Wednesday, February 14, 2007

Create your own brand

E-zone is a newly opened electronic mart - a kind of place like Best Buy (though not yet at that level) which is a one stop shop for all gadgets.

It has an in-house brand by the name Sensei though it does not have any manufacturing facility. E-zone sources its items from Chinese manufacturers and has thus created its own in house brand. It is perhaps the first ever instance of an Indian brand into mp3 players - though their Sensei brand extends into Iron boxes and so on among other things.

This means two things. Chinese manufacturing has made it easy to set up your own brand. Sensei has price points below most major brands which is a very smart move. When someone sees Sensei and compares it with another brand, your first reaction is - why are the others so highly priced? (Obviously there are answers like overhead, marketing etc. but thats not for the customer to answer.)

Now with Chinese sourcing, anybody can set up their own brand. Apart from the question of IPRs it raises another question.

If everybody is sourcing from China - what does your brand offer, that somebody else does not, beyond the name? Especially for gadgets where the difference in features is not much (still thinking if any gadget is significantly different - an ipod like category killer - actually the features seem to be pretty much similar across brands).

7 comments:

D said...

cool man...nice info. I always make sure to go thru ur blog...u pick up nice topics.

niti bhan said...

Would you then not say, Neelakantan, that is where design, and good solid product design that intuitively takes the user's interaction with the product in context in order to offer you an outstanding experience? Then you would be so pleased using this product/brand that you would sing its praises without helping yourself to everyone who would listen, thus passing on the brand's mystique by the most powerful tool, especially so in INdia, by word of mouth. We trust your recommendation, and so a brand is born - drama :) but that's how it works. No Sensei, unless uniquely designed, something no Chinese mfr can offer you other than variations on existing designs, can give you the next iPod but Apple itself.

Neelakantan said...

Perfect. In a world of Senseis - where "leading brands" look like expensive Sensies, only an ipod can be a "different brand" by virtue of its design and other attributes.

raven said...

thw question that customers ask is not why are the others so highly priced but why is this so cheaply priced... zaroor kuch lafda hoga!

And in a market where everyone else is in a certain price range and fake probability is high, it'd be better sense to price close to the market than price lower and have doubts raised about ur quality!

Neelakantan said...

Well, raven thats also true. Because of the fakes, we have a funny psychology - we actually think that if something is cheap, it may be bad!

krish said...

well i just saw a really nice 42 inch flat scree tv , brandsensei and am wondering if i should buy it. it cost 48k much lesser than most other brands and comes witha 1 tear one warranty like most others..?? am confused

krish said...

thats one "year" while i hope there wouldnt be any "tears" if i eventually buy the tv