Hanger Marketing :Small Pieces Expand Market

Posted by House Day on

In the era of low profits, Chinese contract manufacturing enterprises feel more and more pressure in the face of rising prices of raw materials, increased human resources costs caused by new employment policies, and constant pressure from foreign trade customers.  Although there is a strong call to improve China's ability to create, why is it so difficult for Chinese brands to enter the world? There is a strange phenomenon in many industries in China. Thousands of enterprises are all fixed on the same mass market with a large volume and a wide range. They are stuck in a dilemma on a single wooden bridge, and so is the clothes rack industry.  The arrival of the era of niche consumption ushered in a golden opportunity for garment hanger enterprises to create brands.  The only way for China's clothes hanger enterprises to realize their brand strategy is to follow their own differentiated path and make the brand the first choice for a small group of consumers.

Hanger Marketing :Small Pieces Expand Market

Insight into Market Evolution and Accurate Strategic Positioning

[Tip] Changes in the market environment have also led to changes in the competitive landscape of the industry. Clothes hanger enterprises should not only provide products, but also clearly tell target consumers what unique value their products can bring to customers.

In the past, the success of China's garment hanger manufacturing enterprises basically depended on two strategies. First, they copied the product design. Small enterprises followed the big enterprises in what products they saw selling well in the market. They did not need to do market research, design and development, channel construction and brand promotion, but only needed to invest in the production process.  The second is to recruit people at low prices, and to use the overtime work of employees to reflect the cost advantage.  When labor costs rise, environmental protection requirements rise, raw material costs rise, competitors increase, and costs are too low to be lower, the low-cost strategy of hanger manufacturing enterprises will come to an end.

In the era of mass consumption, the biggest consumer groups in enterprises are food and clothing consumers and consumers entering the primary stage of well-off society. Although these consumers have got rid of poverty, they still belong to price-sensitive groups and focus on meeting the basic needs of life.  In order to meet this group of consumers, enterprises are doing everything possible to reduce costs, and it is understandable that they should use socialized mass-produced homogeneous products to meet the needs of this group of consumers.  With the development of the times, the market environment has changed. According to media reports, there are 20 million families and tens of millions of white-collar workers in China that have reached the level of the middle class in developed countries in Europe and the United States (with an annual salary of US$ 60,000 to US$ 80,000).  The emergence of this group indicates the arrival of the "minority consumption era".

In a relatively loose or prosperous market environment, clothes rack enterprises without competitive advantages can survive and develop. Once the environment changes or are not satisfied with OEM profits, clothes rack enterprises should make strategic adjustments as soon as possible, choose suitable enterprise development strategies, and concentrate limited resources to make unremitting efforts to create competitive advantages.  The most basic function of clothes hangers is to dry clothes on the balcony and hang clothes in the wardrobe. With the emergence of a large number of middle-class families, they are no longer satisfied with the basic needs of life, but rather pursue quality, taste, fashion, identity, belonging and other factors to find products that reflect their identity and status.  In other words, the clothes rack enterprise should not only provide products, but also clearly tell the target consumers what unique value their products can bring to customers.

For garment hanger enterprises that are interested in focusing on the middle and high-end markets, they should choose the product differentiation strategy.  After market segmentation and target selection, give up some markets and focus on some markets so as to provide distinctive products and services to the main target markets and avoid direct conflicts and vicious competition with the mainstream markets.  The consumption of the middle class in high-grade clothing and star hotels is increasing year by year. Clothes hanger manufacturers can fully adapt to the consumption trend and develop clothes hangers that represent consumers' "success marks and status symbols", which are not available in traditional clothes hangers.  The clothes rack of Royal Guards is a typical example. The design inspiration comes from the elements of Chinese high culture. The structural design of the clothes rack fully takes into account the use requirements of different clothes. The clothes rack is made of high-end materials and has excellent manufacturing technology. A clothes rack sold in 380 yuan is very popular with consumers of top clothing brands. Many five-star hotels have to install clothes racks of Royal Guards in guest rooms at the request of consumers. Royal Guards have become the invisible champion of the middle and high-end clothes rack market.

Enterprises that expect to make a difference in the top market should naturally choose the strategy of focusing on their goals.  After market segmentation, only one specific target market will be provided with very distinctive products and services, so as to avoid fierce competition, and at the same time, superior forces can be concentrated in a small range or focus on the market to form competitive advantages.  This is the way Mirandie clothes hangers go. It focuses on the wedding market. The design inspiration comes from the collection of fashion necklaces and evening dresses. A 6-piece gift hanger developed for brides costs as much as 8,888 yuan. It replaces the traditional way that some fashionable upper-class people attend weddings to give red envelopes, and meets the needs of high-end consumers to embody new ideas in gifts.

[tip] if a hanger wants to sell at a good price, it must make the minority groups feel that it is worth the price. only those products with high value can sell at a good price. market opportunities need to be explored from the dissatisfaction of minority consumers with existing products.

