It Is Difficult To Grasp The "Brand" Belly &Nbsp;

Market structure distribution of "gourd type"

In the next 20 years, a large number of China's three or four tier cities will become the main battleground for Chinese brands and world brands to compete for hegemony.

Who can become the main prosecution of the "Chinese style gourd market", who will become the upstart in the business ecosystem.

Why is it a "gourd society" instead of a "Pyramid society"?

Because the higher the structure of Pyramid, the smaller the number of the middle class and the rich. The number at the bottom is very large. This is obviously not right for China, which is changing rapidly today.

The shape of the gourd can clearly see that its bottom is a very small number of vulnerable groups. With the change of the gourd curve, most of the middle and lower levels of the gourd will go upward.

Comparing the top of Pyramid with the top of gourd, the number of rich class in gourd is obviously larger than that of Pyramid, which is in line with the characteristics of wealth structure in today's China.

Therefore, corresponding to the wealth structure of Chinese society, the distribution of China's market structure also presents a huge gourd shape.

If the first tier cities located at the top of the gourd lead China's wave of consumption upgrading in the first 20 years, the emergence of many new cities at the bottom of the gourd will inevitably lead to a larger consumption underflow at the time of the arrival of the wheat fashion era.

Focus on mass consumer groups

The "big belly market" of gourd is the largest market, and the dynamic characteristics of the gourd determine the market potential.

Especially in the gourd market, consumers' ideas will become the guiding ideology of supporting business development. The value innovators of Chinese enterprises should aim at most customers and be willing to give up some customers.

Enterprises should focus on differentiation through further segregation.

Whether it is Gome or ZARA or H&M, their success stems from business model innovation.

A successful business model often lies not in the cutting-edge technology, nor in the timing of entering the market. The key is to find valuable business models.

If innovation can not be rooted in value, technological innovators and market pioneers tend to fall into the end of "dressing for others".

The conventional view is that an enterprise can create higher value for customers at higher cost or create a relatively good value at lower cost.

In this way, the strategy is often mistaken for the choice between "differentiation" and "low cost".

Nowadays, when a large number of popular brands combine the two or even more factors to become commercial textbooks, behind the mystical business model is actually how enterprises and brands find their place in the industry value chain and create value for consumers.

The two or three line market is definitely not a simple extension of the first-line market.

In a sense, the two or three line market and the first tier market are completely different concepts, and the barriers between them may not be eliminated for a long time.

For example, the pursuit of personality and fashion is necessary for the brand of the first-line market, but not necessarily for the brand of the two or three tier market.

The first tier market is famous and influential, and it will probably not be accepted or completely unknown in the two or three tier market.

Those brands that are widely advertised in CCTV can be eaten in the two or three tier market.

Therefore, when the first tier market brand sink channels, how to influence the sink is indeed a problem.

To go to CCTV to advertise? This is obviously not the way to do it.

It is too time-consuming and financial to improve the image by shops. I am afraid that we can not wait until the image is done.

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Once the channel is sinking, the brand strategy must be greatly adjusted.

If a brand does not only make the first line market but also the two or three line market, its chances of success are negligible.

The general situation is that the two or three tier market has not yet been seized, and the first-line market has been lost.

Multi brand strategy is the inevitable choice, but it is very risky because the product development system, channel and promotion for the two or three line brand are different, and almost have to start a new business. This is also the main reason why many enterprises dare not act rashly.

Some people think that we can take two brands and a set of people's practices, but the result is always getting more and more chaotic. The two or three line is not done well, but it also brings a thread.

There are many successful examples of multi brand strategy, but to really do it, we really test the brand planning ability, operation ability and promotion ability of enterprises.

Of course, it is another matter to concentrate on the two or three tier market.

Take Fujian leicon as an example. At this stage, it rarely expands in the first tier cities such as Shanghai. Instead, it turns to a large population in Henan and Sichuan provinces. According to the market research report compiled by Frost & Sullivan (Frost St Sullivan), in the past two years, retail sales have ranked the top of the second tier and below cities in terms of retail sales; the county's cities outside the sight line of China's first tier cities, such as Shaanxi's Shenmu county, can receive 3 million yuan, and Yiling prefecture level cities can reach 8 million to 10 million yuan, and the amount of repayment is several times higher than that of Shanghai.