Our colleague from the new media asked me a question the other day: "How to brand weak categories?"
I don't know whether you have such confusion. Today, let's write about my understanding of this problem.
01
What are the strong/weak categories?
First, explain the concept of strong/weak category.
In the past, we usually thought that some categories were called weak categories and some categories were called strong categories.
In fact, the so-called strong/weak category can be tested by one condition: when you want to buy this item, what brand do you want to buy first, or where do you want to buy it?
For example, when we buy rice, most people usually think: I am going to the vegetable market to buy it? Or buy a box of horses? Or go to Carrefour? Or go to Taobao?
You seldom think of what brand of rice I want to buy.
Most people choose to buy rice in supermarkets/Taobao/Jingdong/Oriental Selection Studio.
Taobao, supermarkets, and the Oriental Selection Studio are all your channels.
Most people buy rice through direct channels. Therefore, rice is considered as a weak category in China.
For another example, brooms, chopping boards, plastic bags, garbage bags, fruits, etc. are also weak categories in China. Few people specify that they must buy certain brands.
People don't care much about the brand of garbage bags. They can use them.
contrary, When you buy something, you first think about the brand I want to buy, and then you say where I want to buy it. Then, this is usually called strong category.
For example, mobile phones, computers, cars, skin care products, sports shoes and so on.
02
The strong/weak category has no natural boundary.
In fact, there is no obvious natural boundary and division between the weak category and the strong category.
For example, fresh fruit is a weak category in China, but it has become a strong category in western countries.
There are few fruit brands in China. The first thing we want to buy fruit is where to buy it.
For example, Baiguoyuan and Hema Xiansheng are mostly channel platforms.
But in the United States or other countries, there are fruit brands, such as Dule in the United States, and Jiapei in New Zealand. Although China has a Chu orange, its birth is too unique for us to study special cases.
The reasons for this situation are complex, and there may be various reasons. It is difficult to simply attribute it.
Some may be that consumers buy too often, some may not care about what brand they (products) are, and some may be that the cost of building brand power is too high, resulting in poor returns, and so on.
03
Weak category, how to make a brand?
Weak categories are not without strong brands, but relatively speaking, weak categories are relatively difficult to brand.
Why?
Behind the weak category, it means a decentralized market.
The so-called decentralized market means that there is no hegemon in the market and no strong brand has a high market share.
Assuming that the target market is 10 billion yuan, in a decentralized market, the number one brand may not even account for 1%. No matter what the brand does, it is difficult to exceed 100 million yuan in revenue.
At this time, it is relatively difficult to create a strong brand.
If we really want to do it, how can weak categories become brands?
In my opinion, there are three approaches.
The first is that if you really want to establish a fruit brand, you should change from a product brand to a channel brand. For example, Hundred Orchards, such as Fantasy Home in the furniture industry, Red Star Macalline, etc.
The second is to change categories. For example, a small pot of tea turns tea into a gift.
Another way is to find out what causes low brand concentration in this industry and why it becomes a weak category.
As long as you find the cause of the problem and solve it, you can become a strong category.
For example, in the past, the cattle raising industry in the United States could not be standardized and mass produced because of poor technology and dispersion. Later, the industry solved this problem, and it became a centralized market.
For entrepreneurs, if they decide to do the weak category, you will face a decentralized market.
The advantage of the decentralized market is that it is easier to enter, because there is no very powerful monopolist in the decentralized market.
But decentralized In the market, it is difficult to expand. If you want to become bigger, you'd better strengthen the products in the big market.
But it is not completely impossible. For example, we used to think that mops were a weak category, but a few years ago a brand named David mop was created.
Why? My personal guess is that there is no advertisement in this category. If there is only one advertisement, the efficiency will be much higher without competition.
Although its market share is not large enough, it is much better than the past (mop brand's market share). Indeed, some people buy mops to buy David mops.
This is an example of brands emerging from the weak category.
If you are currently in the weak category, you can start with "small things" and make small changes.
By operating efficiency, operating efficiency and channel efficiency, the sales scale will be built first. Then, as long as you sell more and know more, it will naturally form a strong brand.