China's garment hanger enterprises have entered the era of low profits. Under this irreversible trend, there is only one way to achieve higher profits in the era of low profits, that is to pay attention to the niche market and find the unmet needs in the mass market.  The Royal Guards and Mirandie brands have seen such a market opportunity to meet the needs of small groups above the middle class with high quality and high price products.  If a clothes rack product wants to sell at a good price, it must make the target consumers feel that it is worth the price. It can have advantages in structural modeling, production technology, materials and workmanship, as well as in consumer experience or brand image.  In fact, there are countless such high-end niche market opportunities around us. It is not difficult to find them as long as hanger companies turn their attention from the mass market to the niche market.

We have done research on consumers. At present, most clothes hangers in the market are similar in style and of average quality, and there are two major problems. First, the design is unscientific. If clothes are hung on clothes hangers for a long time, similar folded marks will be left on both shoulders of the clothes. Even clothes made of thinner materials will protrude two Xiaojian Mountain on the shoulders. When they are taken out and worn, they must be handled again, increasing the workload.  Second, the structure is too single, there are many kinds of clothes at present, but the existing clothes rack has a single structure, which can not meet the needs of hanging all kinds of clothes.  The results of this survey were later confirmed by more consumers. In fact, this is also the source of innovation for clothes hangers.  Royal Guards and Mirandie hangers were developed based on the deep demand of middle and high-end consumers for hanger products. They did not make an issue of lowering the bottom cost and sales price, but chose a completely different route of high quality and good price from most hanger enterprises.

Why are consumers willing to pay 50 to 100 times more for a high-end clothes rack?  Let's take a closer look at the reasons why middle-class families buy expensive products: first, the cost of ownership is low, buying is expensive and using is cheap.  A stainless steel coat hanger plated with 18K gold costs more than 300 yuan, but the design is very humanized. Consumers can choose coat hangers with different structures according to different clothes to keep all kinds of clothes straight. A coat hanger can be used for a lifetime and still has taste, grade and face.  However, an ordinary clothes rack with a price of 3 yuan may rust the iron wire, pollute valuable clothes and be inconvenient to use.  From a purely economic point of view, which of these two products is more suitable?  The answer is self-evident.  Second, the service is good, middle-class consumers are willing to spend more money to get high-quality services, so that products can play the greatest role, such as life-long maintenance warranty, door-to-door delivery, high-quality sales personnel to introduce the use of value-added services;  Third, high-priced products usually have a labeling effect, while affluent consumers regard high-end clothes hangers as symbols of identity and status, reflecting a sense of accomplishment and personal taste. They are more concerned with the value of the brand, such as face, experience, others' comments, etc.  The grade of clothes hangers is upgraded from low end to high end. At the same time, fast-moving consumer goods are turned to durable consumer goods. The good durability of high-end clothes hangers has become a product that consumers do not often buy. This is also a major decision-making factor why consumers choose expensive clothes hangers.

Introducing Innovative Culture to Sprint for "High-tech" Profits

[Tip] Chinese garment hanger manufacturers must follow their own path of differentiation, create core interests of consumers on the premise of integrating their own resources, and completely separate themselves from their existing rivals with their own differences.

Compared with other well-developed marketing industries, China's garment hanger industry is obviously deficient in product creativity, and a large number of garment hanger manufacturing enterprises in China are still struggling under the "sample processing" business model.  It is also an indisputable fact that the marketing level of China's garment hanger industry is lagging behind. As a latecomer to the innovation of marketing mode, our garment hanger manufacturing enterprises must clear their minds and aspire to draw a clear line with all enterprises in the existing industry.

Boundaries, take a path of their own differentiation, or focus on product technology, or for communication technology, under the premise of integrating their own resources, create consumer core interests, and then use public relations activities and event marketing methods, with their own differences completely separated from existing rivals.  In order to realize the changes made in China and created in China, China's garment hanger manufacturing enterprises need to make a systematic breakthrough in the internal function construction of the enterprise, which is "both hard and soft, both inside and outside".

The first is to re-plan the marketing organization of the enterprise.  The organizational structure of Chinese garment hanger enterprises is generally large at both ends and small in the middle.  The largest part is the production department, and then is responsible for receiving orders, documentary, shipping logistics department.  However, the market department is missing, and the sales department and research and development department are very weak, which has led to the distortion of the functions of our clothes hanger enterprise. At best, it is a modern manufacturing workshop.  Hanger enterprises should turn to professional marketing to really consider the value for customers, which all need the innovation of products to support behind.  In order to realize innovation, the market department and the research and development department must form a joint force to realize product innovation.

The second is to adjust the talent structure, from making money with blue-collar employees to making money with the intelligence of white-collar employees, to making money with design and creativity, turning processing enterprises into creative enterprises.  No longer pursuing low-profit survival, starting with improved innovation, to optimize the existing products, of course, the premise is to understand the dissatisfaction and confusion of minority groups to the existing products.

The last is to change the management mode and get rid of the situation that sample processing is controlled by others.  Because it is not your intellectual property right and the brand does not belong to you, the money given to you is just the processing fee, which is the rule of the game in modern business.  Most of our enterprises follow the path of "easier said than done". Only a small number of enterprises realize that it is easier said than done. However, if they can change their ideas now, it is not too late to mend the fold after losing the sheep.  

Compass, papermaking technology, printing and gunpowder, China's four great inventions make us proud, but in the next few centuries, we did not keep the pace of invention.  The four great inventions have fully proved the ability of the Chinese people, so as long as we have a confident attitude and logical innovation, we will walk out of a good road.


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