Explore the nature of the industry**

Recognizing the nature of the industry is an important factor in the success of the company. Lang Xianping's "industry essence" has caused many companies to ignite the hope of "changing the essence of the industry". How to discover the nature of the industry and find the essence? Or try to get as close to the truth as possible and find the factors that affect the essence? Fuk Lai discovered that the nature of the industry is mainly formed by the influence of three major elements. They are the nature of category attributes, the nature of category spirits, and the nature of demand development.

First, the category attribute determines the nature of the industry <br> <br> category attribute is a universal value to the whole category of consumers, no matter what brand are the same, so any kind of product must find and follow its conversion, recognized The attributes of the category, the product category attributes can not ride, otherwise, this product is like a tramp, no one wants to see.

In the complex market competition environment, companies sometimes go for differentiation in order to deviate from the essence of the category and even deviate from the essence of the category.

For example, the tea beverage category market has been in full swing in recent years, and many large companies have cut in. However, Coca-Cola's original leaf tea has made little efforts. The problem is that the original leaf tea deviates from the tea beverage by using black tea, green tea, and Longjing. The essence of the division is not the “technology” division; the beverage industry is “new generation” but the public companies in the vinegar-drinking industry have struggled for many years to achieve their goals. The reason is that they have not grasped the essence of “enjoyment” in beverages. "Fruit" does not want to enter the category but does not have a new category. As a result, the four or six did not rely on it. No one thought of it.

Second, determine the nature of the industry development needs <br> <br> consumer demand is never-ending, so-called needs are met, but the existing tools and techniques to meet the conditions to some extent. With the improvement of technical conditions, the manner and degree of satisfying demand will change and deepen. The ability to grasp the essence of the industry depends on whether you can stay ahead of the competition and take the lead and lead the industry.

Jobs frequently quotes Ford Motor Company founder Henry Ford's quote: "If I ask clients what they need, they always say 'a faster horse!'". "Ma" has long been eliminated as a transportation tool, but "faster" demand has never stopped. The essence of consumer demand is not the product itself but the better and faster experience that the product can bring. Steve Jobs knows the truth, Apple products in the industry are always running in front of the horse, running with customers, the achievements of Apple's glory.

For the food industry, consumer demand is always in the direction of providing better enjoyment, more convenient, healthier, etc., and products and categories that cannot adapt to the nature of demand development are destined to be abandoned by the market.

Canned food products from the former high-end products to the current low-lying edge products, because the canned food to meet the demand has not changed the way, and gradually be replaced by fresher, more nutritious and more convenient food. Canned food is not a packaging material. If you stick to a heavy and difficult-to-open packaging form, you can't hold cans as the essence of the food industry.

According to the different stages and conditions of the industry development, the nature of demand development will have different emphasis on each stage. For example, the dairy industry is currently in urgent need of providing credible security support, while most of the traditional snacks industry is focused on convenience.

Third, the spirit of the brand <br> <br> determine the nature of the industry, some industry or the industry in some categories, is playing a leading spiritual values, even decisive role. Among these categories, tangible products are the carriers of spiritual values. The true value of the products, such as identity, status, respect, personality, etc., that really promotes the development of the industry and the growth of the company, is typical of high-end liquor, wine industry, chocolate, and luxury. Jewelry, cosmetics industry, etc.

Evian mineral water sells so expensive? Evian's good water quality is important, but what is decisive is Evian's aspirational story and the brand's lifestyle. Moutai prices have soared. Why is it still in short supply? The value of 500 ml of ethanol bought by the consumer is not much. The value of money is the respect of the drinker and the decent of the giver.

Two points to remind: First, the essence of the industry is the law of development, not static, it needs real-time observation, research, discovery and adjustment in the practice of development. Second, exploring the nature of the industry is a strategic task for the company. It is necessary to avoid subjective opinions. It is necessary to seek answers in the market research and try to avoid misjudgments as much as possible to avoid losses.