However, with the market involution and homogenization, the life cycle of a big single product has been significantly shortened, and the corresponding traffic cost has increased. Even the market leader is prone to fall into the quagmire of vicious competition. Therefore, brands should plan to make product matrices in advance and actively attack different population markets, and reorganize the model from supply chain to product channels and promotion. The necessary weapon is to widen the price range through price drive. How much should the price be pulled? Quoting Wei Zhe's words, "If you want to promote high-end products, multiply the price; if you are currently selling mid-to-high-end products and want to expand the low-end population, divide the price.
There is no point in having a price sri lanka whatsapp phone number difference of 20 to 30 percent. First, a brand can have a little promotion and the price will be the same; second, a business model and a financial model must be established for each category. Only price multiplication can change the original model. Because your original intention is to use a new price band to capture the group of customers that you couldn't catch before. Multiply the mid-to-high-end that you couldn't reach before and reach it. Divide it by the mid-to-low-end population that you couldn't reach." Why do this? In addition to the increasingly fierce competition for traffic, it is also related to the differentiated attributes of different traffic platforms.
Douyin is suitable for the general population with low gross profit; Tmall and JD.com take over shopping search traffic but have strong homogeneous competition; Xiaohongshu has high average order value and large profit margin but low ceiling; Video account is suitable for high average order value but the population is relatively narrow, mainly middle-aged and above; Pinduoduo and Kuaishou go down-market with low average order value. Offline is another battlefield. A single product cannot really make good use of the different characteristics and population attributes of each platform. Only by combining significantly different prices and products can the promotion advantages of different platforms be obtained.
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