Cross-border enterprises should pay attention to the impact of new products on the value of the parent brand. They should not only give full play to the influence of the parent brand to maximize brand value, but also pay attention to the brand cultivation and operation of cross-border products, and promote the two to complement each other and become stronger together. .
Before crossing the border, it is necessary to conduct market research, identify user groups, develop products according to their consumer needs, and formulate targeted marketing strategies.
Recently, Kweichow Moutai launched ice cream products, which attracted market attention.
In fact, Moutai is not the first liquor brand to cross-border cold drinks. Wuliangye and Heytea have launched wine-flavored ice cream before, and Luzhou Laojiao has cooperated with Zhong Xuegao, Jiang Xiaobai and Mengniu to launch alcoholic ice cream.
Why do liquor companies frequently cross borders?
Gong Zhengqi, a professor at the School of Economics of Guizhou University of Finance and Economics, believes that the first reason for enterprises to cross-border is to expand user groups and expand brand influence.
"The user group in the liquor industry is mainly adult males. Although the user base is large, the growth of the number of users is weak. Cross-border entry into new fields can increase brand exposure and help attract potential consumers." Gong Zhengqi said.
Young people are no longer the main force of liquor consumption.
A survey shows that only 38.6% of young people choose liquor.
The loss of young consumers has affected the sustainable development of the liquor industry.
According to the data from the National Bureau of Statistics, the production of liquor began to decline after reaching its peak in 2016. In 2021, liquor enterprises above designated size will produce 7.16 million kiloliters of liquor, almost halving the output in 2016.
How to expand the consumer group, especially how to attract young consumers, has become a major issue in the liquor industry.
Moutai's crossover this time also highlights its attention to young consumer groups.
"Opening up new growth points is an important reason why liquor companies have crossed borders." Zhou Lexin, a professor and doctoral tutor at the School of Management of Guizhou University, said that after years of rapid development, the development pattern of the liquor industry has tended to be solidified, and the market competition has become increasingly fierce. The product line has become saturated, and opening up a new track has become an urgent matter for liquor companies.
Why do liquor companies value ice cream, ice cream and other cold beverage industries when they cross borders?
Some experts pointed out that most of them value the growth opportunities of the ice cream track.
Relevant data show that the size of my country's ice cream market has exceeded 160 billion yuan, ranking first in the world, and there is still a lot of room for growth in terms of per capita annual consumption.
At the same time, ice cream and other related products are endowed with certain social attributes and added value of emotional needs, and are deeply loved by young consumers; coupled with the increasingly blurred seasonal attributes of ice cream, eating ice throughout the year has become a new consumption trend for young consumers.
Moreover, the cost of ice cream raw materials is not high, the production process is not complicated, and the product itself has high profits. Therefore, the ice cream track has become a "test field" for various brands to cross-border and innovate in recent years.
Relevant experts also said that it is easy for liquor companies to take the first step across borders, but to gain a firm foothold and achieve development in a field they are not good at, long-term planning and embroidery efforts are needed, otherwise it is likely to be short-lived.
Gong Zhengqi suggested that before liquor companies take the first step across borders, they must do enough market research to identify user groups, develop products according to their consumer needs, and formulate targeted marketing strategies.
At the same time, the pace of cross-industry must be steady, and there must be systematic planning and layout, complete production standards and high-quality service experience.
"Especially pay attention to product quality. No matter what taste or brand of product, it must first be a qualified or even high-quality product that can meet the basic functional needs of consumers. Without high-quality products and first-class service, cross-border is smashing its own brand. "Gong Zhengqi said.
Zhou Lexin believes that cross-border enterprises should pay attention to the impact of new products on the value of the parent brand. They should not only give full play to the influence of the parent brand to maximize brand value, but also pay attention to the brand cultivation and operation of cross-border products, and promote the two to complement each other. Strengthen together.