Why mobile phones are booming in China

This year, the claim of the Japanese-style mobile phone is constantly flooded ears, according to the senior media people in the previous period of the visit survey found that, starting from this February, "run" of the mobile phone manufacturers around 200-500 a month. With 2006-2007 years or so of the mobile phone "peak period" compared to 6,000, now about 800, the rest has been basically transferred to small and medium-sized independent brands.

Shenzhen a large number of small and medium-sized brands of mobile phones were returned by the channel scale, inventory squeeze led to corporate capital chain fracture, many business owners choose to "Run", resulting in sales channels-mobile phone companies-scheme integrators-supply chain bankruptcy, the rest are turned to Apple Samsung's parallel imports or accessories sales.

Corresponding, once the world's largest mobile phone market Shenzhen Huaqiang North has begun to enter the winter. Ming Tong, Longsheng, Kede, Tong Tiandi, Pangyuan 5 digital city has only left the Ming Tong 1, Ming trading households are only the peak of 1/5, from the original 1-5 to reduce to the bottom of 1 floors.

Still, we can not erase nearly 10 years of mobile phones to the entire handset industry contribution, their "micro-innovation" also did promote the popularity of domestic mobile phone users, but also the waveguide, Amoi and other domestic brands such as mobile phone into "blind alley."

Next we follow the author to explore the reasons for the popularity of mobile phones in China.

Rooted in the mobile phone industry, and then spread to consumer electronics products, and then to food, clothing, daily chemicals, "cottage" the word in a short period of time quickly occupied the various hills of consumer goods, leap into the Red River, and then develop into a unique cultural phenomenon. All kinds of shanzhai products are filled with all aspects of people's lives, Cuikulaxiu, unstoppable.

Although there are many legal problems to be solved in the cottage, as Hegel said, "existence is reasonable", "shanzhai" can get consumers ' favor and popularity must have its original reason. This article will be on the popular phenomenon of Shanzhai consumption and the motives behind the interpretation.

First, the technical pull down the market entry threshold

1. The removal of technical barriers created the possibility of a large number of Shanzhai products

Throughout the ages, technology has played a vital role in people's consumption changes and even in social development. Let the "cottage" first into the public eye is the mobile phone, MediaTek, the Taiwanese chipmaker, has developed an overall mobile phone solution that will require dozens of of people a year to develop a mobile phone board and software integrated on a chip for sale, making it possible for small businesses without independent research and development capabilities to participate in mobile phone production; Shanzhai LCD TV is also the use of TV chips and LCD module integration technology, such as the bulk of the industrialization to bigger and stronger.

The transformation of technology promotes the structural adjustment of the industrial chain. Under the impetus of technology, the Division of labor in the industrial chain is gradually refined, the industrial upstream and downstream structure is increasingly forming, in some High-tech industries, the production involved in every aspect of a professional company to take care of, manufacturers need to do is to get the core technology and a variety of raw materials for assembly and splicing, Fully accelerate the production reaction speed and reduce the technical difficulty, a large number of small and medium-sized factories to join the Cottage Assembly team, virtually expanded the market.

2. The brand propaganda and the sale channel's not to wait for the cottage product to reserve the market blank

In the market economy, enterprises are driven by the profits of the organization production, the proliferation of Shanzhai Products is in line with the voice of the market. Many companies in advertising in order to obtain a higher arrival rate often choose some coverage of a wide range of national media for advertising, but in the sale of the major or even specialized in the one or two-line center City, in the three lines below the market formed a large number of market gaps.

In many small cities, consumers, especially rural consumers, are aware of the need for a certain product under the education of advertising, but there is no channel to buy the product, and the brand lacks the most basic identification ability. This because of the brand promotion and sales channels caused by a serious gap in the market for Shanzhai products created a lot of business opportunities, many Shanzhai products are modeled on the appearance of large brands to produce, and then to the county market sales, not only save the publicity costs and good sales results.

3. Internet-assisted cottage products quickly red

In the middle of the industrial gray doomed the cottage can not be publicized through the mass media for their own propaganda and cheer, only through the way of interpersonal communication point to point of publicity, the Internet in which played an accelerator role. The concept of Shanzhai spread is based on the interpersonal word of mouth spread, the product of the success of the fake products to tell friends and relatives, and give the details of the purchase of information such as the location, the latter can be a way to buy Shanzhai products.

In the network communication environment, the Internet will spread the point of interpersonal communication to the point opposite, the effect is also a geometric increase. Word-of-mouth Communication based on network is not inferior to the rapid and extensive mass communication, but also retains the credibility of interpersonal communication, "Shanzhai" is in the accelerated role of online Word-of-mouth to occupy the consumer market and become a gossip cultural phenomenon.

Second, internal cause-the characteristics of Shanzhai products to help its hot

Shanzhai products are a very low cost imitation of the mainstream brand product appearance or function and to innovate, and ultimately to a higher price to win consumers, which is the main reason for the formation of a torrent of consumption.

1. Low price easy to achieve market penetration

In our country, due to uneven economic development, regional and regional, urban and urban living standards and consumption capacity of the difference is very large. Shanzhai products at the beginning of the development of the industry to avoid the leader of the high-end competition, directly identify the two or three-line cities and rural and other low-end markets. In these markets, consumers tend to be able to save the province's consumption concept, the price of the most sensitive products.

Shanzhai products, especially Shanzhai electronic consumer products can be developed, promotion and tax and other links to save a lot of costs, so its price is often only the same industry brand products one-second or even lower: the market price of about 2000 yuan of the digital camera its cottage version only hundred; in the mainland market, a machine is difficult to find the PSP, Only 200 yuan can buy with its God-shaped, which is undoubtedly a great temptation for consumers in low-end markets.

