Product differentiation

by wgyuvs8a on 2012-03-01 08:55:38

[Website Every Webmaster Must Visit - In the context of global informatization and expanding influence of online media, many traditional enterprises are drastically changing their strategic direction. Based on their original foundations as traditional companies, they're aggressively entering the online marketing market, hoping to reclaim lost ground in online marketing through the advantages of their traditional brands. However, they haven't considered that the online marketing market has never been an easy target. Successful e-commerce examples abound in various marketing models such as B2C, O2O, and B2B. Traditional enterprises entering the online marketing market not only have to face these formidable e-commerce competitors but also deal with the competitive conflicts between their own online products and physical stores. It's a tough situation where challenges come from all sides.

How to carve out a path in the increasingly competitive online marketing market and regain the glory of traditional brands has always been an urgent issue for traditional brand e-commerce operators like Uniqlo's Taobao flagship store. As the saying goes: "Treat the inside first, then treat the outside." Traditional brand e-commerce should start by addressing internal contradictions before leveraging their own advantages to change the market landscape. First, how to effectively avoid sales conflicts between online and offline products within the company, and second, how to effectively suppress the impact of counterfeit goods flooding online on the sales of genuine products offline. These two aspects of competition conflict are particularly prominent in the operation issues of traditional brand e-commerce. If these two problems can be solved, I would like to share my experience and insights with you all.

Product Differentiation

Due to the cost differences in the company's own online and offline operations, and the unwritten rule of online prices being lower than those in physical stores, the product discounts launched on the official website of traditional brand e-commerce will be significantly lower than similar products offline. While online product sales soar, it also brings disadvantages such as loss of offline customers and operational difficulties. On the other hand, raising online prices leads to the loss of the original competitive advantage of online products, gradually getting lost in the flood of competitors. Within this seemingly contradictory and conflicting framework, traditional brand e-commerce should not be limited to the original marketing model but should provide differentiated product services based on market trends and customer needs, allowing online and offline products to coexist harmoniously. For example, launching a few new products exclusively online to avoid direct conflicts with offline products or promoting a few new items offline but only advertising them online without selling them online. This differentiation in products can reasonably and effectively avoid internal conflicts within the company and help segment the market and broaden sales channels.

Unique Product Barcode

In the research conducted by many traditional brand e-commerce operators before entering the network market, it was found that the company's products were already selling well online. However, the uneven quality of the online sales environment not only affects the brand's online sales but also impacts the offline sales of traditional brand e-commerce. In this silent battle, unscrupulous e-commerce operators become the biggest winners. How can traditional brand e-commerce effectively suppress the impact of counterfeit goods flooding online on their own online and offline product sales? In fact, traditional brand e-commerce could learn from the anti-counterfeiting barcodes used in electronic products. A unique product barcode not only helps consumers identify authenticity but also enables the establishment of a tracking database to monitor sales channels, preventing wholesalers from disrupting market prices, reducing malicious competition, and effectively avoiding conflicts in the sales of traditional brand e-commerce online and offline products due to other channel sellers.

For traditional brand e-commerce, industry conflicts go far beyond these two aspects. However, in their own market strategy adjustments and planning directions, the sales conflicts between online and offline are unavoidable contradictions. Hopefully, these two small suggestions will be helpful for the future market planning of traditional brand e-commerce.

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