"Business is getting harder and harder!" This phrase has become the talk around the industry to meet the boss when the mantra. Not because the market is getting smaller and smaller space, in fact, in recent years, many Chinese are rapidly developing industry, many consumers in the market size and consumption rates are 30% -50% annual rate of increase with. However, such high growth rates, why make the business of the company's owners feel it getting harder and harder. The reason is simple, do more and more people. It is because of the growing emerging market space industry and relatively high returns, coupled with extremely low threshold to attract more and more investors to enter. Because there are always new companies, new sub-brand food companies can account for the market space is limited. At the same time as the operation of small low-cost brand, it can be pulled low price, and more significantly reduced the profitability of many brands on the channel level and the ability to control agents. The face of small brands disorderly competition, emerging markets such as cosmetics, clothing, footwear industry, like a pack of wolves in the melee. The industry's profits, brand image, market conditions, prospects of development are under great threat. How should we get rid of wolves in the pursuit and interception, a more orderly and conducive to a future career prospects, the market environment? May proceed from the following six points.
First, a correct view of the current situation.
For the present status of China's emerging industries, we should both positive and negative perspective, not only to see the "cohabitation" of the disorderly competition, but also see "vying" Endeavour to be encouraged. Various brands to compete in the chaos, it is also the industry elite courageously first of all to promote the market to move forward to go through. For a small brand to join, we should not be any criticism of the attitude of the. Many world famous brands are not born famous, they have experienced small to large, from the Sentimental to mature, from the plain to the glorious purpose of growing up. Who concluded that started today, hundreds of thousands of these brands can not grow in the years after the value of billions of dollars of the well-known brand? It is because of constantly adding new brands, only to make the market more and more exciting. The new brand brings new products, new culture; new people bring new ideas, new marketing methods. Decline in prices did pull down the level of industry profits, but also to attract more consumers into the beauty parlor, expanded market share and influence. It is because of constantly adding new brands, only to become increasingly dynamic and emerging industry in China, continue to move forward.
Second, radical reform, to reduce the incidence of disorderly competition.
A normal development of the market is competitive, but once competition into a state of disorder, is bound to an adverse impact on the market, even cause the market's decline and retrogression. At present, the emerging industry in China is indeed to some extent about the fans into a disorderly competition pool. We can start from the source to reduce the incidence of disorderly competition.
First of all entrants to correct mindset. Emerging industries, although a high-profit business, but like gold, as gold is not candidly reveal where you pick, but to pay excavation, collection and washing can be hard work so rewarding. New investors should be put into place was calm in mind, not anxious. Did not see short-term returns, they worried, and on trying every trick incorrect, so is a person has no beneficial. Particularly those who advise is fundamental to the purpose of misappropriating the new brand, with the strengthening of market supervision, the kind of trick End business district the money and walk away from the act, is bound by the laws of the sanctions.
The second is to improve access to appropriate threshold. On the one hand is the governmental departments for the oem brand audit and supervision should be strengthened, the type of misappropriating attacks the bad elements do not allow regular operation of the brand being incriminate them. On the other hand is to provide oem products, manufacturers should also be reviewed to customers. Imagine if those brands are not standard operation if something went wrong, and not the will "adverse impacts." And because of the disorder in some small price cuts disrupted the market the brand, resulting in a few other customers as the products from the same plant, will be forced to join the price war, then the next series of problems caused by more than a vicious circle woven: price down → Brand poor cash flow profit thinning → → → processed goods back to manufacturers shall prejudice the interests of the difficulties!
Another is the agent and end retailers keep their eyes open. As many low-rebate price of the new brand of high, so let agents and terminal tempted to give up the original brand to sell a new brand. But it is likely due to short-term interests of the blindfolded, but not worth the candle. Attack due to the low price market, the long-term brand is often difficult, or even simply a means for misappropriating trap.
Third, do yourself, not for the lure of the action
As a relatively mature brand suffers when a group of smaller brands siege, the pressure is assumed very great. Watching other people use some non-standard means of "stealing money", his heart is definitely feel good. At this point to note is the firm stand of their own, do not join them. Do yourself right way to take the defensive and counter-measures, rather than those who do not have a standardized means by which Sharu. Otherwise, the market will be chaotic, has no peace for anyone. As long as we do all their own, the rules of the market will gradually restore the natural order.
Fourth, strengthen long-term development of brand awareness
The development of new industries in China for many years, also talked about the brand for many years, and every other brand is very much indeed. But the real sense of the company with the brand is small, and we talk about long-term development of brand strategy are even scarcer. It is precisely because the big brands do not call each company's brand awareness is very weak. In turn, as the company's brand awareness is weak, and difficult birth to a large brands. It is also because there are no major brands deterrent to those disorderly competition in the smaller brands will be so lawless. Example, belong to the professional line of cosmetics and cosmetic line, there are significant differences. A line in Japan, is a Procter & Gamble, L'Oreal, Shiseido and other big brands in the world an example call that gave birth to the Yue-Sai, a small nurse Longliqi and other Chinese brands, while the competition on the order of line compared with no big brand I do not know how much better professional beauty line.
5, invading, cut off the survival of disorderly competition
First of all we have to recognize that the reason will appear disorderly competition, not only because more and more competitors, which naturally arise, but mainly because the market itself is not standardized, there are not good enough we will only allow Some people have gaps can be drilled. For example, low-cost competitors in order to suppress your brand, it is probably because you do not match the brand and price positioning; for example in the beauty industry a new, small company personal service for agents, in addition to region manager, lecturer US-led support, as well as presenters, singers and experts outside the brain of support to such a personal service to little by little, squeeze out your company's position in the hands of agents, it may be because your service is not in place; For example, a new brand in your base is doing promotion in constantly, constantly doing promotions, your brand's market share continue to erode, it may be because you have no real brand promotion planning; say you promised post-marketing agents do not, then do not blame agents try another new brand. There are a lot of such and such, we need to do bit, not to give them the space can be drilled.
Second, we must learn to use legal weapons to defend our legitimate rights. The one hand, with agents or contract end retailers, special agents or end retailers regulate obligations. They are the new brand against the temptation and give up easily on our brand products. On the other hand is especially bad for those circumstances means of unfair competition, the government should seek the regulatory functions against the arrogance of some people.
6, vertical and horizontal alliances, strengthen and expand
One weakness of China is the emerging industry of large enterprises too small a scale as there is no strength backing, is particularly vulnerable to disturbance caused by disorderly competition. Similarly to the cosmetics industry as an example. A line in Japan, you see a small P & G brands will not be afraid of disorderly competition, at worst the low-end down to 9 9 Rejoice, suddenly took a large number of small brands and killed. Because P & G have the strength, do not make money also play in this game. But the professional line of which company has the enterprise to do?
In fact, China's new industries do not want is not big, but there are too many limitations can not be bigger. However, if the conversion is not an idea what can be done. That is, vertical and horizontal alliances, which is the introduction of a means of capital operation, the implementation of mergers and acquisitions, I believe that in the near future can appear one or two big enough scale industry companies, and sufficient means for those with little brand disorderly competition to defeat them.