What kind of products can become a hit in the Amazon market? I think many people answer this kind of product: cost-effectiveness + differentiation. So what exactly is differentiation? If it can provide buyers with valuable uniqueness, it will be differentiated from its competitors. When the cost of achieving this differentiation is lower than the premium brought by differentiation, it can be said to have a differentiated competitive advantage.
Product differentiation is divided into two types: vertical differentiation and horizontal differentiation. Vertical differentiation refers to quality differences, and products are better than competitors; horizontal differentiation is to create equivalent products with different characteristics from competitors, and consumers make different product choices due to different preferences. One pursues better, the other pursues difference.
How to achieve product differentiation
The first thing to say is that product differentiation ≠ "product" differentiation. To achieve product differentiation, we can start from three levels: the core layer, the form layer, and the additional layer of the product.
Core layer factors:
1. Improve product quality without affecting cost performance
Quality can be product applicability, durability, reliability Sex and safety can also be the subjective feelings of consumers. Sincere advice: Buy all your competitors’ products and compare them with actual use. Make products with better quality and more cost-effectiveness.
PS: Be sure to understand the ranking of consumer demands for product features (quality) and avoid making some product upgrades that you take for granted.
2. Functional serialization to seize the category (this is for reference only)
Functional serialization refers to the supply of serialized products with different functions according to different consumer requirements. , if some functions are added, it becomes a luxury luxury product (or high-end product), and if some functions are subtracted, it becomes a mid- to low-end consumer product. Consumers can choose products with corresponding functions based on their own habits and affordability. This strategy can be implemented based on the existing supply chain and is an effective means to seize market share in the category.
3. Technological innovation and building patent barriers
Science and technology are the primary productive forces, so there is no need to explain this. Technology must form patent barriers. If you don't have your own R&D, you can jointly develop with the factory and jointly own the patent.
Formal level factors:
1. Shape brand image
Brand strategy is an overall strategy that coordinates all aspects such as products, marketing, and content. The key point of brand strategy is to manage consumers' brains well, and position the brand with core values ??as the center based on in-depth study of consumers' inner world, main driving forces when purchasing such products, industry characteristics, and brand associations of competing brands. Brand identification system, and then use the brand identification system to govern all value activities of the enterprise. ——After talking for a long time, the actual purpose is to "build a memorial arch" in the hearts of consumers.
2. Convey accurate content to customers
Whether the selling points, descriptions, pictures, videos, A+ and other product contents are accurate, whether they are the information customers want to know, and whether they can facilitate transactions. This kind of content is like a blind date, which determines whether users can successfully "sign" with our products.
3. Improve the appearance of the product and beautify the appearance and packaging of the product
I only share three sentences on this point:
The first look is crucial
The beauty of the product itself is an advantage
Buyers will show off the beauty of the product
Service layer:
(l) Analyze the user journey Pictures to improve user experience
User experience map: Use a picture to tell a story from the perspective of a specific user to record the journey from when the user comes to your product to when he or she completes the goal and leaves. The entire process includes: the user’s touch points, behaviors, pain points, joy points, and inner OS in this scenario. Suggestion: Treat yourself as a user and experience your own shopping journey.
(2) Channel differentiation
I have a friend who does well on Amazon. He opened a physical store in the United States, and now the physical store business exceeds Amazon’s business... Key point: Go fishing where there are fish, Amazon is just one of the sales channels.
(4) Price and promotion differentiation
Points to note in achieving differentiation:
1. The advantage of a single difference is easy to be imitated, so it is recommended to implement multi-dimensional differentiation
2. The implementation of product differentiation requires the support of the supply chain, and cost advantage is an important basis for differentiation;
3. Avoid excessive pretense and enter a narrow capacity market.
A good "difference" is, on the one hand, the customer's demand for this difference, and on the other hand, our ability to provide this difference. If the two match, then it is a successful differentiation.