In recent years, competition in the leisure and sports artificial turf industry has become increasingly fierce, and low-price competition has become the norm. Many customers pay more attention to
price rather than quality. This phenomenon not only compresses industry profits, but also leads to the market being flooded with products of varying quality, affecting the development of
the entire industry. In such an environment, as manufacturers and wholesalers, how can we reduce the impact of low-price competition, or even avoid low-price competition and achieve sustainable growth?
The following are some feasible strategies.
I. Differentiated competition: creating unique competitive advantages
The essence of low-price competition is product homogeneity. Customers cannot feel the obvious difference between products, and ultimately can only use price as a selection criterion. Therefore, in order
to reduce the impact of low-price competition, the key is to let customers see that your products are different.
1. Develop high value-added products
- Research and develop more durable, anti-aging, and anti-slip turf to increase product life.
- Provide environmental certification (such as RoHS, REACH, SGS, etc.) to enhance customer trust in product safety.
- Develop customized products for different scenarios (such as kindergartens, roof gardens, high-end villas, etc.) to meet the needs of the market segments.
2. Strengthen brand building
- Improve brand awareness through online and offline promotion (social media, exhibitions, professional forums, etc.) to make customers willing to pay for brand premium.
- Create a professional and reliable brand image through case demonstration and word-of-mouth marketing.
3. Provide overall solutions
- Combine auxiliary materials (such as filling particles, glue), installation tools, and construction guidance to provide customers with one-stop solutions and increase added value.
- Establish a training system to provide product knowledge and construction skills training for wholesalers and construction companies, so that they can have more confidence in selling and laying
your products.
II. Optimize the supply chain and reduce costs without reducing quality
Without sacrificing product quality, improve production and operation efficiency, reduce unit costs, and enhance price competitiveness.
1. Optimize raw material procurement
- Establish long-term cooperative relationships with suppliers through large-scale procurement of high-quality raw materials to obtain more stable and lower prices.
- Research alternative materials, such as high-performance, cost-effective grass silk or base cloth, to ensure quality and reduce costs.
2. Improve production efficiency
- Use automated equipment to improve production efficiency and reduce labor costs.
- Optimize production processes, reduce losses, and improve product yields.
3. Reduce inventory costs
- Through intelligent inventory management, adjust production plans according to market demand to reduce capital occupation caused by backlogs.
- For conventional models, adopt a small batch flexible production mode to reduce storage pressure.
Three, establish stable customer relationships and improve customer loyalty
Low-price competition often leads to continuous customer loss. Therefore, making customers dependent on you is an important strategy to reduce the impact of low-price competition.
1. Improve service quality
- Respond to customer needs in a timely manner and provide efficient pre-sales, in-sales, and after-sales services.
- Provide construction training and technical guidance to help customers reduce installation difficulties and improve satisfaction.
2. Establish a long-term cooperation mechanism
- Provide exclusive preferential policies for wholesalers and distributors, such as tiered discounts, rebate rewards, etc., to encourage long-term cooperation.
- Give major customers exclusive agency rights or regional protection to avoid vicious competition.
3. Launch membership or value-added services
- Establish a VIP customer program to provide additional support for long-term cooperative customers, such as marketing materials, market promotion, etc.
- Provide customized solutions for large project customers, such as color customization, special specification lawn production, etc.
Fourth, reasonably adjust the price strategy to avoid price wars
The key to price wars is to find a reasonable pricing method that can maintain competitiveness and ensure profits.
1. Adopt a "value pricing" strategy
- Instead of simply competing on price, it emphasizes the value brought by the product, such as longer service life, lower maintenance costs, more environmentally friendly materials, etc.
- Through data and cases, prove to customers that high-quality products have higher long-term cost performance.
2. Customize the price system for different customer groups
- For price-sensitive customers, basic products can be provided to meet their needs.
- For customers who value quality and service, provide high-end products and emphasize their advantages to avoid simple price comparison.
3. Increase product combination sales
- For example, sell lawn + auxiliary materials + installation tools together to avoid price competition of single products.
- Launch package discounts to encourage customers to buy high-profit products.
V. Expand the market and reduce dependence on low-price markets
If the current market competition is too fierce, you can consider expanding new market areas and reducing dependence on low-price markets.
1. Expand overseas markets
- Study the needs of markets such as Europe, the United States, the Middle East, and Southeast Asia, and look for customers with greater profit margins.
- Participate in international exhibitions and use cross-border e-commerce platforms to promote products.
2. Expand high-end markets
- Develop high-quality and high-priced products for high-end customers, such as villa courtyards, golf courses, and high-end sports stadiums.
- Enter the field of high-end landscape and architecture through cooperation with design companies and garden companies.
3. Develop engineering channels
- Participate in large-scale engineering projects such as municipal, park, and school projects to obtain stable orders and reduce dependence on the retail market.
Summary: How to reduce the impact of low-price competition?
In the face of low-price competition in the industry, we cannot blindly follow the trend of price reduction, but should reduce the impact of low-price competition and achieve long-term stable development
through product differentiation, supply chain optimization, customer relationship maintenance, price strategy adjustment and market expansion. Manufacturers can focus on improving product quality,
optimizing supply chain, increasing brand added value, and reducing dependence on price wars.
Wholesalers can look for branded and competitive products, establish a stable customer base, improve service quality, and break out of price wars.
Ultimately, only by providing better products and services can we be invincible in a highly competitive market environment.
TEAM SPORT GROUP
PRODUCT SERIES
Solution provider of sport surface system and landscape leisure system. Focused on R&D of artificial grass/plant.
Whatsapp:
+86 13656185793
Whatsapp: +86 13656185793
Email: tony@teamsportgroup.com
Wechat: TeamGrass
Add: #6-611 Tianshan Road, Xinwu District, Wuxi, Jiangsu P. R. China
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