In China famous brands diversify their products. They started to make a name for themselves while targetting the upper part of the market. Today they develop some products for the mass market.
Brand diversification is a new thing in China. In my opinion it is shows:
- That there is a mass market who want to spend and are willing to pay as long as the price is low
- The Chinese market is more and more competitive. Therefore brand diversify
- Famous brand enlarge their influence and take positions everywhere they can
Example of the fruit juice:
Below 100% pure peach juice. It is a very famous product and established brand. But it is quite expensive: 3,90 rmb for a small juice for children!
Therefore the brand launched some cheaper juice for the mass market 1,5rmb!
In further articles, I will provide more examples how different established brands follow a diversification strategy.