From low-end to mid-to-high-end, the nature of the market has fundamentally changed. Just repairing and improving the original low-end operating platform cannot cope with the high-end market. Enterprise operating platforms must undergo fundamental changes with market changes, and the original operating platform must be completely changed. of low-end thinking, and carry out brand upgrade strategies with the thinking of mid- to high-end brands.
Today, it seems outdated to use the “Xiong Kee Collapse Incident” as an example, but there are too many things worth pondering about this incident. If we don’t sum up and learn lessons, many companies will collapse like Xiong Kee. I think this is what no one wants to see.
Xiongji is a typical company engaged in low-end LED production. Although its annual output value exceeds 100 million yuan, it cannot stop the risks of being a “junk product”. It is said that Xiongji once tried to get rid of its low-end image and made a lot of efforts. It is said that Xiongji once registered a new brand and engaged in the production of mid-to-high-end LED products to get rid of its previous low-end image. However, “it is difficult for one team to run two brands well.” Xiongji’s “low-end thinking” has penetrated into the bones of corporate leaders and employees. It will take a lot of effort to change their understanding of product quality and brand value. In the end, Xiongji’s dream of a mid- to high-end brand was shattered.
In the past two years, LED has experienced explosive development. Some workshop companies have quickly gained a certain market through low-price strategies and accumulated a certain amount of capital. As the market matures, people’s understanding of LEDs deepens, and consumption concepts also change. In particular, consumers who have experienced quality crises pay more and more attention to the quality of LED products. As a result, the living space of low-quality and low-price products is gradually eliminated. compression.
There are many low-end LED companies in Guzhen. They have realized the importance of product quality and are trying to change this image, such as improving product quality, paying attention to brand image, registering new brands, etc. However, the improvement of product quality will inevitably lead to an increase in costs and product prices. However, dealers may not necessarily accept the existing prices or believe in the quality of the products. In the end, the company is forced to go back to the low-end route.
From low-end to mid-to-high-end, the nature of the market has fundamentally changed. Just repairing and improving the original low-end operating platform cannot cope with the high-end market. Enterprise operating platforms must undergo fundamental changes in line with market changes, and the original operating platform must be completely changed. Low-end thinking, carry out brand upgrade strategy with the thinking of mid-to-high-end brands.
First, the change of thinking. To transform and upgrade from low-end to mid-to-high-end brands, we must abandon low-end brands and form a low-cost mindset. Be low-end to meet customers’ low-price requirements; be mid- to high-end, customers focus on diversified needs
Secondly, product differentiation. Large quantities and homogeneity are the main characteristics of low-end brands. Therefore, in the low-end market, from products to brands, there is not much difference from competitors. When building a mid-to-high-end brand, homogeneous thinking will hit a wall at every turn. Only establishing differentiated advantages with outstanding features is the foundation for building a high-end brand.
Once again, after-sales service is implemented. Being low-end, companies have small profits and cannot afford excessive after-sales services. In the mid- to high-end business, customers have relatively high requirements for after-sales service. If a company wants to take the mid-to-high-end route, it must provide good service.
For companies that have developed in the low-end market, entering the high-end market means a gorgeous change in the brand. Abandoning the experience and success rules accumulated in the past market and accepting the baptism of the new market again, the low-end brand rules must be completely changed. Only by absorbing and mastering the new high-end brand rules can real brand upgrades be achieved.