There are so many cottage products, and the reasons behind them are shocking.

In other words, during the Spring Festival, a consumer bought Jiaduobao to visit relatives and friends. As a result, when it was opened, there was a layer of Jiaduobao packaging outside, but inside it was an expired unknown walnut dew, which was also a wonderful knockoff.

The rapid economic development in China has brought about a great imbalance between urban and rural economic development, and shanzhai products have sprung up, which once again reflects the strong "creativity" and extraordinary "innovative" thinking of shanzhai enterprises.

Numerous brands have been copied, such as "Kangshuaifu, Wangriwang, Maijie and Six walnut dew". This is not a typo, and product pictures are a dime a dozen on the Internet.

When we calm down and think about it, the reasons for the formation of shanzhai are not only low imitation cost, imperfect laws and unbalanced urban and rural economy, which provide soil for the survival of shanzhai. From the perspective of business logic analysis, what kind of reasons will lead to the cottage brand?

There are several main reasons:

First, the reaction force of anchor sinking effect

Second, it is increasingly difficult to find vents and gaps.

Third, Konikin's law.

Fourth, channel thinking.

Verb (abbreviation of verb) Difficulties in strategic coordination

1, reaction force of anchor sinking effect

The anchor sinking effect means that when people judge someone or something, they are easily dominated by the first impression or the first information, just like the anchor sinking to the bottom of the sea, which fixes people's thoughts in a certain place.

In the article "How do small brands survive in the current environment", I mentioned the wide application of anchoring sinking effect in business. The original intention is that small brands need to survive when they start. By imitating some products or services of big brands in the same industry, they can gradually form their own style.

However, innovation in imitation is a time-consuming and laborious thing after all, and it is likely that there will be thankless situations and consumers will not buy it. For the visual effects of big brands, the brand LOGO has a premium right, while the small brand in the cottage does not. It can only promote the transaction by reducing the purchase cost (mainly the price) of consumers.

At present, China's economic development is seriously unbalanced, the gap between urban and rural areas, and the gap between first-tier cities and rural areas has also given many cottage brand opportunities. The vast rural areas and areas where the level of economic development is not particularly good, many middle-aged and elderly people are easy to be recruited because of their lack of product discrimination.

Even the process of imitation and innovation is directly omitted. With the help of the profoundness of Chinese characters in China, it is enough to confuse consumers and make money by directly modifying the brand name slightly.

Shanzhai brand is to directly anchor its products with big brands with the help of consumers' trust and goodwill, so as to profit from it.

2. It is more and more difficult to find tuyeres and gaps.

Any enterprise making products or providing services is based on the premise that consumers have corresponding needs, that is to say, there is a gap in this industry, from smart phones to meat floss and steamed cakes, which are all the rage to some extent.

But now, no matter whether it is a big brand or a big enterprise, there is no guarantee that it will continue to find new gaps and regain the attention of consumers. Even the performance of iphone7 launched by technology giant Apple is not satisfactory, and it is rare for big brands to promote new products in other fields.

Some people may say that the economic environment is deteriorating and leading enterprises just want a smooth transition. Some people say that consumers are getting harder and harder to please. Whatever the reason, it is increasingly difficult to find new gaps, which is undoubtedly worse for brands without funds, technology and strength.

In fact, as one of the main bodies of China's economy, small and medium-sized enterprises have contributed a lot of tax revenue and employment, and they need to survive, while some small and medium-sized enterprises are tenaciously supporting them, and many enterprises have begun to take the "economic" route-copying other brands.

3. Konikin's Law

Kanekin's law is simply how much water a barrel can hold. It is not the longest board (strong) but directly influenced by the shortest board (weak). Making good use of Konikin's law is to foster strengths and avoid weaknesses.

In the era of cold weapons, when the two armies charge in array, the commander must first make it clear that only by using his own advantages and attacking the enemy's weaknesses can he improve the winning rate. In modern business competition, any enterprise must give full play to its own advantages and make up for its own shortcomings if it wants to survive.

