Better brands need smarter strategies
A study by Tmall and Boston Consulting Group has revealed that different types of products need specific growth strategies as consumers now have a wide choice of all types of consumers goods.
For example, expanding the consumer base and penetration is essential for baby and maternity products, but for food and home care as well as hygiene products, consumers are more likely to become repeating buyers.
"To beat the competition brands needs efficient, targeted methods instead of just relying on scale," commented Vincent Lui, managing director and senior partner of Boston Consulting Group.
He also noted that brands need to be more sophisticated to drive growth. Each category and brand requires a different strategy at different periods. Many niche demands and emerging channels offer opportunities for new and small brands especially in the personal care sector.
The study analyzed tens of thousands of brands in six categories and around 400 million consumers on Tmall to identify key growth factors for different categories.
Beauty as well as health care and nutritional brands are more likely to gain sales through adding features to existing offerings, therefore catering to consumers' pursuit for higher quality and specific features.
General manger of Tmall's fast-moving consumer goods department Gu Mai said his department is helping both established brands and startups target online shoppers through its data capabilities and systematic approach.