Why are some time-honored brands facing operational difficulties?

With the popularity of new consumption environment such as stimulating consumption and live broadcast, many time-honored brands have taken the opportunity to embark on the road of transformation, and their influence has also expanded from the region to the whole country, and the consumer groups have become younger.

A staff member in charge of time-honored brand business in a business department admits that some time-honored enterprises in traditional industries with low added value are facing the dilemma of withdrawing from the market. In the fierce market competition, some time-honored products have been confined to the local market for many years, and even local consumers are becoming less and less. Why did you get into such a predicament? We found that there are many factors.

First, the "burden" of innovation is too heavy. Time-honored enterprises generally have their own flagship products, and the products and brands are deeply tied and achieve each other. However, how to make the products born in the era of agricultural handicrafts and material shortage adapt to the new consumption environment is a problem that time-honored enterprises must think about. Take time-honored foods as an example, the classic products are often high in oil and sugar, and it is increasingly difficult to adapt to the tastes of young people. When developing new products, we are faced with the ideological burden of "true and false", fearing that we will lose old customers and win over young people.

Second, market development "has no ambition". The reporter found that some time-honored enterprises are used to "visiting here", but they don't pay attention to "opening branches and spreading leaves". An old brand interviewed by the reporter is well-known at home and abroad, and European and American politicians are full of praise when they come to the store to taste it. There are photos of celebrities from all over the world in the shop. Some overseas Chinese will place orders from overseas on traditional festivals such as the Spring Festival. However, over the years, enterprises rarely take the initiative to go out and explore overseas markets.

Third, the operating mechanism is "inflexible". The reporter visited and found that time-honored enterprises are generally divided into listed enterprises, state-owned enterprises and private enterprises. Many time-honored brand leaders bluntly said that some state-owned enterprises are conservative in pioneering and innovating, while private enterprises face some practical difficulties in their operations, which also makes it difficult for time-honored brands to forge ahead.