Some people may say that shanzhai brands know so many business theories and only think about how to make money. That's true, but these cottage brands also need people with a certain mind to come up with them. No matter the degree of imitation or the choice of words, only when the sword is biased can consumers unconsciously take the bait.

Can ordinary people think of "Kang Shuai Fu, pulse robbery, king of prosperous times" at the beginning of the article? It's just that their intelligence has been brought into play in another way. Their direct imitation and cottage brand products are all the best examples without exception.

Small brands are deeply aware that their R&D ability, marketing ability, channel ability and financial strength are all shortcomings, but their strength is that the boat is small and easy to turn around. When it is popular, follow the trend to make money. If it doesn't work, replace it immediately. This group of people is naturally quite difficult to deal with.

4, channel thinking.

What is channel thinking? Let me give you an example first. For example, I am a mobile phone manufacturer. Many mobile phone agents take goods from me and then sell them at higher prices at their respective outlets or online, while consumers buy mobile phones directly from offline stores or online, then a whole set of business chains is formed.

Mobile phone agents and mobile phone sales outlets can be called channels or distributors. As a manufacturer, I don't deal directly with consumers, only with mobile phone agents. They are my main customers and the main source of profits, and their needs need to be met first. This is the most primitive industrial chain of production, supply and marketing.

Whether it is Tmall, Taobao or traditional large supermarkets, those who are closest to consumers generally have the highest right to speak, while those who have no right to speak are struggling supermarket suppliers and sellers and manufacturers of e-commerce platforms.

As middlemen, agents are bound to pursue the maximization of profits. In theory, they can seek support from manufacturers, and in the following time, they can sell them to consumers at the highest possible price. Earning the difference is their eternal purpose.

When manufacturers imitate the products of big brands, the price given to middlemen is much more attractive than the genuine price given by real big brands. Faced with high profit margins, middlemen naturally turn a blind eye, symbolically cheaper than real big brands when setting retail prices, and sell them to greedy consumers.

This is a typical channel thinking, which only meets the needs of channel dealers or middlemen, without considering the problem from the perspective of consumers and providing consumers with the products they need most.

No business, no harm. Of course, because some consumers covet cheap or satisfy vanity, buying cottage products has also created more waves of progress for cottage enterprises.

Because of the rise of e-commerce, traditional channels have been shattered, and manufacturers can also contact consumers directly. Although channel thinking has improved, cottage enterprises have also kept pace with the times and passed "welfare" directly to consumers more accurately, which is another reason why cottages are difficult to eradicate.

5. Difficulties in strategic coordination

Any enterprise is a strategic coordination system of R&D, production, pre-sale and after-sale. It is a positive cycle to develop new products to supplement the gap in the industry, cultivate loyal fans and consumers, and establish a brand position in this industry. Strategic synergy can promote each other, not weaken each other.

The strategic coordination of small brands or cottage brands is seriously inconsistent or difficult to coordinate. Without funds, it is impossible to develop products that are more attractive to consumers, and it is also impossible to attract fans and consumers. If fewer and fewer people buy their own brands, they will not be able to get more funds. This is a vicious (reverse) cycle.

Shanzhai brands also don't care about strategic cooperation. What they value most is sales volume, profit and scale. It is their strategic goal to get the maximum benefit at the least cost.

Conclusion:

Shanzhai is everywhere, but now consumers are more and more tolerant, probably because shanzhai products imitate some of the needs of consumers.

Different enterprises have different ways of living, but the polarization will become more and more serious in the future. Strictly speaking, there will be three levels of polarization: professional manufacturing enterprises, professional trading enterprises (middlemen) and professional platform vendors (Ma Yun and Dong Qiang's father), and there will be no more enterprises integrating production, sales and platforms.

When the sales channels are not in their own hands, when the platform severely cracks down on shanzhai or the national laws and regulations are more perfect, and the Internet makes negative information spread faster and faster, how can these enterprises survive by following the trend or relying on shanzhai or high imitation?

Shanzhai is not easy, but also ok and cherish!