Brand contraction three or four line market return to the first and second line intensive cultivation Date:2015-08-21 00:15
In the face of potential markets in third- and fourth-tier cities, outdoor brands are bringing channels down to the brand development agenda. However, due to the lack of brand awareness, insufficient market development, and the price system problems that have arisen in the sinking of new channels in the third and fourth lines, many outdoor brands have encountered difficulties in the sinking of third and fourth line channels. Thus, the local outdoor brand strategy has shrunk the third- and fourth-tier markets and returned to the first and second-tier cities for intensive cultivation.
With the advancement of urbanization in China, the purchasing power of small and medium-sized cities is increasing day by day. As a result, local outdoor brands are sinking channels, hoping to take root in the 3rd and 4th markets. However, during the process of sinking channels, Painful, consumers need a process for brand recognition. Brand cultivation in a region also takes some time. Third- and fourth-tier consumers have less exposure to outdoor brands and have weaker cognition. Therefore, The brand's cultivation process in the third and fourth lines will be longer in the first and second-tier cities.
Compared with first-tier cities and second-tier cities, it is necessary to make appropriate profit in sales in the third and fourth-tier cities because, after all, the consumption levels in the third and fourth-tier cities are not as good as those in the first and second-tier cities. This requires the allocation of product structure and products. It is better to make appropriate adjustments, but once the price system is not uniform, it will cause fluctuations and adjustments in all aspects of the brand itself. Therefore, if the company decides to sink and expand, it must make long-term planning and preparation to solve various problems. Possible problems.
Not only that, in most third- and fourth-tier cities, there is a lack of corresponding shopping mall channels, so that only stores can be opened. The overall cost of specialty stores is definitely much higher than the cost of shopping malls. The return on investment is still unknown.
In the process of channel sinking, outdoor brands need to use their own positioning as the benchmark. They should not blindly enclose, and blind pursuit of the number of outlets is not only undesirable, but also can not really drive sales. One thing should be very clear, the local outdoor brand is developing downward toward the township store. The ultimate goal is to drive sales through channel expansion, and then to promote the development of the brand through sales, but not to confuse consumers with the market.
The sinking of channels does not mean that it will occupy all markets in the first, second, third and fourth tiers. It will take all kinds of food. After considering whether the company itself has sufficient operating capabilities, it must not be confused with its own brand positioning.
Outdoor industry observer Liang Qiang: No matter what kind of channel model, outdoor brands must go from pursuing large-scale development to focusing on the survival rate of single stores, and create a channel operation mode suitable for the long-term development of their own brands. At the same time, the brand is also increasingly focusing on the establishment of new channel platforms and seizing market channels in the future. In the era of social media, the two-way interaction between online and offline and the integration of innovation have become the common characteristics of the evolution of the overall commercial format. Offline brands can use online as a platform for brand promotion, new product display and sales, and online brands can also go offline to interact with online consumers by setting up offline experience stores.
In the face of potential markets in third- and fourth-tier cities, outdoor brands are bringing channels down to the brand development agenda. However, due to the lack of brand awareness, insufficient market development, and the price system problems that have arisen in the sinking of new channels in the third and fourth lines, many outdoor brands have encountered difficulties in the sinking of third and fourth line channels. Thus, the local outdoor brand strategy has shrunk the third- and fourth-tier markets and returned to the first and second-tier cities for intensive cultivation.
With the advancement of urbanization in China, the purchasing power of small and medium-sized cities is increasing day by day. As a result, local outdoor brands are sinking channels, hoping to take root in the 3rd and 4th markets. However, during the process of sinking channels, Painful, consumers need a process for brand recognition. Brand cultivation in a region also takes some time. Third- and fourth-tier consumers have less exposure to outdoor brands and have weaker cognition. Therefore, The brand's cultivation process in the third and fourth lines will be longer in the first and second-tier cities.
Compared with first-tier cities and second-tier cities, it is necessary to make appropriate profit in sales in the third and fourth-tier cities because, after all, the consumption levels in the third and fourth-tier cities are not as good as those in the first and second-tier cities. This requires the allocation of product structure and products. It is better to make appropriate adjustments, but once the price system is not uniform, it will cause fluctuations and adjustments in all aspects of the brand itself. Therefore, if the company decides to sink and expand, it must make long-term planning and preparation to solve various problems. Possible problems.
Not only that, in most third- and fourth-tier cities, there is a lack of corresponding shopping mall channels, so that only stores can be opened. The overall cost of specialty stores is definitely much higher than the cost of shopping malls. The return on investment is still unknown.
In the process of channel sinking, outdoor brands need to use their own positioning as the benchmark. They should not blindly enclose, and blind pursuit of the number of outlets is not only undesirable, but also can not really drive sales. One thing should be very clear, the local outdoor brand is developing downward toward the township store. The ultimate goal is to drive sales through channel expansion, and then to promote the development of the brand through sales, but not to confuse consumers with the market.
The sinking of channels does not mean that it will occupy all markets in the first, second, third and fourth tiers. It will take all kinds of food. After considering whether the company itself has sufficient operating capabilities, it must not be confused with its own brand positioning.
Outdoor industry observer Liang Qiang: No matter what kind of channel model, outdoor brands must go from pursuing large-scale development to focusing on the survival rate of single stores, and create a channel operation mode suitable for the long-term development of their own brands. At the same time, the brand is also increasingly focusing on the establishment of new channel platforms and seizing market channels in the future. In the era of social media, the two-way interaction between online and offline and the integration of innovation have become the common characteristics of the evolution of the overall commercial format. Offline brands can use online as a platform for brand promotion, new product display and sales, and online brands can also go offline to interact with online consumers by setting up offline experience stores.
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