China has now become the world's manufacturing factory, and products labeled "made in China" can be found all over the world. From a certain point of view, we should be proud of our strong manufacturing strength, but most of the foreigners' impression of Chinese products is still synonymous with low price and low grade.
In fact, after so many years of development, the quality of Chinese enterprises has actually made leaps and bounds, and even some products have reached the international first-class level, but China still lacks a number of its own international brands. Therefore, in the context of industrial upgrading, how to obtain brand premium is also a common topic for domestic companies.
What is a brand premium and why should it be cultivated
The so-called brand premium is the added value of the brand. The same product of a brand can sell better than that of a competing brand, which is called the premium ability of the brand.
To put it in layman's terms, the brand premium is the difference between the price of a liter of water in a bowl and the bottle of Nongfu Spring and Evian.
As far as each consumer is concerned, there are too many commodities to face, if the goods necessary for life are 2000 kinds to calculate, and the average of each knows and understands 3, it is 6000 brands of goods, which is not counting the subdivision model of each brand, and the personal brain capacity is very limited, so each commodity can only remember 1-2 brands, and tend to buy familiar brands when shopping, because it can reduce the search cost of customers, then these well-known brands will be in the entire market, Greet the continuous purchase behavior, and continue to improve with the increase of consumer purchasing power. This also determines that most of the profits in each industry will only be earned by a few oligopolistic enterprises, while other brands that cannot make an impression in the minds of consumers will gradually be eliminated.
In the Internet era, the first type of goods will be more and more abundant, the number will be more and more, in order to be familiar to the public, more marketing expenses are needed, brand barriers continue to improve, and these oligopoly enterprises can rely on their strong financial strength and channel capabilities to create a variety of brands, with multi-brand strategy and publicity to overcome all ages, various types of consumers, and even innovate new products to change consumer behavior.
In the food and beverage, pharmaceutical, alcohol, condiment, daily chemicals and Internet industries, there are companies with strong brand influence. If a brand can drive customers to be more willing to pay and more loyal, then the brand is the company's core competency, and this ability can give the company pricing power or a replicable business model, which can lead to sustainable profit growth.
How brand premiums are generated
So how to make your brand have high added value?
First of all, the brand should be unique. A good brand often has a unique design, innovation or unique production process, etc., which makes the brand's products unique and recognizable in the market, so that it is easier to attract the attention and purchase of consumers.
Second, brands are scarce. This scarcity can come from the raw materials, production process, design and other aspects of the product, resulting in higher expectations and desires of consumers for the product, so that they are willing to pay higher, which is one of the important means for brands to improve their premium ability in the market. It should be noted that a brand's premium power is not static, it is affected by various factors such as market environment, consumer demand, competitors, etc. Therefore, enterprises need to continue to invest and innovate to continuously improve the value and attractiveness of the brand to maintain and expand the premium ability of the brand. At the same time, companies also need to pay attention to consumer needs and feedback, and adjust and optimize products and services in a timely manner to meet consumer expectations and needs.
Finally, to make the brand have a sense of high-end and value, for example, the brand based on functional interests should continue to improve the use value of technology and products, such as a brand of several electrical appliances with leading technology, humanized function, and exquisite appearance, which can only increase the price of these appliances themselves to a limited extent. If the company continues to launch such good electrical appliances, the brand will have a sense of high-end and value over time. The brand's premium ability can cover all products.