To China's Intelligent Manufacturing Today is the last day of 2016 We wish the upcoming 2017 well This article is the latest insight into the practice of mainstream shift over the past three years Bonner Ruicheng Methodology Consistent See figure below Observations of the consumption upgrade 'movement' over the past three years, especially in the mobile internet era, lead to only one conclusion: the reason consumption upgrade has become 'all talk and no action' is that the vast majority of 'upgraded' products are pseudo-demands, including but not limited to craftsmanship, artisan products, sentiment, and blockbuster products. These products are all about packaging, naming, storytelling, PPT design, business model innovation, and corporate valuation, with few seriously working on the market or product. These pseudo-innovative products follow two 'patterns': Either they compress some channel links to slightly lower retail prices, such as seafood and tea that were originally overpriced. Is this product innovation? It's merely channel innovation. Or they come up with a new name, design a new VI, and double the price, such as pancakes, beef noodles, crayfish, etc. Is this product innovation? It's packaging innovation. The above two 'innovation' patterns are not true product innovation, so the consumption they stimulate is inevitably pseudo-demand. Five key success factors for mainstream shift: First, upgrades in mass categories must involve substantive product innovation. Optimizing existing products, changing packaging design, packaging form, or brand name are all useless. You get what you pay for. Don't think you can fool consumers with beautiful designs, sentimental stories, or artisan pretense. Consumers will pay for truly innovative, valuable products, even at a premium, but will never spend real money on pseudo-innovation. Second, the elements of product innovation must be complete, from supply chain to product form, from pricing to brand. Half-hearted product innovation will struggle to achieve sustained purchases. For example, VERTU, the luxury phone brand under Nokia, and Xiaoguan Tea in the tea industry have achieved relative excellence in packaging and store innovation, but there is still a huge gap in integrating into the lives of their target consumers. Third, the new mainstream means new products, new products require new brands, and new brands must propose consumption values that represent the mainstream. New consumption is certainly a battle for mindshare, but what is the foundation of that battle? It's not creating concepts out of thin air or inventing new terms, but rather, against the backdrop of social stratification, hitting the social trends, target audience emotions, and interests that align with the brand strategy. Essentially, the mindshare battle is a battle of ideas; only a shift in mindset can turn cognitive recognition into real market share. Fourth, new mass categories are not about low-end or luxury; it's inevitable that mid-range brands will rise first. The secret to the rise of mid-range brands is not upgrading low-end products, but the 'dimensional reduction' attack from high-end (even luxury) products. Consumers find it hard to accept a low-end product rebranding with a price increase, unless the brand achieves a degree of supply monopoly; but they are relatively more accepting of the 'dimensional reduction transformation' of high-end products: consuming five-star products at three-star prices, i.e., value for money, is always the best product driver. Fifth, the final rule: any product innovation that cannot drive C-end purchases and sustained purchases is pseudo-innovation and pseudo-demand. The predicament of new mass categories lies not in the market or consumers. Failures need not be a concern; the vast commercial space of the new mainstream calls for true heroes, not speculators. The boundless falling leaves rustle down; before the sick tree, ten thousand trees spring forth. Mainstream shift is the trend of the times. Doing real product innovation and overall market operations well is the only way to occupy new mass categories and achieve mainstream shift. 2017, seize the opportunity of the times; it all starts with great products! -END- ★ Click the blue text below to view this month's popular articles ★ Click the blue text below to view this month's original articles FMCG Industry's Most Professional Practical Knowledge Base [ Reply with the yellow number in the background to view the following keywords ] | 001 Excellent Articles Selection | 002 Distributor Market Operations | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Managing Distributors | 008 Distributor Development | 009 Distributor Internal Operations Management | 010 Team Management | 011 Efficient Distribution Techniques | 012 Sales Manager's Eighteen Skills | 013 KA Operations Strategies | 014 First Lesson for New Salespeople | 015 Internet, Brands | 016 Distributor B2B Transformation |