Since rural small towns are a relatively unfamiliar market for most hardware companies, understanding the psychology and behavior of rural small town customers is crucial to the development of corporate brand development strategies and marketing guidelines.
In addition, many companies think that these remote and backward areas have low requirements for brands, and can even become a place to sell backlogs and process products. If you think so, it is a big mistake. This is precisely the reason why some companies are not effective in exploiting these markets.
However, it is very difficult to enter the small town market in China. First of all, the logistics cost is extremely high, because the population is highly dispersed, the transportation facilities are backward, and the sales network is not perfect. The population of potential wealthy people in small towns is 135 million, which is equivalent to a total population of 137 million in first- and second-tier cities. The average income of the two families is also reversed, but the former is scattered in 12,000 small towns and 2,000 villages and counties across the country. The difficulty in market development and the high cost are also the reasons for the failure of Changhong's home appliances to the countryside in the 1990s. Therefore, we must have sufficient understanding and preparation for the development of small town markets.
It is an inevitable trend for China's economic development to develop small towns and cities. It is also the direction of the central government's strategic planning for county economic development. Therefore, enterprises must abandon short-term behaviors, and must adjust their strategic direction, organizational structure, and operational models to overcome difficulties and achieve success. .
First of all, because the rural market is highly fragmented, the cultural differences are large, and the living habits and natural environment are very different. Therefore, their requirements for home decoration vary greatly, not only different from cities, but also between different villages. In this case, enterprises must study Their habits of life, and according to their characteristics, develop products that adapt to them, for example, they need to have a stacking room to place production tools, various sundries and food items, due to the difference in the use environment, the tiles Wear resistance and other characteristics will have special requirements. Only by understanding them and designing their favorite products will they be welcomed by the market.
The second is to establish a sales network. The sales model of the enterprise for the city certainly cannot be applied to the rural market. Due to the vast rural area, a flat sales network should be developed, and the company should set up a special leading organization, organize the research market, formulate the rural market development strategy, and train Sales staff, this is a long-term action related to the survival of the company, any short-term behavior is doomed to failure.
The second is to reduce logistics costs. In the early days of the development of the United States, the world-famous Sears Company transported products to the countryside through mail-order channels, and through this channel, mail-order manuals specially designed for farmers were sent to farmers through the post office. This is the market synergy, that is, through the post office. This channel is configured to send items. Then our current way to reduce logistics costs can only be achieved through synergy. Especially in the current home appliances to the countryside, the car has become a major trend. Enterprises must study how to use these existing channels and share resources to share the logistics. cost. Building materials industry must truly go to the countryside, reducing logistics costs is the key, which requires concerted efforts within the industry and even between industries, to develop a new model to achieve logistics costs.
Developing a township market with great potential is a big trend and a fertile ground for cultivating brands. But opportunities and challenges coexist. Only companies use hardware to go to the countryside as a development strategy, rather than a temporary solution to the crisis, and in the organizational structure of the enterprise. Transforming, investing resources in research, developing new operating models, cultivating talents, and organizing forces to implement, can seize opportunities and become successful.
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