing, SMEs that do not have the right to speak in the market are certainly not the lowest, but only lower. Doping makes false full-scale outbreaks. What national standards and moral self-discipline are all thrown behind the scenes. In February 2012, the HC reporter attended the Mitch 2012 Distributor Conference in Hunan. At the meeting, Mr. Zhong Zhifeng, chairman of Mickey, revealed that in recent years, due to the tendency of distributors to sell low-priced products and Mitch's corporate philosophy of emphasizing quality, it was in 2012. Mickey will focus on the promotion of plant paint series made from soybean vegetable oil and coconut oil as the main raw materials. It will push the environmental protection level of home improvement paints to a new level and win high-end.
Now, the vicious competition has finally made the overwhelming majority of companies with conscience understand that it is no longer possible to lower the price of marketing. To make clean money, it is necessary to change course, value, and brand. In one piece, the beautiful Tuxedo Group's Garrison positioning is very accurate: to create the paint industry's "Benz" brand, the dealer's favorite brand. Relying on the transformation of channels in recent years and the signing of endorsements with Li Bingbing, the high-end temperament of Garis has begun to show itself.
Second, overall inflation, profit squeeze, must rebuild the product line In an environment of full-scale inflation, the price of upstream raw materials has soared, corporate profits have been squeezed out, and the original profits are now not profitable, and even losses. If you do not want to do adulteration, then price increases are a must. It is not a matter of rising or not rising. It is a question of when and how to rise. You directly increase prices, dealers may not agree, you do not increase prices lost money, dealers certainly do not care.
How is it up?
Can't you raise the price of the old product? Obviously not too much. Although paint is a semi-finished product, many consumers are not very sensitive to price, but for a homogeneous homogenized paint market, consumers can know how much the same type of product price is by running a few more shops. Why not buy your first brand is not very well-known, in addition to functional products with the same effect.
Enterprises must “price increase in disguise†and launch one or two relatively high-end products to solve the problem of not making money, so that the product mix has a share of, occupying, and dominating, phasing out non-profitable products, enabling enterprises to reconstruct science. Reasonable product line and combination.
Third, as consumption upgrades, high-end demand emerges, and the market calls for upgrading products. In 2010, China’s per capita GDP exceeded 4000 US dollars, and it entered the internationally recognized “middle income†development stage. The entire country has evolved from a “survival society†to a development society and economic growth. From the perspective of the consumer market, consumer spending power has increased substantially and consumption has begun to escalate. After consumers have eaten, there is a clear increase in demand for good living, healthy living, safe living, decent living, and even living out of range. This is high-end demand.
Fourth, brand value-added and strong brands also need to do high-end Chinese coatings companies and brands today have a congenital disadvantage - high-quality products can not sell high prices, how can we cross this Kaner it? Let the brand add value and make a strong brand. In one word, we must learn to be high-end.
The world's high-quality products and powerful brands are expensive, from Mercedes-Benz to Apple iPad, from Evian to Haagen-Dazs, from Jiapei kiwifruit to Japanese gold bud rice, from Maotai to Zhu Yeqing, from Deqingyuan eggs to The spirit of pork, from Terumsu milk to Zhongjing mushroom sauce... Therefore, we can't say that our quality is good, we sell cheaply at first, and later become high-priced products. This is impossible. Once it is cheap, everyone will feel that it will always be cheap and never spend more money on your product. For example, Volkswagen's expensive cars can't be sold, and China's domestic milk powder enterprises will all surrender to the high-end market. If you want to build a high-end brand, you must launch it at a high price when the product is launched, and stick to it. Once you build a new category, you can build a very strong brand.
Japanese products were also very cheap internationally. Today, many Japanese products are very expensive and sell very well, such as Lexus cars, watches, rice, and beef. The Chinese paint market has many opportunities in the long run. Products must be expensive. When your products are very cheap, they tell people that they are high-quality, high-quality products that people immediately reject.
Doing value, branding, and making high-end products originally meant that companies should do it. Now it is a business to do. From the consumer point of view, the demand for high-quality products and branded products has grown in tandem with affordability and livelihood. Doing high-end is a business homework and must be mastered. What to do, I tell you.
First, the low-end marketing has no money to be made, no way to go. As we all know, in 2011, HC Coatings Network unveiled several furniture paint production companies in the 5th Top Ten Coatings Forum to release 2011 furniture paints. Resisting the use of dichloroethane as a raw material to produce products harmful to human health, why is it known to be harmful to human health and uses dichloroethane as a raw material? In addition to the causes of moral downturns and regulatory loopholes, there is also an important "objective" reason: formal business does not have any money to make, because there is no money to make, so it is mixed with fake or lower-cost raw materials! But why can't formal business be profitable? A: It is because of the homogenization of low-level marketing competition! The underlying reason is this.
