I was in a wholesale market and the prices of everything they sell there is simply amazing. I was amazed by how low their prices can be. I could not fathom how anyone could still make a profit from the things they sell there. A shirt for instance sells for US$1.50. A DVD player costs a little over US$10. Not to mention the many imitation products that they so blatantly sell. Lacoste, Crocs, Polo – these are just some of the names in their hang tags. But the next question I had in mind is the quality of the products. Will they last?
Consumers today are no longer lured by cheap prices. They have become more discerning and oftentimes, they also consider the quality of the product. They have to realize that the cheaper products are less trustworthy than those which cost a little more. Remember the recent spate of contamination scandals that rocked an Asian country? As an effect, consumers now prefer hang tags that they can trust – particularly for food and beverages.
In addition to this, consumers are increasingly buying products that are considered as status symbols. A Hermes shop just opened in a developing country and you would be amazed by how fast Birkin bags are being sold considering that their price tags can already buy you a nice sedan. The snob appeal is what consumers are also taking into consideration when buying products or services. These people are not just buying a bag; they are actually buying a name that has luxury spelled all over it. The prestige they gain from carrying this bag in an upscale shopping center is a privilege they are willing to pay.
Now how do you take advantage of this market trend?
Invest in brand management. Businesses should have its dedicated unit in the company which should handle brand management. The Wikipedia defines brand management as ‘the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product’s perceived value to the customer and thereby increase brand franchise and brand equity.’ Brand management is all about the implied promise that the level of quality people have come to expect from a brand will continue with future purchases of the same product. If this is so, your company can then reap the rewards from a good hang tag printing.
A premium brand or a brand that is trusted by majority of consumers can easily command a good price compared to other products in the same category. Consumers are more than willing to pay a little more to have that peace of mind.