Since 2021, due to the impact of the normalized epidemic situation and the market resistance of traditional consumer company, many new consumer brands that have experienced rapid growth have experienced a decline in market performance and even faced the test of life and death. To some extent, this may not be a bad thing for the development of the whole new consumer goods industry:
Foam of consumer goods market
The “foam” blown by capital has broken one by one, the “industry trends” boosted by media reports have begun to return to the reality of the market, and consumers’ enthusiasm has cooled down to reasonable value measurement. A great foam is being punctured in our regular food kiosks and fast-moving consumer goods industry.
In this context, we need to re-examine the long-term development of new consumer brands, more objectively and scientifically clarify the actual market demand, and more seriously analyze the natural trend of the industry and brand authenticity.
Four reasons
Seeing the rapid rise of the aggregation of so many new consumer brands, we can’t help asking: What is the reason for these new consumer brands? I think there are four main reasons behind it.
- China’s urbanization process and economic development have made more consumers and markets have more substantial purchasing power, laying a foundation for forming new consumer markets.
- The progress of society has led to more and more diversified lifestyles. For example, the increase of single people and DINK families has led to an outbreak of demand for the pet market. And The pursuit of a healthy lifestyle leads to a rise in demand for low-calorie foods. The young people’s dream of exploring new things and new experiences in life has brought about the demand growth in the outdoor sports market. And The fast-paced life has led to the increase of healthy fast food products, sweeping robots, and other markets.
- Another important demand-side reason that is easily ignored is the popularity of digital social media. Before the advent of social media, people had new needs but lacked channels of expression. Even if they did, they were limited to communicating with many friends around them.
- People’s yearning for a better life continues to promote the upgrading of consumption in all fields, making people more willing to spend money to pursue a better life.
Current situation of FMCG
The track where most new consumer brands are located is in the field of FMCG. As we know, FMCG is a highly competitive industry with no technical barriers. The brand effect is gradually weakening, the channel advantage is easy to imitate, and consumers “like the new and dislike the old” has become a norm.
While new consumer brands can quickly replace “old” brands with their own “new” brands, they will soon face the fate of being replaced by more “new” brands. Therefore, there is no way to support the sustainable development of these rapidly rising brands only by relying on the sense of “freshness.”
Brand innovation
When new brands start to leverage the market, they can use “new” to cut in, but they cannot always rely on this value point. Instead, we need to find ways to transform ourselves from a “fresh” brand to a “new” brand.
The “sharp” of creating brand value is to make other values and experiences besides “new,” which can keep customers enthusiastic for a long time.
In the brand building of food and fast-moving consumer goods, only continuous innovation to make products and services that attract customers can retain customers for a long time.
Continuous output of new value
New consumer brands must continuously export new value to cope with the uncertain market environment and fierce competition. Therefore, it is an urgent task for each unique consumer brand to survive in an environment. Rapid growth is no longer needed to compensate for the supply chain’s and offline channels’ weaknesses. And Get rid of the dependence on traffic and promotion, carefully manage brand-consumer relations, broaden the market, refine demand, and refine the organization.