From the perspective of cost and profitability, companies can only make money in two ways. One is “lower marketingâ€: lower costs, attract consumers by low prices, and win the market. In the words of Philip Kotler, "There is no loyalty without a penny" (Kotler, of course, refers to the advancement of security and compliance with the national standard). Another way is to “higher-end marketingâ€: to make product values ​​more real and long, to increase brand value, to make difference, to satisfy people with the value of product filling, to attract people with value-added brands, bright and noble Make money.
Because the effect of price competition is direct and effortless, most paint companies nowadays invariably adopt low-price means to compete. As a result, everyone returns to the same starting point, the competition is completely homogenous, and the competition has become completely complete. The price of the edgeless battle.
Things didn't stop here. When all of us are doing low-end marketing and are ultimately forced to earn without money, the entire industry will start to get distorted. When the entire industry, especially the leading companies, has made a trend toward lower marketing, SMEs that do not have the right to speak in the market are certainly not the lowest, but only lower. Doping makes false full-scale outbreaks. What national standards and moral self-discipline are all thrown behind the scenes. In February 2012, the HC reporter attended the Mitch 2012 Distributor Conference in Hunan. At the meeting, Mr. Zhong Zhifeng, chairman of Mickey, revealed that in recent years, due to the tendency of distributors to sell low-priced products and Mitch's corporate philosophy of emphasizing quality, it was in 2012. Mickey will focus on the promotion of plant paint series made from soybean vegetable oil and coconut oil as the main raw materials. It will push the environmental protection level of home improvement paints to a new level and win high-end.
Now, the vicious competition has finally made the overwhelming majority of companies with conscience understand that it is no longer possible to lower the price of marketing. To make clean money, it is necessary to change course, value, and brand. In one piece, the beautiful Tuxedo Group's Garrison positioning is very accurate: to create the paint industry's "Benz" brand, the dealer's favorite brand. Relying on the transformation of channels in recent years and the signing of endorsements with Li Bingbing, the high-end temperament of Garis has begun to show itself.
Second, overall inflation, profit squeeze, must rebuild the product line In an environment of full-scale inflation, the price of upstream raw materials has soared, corporate profits have been squeezed out, and the original profits are now not profitable, and even losses. If you do not want to do adulteration, then price increases are a must. It is not a matter of rising or not rising. It is a question of when and how to rise. You directly increase prices, dealers may not agree, you do not increase prices lost money, dealers certainly do not care.
How is it up?
Can't you raise the price of the old product? Obviously not too much. Although paint is a semi-finished product, many consumers are not very sensitive to price, but for a homogeneous homogenized paint market, consumers can know how much the same type of product price is by running a few more shops. Why not buy your first brand is not very well-known, in addition to functional products with the same effect.
Enterprises must “price increase in disguise†and launch one or two relatively high-end products to solve the problem of not making money, so that the product mix has a share of, occupying, and dominating, phasing out non-profitable products, enabling enterprises to reconstruct science. Reasonable product line and combination.
Third, as consumption upgrades, high-end demand emerges, and the market calls for upgrading products. In 2010, China’s per capita GDP exceeded 4000 US dollars, and it entered the internationally recognized “middle income†development stage. The entire country has evolved from a “survival society†to a development society and economic growth. From the perspective of the consumer market, consumer spending power has increased substantially and consumption has begun to escalate. After consumers have eaten, there is a clear increase in demand for good living, healthy living, safe living, decent living, and even living out of range. This is high-end demand.
Fourth, brand value-added and strong brands also need to do high-end Chinese coatings companies and brands today have a congenital disadvantage - high-quality products can not sell high prices, how can we cross this Kaner it? Let the brand add value and make a strong brand. In one word, we must learn to be high-end.
The world's high-quality products and powerful brands are expensive, from Mercedes-Benz to Apple iPad, from Evian to Haagen-Dazs, from Jiapei kiwifruit to Japanese gold bud rice, from Maotai to Zhu Yeqing, from Deqingyuan eggs to The spirit of pork, from Terumsu milk to Zhongjing mushroom sauce... Therefore, we can't say that our quality is good, we sell cheaply at first, and later become high-priced products. This is impossible. Once it is cheap, everyone will feel that it will always be cheap and never spend more money on your product. For example, Volkswagen's expensive cars can't be sold, and China's domestic milk powder enterprises will all surrender to the high-end market. If you want to build a high-end brand, you must launch it at a high price when the product is launched, and stick to it. Once you build a new category, you can build a very strong brand.
Japanese products were also very cheap internationally. Today, many Japanese products are very expensive and sell very well, such as Lexus cars, watches, rice, and beef. The Chinese paint market has many opportunities in the long run. Products must be expensive. When your products are very cheap, they tell people that they are high-quality, high-quality products that people immediately reject.
Doing value, branding, and making high-end products originally meant that companies should do it. Now it is a business to do. From the consumer point of view, the demand for high-quality products and branded products has grown in tandem with affordability and livelihood. Doing high-end is a business homework and must be mastered. What to do, I tell you.
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