Brand premium, that is, the added value of a brand, a brand can sell the same product at a higher price than competing brands, which is called brand premium ability. Nowadays, the phenomenon of "brand premium" in cement industry is disappearing.
In the past, brand was a golden card of cement enterprises, which represented the guarantee of quality and the trust of the market, enabling some leading enterprises to stand out in the competition, even if the price was higher than that of their peers, they could still win the favor of customers. This phenomenon is a comprehensive reflection of the long-term accumulation of technology investment, environmental protection standards, customer service and brand building, and an intuitive reflection of the core competitiveness of enterprises.
However, when the market situation suddenly changes, the shadow of weak cement demand and oversupply hangs over the whole industry, and the cornerstone of brand premium begins to shake. In the process of communicating with the author,
a cement enterprise said, "In the past, by virtue of our brand advantages, we can be 5-10 yuan higher than the cement from other places, but now it is no longer possible, the price has almost become the only factor for users to consider, and the market competition is becoming more and more simple and crude.".
The above-mentioned cement enterprises also pointed out that in recent years, the price of cement market has changed greatly, coupled with the downturn of real estate, the profitability of mixing stations has declined, many users have learned to be smart, and they have mastered many different concrete mix proportion schemes, which can quickly prepare the required concrete according to the cement characteristics of different cement manufacturers. It further reduces the dependence on a single cement brand.
Of course, the disappearance of cement "brand premium" is the core of increasing market pressure. Intermediate links such as downstream distributors and mixing stations are becoming more and more sensitive to cost control when profit margins are squeezed, and tend to choose cement suppliers with lower prices.
"Larger distributors are now beginning to grasp cement enterprises," and large distributors use their extensive sales network and sensitivity to the market to exert pressure on cement enterprises, demanding price adjustments to maintain their profit margins.
As for the disappearance of brand premium in the cement industry, there are also two different voices in the industry:
one view is that cement is a highly homogeneous product, as long as the standard compliance, the performance of cement produced by different manufacturers is not much different. Therefore, there should be no so-called brand premium phenomenon. Another
view is that although cement products are highly homogeneous in physical attributes, the soft power behind the brand, such as service quality, technological innovation ability, environmental protection level, corporate reputation and long-term stable supply guarantee, is of great value to consumers and downstream customers. Brand is not only the logo of products, but also the embodiment of the comprehensive ability of enterprises, so the existence of brand premium is reasonable and necessary. What do you think of the disappearance of brand premium in the
cement industry? Feel free to leave a comment.
