There is only one core competitiveness of consumer goods companies: brand building capabilities.
This article is from WeChat public account “Zhang Rui’s Sense Hall” (ID: SocialTouchST); Author’s founder and CEO Zhang Rui.
The hero of yesterday, “”New Consumption” is coming” (click to view) It became the 100,000+ screen.
Yes, I very much agree with the judgment that the Chinese consumer brand is about to rise, and I agree that every consumer product segment may have the opportunity to redo it again.
But, although I agree with his conclusion, I don’t agree with his arguments – even from his arguments, and the affirmative resonances inspired by this article, what I see is even more : This generation of consumer goods (especially fast-moving consumer goods) entrepreneurs seems to have not added a key blind spot in the cognitive structure – why is the consumer goods business actually a brand-based business? What is a brand? How to build a brand?
This cognitive blind spot If there is no way to form a “new consensus” or “new common sense” in the Chinese business community, many brands will still become a “label” for short-lived and weak follow-up, the quality of Chinese business and Additional value, or can not change from quantitative change. Entrepreneurs may be able to earn some money in stages, but if you really want to earn the “brand premium” of long money and big money, it really becomes China’s fast-moving giant, and you must fill this huge cognitive gap.
Catch dividends and cost-effectiveness, not the core competitiveness of consumer goods companies
New Media = Traffic Dividends, New Channels = Traffic Dividends + Promotional Policy Dividends, New Products = Cost-Performance Pricing… However, these are not the core competitive barriers for consumer goods companies to grow.
The dividend stage does exist. In this window period, consumer goods companies compete for the ability to “grab the bonus” and are a kind of “learning fast”, “running fast” and “cowardly”, very vital. It is worthy of recognition and respect.
However, the window period will always pass, and competitors in the market will quickly learn from each other these relatively simple abilities and strategies. Therefore, the Blue Ocean will soon become the Red Sea, and then? There are many brands that have experienced rapid growth from the dividend period and have fallen into stagnation or even negative growth.
“Product innovation!”, “Continuously create the ultimate cost-effectiveness to continue to impress consumers!” … Many entrepreneurs will think so.
These ideas have two problems:
1, most consumer goods0lv0ebwfb.jpg” data-img-size-val=”720,471″>
Maslow’s hierarchy of needs theory
All consumer goods are actually providing consumers with two values: one is the physical value of the product, and the other is the psychological value of the product. When consumers buy products, they will consider the matching between these two values and their needs.
For example, there are a lot of Nike imitation shoes produced by Nike’s factory. The style and craft quality are almost the same as the genuine ones, but there is no Nike logo. What do you think a male middle school student will think about in front of both the imitation version and the Nike genuine? He has a lot of candidates when he has no money. After he has money, what about it? To be sure, the psychological need for brand value will definitely overwhelm physical demand.
Today everyone is excited about the sinking market. There are still many consumers in China who have never bought a lot of goods. This is indeed a huge opportunity to sell the goods first, regardless of the three seven twenty-one. But don’t forget that the psychological needs of consumers are constantly growing and changing, especially today when the media is so developed. When you first consume, you may be concerned with physical properties. When you buy it again? Concerns about psychological values will increase rapidly.
Another example is mineral water. Evian and Wahaha, the price can be 10 times worse, partly because the raw materials and supply chain of water are different, but there are very few people who can drink the difference from the physical experience, so when consumers choose water at different price points, The main difference is in the psychological value.
So, in the fierce homogenization competition of consumer goods, the value that can be created for consumers can really be more different, in fact, it is more at the psychological value level.
The difference in physical value is easy to understand and is achieved through product design, supply chain management, and raw material innovation.
What is the difference between the psychological values and the process?
The answer is: relying on brand building capabilities and professional brand building work.
A brand with strong brand building ability, consumers have greater psychological value, more continuity, higher loyalty, higher repurchase rate, and even accept price increases.
A brand with poor brand building ability, consumers pay more attention to physical attributes and prices. Because of low psychological value, replacement, abandonment of use costs are lower, loyalty is poor, and it is more likely to be affected by price wars.
Everyone needs to know that the biggest pressure in the consumer goods business is if you don’t know if consumers really like your brand (psychological value) to buy you, or because you recently promoted or caught up with a certain trend or bonus. When consumers buy your words, you are likely to suddenly discover that one day, consumers come faster and go faster.
With brand building capabilities, continue to build brand value added, through brand buildingTime is an absolute forerunner in this field.
Third, a more integrated, more balanced, and more creative brand creator and an ecosystem of supporting brand building capabilities. To create a brand, you need a imaginative and creative creator, and you need a professional third-party service capability system to match your empowerment. Behind Steve Jobs’s creation and construction of such a great brand as Apple, don’t forget that Jobs has the aesthetic insights of the time spent on English calligraphy, and even the CEO of Steve Jobs, the growth of the Apple brand. Behind several key actions, there are equally professional and creative marketing management companies to help Jobs.
What are the obstacles that may constrain this generation of entrepreneurs to create truly great brands?
What is the brand?
I feel that the brand is the crystallization and performance of the worldview and values of the brand creators. A worldview and values that are vital and direct to the people are the first cornerstone of the success of many great brands. Therefore, there are many entrepreneurs who use selling goods as the sole guide and excitement. I find it difficult to make good brands. Many entrepreneurs who have difficulty understanding the values and worldviews of a new generation of consumers in a relatively rich, open, and free life state, I find it difficult to make good brands.
The perception and expressiveness of aesthetics is the second cornerstone of a great brand. I will send three sets of posters directly. If you can see the difference in aesthetics, you can understand this.
OPPO Star Poster
vivo star poster
About Zhang Rui
Zhang Rui, founder and CEO of the social interest TOUCH, two students from Lakeside University, Tsinghua Wudaokou Financial EMBA. He is a consultant of several world top 500 CEOs and CMOs in China for digital marketing; an honorary tutor at the P&G Digital Marketing Institute; a consultant for the “National Brand Day” of Xinhua News Agency; and a Ram Chalan Management Practice Award for two consecutive years; Received many honors from Chinese advertising, Golden Mouse, Golden Reward, Campaign and other institutions. Zhang Rui is committed to continuously exploring new era marketing solutions that combine artificial intelligence and creativity.
