Product or brand? Gradually deviated manufacturers and manufacturing enterprises

Product or brand? Gradually deviated manufacturers and manufacturing enterprises

Recently, I saw a news about the withdrawal of an automobile brand from the market. In the past, the busy factory was closed and abandoned, and the factory was full of grazing cattle. It is such a once hot automobile brand that suddenly reappears and gradually disappears from the public view. The author feels that there are thousands of things. Is it more important for enterprises to make brands or products?

The car brand mentioned above is baowo. Once baowo was a German car brand comparable to Mercedes Benz and BMW in the European market. However, it was finally eliminated by the market in 1961 due to business problems, and the enterprise ended up in bankruptcy. Is it reliable that such a brand that has stopped production for more than 50 years suddenly resurrects in the Chinese market and claims to be one of the top four German brands? Just think about it. Where do cars that have been out of stock for 50 years still have the current car manufacturing technology and experience? This is also the case. In 2014, Futian spent only 5 million euros to complete the 100% acquisition of baowo automobile brand. In fact, it spent a lot of money to buy a brand. It can be seen that Foton chose to be a brand rather than a product for baowo,

From the introduction of baowo into China to its fading out of the market, the brand has been controversial, and some people recognize it and others scoff at it, but this does not affect the rapid popularity of baowo brand. The reason why the market quickly recognized baowo is also based on the history of baowo brand, not to mention Futian's brand publicity as the core point. But why did Po Wo suddenly shut down after the explosion? This is the result that the product capability cannot match the brand. No matter how good the publicity is, the final presentation is the product. Consumers can buy the brand for a while, but they can't throw money without a bottom line. As mentioned above, baowo itself is only a shell of the brand. Foton's car making ability is worrying, and it has no technology to match the brand. However, they falsely improve the brand level, but their R & D investment can't keep up, technical support can't keep up, product quality can't keep up, and after-sales service can't keep up, so in the end, they smash the signboard, Baowo, which had been out of stock for more than 50 years, was like a "fake corpse", and finally made a joke in the market.

Is brand important? It is very important that the brand is the name accumulated based on the product feedback in the market, rather than the first brand pushing the product to the top. There is a sequence and primary and secondary order in the logical relationship. In the early stage, consumers can recognize your brand only by choosing your products from many similar products and recognizing your products through continuous trial and error, so that more consumers can avoid trial and error and directly select your brand through the wide recognition of the brand. This is the foreshadowing of the operation and maintenance of the brand in the early stage and the credit guarantee based on the product as the core, Therefore, the brand is actually the credit endorsement of enterprise products. If you keep high credit all the time, the brand's credit rating will become higher and higher over time.

Similarly, brand credit endorsement will continue to lose when the product quality decreases. There are many examples in the market, such as a underwear brand. In the early stage, it made its brand known by relying on excellent product quality. Later, due to the problem of operating income, the enterprise directly closed the factory and gradually switched to brand authorization business, So now it has a large variety of products, but it does not have its own core products. They are authorized products, so the product quality is uneven. Young people have scoffed at this brand. In a few years, when the brand is rotten and the authorization can not be sold, I really don't know how to transform the enterprise.

Back in the automotive aftermarket, at present, most of the vulnerable parts and other automotive core parts are brand products of multinational companies, especially lubricants. It is undeniable that these international brand enterprises have rich experience in product R & D and production, but many of their products are OEM produced by domestic enterprises, Therefore, many domestic manufacturers have the production capacity and scale of high-quality products, but their own brands are not comparable with these international enterprises. The summary reasons may be the following:

First, the long-term brand effect of international brands. These enterprises have established their position in the industry through decades or even centuries, with high market awareness, skilled product technology and perfect quality standards. In contrast to domestic enterprises, most manufacturers lack long-term brand strategy and excessively and frequently push through the old and bring forth new brands.

Second, international brands have a lot of room to explore the price of products with the same quality. Because of the large shipment volume, the cost can be reduced through output, while the products with matching domestic quality can not achieve relative cost, and there is a market price war, and foreign brands have sufficient profit space to compete. Domestic brands are subject to cost and price, and the product pricing advantage is not obvious. Customers often purchase international brands at the same price or even at a slightly higher price.

Third, the recognition of the channel is very important. The international brand is dominant and the products are easy to sell, which leads the channel providers to be more willing to purchase well-known products. For the products with excellent quality but unknown brand, the channel providers are very cautious in purchasing, and the terminal stores are also facing this problem.

How to solve these problems? The first is to determine the long-term development plan of the brand. All this is based on the benchmark of taking the enterprise's products as the core. The product brand is regarded as the competitiveness, and reducing the product price is the key to open the distribution channel. Can the enterprise operate without profit? Maybe traditional enterprises think it's ridiculous. What do they do if they don't make money? However, the idea of Internet enterprises is to lose money first and make money. Internet enterprises can burn more money than entities, because they seize the individual consumer market, and the capital investment is calculated in billion, while entity manufacturers and enterprises should seize the resources of distribution channels and make market raids of brands.

Now, it is difficult for enterprises to grow slowly. The upstream resources of the market have become saturated. The upper position of an enterprise can only seize the market share of other existing enterprises. The formation of market barriers is how these upstream manufacturers and enterprises build up through time and money for operation and maintenance. If new enterprises want to break through, they must pay a price, but some enterprises do not want to pay a price. Therefore, they will give up the conventional road and begin to put limited funds excessively on the brand, only make short-term profits, and harvest one wave or two waves, After changing the brand again, the product quality is not considered, and there is no fund to consider, so as to form a short-term online red brand. Just doing so, I really deviated and forgot to do the original intention of the product and the real brand concept.