Small regional market

They lived side by side, but they accomplished a great cause; they explored unlimited space for development in a limited area; they competed against powerful foreign competitors with unique competitiveness and lived to be content with themselves.

On September 10th, Dashang Group, China’s largest department store business group, opened its stores in Xuchang, making it a grand prospect. However, this does not seem to have the slightest impact on the local shopping mall directly opposite. The reporter asked a cleaner at the local shopping mall: “The opposite shopping mall just recruited a lot of people. How is the treatment?”

"Who cares about it, certainly not much of us." The middle-aged eldest sister answered with a hint of pride.

It is not she who holds this attitude. The people in different positions, such as the tallyman and the doorman, were all anxiously alike: "I don't know." They both care and don't care.

A well-known national counterpart has entered the local market with high profile, and the employees of the local department store retailers who are direct competitors do not have the slightest yearning for the other party. The cohesiveness of this company is evident.

The name of this local shopping mall is Feidonglai, a native Xuchang company. In China's magnificent national and regional department store retail groups, Fat East has not known its reputation and the market is small. It only occupies Xuchang and Xinxiang, two provincial cities in Henan Province, but it has created one after another. The miracle of Le Dao was in Xuchang. Numerous well-known retail companies at home and abroad did not make any progress for years. It entered Xinxiang and squeezed Dennis, Henan's largest retail company, in Xinxiang, squeezing out the famous supermarket chain in China. The brand's Century Lianhua Xinxiang Store postponed the preparation of Wal-Mart for many years; it has achieved annual sales of RMB 5 billion in two provinces and municipalities with medium economic strength in Henan.

They lived side by side, but they accomplished a great cause; they explored unlimited space for development in a limited area; they competed against powerful foreign competitors with unique competitiveness and lived to be content with themselves.

What kind of company is this?

Actually, there are many companies like Fatong Dong who have followed one goal but achieved great results; they have explored unlimited space for development in a limited area; they have resisted strong foreign competition with unique competitiveness. Who live in peace.

A series of factors such as commoditization and informatization have promoted the globalization process. Thomas Friedman said: “The world is flat.” Being a multinational company, being an international company, and becoming a “world top 500” has become a part of many companies. dream.

However, there are companies that do not make transnational corporations, or even have inter-provincial plans, but instead stay quietly in a region, a province, a city, or even a county, or their own definition of a fixed place that has nothing to do with the administrative region. The performance is extraordinary. Some of them are not smaller than some of the companies that follow the strategy of nationalization and globalization. Their competitiveness has made it impossible for some national companies or even international giants to shake their bases.

A few years ago, during the period of monopolistic development of China's dairy industry, under the national expansion of Mengniu, Yili, Guangming and other enterprises, some regional brands were either acquired or died, but Jinan has always been a difficult place for China's major dairy companies. Because there is a regional brand Jiabao Dairy. Figures show that in the fierce competition, Jiabao Dairy's low-temperature pasteurized milk accounts for 60% of the market share in Jinan, and normal-temperature milk accounts for more than 40%.

They lived side by side, but they accomplished a great cause; they explored unlimited space for development in a limited area; they competed against powerful foreign competitors with unique competitiveness and lived to be content with themselves.

Although Beijing Yanjing Beer Co., Ltd. has expanded throughout the country, the dominance of the Beijing beer market left by Beijing that year has not been shaken.

Carrefour, Wal-Mart and other international retail giants have rushed around in China, but in most places, regional sales are still ranked first in the local retail business.

Regional development strategies are particularly evident in the highly competitive Chinese liquor market. China liquor has major brands represented by Maotai and Wuliangye, but each province, city and district also has its own local brands, such as Shaanxi Xifeng Wine, Hebei's Hengshui Laobaigan, Hunan's alcoholic liquor, etc., can always maintain their own market. Share and living space.

Some regional enterprises, some of which are not strong enough, are temporarily dormant; others are expansion failures and take the initiative to shrink; and some have begun to make a "regionalized" strategic plan.

According to Weng Xiangdong, an expert in brand strategy and marketing advertising, regional branding is one of the most advanced and highly commercial wisdom. Because doing business, there will always be constraints of resources, funds, manpower, and other physical conditions, a company can be very clearly aware of the limited resources, so choose a regional strategy, is a mature performance.

They lived side by side, but they accomplished a great cause; they explored unlimited space for development in a limited area; they competed against powerful foreign competitors with unique competitiveness and lived to be content with themselves.

"For companies with limited resources, if the resources are dispersed, it is like a salt sprinkled into the sea, and as a regional market, you can concentrate resources and focus on breakthroughs in a limited area," says Weng Xiangdong.

“Regional enterprises have small scale and small sales radius, which facilitates intensive cultivation and provides more insight into the market. The service to distributors and consumers is more focused, and the time cost of services is more competitive and stronger.” Ye Maozhong, a well-known marketing expert, summarized.