Small And Medium-Sized Enterprises Will Win Only By Building Brands.

The three or four level market refers to the rural market in county-level cities, towns and some developed areas.

There are more than 2800 county-level cities in China, and there are not less than 50 thousand townships. The three or four level market has huge consumption potential.

For a long time, the three or four tier market has low consumption capacity and relatively closed environment. The risk of large enterprises and hypermarkets is high, and input and output are difficult to balance.

Weak dealers and small and medium-sized enterprises have little competition pressure. They do not need strict quality control system, the quality of products is not good, the products imitate the design or brand of famous brand products, and they save a lot of design and research funds. After the products are produced, they sell to the three or four tier market sellers at very low prices, and do not provide after-sales service; and the three or four grade market, because of environmental occlusion, and so on, most of the inferior products sold by the distributors can be sold, so they can quickly purchase goods from the small and medium-sized enterprises, so that the products of the SMEs can not be sold, and the three or four level market is taken for granted.

However, with the spread of the financial crisis triggered by the subprime mortgage crisis in the United States, the export pressure of many enterprises increased, and the operation was difficult.

Under such circumstances, enterprises must find a way out for excess capacity in the domestic market.

The competition in big cities is very near. Therefore, more and more enterprises regard the three or four tier market as the next growth point of sales.

However, a large number of export-oriented enterprises have to survive when they are not exporting smoothly, and they can only grind their teeth and turn to the domestic market.

Although these enterprises lack professional talents and experience in brand communication, and there is no basic customer network, it is easy to get into or do not make brand hesitation when they sell at home.

However, such enterprises have full capacity, have certain advantages in cost control and manufacturing management, and have strong sense of industrial design, so the advantages of these enterprises are still very obvious.

But the one or two tier market is saturated, and the famous enterprises that have long been entrenched in this field have built a strong fortress and are not easy to break through, so they can only find the living space for the three or four tier market.

Besides, hypermarkets have also encountered bottlenecks in urban development.

The one or two tier market is basically exhausted. In order to maintain investor confidence and stabilize share prices, hypermarkets must constantly launch new stores.

With the improvement of the rural income level, the leap of living level and the encouragement of the country to rural consumption, the Ministry of Finance predicts that the sales of rural household appliances will increase by more than 30% in 2009 compared with the normal sales, which will stimulate the new consumption of 14 billion yuan in rural areas.

As a result, all supermarkets are eyeing the three or four tier market as the next huge gold mine.

As a result, the three or four level market, which is quiet and quiet, will become crowded and busy. The small and medium-sized enterprises, where there is little competition pressure, will be greatly affected.

Will the three or four tier market be a paradise for small and medium enterprises?

For small and medium-sized enterprises, the real competition has begun.

First, the original sales channels are difficult to survive, and many will inevitably withdraw from competition.

Small and medium-sized enterprises are facing the risk of being blocked by sales channels; second. The original imitation of famous brand enterprises is not a substantial threat to large enterprises. Now, with big enterprises entering the three or four tier market, brand enterprises will surely investigate the infringing products in the market. Third, the entry of export enterprises will have a great impact on the original small and medium-sized enterprises.

The export type enterprises have full capacity and strong ability to manage and control large-scale production. The reference of industrial design and new materials and new technologies are strictly in accordance with international standards. The reliability of the product quality is incomparable to the small and medium sized enterprises who have long lived in the comfortable three or four level market.

Many people predict that the rural market will enter the brand age just like the city, and this financial crisis has brought the coming of this era ahead of schedule.

For small and medium-sized enterprises, almost overnight, the original heaven will become a hell.

To survive, we must change ourselves. Only by changing can we adapt ourselves to the development of the situation.

The first and most fundamental point is that the small and medium-sized enterprises in the three or four tier market will start to lose their previous practice of low price, learn to make brand and start action as soon as possible.

Many enterprises mistakenly believe that low priced goods can win a larger share of the market share, and try to repeat the old road with the experience of small profits but quick turnover.

This idea is actually very wrong.

In a fully developed market, the profit margins of the same commodities are almost the same, and the competition between commodities is more marked by the competition between brand recognition and satisfaction. With the large scale production of brand enterprises and the low cost brought by technological maturity, it can completely reduce the selling price and constantly squeeze the profit margins of the non brand enterprises until the non brand enterprises are forced to withdraw from the market.

Therefore, it is very difficult for small and medium-sized enterprises to have low price and low quality products. They will only waste a lot of resources and get no return. SMEs must make brands and insist on making brands.

Secondly, we should strengthen cooperation with brand external brain organizations to minimize brand growth time.

The brand growth rule of the best strategy brand marketing planning institute shows that the formation of a famous brand in China will take about eight years. Without professional agencies, enterprises will easily lose their way and spend more time.

A lot of companies that want to make brand have been in a state of hesitation after one or two years' insisting. On the one hand, they are investing a lot of money in the early stage of the brand. On the other hand, they do not make the brand to save advertising fees, but they can be temporarily comfortable.

This choice is often very painful, many enterprises will be hesitant, so it is best to have an enterprise's external brain, professional brand strategy agencies long-term cooperation, ready to provide reference.

We should integrate the original channels and expand the reorganization and reconstruction.

Re planning sales terminals, rationalizing product mix, improving output, scientific management, and strengthening after-sales service.

The original individual retailers have sharply reduced their living space after entering the hypermarket, and many will inevitably opt out.

But these people have rich sales experience in the three or four tier market. Enterprises can guide them to carry out capital alliance, establish a dealer alliance in the three or four tier market, expand the sales network, and jointly resist the strong extrusion of the hypermarket.

Small and medium-sized enterprises can also selectively cooperate with hypermarkets. Now the sales of home appliance stores account for 40% of the total household electrical appliances sales, and their excellent environment is conducive to brand building. The sales channels from the hypermarket are a great loss to the brand promotion and product sales of enterprises.

But the investment in the hypermarket is huge, and as the pressure of the hypermarket itself increases, the burden of shifting to the enterprise will increase. It is a good choice for small and medium enterprises whose funds are not very abundant.

Besides, brand store is also a feasible sales mode in the three or four tier market with relatively low input cost.

Small and medium-sized enterprises can properly import this sales mode and expand sales channels.

Whether the three or four tier market is heaven or hell depends on the choice of enterprises.

If we can seize this opportunity to build our brand and become a famous brand, then the rise of the three or four level market will undoubtedly become a paradise for enterprises to break into cocoon and become butterflies.

On the contrary, if the enterprise indulges in the previous survival mode and does not know the right time to change, the three or four level market will become their hell.

Yang Jing: editor in charge