The industry enters a new cycle, and the greatest symbolic significance for the daily chemical exclusive store industry is no more than the complete change of the profit-making model, and the stores thus enter the "open shelf area" of their own brand era. Many facts prove that Chinese-style industry wisdom and strategic foresight show that some local enterprises are indeed doing well. But in general, most of the private brands still lack a clear strategic orientation and marketing ideas for the new cycle, which can be said to be a product of excess, so that imitation and replication have become the mainstream phenomenon of the current industry. This kind of short-sightedness that is too conventional and tactical will inevitably make those who are lazy to think pay a higher cost and price in the future.
I. There are "four major misconceptions" in marketing ideas
Local enterprises have the following four major misconceptions in terms of marketing ideas when developing their own brands in the open shelf area:
1. Private brand: personal care products
Some enterprises think that their own brand is personal care products. Therefore, under the dominance of this marketing idea, some manufacturers' private brands have developed a large number of personal care products.
I think that the private brand contains part of the personal care products, but it is not purely a personal care product project. This view of the manufacturer is a "phenomenon" interpretation of the local daily chemical store format and the demand for the open shelf area. If your customer is Watsons, then the development direction and marketing idea of personal care products is correct. But there are great differences between local daily chemical stores and Watsons (most Watsons stores are located in the core business districts of provincial capitals and regional cities, while local daily chemical stores are distributed in relatively backward areas, counties, towns and townships). Because of the difference in business districts, it directly determines the different consumer groups served by each other, so the demand for products also has essential differences.
Therefore, when some companies' personal care products flood into local daily chemical stores, they almost encounter the same problem: after the product is put on the shelf, it is difficult to sell! Later, treating the symptoms rather than the root cause, some enterprises have adopted "mobile promotion teams" to solve the product sales problems in stores, such as loofah water.
Little do they know that the profit margin space of their own brand is far lower than that of terminal products, and I wonder how many times the manufacturer can bear the "celebration" in the front line of the market?!
2. Private brand: Circulation products with "business district protection"
Regarding the private brand as a circulation product with "business district protection", the industry calls it an "upgraded version" of circulation products. This saying is quite prevalent in circulation enterprises and has been practiced.
There is nothing wrong with this statement, but it is relatively one-sided. If the marketing idea and quality of circulation products are not fundamentally changed, circulation products will only be added with "business district protection", and it will be difficult to become a real private brand, and eventually will not go far and cannot withstand the scrutiny and test of the market. More precisely speaking, if it is just a matter of business district protection, it is impossible for circulation products to be "bottomed out" by private brands, and to be thoroughly copied!
I will give you an example, a distribution company launched loofah water, cucumber water, aloe vera water, rose water, not only the packaging basically copied others, but also the fragrance type of several products are all rose fragrance type, confuse consumers to this extent, naturally will be "confused" by consumers in return. So, the essence of the distribution enterprise is still the problem of marketing ideas, these are the "results" formed by the lack of rigor in thinking and consciousness.
Therefore, when a large number of distribution manufacturers compete to launch the so-called "upgraded version" of distribution products as their own brands, they did not get the expected market returns, and finally could only be sold in some B, C small stores, lacking strategic growth potential!
3. Private brand: "popular product"
Regard the private brand as a popular product, this view is also very prevalent in the industry. Even many manufacturers directly advertise that their products are "popular products".
This advertising technique is very fashionable, and it is indeed very easy to attract the attention and cooperation of daily chemical stores whose businesses are declining day by day. But the final result is that when a large number of, so-called, able to help "attract people" private brands enter the store, they face an even more awkward situation: the product not only fails to attract people to the store, but also becomes the "new worries and old hatred" of the boss of the daily chemical store.
4. Private brand: "open shelf product"
Some manufacturers think that their own brand is an "open shelf" product. This understanding is not problematic, but it is still in the simple "product buying and selling" era. To be exact, what the industry lacks now is not products, but ideas.
When daily chemical stores are looking for their own brands, they often include two demands: marketing needs and product needs.
First, marketing needs. Daily chemical stores hope that the manufacturers they cooperate with have ideas and can lead themselves to achieve a "marketing improvement" in the essential sense.
Secondly, product demand. On the premise that daily chemical stores can meet their own marketing improvement, they are very willing to introduce the open-shelf products of the factory.
If the factory does not have systematic marketing ideas for the daily chemical store channel, but only provides "open shelf" products in a simple sense, then its competitiveness in the industry will be greatly reduced.
II. The "Four Elements" of Private Brands
Private brands are not simply "open shelf products", but a systematic marketing idea for the industrialization of daily chemical stores.
In fact, under the guidance of market demand driven by "consumers driving everything", it specifically designs some open-shelf products according to the main business district distribution of local daily chemical stores in China and their "whole-store marketing" needs. The author summarizes them as the "Four Elements" to interpret "private brands" more vividly and systematically:
Element One: Terminal products "circulation"
Element Two: Circulation products "terminal"
Element Three: Famous products "profit"
Element Four: Shelf products "promotion"
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