Gift Price Dogfight Against Long-term Development
Compared with other industries, the threshold for the gift industry is relatively low, which makes those enterprises of varying sizes spread throughout the market. In addition, due to the current industry becomes more mature in technology, equal among the processes, technology and quality have become increasingly close. Numerous gift company and product homogenization serious difficulty in marketing their products.
Gift industry marketing and integrated in the current predicament before, many businesses still cling to the extensive marketing of ideas, through price and promotions to maintain sales growth. And the result of this first of all businesses have to marked promotional products before prices high, this substantial discount, the high return, market subsidy, coupons and other promotions can be maintained after tiny profits.
Price wars the adverse consequences
However, when this price war continues even when profit is hard to maintain, some gifts companies likely will reduce spending after sales, reduce costs, and even cause some cases of shoddy, consumer interests will suffer. Not only that, but some are reluctant to cut prices, but by virtue of the quality and service guarantee to obtain consumer recognition of gifts also will be affected by the impact of a price war.
Although the price war will lead to the triple negative consequences, however many gift enterprises to be more forced to participate in such a competition. Some well-known businesses may choose not to cut prices by virtue of its brand, but the numerous SMEs in front of product homogeneity, the only advantage is price, not price, they probably could not survive and only frequent price wars, promotion, channel, advertising campaign to spread the go farther and farther on the road of no return.
Transformation and innovation to find a way out
Gift company today all sorts of difficulties, to be opened, way to find only in the business transformation and innovation. Want to stand out from the homogeneous environment, and gift enterprises to throw out that kind of extensive marketing ideas, transforming into a fine route, breaking the single old-fashioned traditional concepts of development. Because today's consumers of consumer attitudes are already changing, price is no longer an individual consumer's concerns, fashion and taste of products, culture and technology has also become a standard consumer measure. Gift enterprises can grasp the needs of consumers, and product innovation.