hotpot a good category, because it has replicable characteristics. If you always need to deliver personalized categories, it is the most difficult to do.
What is the most important thing for a consumer goods venture?
The most important thing is the selection of categories, especially super categories. In my 10 military rules article, I also listed category as one of the most important rules.
As a man who has studied 500 brands, I would like to talk with you today about how to choose a new category and whether there are rules for category selection.
What is a good category in my heart
No.1 King category of low price catering
What kind of category is this?
I’ll just name a few companies, and you’ll probably understand what I’m talking about.
The stewed chicken and rice, which swept China at the beginning, is now attacking the MI snow ice city in the third and fourth tier cities. And it is said that during the epidemic period, the new chicken chops, which were opened in many stores against the trend, belong to what I call the king of low-cost performance.
What are the characteristics of such a category?
First of all: because it is located in a low price range, these low price categories are pushed together.
They compete and drain each other. This is the underlying principle of how the red street of gourmet.com emerges. They love each other and kill each other.
But eventually they will become angels in each other’s lives.
Secondly, the supply price of the supply chain is less subject to cyclical fluctuations.
We have found an interesting phenomenon. The recent rise of the king of low-cost restaurants has something to do with a kind of intelligent creature, that is, chicken.
For example, I mentioned the Yellow stewed chicken rice, for example, the Zhengxin chicken chops, which grew against the trend during the epidemic.
At that time, I didn’t quite understand why these categories were. Later, I understood that the core bottom layer was that these businesses were industries with high demand for supply chain stability.
As a big chicken raising country, China has been keeping a low price and stable supply in recent years.
And chicken chops are the king in category selection. The price of chicken is much cheaper than chicken.
So in recent years, we also found that the category of roast chicken feet is rising rapidly. It is this reason that ignoring the supply chain, and simply talking about user demand can not necessarily make a good category opportunity.
Third: heavy oil, heavy spicy, taste with a broad spectrum
There are few low-cost food and beverage categories, most of which are heavy oil and spicy.
I don’t dare to guess what this is, but I rarely see light food and beverage can be made into a broad-spectrum high chain. Due to one of the reasons I mentioned earlier, a large number of people who eat spicy food have poured into the new industrial areas, which gradually spread the transmission effect of spicy food. As a result, there are more people who eat spicy food in China.
To sum up, let’s summarize the characteristics of this category:
No.2 category without brand
This is easier to understand. That is, in a large number of daily products you buy, there are categories without brands.
For example, the mops you bought (don’t compete with me. I really can’t remember the brand of mops, but I don’t deny that there may be brands in this field, but most people don’t have an impression of them).
With the change of people’s consumption concept, users began to pursue the brand of useless products in the past.
Therefore, each category in China has the opportunity to redo, and each category in China will have its own brand. There is only a simple and difficult order.
For example, for the subdivided categories like washcloth, I recently learned about a brand called cotton.
Such as chopsticks, there have been old brands like shuanggun, and investment has been made.
There are too many opportunities for products without brands in China. The common opportunity for these categories in the upstream supply chain is the opportunity for decentralized integration.
Seizing the opportunity of China’s category without brand and the opportunity of upstream supply chain decentralization, whoever completes the resource integration ability first can get rid of the encirclement.
No.3 categories of vertical segments
The future of heavy vertical track will be a good opportunity.
For example, you only make shoes for the elderly, for example, you only make clothes for children, for example, you only make drinks for people who don’t like sugar.
The most important thing is that you should be a crowd expert and make decisions for the crowd about what good products are.
In fact, there is no category concept in the traditional sense for such a crowd type consumer brand. First of all, it is a concept of business users.
Around a specific group of users to provide different products, rather than limited to only one product category.
No.4 aging category
It is a product category with rigid demand, but the population has been seriously aging. But the demand is still there. The users are not using the existing supply side because they are young. Such three categories as tobacco, wine and tea are such a typical category.
It is not that users no longer like these three categories, but young users no longer like these three categories.
So the corresponding derived from the young people’s tea, young people’s wine, young people’s e-cigarettes.
This is typically due to the aging of the original consumer groups, unable to accept the original category, and create a category upgrade opportunity.
Characteristics of explosive products
I know everyone wants to see the secrets of explosive products, so I’ll get to the point.
The characteristics of the first explosive product must meet the demand of high consumption frequency.
In fact, it is the same as the Internet app daily life theory. It is relatively difficult to brand a product that is only bought once a year. The lower the purchase frequency, the more cautious the user makes decisions, and the more difficult it is to believe in the innovation opportunities of new brands.
Therefore, in the new consumption era, it is reasonable for you to choose the category with higher frequency in the choice of entrepreneurship, which has a great chance of success.
In the second category of explosive products, those with addictive characteristics are more likely to succeed.
I don’t need to give an example. Everyone knows that tobacco, wine and tea is an addictive category.
The more addictive, the more attractive the users are to high-frequency consumption, which means that the cost of acquiring new users through one-time consumption will be lower and lower
Third: the lower the unit price per customer, the easier it is to become a good explosive category
In fact, due to the delivery of user experience and user brand stories today, I don’t think that the lower the price, the better the consumer goods brand.
On the contrary, it is a good brand to leave enough profit space for brand growth.
Fourth, categories should be broad-spectrum
In order to grow into a large category and a big explosive product, the category must have a strong broad spectrum.
I won’t talk about it any more. I’ve already mentioned it before.
Fifth, it can be copied
Why hotpot is a good category, because it has replicable characteristics.
If you always need to deliver personalized categories, it is the most difficult to do.
The so-called personality is not necessarily based on the broad spectrum at the bottom.
Today, even the supply of educational products is very complex, and we are beginning to pursue standardization. You will know that the standardization of products in the whole industry is irreversible.
But this kind of standardization must be built in the bottom layer of LEGO’s universality.
Without good standardization, the bottom layer will not have complete personalization.
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