"Micro-profit" industry depends on brand value-added

One large bed sheet, four pillowcases and one quilt cover priced at $4,375. This set of bedding has been selected as one of the ten most expensive products on the Forbes website in the United States. The reason why it sells at a high price is that its manufacturers retain nearly 100 years of superb craftsmanship and high-grade Egyptian cotton cloth. What astronomical product can we enjoy?

Behind the brand high prices

"It's not surprising to sell this price," said Wang Yong, managing director of Ashley Man Bedding (Shenzhen) Co., Ltd., who speaks quickly. "The price of the Italian Ashman brand that we represent is 30,000 to 40,000 yuan. "The two products, which look almost the same, are immediately distinguished from one another in the eyes of the experts. "Ishiwman products originating from Italy are very particular about the materials used. The fineness of fabrics can reach more than 300 needles, and some even 500. needle."

In addition to the use of materials "fine", the entire process of the Italian production process is completed manually, as Rolls-Royce general, and inherited hand-woven technology for a hundred years is not closely circulated, high labor costs. In the modern large-scale production, the weaving process is used for mass production and the labor cost is greatly reduced.

Comparing the two, the long-lasting old brand naturally "is rare and precious."

Helpless low-end route

Wang Yong introduced the Ashley-Mans brand in 2002. At the time, both parties agreed that the Shenzhen company had the right to use the brand of Ashman, which could be sold in all areas outside Italy. Wang Yong met with Ashley. It was also a coincidence that “there was a factory where we made bedding in our hands and wanted to be the sales agent for international brands. We finally found this Italian royal brand.”

But the road to agency is not easy, about 30,000 yuan in the international and domestic markets are few people interested, Wang Yong said a store in Hangzhou agent Kaifu, "French brand, more than 10,000 yuan, often three days Don't pay bills, eat for three days."

"Most consumers still value prices," so Wang Yong tried to open the domestic market after he got the Ashley-manner brand in 2002. But doing domestic sales is different from doing export sales and selling hundreds of sets of a single product. There are few requirements for the product line, but the internal sales orders are tested by the company's own production lines. The original product line in the Wang Yong factory is not enough, and the production capacity cannot keep up. After four years of redesigning and adjusting products to improve the Ashley product line and reduce fabric costs, Wang Yong eventually set the domestic sales price at RMB 2000-3000.

At present, 80% of the products of Wang Yong's products are exported to customers in Europe, America, Southeast Asia and other places. In the country, more than 80 agents have been absorbed and the outlets have spread all over the country. Even so, it can't escape the puzzle of a problem: Does the brand have to cater to the affordability of the mass market?

Brand building is facing difficulties

"The domestic market is fiercely competitive and it is very easy to imitate each other." Wang Yong was helpless. There are only a few places in the exhibition that can not be photographed, probably textiles, shoes and toys booths. Most of these companies rely on styles to win, and photographing is often the first step in new product exposure, and the same style of "clone" products. Immediately it will flood the market.

"If the micro-profit industry talks about brands, the industry will change its position in three years, and talk about what a century-old shop is!" The first thing to do after the market is to become a brand. This is a value that is recognized by domestic companies. Therefore, imitation is a common practice, so it is uneasy. An IT industry source told reporters that a Shenzhen-based company that produces MP3s closed 13 times in two years but still produces MP3s. Its mentality is to make a profit and leave. An official once said with pain: “This utilitarian value has produced a group of small businesses that cannot grow up.” Whether in the textile industry or the electronics industry, selling things into banknotes is the primary goal of entrepreneurs. Instead of operating a century-old shop and maintaining its own brand.

In the last session of the China Botswana, there were also companies that said: "By doing branding, products that are naturally good will naturally be recognized by consumers, and they will also be able to sell on the price, and they will also help in exporting, because now some foreign companies go directly to China to find manufacturers. If they are Domestic brands are loud and they will be more optimistic."

Look at the remaining 9 products of Forbes website, from the glass to the bathtub, from the wallpaper to the kitchen cabinet, which is not the same as the profitable product in our eyes and the luxury brand in the eyes of consumers?