Lighter industry forced by market trends
Jack Trout said as early as 2011: “China is at a crucial crossroads. Making cheap products has made China a big development, but rising labor costs, environmental problems, income inequality and Innovative needs mean that it’s not about making cheaper products, but about better product marketing.” Trout believes that continuing to make cheaper products will only be a dead end, because other countries will find ways to price. Pressed lower.
Consumers use personalized demand to force traditional industries to improve product quality. The government’s de-capacity policy has forced traditional industries to transform and upgrade. Information technology has provided the foundation for the traditional industry reform operation model. The rise of new retail market has forced traditional industries to expand. Data transformation.
Lighter as a representative of the “Made in China” traditional industry, its rise, prosperity and even today’s difficult, all reflect the dilemma of China’s traditional industries in the process of industrial transformation and consumption upgrading.
Zhejiang, Guangdong and Hunan are the three traditional production bases in the domestic lighter industry, but each has its own emphasis. Among them, Wenzhou in the heyday of the domestic lighter industry in the 1990s, the production enterprises once reached more than 3,000, accounting for 80% of the global lighter capacity at that time, in the international strength to let the former “lighter kingdom” Japan only less than 10 lighters Manufacturers, more than 60% of lighter companies in South Korea and Taiwan, have stopped production, forcing the Japanese and Korean lighter brands to transfer production lines to Wenzhou and OEM. Even so, there are still no high-end lighter brands such as ZIPPO and DUPONT that are well known at the consumer level. Limited brands are still limited to circulation and are not well known to consumers.
Although the CR bill and the EU’s anti-dumping investigation have gone far, the impact and impact on the lighter industry have not yet ended. The price advantage is not worth mentioning in the context of the lack of core patents and weak brand competitiveness. After all, there is no “China”. The factory, as well as the “Southeast Asian factory” and the “African factory”. The domestic lighter manufacturing industry has started various transformation and upgrading since 2012, but it still cannot stop the decline of exports and the shrinking market.
Variable without change
“The real revolution is not a noon noon, nor will it appear in the news report at 6 o’clock in the evening. The real revolution will come silently at midnight.”
Just over halfway through 2018, many convenience stores and street shop counters in the cities of Beijing, Guangzhou and Shenzhen have painted a lighter with eye-catching and styled appearances. The crowds of white people, white-collar youth, college students and fashionistas began to One hand. The industry found that the high density of this kind of lighter named ZENGAZ (Inga) occupied the people’s sight. ZENGAZ demonstrates a unique vitality and market model in a way that makes the industry stand out. Behind its beautiful patterns and extremely personal design, it is an opportunity and endless possibilities for the industry to be excited. It is the “variable variable” that the Chinese lighter industry has been waiting for for many years in silence.
An in-depth interpretation of the ZENGAZ case will provide useful tips for the domestic lighter manufacturing industry and even the industrial transformation and consumption upgrade of the entire traditional industry.
Targeting the market and establishing a dominant position with fashion products
In 2017, China exported 5.04 billion lighters, with an export value of 424.4 million US dollars (source: China Merchants Research Institute). The annual domestic consumption is about 9 billion. In the context of such a huge amount of data, we still spend one or two yuan a one-time lighter for daily consumption. The gift collection is still hundreds of thousands or even tens of thousands of European and American luxury brands. The high-end brand meets the demand for high-end luxury goods. The one-time lighter meets the practical consumer demand. ZENGAZ has found a huge blank market.
ZENGAZ is a young brand whose brand thinking and development strategy are completely different from the traditional ones. It is based on the spirit of innovation and fits the aesthetic and consumer needs of young people in the information economy. The explosion of information makes it easy for young people to lose attention to old things, and only continuous innovation can be the same as the spiritual world of young people. ZENGAZ is known as “Thousands of Machines”, which is the brand’s pursuit of the brand’s pursuit of its leading edge design concept, diverse design elements and brand attributes brought by rapid product updates. External performance continues.
At the same time, it has a refined product base, from design, manufacturing to after-sales protection, all of which are the industry’s top standards. It combines daily consumption and quality with high-end quality and mid-range prices.
The times are changing, the market is changing, and the changes can survive. ZENGAZ spreads vivid and interesting frontier cultures, looking for and presenting the consumption concepts of contemporary young consumers.
ZENGAZ has the product strength and brand culture of luxury goods, as well as the price attributes and terminal channels of daily consumer goods. This is a key advantage of its success.
Looking for differentiation, invincible
ZENGAZ has a completely different route from traditional lighters in terms of target population, corporate culture, product quality and channel selection.
Crowd: A specific group. ZENGAZ’s target consumer population is 20 to 35 years old, and the interval can be described as narrow, but it can achieve “establishing unique cognition and characteristics for specific people”. At the level of consumer cognition, products exist only in the minds of consumers and potential consumers. Only this kind of cognition is the key and the most difficult goal to achieve. Accurate, efficient and somewhat exclusive cognitive and characterization positioning does not really push away other consumer groups, but is more likely to attract attention, and it is easier to radiate influence by targeting internal groups.
Culture: the frontier of fashion. ZENGAZ highlights the spirit of fashion, youth, individuality, innovation and the times. It is exquisite and connotative. It has thousands of functions and the spiritual value of light luxury goods. It pays attention to the resonance between product design and consumer spirit. It will have different levels. Cultural elements communicate to the outside world in a faster, more direct way, not abstract, more direct. When consumers see it at a glance, they will feel in their hearts: this is the current rhythm.
