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    Customer Perceived Value Of Improved Suits

    2011/12/29 14:17:00 18

    Suit Clothing Market

    In the early 80s of last century, many Chinese people in big cities began to wear.

    Suit

    Soon, the trend of the new wind swept the western cities and even the countryside.

    However, at that time, people's income was generally not high, and the fabrics of formal suits were generally higher grade, and the prices were relatively high, so they could not become popular clothing.


    After analyzing the clothing market, a small clothing workshop with only seven people in a western city has decided that a formal suit will become a popular garment for men, not just a high-income person who shows off his status.

    To popularized western style clothes, the price must be lowered.

    Besides,

    clothing

    The manufacturer also has to solve the problem of the washing of the suit.

    Because high-grade fabrics can only be dry cleaned, and every time they send them to dry cleaners in laundry, they are expensive.

    The owner of this small workshop after investigation and experiment, uses the wool like chemical fiber fabric, and the garments made are also straight and durable.

    At the same time, they searched and tested everywhere, and finally found a pad without fear of water.

    Therefore, a new type of imitation wool

    Fabric

    It can also be washed and even washed with regular washing machines.

    Because the cost is relatively low, the price is only two hundred or three hundred yuan.

    Once listed, it is highly sought after.

    This small clothing workshop started with 5000 yuan loan has become a limited liability company with tens of millions of assets and several production lines in less than ten years.


    By the middle and late 90s, people's purse became thicker and their vision increased. They were no longer satisfied with this chemical fiber fabric and the suit that could be washed with washing machines.

    Unfortunately, the change in this business has come a little slower.

    However, the head of the enterprise finally saw the changes in the market environment, resolutely reduced the production of chemical fiber fabric suits, increased the production of casual wear and sportswear, and made the enterprises once again embarked on the path of revitalization.


    Judging from the needs of customers, the success of the company in 80s is undoubtedly because its products (washable, cheap suits) conform to the consumption psychology and consumption ability of people in that area at that time.

    First of all, Western-style clothes are fashionable, but they are expensive and higher than most people can accept.

    Therefore, the cheap and fine wool like fabric suit is also welcome.

    In addition, even if the suit itself is cheap and fine, if the cost of use is, that is, the maintenance cost is beyond the acceptable ability of the general people, the sale of the suit itself will be greatly reduced.

    Plus the suit was fashionable at that time, and many people would like to have their own suit.

    It is not surprising that Western-style clothes are popular with fashion, cheap goods and low maintenance cost. The prosperity of the company is an inevitable result.


    However, more than 10 years later, people's consumption concept and consumption ability have been greatly improved.

    They need a decent suit to wear.

    At this time, although price is still an important factor for consumers to consider, but "wear out", or grade, has become another main reason to satisfy their desire.


    This is actually what Drucker calls "customer's cognitive value":


    What customers buy is not simply a product itself. What he buys is always a kind of satisfaction to him.

    What he bought is a kind of value.

    But our enterprises can not produce a value, enterprises can only produce products.

    Therefore, what a company considers to be valuable is irrelevant to customers.


    What Drucker calls "the cognitive value of customers" is something that every business must study well.

    Drucker once asked entrepreneurs three consecutive questions: "what is our business? Who is the customer? What is the customer's cognitive value?" these three questions seem to be very simple, but they are not easy to answer.

    "What is the customer's cognitive value?" may be the most important issue that has been raised at least.


    Drucker said: one reason is that managers are convinced that they know the answer: value is the quality they set in their business.

    But this is almost always a wrong answer.


    For example, for teenage girls, the value of a pair of shoes is in the advanced style.

    Shoes must be "fashionable". Price is only a secondary consideration, and durability is not worth it at all.

    After a few years, the girl became a young mother, and the high style became the limiting condition.

    She will not buy things that are very outdated, but what she considers first is durability, price, comfort and fit.

    The same pair of shoes, different objects, different values.


    Let's reconsider the entrepreneur in the story of the suit.

    For this company, his idea in 80s conformed to the local consumption level and consumption psychology at that time.

    In Drucker's words, he knows what "customer's cognitive value is".

    But more than 10 years later, when the customer's cognitive value changed, the entrepreneur did not change the product characteristics and product structure in time.

    In those days, his suit brought "value" to customers, but the "value" made a big discount when things passed.

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