The author of this article: Hu Xiaopang @ Author of the best-selling books "Brand Operation Manual", "Micro Business ** Manual" and "Micro Business Promotion".
Hello, everyone, I'm Hu Xiaopang, and this issue is a Q&A section. I have a community member named Lao Chen, who is the founder of a traditional brand and sells products in both physical and e-commerce channels. With the increasing popularity of micro-business (new retail) channels, he also plans to expand his products to micro-business channels. But he has been struggling with whether the micro-business channel should continue to use the original brand, or it is better to start a new brand. So he asked me, how to operate a traditional brand like him to enter the micro-business channel?
From the birth of micro-business (new retail) to the present, most of the slightly influential traditional brands (physical or e-commerce channels) have basically expanded the micro-business channel. Whether traditional brands should continue to use the original brand when entering the micro-business channel is a controversial topic, and the industry is divided into two viewpoints. Some people in the industry think that it is better to continue with the original brand, while some people in the industry think that it is better to start a new brand.
My opinion is that it is better to start a new brand again, because it is more conducive to the long-term healthy development of the brand. For some traditional brands with greater influence, the use of the original brand is conducive to a rapid start with the help of brand influence in the early stage of the market. This is the advantage of traditional big brands in the early stage of the market, after all, the trust of traditional big brands is stronger.
However, looking back, we will find that these brands that continue to use the original traditional brands have all withdrawn from the micro-business (new retail) channel one or two years after the start. This phenomenon makes many people wonder, why did they choose to quit when the development momentum is very strong?There was all sorts of speculation during this period.
Since I know the founders of some traditional brands, and I have also talked to them about related things, they told me that the real reason for the exit is that the brand development of the micro-business channel has seriously affected the operation of their traditional channels, especially those traditional big brands, the impact is even greater. The influencing factors here are more complex, so I will not expand on them. In general, the faster the development of micro-business channels, the more affected traditional channels will be, so that brands need to make a choice between traditional channels and micro-business channels.
Of course, this decision is very simple for brands that are deeply involved in traditional channels, and they will definitely give priority to traditional channels, after all, traditional channels have been laid out for a long time. As far as I know, although many traditional brands have chosen to withdraw from the micro-business channel on the surface, in fact, some of the exited brands have privately restarted in the micro-business (new retail) channel by enabling new companies and new brands, but most people don't know, and they will not publicize it to the outside world, basically separated from the traditional brand. After all, the micro-business (new retail) channel is really fragrant, and they will not give up this profit growth point.
In my opinion, the real advantage of the micro-business channel of the traditional brand is not the appeal of the original brand, but the network resources precipitated by the traditional brand, such as many wholesalers and customer groups. With these huge network resources, it has become less important whether the micro-business brand continues to use the traditional brand name.
Therefore, if traditional brands expand micro-business (new retail) channels, if they are not willing to give up the original channels, I suggest that it is best to restart a new brand to start a micro-business channel. Because the existing burden of traditional brands is relatively heavy, the relationship between different channels with the brand will be relatively complicated to deal with, and it is easy to affect the original channels if it is not handled well.
Of course, if your traditional channel brand itself is not doing well, or you want to completely abandon the original channel and transform into a micro-business (new retail) channel, then in this case, I think it is okay to continue to use the name of the traditional brand.
Okay, let's talk about it today, if you encounter any problems in the process of new retail entrepreneurship, you can always talk to me. Like my show, welcome to follow, like and share. I'm Hu Xiaopang, next issue, we'll see you there!
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