2. The brand simulation degree is high, the coincidence cock Silk's consumption psychology

In the cottage products, most of them imitate the industry's brand products produced, from the appearance of the product to the packaging has a very strong sense of the spurious. Some products in the brand logo on the naked imitation of the big names, Nokla, KFG, L6, Adibas, Cong, a look at the past is enough to the true, and some of the appearance of plagiarism everywhere. By netizens as the most Shanzhai car double ring constantly staged a car industry Super imitation Show: srv imitation from the old Honda CRV,CEO series is a replica of the BMW X5, while the double ring small nobility is far from looking like a full Mercedes smart.

It is not so much that these imitations confuse the consumer's audio-visual, but rather they are satisfied with the needs of some consumers, which coincide with the consumer's desire to consume brand-name products at lower prices to promote the secret psychology of the ego.

3. function to add continuously, increasing added value

In addition to low prices, Shanzhai products, another recognized feature is a wide range of features, a product is often set a variety of functions in one. At present, there is a so-called global first sliding mouse cottage mouse, the Skype network phone, visual LCD display, sound card, play music and other functions integrated on a small mouse; the famous Shanzhai search engine "hundred Valley Tiger" will Baidu, Google and Yahoo search page to merge into the same page, Bo Jun A smile also let a person can't help but want to try.

4. Take the form of formalism, the micro-innovation exerting force on the appearance

"Innovation" is also a major feature of the cottage, this feature in the development of a more mature mobile phones in the market reflected relatively fully. In terms of appearance, Fuwa and Mickey Mouse mobile phone is not new, a cigarette case, a Porsche model can be taken out of a cottage machine; the mobile phone with a check function and a 8 million megapixel retractable camera and an external tripod feature is unique to the cottage. Shanzhai manufacturers of consumer electronics such as televisions and cameras can also carve their names on the shell as a product's brand.

The unconventional behavior of Shanzhai products can support them to use the absurd innovation to the extreme, is the so-called "only consumers can not imagine, no cottage can not do." The special innovation of Shanzhai products can attract a large number of young consumers who are interested in new things and want to show themselves, especially female consumers, they often do not have too high brand loyalty, easy to be attracted by the appearance and eye-catching function of products and impulse consumption.

Some loyal Shanzhai shoppers will use a variety of Shanzhai products as a showcase for their fashion and personality accessories. Change irregularly, because the price is generally low, this based on the appearance of the product replacement will not bring too much conversion costs to consumers, more convenient to help them build the ideal fashion to the image of people.

Third, the root cause: Consumers are the driving force behind the Shanzhai

1. Pragmatic consumption psychology rooted in the hearts of people

The Shanzhai product was originally used as the main battlefield of the two or three-line city and rural market, but it has been successfully stationed in the first-tier city in the recent period, which has both inevitability and contingency. Although the life and consumption of consumers in big cities is generally higher than in the countryside, they can easily pay thousands of yuan of branded products, but Shanzhai products in the big cities, the sales of the majority of consumers in the heart of pragmatic consumption is still the most fundamental consumption concept.

Shanzhai products are often more cost-effective than branded products, the 600-dollar mobile phone may be more than 2000 Yuan brand machine has more functions, by the Foundry factory production of cottage clothing styles, fabrics, crafts and brand clothing is the same but the price may only be a fraction of its value, pragmatic consumer psychology will drive consumers to choose more cost-effective products, and ignore the impact of the brand.

2. The popularity of Shanzhai originated from the imagination of luxury consumption

There is a view that the prevalence of cottage consumption stems from the people's hearts of luxury consumption intentions, people in order to meet the imaginative luxury desire to take action. Clothing, mobile phones, automobiles and other consumer goods are no longer a simple commodity, but is symbolized as a symbol of people's identity and status. People need to show their "white-collar sense" and "prestige" through clothing and daily necessities, but they are often expensive.

The idea that consumer Shanzhai products can "spend little money to satisfy a great desire" is not unreasonable. At present, the Shanzhai products in the market can be independent innovation is only a few, most of the imitation of branded products, small to clothing, handbags, computers, televisions, consumers only need to spend less money can make themselves look like those who consume luxury goods, so as to meet the deep heart of the imagination of luxury consumption, or the realization of others to their own social status and identity, in order to obtain psychological satisfaction.

3. Shanzhai consumption reflects the lack of consumer confidence in domestic brands

A comprehensive survey of the various industries, Shanzhai products to foreign brands did not cause too much impact, is seriously affected almost all of the domestic brands. At this point we could not help but have such a thinking: The cottage defeated the domestic brand? Yes, but not necessarily. The cottage did rob the domestic brand very big market, let it have no way to retreat, but this situation is domestic brand own single-handedly caused.

In many industries, especially in the consumer electronics industry, foreign brand expensive is an indisputable fact, when the domestic brand appears when a large number of consumers have turned to the domestic brand, but the problem is gradually exposed: although the foreign brand expensive but the quality of protection, domestic brands in the price and performance does not have much advantage, Quality is not as good as people: repair high, difficult to repair, hard to fix, these forces consumers to have to choose between price and quality.

The emergence of Shanzhai products has provided consumers with another path: Since the quality is not reliable, why not choose cheap consumption? Shanzhai consumption is behind the heat actually reflects the lack of confidence in domestic brands, this confidence is not long, the cottage is just a fuse to accelerate its eruption.

"Author Micro-signal: Wen-wu-zhao." This article is the author of Mo Zhao "brand Technology Tide" series of the third article, this series of articles plan five articles, will focus on the brand marketing circle and the Internet technology Circle of cross-border interaction, there are strategies and tactics. 】