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Back to the time when mobile phones were just introduced,
In
It was when Motorola CD928 and V series dominated the mobile phone market and everyone seemed to own a Motorola phone.
At that time, I was also a Motorola user
Then, I switched to Nokia、Sharp, now I am a Iphone user.
why?
Because Motorola mobile phone price fluctuates too fast,
The retail price of Motorola handsets dropped in no more than three month.
The price fluctuation was larger than any other mobile brands, though the price deduction was good news to the consumers, but as the price went low, the value of the brand had simultaneously dropped.
When you spend 20,000NT to purchase a new handset, after 3 months, you found out , the retail price of handsets in the same price range、in the same period of time、 with similar function has dropped 3000 NT
How would you feel?
I decided to observe first
There are hundreds of mobile brands in current market.
While you are waiting for a price reduction, the new handsets with better design and more advance functions are being introduced.
After my observation, I noticed Nokia had the lowest price fluctuation,
Its retail price did not change much in 3 months time, even in a year’s time, its price fluctuation was still the lowest in comparison with other brands. It seemed like I didn’t waste any money
So I became royal to Nokia, at the same time, Motorola was losing its market share.
Though the later announced Motorola V3 series did bring a brief victory to Motorola, but it didn’t bring the brand back to its market dominance.
In my opinion, it is in everyone’s spending habit to buy something worth of good value in minimum price
The so-called minimum price is for sure after comparing prices with products in the same category.
Some gets regular price, some get a lower price due to channel competition.
When you find out you pay more for the same product, you tell yourself to wait longer for a better bargain next time.
When the better bargain did happen, you notice it is cheaper to buy it on the internet plus free delivery, so you choose to wait even more.
During the whole waiting period, the consumers may be tempted by other brands, and choose to buy other brands instead.
In short, consumers do not want to buy the products with high fluctuate price, the company or the brand ,in turn, lose its opportunity.
I personally was in exactly a situation like this, and that was why I chose to give up Motorola and turned to Nokia, Sharp
Until now, I am an Apple Iphone user.
Apple product lines have nearly no price fluctuation, the retail price is solid.
The distributors, therefore, need to compete against each other base on service offering.
After buying Apple, you don’t worry if there will be an upgraded version next day, nor to ponder if you had paid more.
True, Apple product price is not very approachable, but its design and brand value make everyone crazy about it.
For long time, Ppark never put emphasis on group buy,
Because I have learn from Motorola’s decline,
And because we don’t do group buy, the distributors are willing to purchase PPark products
Some distributors did not procure Ppark products first, instead, they borrow Ppark product photos and post it on internet.
Some even use Ppark product photos for commercial purpose without authorization (Use photo without commercial purpose is acceptable ) also reduce PPark product profit so to be able to compete with other brand.
They sell Ppark products without procurement in advance, they charge consumers for the products they haven’t purchased, then turn to Ppark when receiving order and asked us to issue invoice at the end of each month so they can have more turnover time.
Some stores asked if they can have group buy in a regular market price?
The answer : Unless you purchase products first.
If we ever accept these seeming smart and safe business models, how can we face those stores that
purchase PPark products、 pay in advance and follow all our business codes?
I am a consumer myself, and I shop as well, I also want to have great bargain.
I can understand why consumers want to have group buy, PPark sometimes received phone calls from
consumers asked for group buy possibility, and in fact, the profit of group buy is actually higher,
but in order to maintain our brand image, we have declined all these requests.
The distributors shouldn’t accept group buy for profit reason which in turns cause cut throat price competition among stores.
The damage will be three ways.
Ppark product price will be in disarray therefore consumers unwilling to purchase, or look for lowest price offering, product selling slows down, the company suffers from deficit and unable to launch new product lines.
There is no quality brand product in distributors, because they always circulate in price competition. Consumers care price, whenever a store offers the cheapest, the consumers follow.
You pay for what you get,
If a good product cannot be base on profit, the company cannot launch new product lines, the stores will be packed with cheap products, consumers have less options and therefore can only choose secondary products.
You never see Apple or Nike do group buy by themselves nor through distributors or stores.
Of course, Ppark cannot compete with them now,
But we determine to be an international brand, and it is crucial for us to be more selective and discrete.
To know your future, you must know your past
Ppark has done a case study on other brands,
We all have our own way of thinking, but we insist on doing the right thing.
From the day the company was established, we always hold on to our faith,
And that is what brought us this far without any regret.