Quality: Extreme. Seiko manufacturing, patented design, high-grade materials, and perfect service, in exchange for high-quality purchase experience and experience, completely exceed the use of disposable lighters, and the consumption experience of the brand is not empty. Internationally authoritative quality and safety certification standards, domestic and foreign top production testing standards, are all in the industry.
Price and channel: cross blanks. There is no such product in the lighter, the retail price is 25 yuan, and the daily necessities channel. There are also lighters in the mid-range price range on the market, but for years they have never really opened up the daily consumption channels directly to the terminal. This is a near-blank area where prices intersect with channels.
Instead of finding a place on the market for an existing product, it is better to find an open space in the market and root the product in that position to make it a king. ZENGAZ’s operations team in Greater China took nearly two years to conduct in-depth research in dozens of cities in China. Based on huge data, it found a market for this unique product and succeeded in one fell swoop.
Realize brand building and achieve consumption upgrade
Brand building is not a slogan, not a fantasy. Brand building is built from a practical work. Only when brand building is implemented can we achieve consumption upgrades. At the beginning of ZENGAZ, it has a profound international brand. It was founded in the Netherlands and has a fundamental background in international design and operation.
International development: In March 2012, the first classic product of ZENGAZ lighter “MEGA JET” was born in the Netherlands. In June of the same year, the ZENGAZ brand was founded in the Netherlands, entered Russia and other countries in December, and held a global conference in Moscow. The product launch conference, with the unpredictable momentum to create sales records in the Russian market, has won the industry sales champion for four consecutive years; entered the EU market and the South African market in 2013; entered the US market in June 2014, and jumped to the top three in the short term; Entered Dubai in 2015; entered the Australian market in 2016, initially completed the global strategic layout; in 2017, the country of LEVANT was established; in 2018, the Greater China market was officially launched and the GCC Gulf countries were laid out. As of September 2018, ZENGAZ has covered markets in nearly 50 countries and regions on six continents.
Strong and strong alliance: open up a cross-industry alliance and grow together. In 2014, it became a strategic partner with the century-old cigar brand La Aurora; in 2014, it achieved brand cooperation with Gazprom; in 2015, it became the supplier of Albert Heijn in the Netherlands; in July 2017, the ZENGAZ blue flame series became the official authorization of the 2018 World Cup. Product; stationed in Alibaba International Station in 2018.
Specialized R&D: ZENGAZ has established a large-scale design, R&D and quality management system in the world. It has professional design teams in Russia, Hong Kong and China, and has professional quality testing and technology R&D departments in the United States, South Korea and Japan. The world’s top talents and technology have made ZENGAZ’s professional R&D design system.
High-quality production: ZENGAZ has more than 70 product design, technical invention and packaging design patents in more than 30 countries around the world. ZENGAZ Ningbo production line technology is in the forefront of the world, implementing the international quality safety standards and ISO9994 standards of German TUV quality certification institutions. European EN standards, American ASTM standards, China SN/T.0761 standards and other industry authoritative materials, production, testing, quality and other standards.
The channel is king, the terminal wins
Accurate and high-quality channels are the ultimate part of the achievement of the brand. In the business model of ZENGAZ, the channel is a comprehensive carrier that connects the target group, carries the brand culture, spreads the corporate philosophy, and achieves scale sales. Based on the brand concept, target group, consumption grading and other factors, ZENGAZ has built the sales channel that best fits the brand products.
On January 1, 2018, the ZENGAZ Greater China market was officially launched. On the same day, more than 600 terminals in the Rosen convenience store in East China were sold simultaneously. Relying on Rosen’s powerful channel influence, ZENGAZ quickly detonated the domestic market. In Greater China, ZENGAZ’s first contractor was Shanghai Rosen Convenience Co., Ltd., and Rosen’s strong performance also confirmed the accuracy and effectiveness of ZENGAZ’s channel development strategy. Subsequently, ZENGAZ has successively reached cooperation with traditional convenience stores such as Guangzhou OK, Meiyijia, Shenzhen Bailichen, Chengdu Hongqi, and Northeast 8090.
As of August, ZENGAZ has covered more than 100 cities and regions, and has more than 80 high-quality channel distributors, more than 30,000 high-end chain convenience stores and other terminal outlets. Focusing on the target group and focusing on precise channels led to the explosion of ZENGAZ.
In the new retail era, accurate and effective marketing can harvest more customers.
ZENGAZ tips for traditional industries
The success of ZENGAZ seems to be another way. The sword is slanting, but it is steady and steady, and it is a step by step. The ZENGAZ model provides a true model for the transformation and upgrading of the domestic lighter industry. The process of brand building and nurturing itself is a typical case of product positioning and channel focus. From its overall layout to practical details, it can be used as a guide.
ZENGAZ aims to be a global fashion brand and a listed company as its vision to achieve the leading position in the smoking industry. It may be premature to say that it is the leader of the industry transformation and upgrading, but at this stage, continue to pay attention to it, see its barbaric growth in the domestic and foreign markets, is bound to give us more inspiration.
As a company, it is still necessary to turn its attention back to the original point and think about the fundamental aspects of the product in order to realize the transformation of the enterprise and realize the consumption upgrade of the product.
There are opportunities in the traditional industry. Any industry is worth repeating. The unchanging products will have the potential to change. The only difference is whether it is discovered by you or discovered by others.