Say No To Small Brands Of Wolf Tactics.

"Business is becoming more and more difficult."

This sentence has become the mantra of various industry bosses when they meet and talk.

It is not because the market space is getting smaller and smaller. In fact, in recent years, many industries in China are developing rapidly. The number of consumers and consumption in many markets is increasing at a rate of 30% to 50% per year.

However, why is the growth rate so high that the bosses of companies feel that business is becoming more and more difficult?

The reason is simple: more and more people are doing.

It is precisely because of the growing market space and relatively high profit margins in emerging industries, coupled with the low threshold, attracting more and more investors to enter.

As a result of the feeding of new companies and new brands, the market space that the companies can take is limited.

At the same time, because the operation cost of the small brand is low, it can pull the price to very low, greatly weaken the profit level of many brands and control the channel agent.

Faced with the disorderly competition of small brands, some emerging markets such as beauty, clothing and footwear industry are like wolves fighting.

The profit margins, brand image, market environment and development prospects of the whole industry have been greatly threatened.

How should we get rid of the wolves' pursuit and interception and establish a more orderly and profitable market environment?

Perhaps we can proceed from the following six points.

First, look at the current situation correctly.

As for the current situation of China's emerging industries, we should take two sides. We should not only see the disorderly competition of "mixed up", but also see the vigorous progress of "all kinds of competition".

When all kinds of brands compete in disorder, it is also a necessary stage for all industry elites to strive to advance the market forward.

For small brands to join, we should not criticize all of them.

Many famous brands in the world are not famous for their birth. They have grown from small to large, from green to mature, from plain to bright.

Who can tell that the brand of these tens of thousands of brands will not grow into a famous brand worth billions of dollars in a few years?

It is precisely because of the constant addition of new brands that this market is becoming more and more exciting.

New brands bring new products and new culture; new people bring new ideas and new marketing methods.

The decline of product prices has indeed lowered the profit level of the industry, but at the same time, it has attracted more consumers to enter beauty salons, and has expanded the market share and influence.

It is precisely because of the continuous accession of new brands that China's emerging industries are becoming more and more energetic and moving forward.

Two, it is essential to reduce the chance of disorderly competition.

A normally developing market is full of competition, but once the competition is in a disordered state, it will cause a bad effect on the market, and even lead to the atrophy and regression of the market.

To some extent, China's emerging industries are caught in a chaotic competition.

We can start from the source to reduce the occurrence of disorderly competition.

First of all, the entrant should be mindset.

Although the new industry is a high profit industry, but like a gold mine, gold is not to be exposed there and let you pick it up, but to pay for digging, collecting and washing.

New investors should have a calm heart and not be eager for success.

In the short term, no return is seen, and it is urgent to make all kinds of incorrect tricks.

In particular, we should advise those new brands that aim at the purpose of collecting money. With the strengthening of market supervision, the act of letting go of the business circle will inevitably be sanctioned by laws and regulations.

Secondly, we should appropriately increase the threshold for entry.

On the one hand, the government functional departments should strengthen the auditing and supervision of OEM brand, and snipe the bad elements of the money trap, and don't let the brand of regular operation suffer from their involvement.

On the other hand, manufacturers that provide OEM products should also audit customers.

Just imagine, if those brands that do not operate properly, if something goes wrong, they will not "hit the boat".

And because of the disorderly price reduction of some small brands, which disturbs the market, so that several other old customers are forced to join the price war because they are the same factory's products. Then a series of vicious circles will cause more problems: low prices, low profit margins, poor cash flow, difficulty in processing goods, and damage to manufacturers' interests.

Then there are agents and terminal retailers to polish their eyes.

Because many new brands have low price and high return point, agents and terminals should be moved to abandon the original brand and turn it into a new brand.

But it is likely that blinded by short-term interests, it will outweigh the gains.

Because brands attacking the market at low prices are often hard to achieve in the long run, or even a trap for money.

Three, do a good job of yourself, not to be tempted to move as a relatively mature brand, a group of small brands besieged, bear the pressure is very large.

Watching others use some non-standard means in the "money rush", their own mind is certainly not pleasant.

What we should pay attention to at this time is to strengthen our position and not join them.

Do your best, take proper defensive measures and counter measures, instead of using those non-standard means to kill them.

Otherwise, the market will be chaotic and chaotic.

As long as we do our best, we will gradually restore the rules and regulations of the market.

Four, strengthen the brand awareness of long-term development. China's emerging industries have been developing for many years, and have talked about brands for many years, and various brands are also very much.

But there are few brands that really have brand awareness, and the brand strategy for long-term development is even more rare.

It is precisely because there is no big brand to call, the brand awareness of each company is very weak.

In turn, it is also because the brand awareness of each company is weak, and it is difficult to produce big brands.

Also because there is no deterrent effect of large brands, those disorderly competition of small brands will be so arbitrary.

Compared with the professional line and cosmetic line belonging to cosmetics, there are obvious differences.

On the daily line, it is the example of world brands such as Procter & Gamble, L'OREAL, Shiseido and so on, giving birth to Chinese brands such as Yuesai, small nurses, and long Liqi. Meanwhile, the competition order of the daily chemical line is much better than that of no big brand professional beauty line.

Five, we must recognize that the disorderly competition will arise not only because of the increasing number of competitors, but also because of the fact that the market itself is not standard enough, and we are not doing well enough to let some people have gaps.

A new small company in the beauty industry, for example, is a new small company providing services for agents. Besides the support of regional managers, lecturers and American guides, and the support of hosts, singers and experts outside the brain, it is possible to squeeze out your company's position on the dealer's hands with this kind of personal service. It may be that your service is not in place; for example, a new brand is constantly promoting publicity in your base area, constantly promoting sales activities, and constantly nibbling your brand's market share. That may be because your brand has no real promotional plan; for example, if you promise to give the agent's late promotions not done, then don't blame agents for trying another brand. For example, competitors are trying to suppress your brand at a low price, probably because your brand and price are not fixed.

There are so many other things that we need to do in place and not give them room for drilling.

Secondly, we must learn to use the weapons of law to defend our legitimate rights.

On the one hand, when signing contracts with agents or terminal retailers, the obligations of agents or terminal retailers should be specifically regulated.

Prevent them from being tempted by new brands and give up our brand products at will.

On the other hand, we should seek the supervision of the functional departments of the government in order to fight against the arrogance of some people.

Six, a strong weakness in the emerging industries of China is that too many enterprises are too few and too few.

Without the support of scale strength, it is easy to get into trouble caused by disorder competition.

Take the cosmetics industry as an example.

On the daily line, do you think that P & G will not be afraid of the disorderly competition of small brands? The most important thing is to lower the low-end "Rejoice" to 9 yuan and 9, and kill a large number of small brands at once.

Because P & G has the strength and can't afford to play.

But which company does this line have?

In fact, it is not that China's emerging industries do not want to be bigger, but that there are too many limitations to make it bigger.

But is it possible to change a train of thought?

That is the combination of vertical and horizontal, that is, the introduction of capital operation means, the implementation of mergers and acquisitions, I believe that in the near future there will be one or two large enough industry companies, and enough for those who use disorderly competition means small brands to attack.