Saturday, November 17, 2012

Famous brands diversification strategy in China

A short article today.

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.

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