Thursday, January 9, 2014

Small things, little prices: a winning business strategy in China

There is a winning business strategy you often see in China.
I call it: "small things, little price" strategy.

Most Chinese people are eager to buy as long as the price is low (below 5 or 10 rmb).
They will buy a drink on the street. They will buy some pocket food. They will buy a ice-cream...
Once I told you about QQ sweets in China. This brand sells very small packs of sweets are little price 4 rmb.
Many other brands follow a similar strategy. Thus I once told you about snickers bars in China. They are much smaller as compared to the west and also much cheaper: 2 rmb for a small snicker bar!

But a good example of the "small things, little prices" strategy are these cheap toys.
You find them everywhere in local kiosque.


In this place you can buy in bulk.
15, 20 toys only cost 10, 15 rmb! Less than one rmb per toy!


 These toys are then sold at 2rmb per unit!

The key is to keep little prices while having a creative product, valuable in the eyes of the customers, in the eyes of the child!


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