Big profit & Covid-19
If one product sales price is 6 times more than factory price with your brand in your market, what is your thought and action as a business man? If see rubber hot water bottle, you must know what a big profit for this new type hot water bottle! Come!
Currently, in the middle of 2020, global economy is not good as the coronavirus disease 2019(covid-19). A report from the UN pointed that against the backdrop of a raging and devastating pandemic, the world economy is projected to shrink by 3.2 per cent in 2020. Under the baseline scenario, GDP growth in developed countries will plunge to –5.0 per cent in 2020, while output of developing countries will shrink by 0.7 per cent. What are you going to do under this economy condition?
Let us check another thing, there is a new trend that B2C e-commerce output value is growing more quickly than before, even several times in past five months in 2020. Too many global people have to buy something necessary for their life from e-commerce platform. And more local e-commerce platforms are born every day. Could you find something what you have to do at once?
We think you are so smart and plan to capture this profit opportunity through e-commerce platform. Of course, it is a good action to set up a web store, whatever Shopify or Ebay or Amazon or Google shopping or Etsy or other domestic e-commerce platforms. In China internet about international trade, there is a phrase “small B2B buyers” to describe these web store buyers. To import goods from China is a reasonable method where too many factories run for a long time. These manufacturers have been suitable to small order because they know small order is going to be a popular trend.
In fact a lot of international trade is moving from offline to online whatever “small B2B buyers” or traditional B2B buyers. Although web stores are more and more, and too many people said B2C will replace B2B, but according to current international trade, web store buyers are another form of B2B buyers. From our manufacturer’s insight, it is almost same. The big difference is quantity of order.
The result is that many China factories welcome to cooperate with web store buyers.
But how to select one good profit product is the most important thing for one web store. Under Covid-19, household items are the best. We think you must know this reason under Covid-19. The new type hot water bottle is coming.
New type hot water bottle & Brand
The new type hot water bottle is called electric hot water bottle or electric hot water bag. As it is new in most countries and areas, there is not a single and certain name all over the world. As usual main name is electric hot water bottle. Second name is electric hot water bag. What is electric hot water bottle?
Commonly, it is a new creative product as continual heat source to solve people’ body heat need, for feet cold, hands cold, leg cold, face cold, eye cold, shoulder cold, neck cold, muscle pain, muscle soreness, lower and upper back pain, soothe arthritis, menstrual cramps, and so on.
Therefore, someone will think it is same as hot water bottle. Yes, congratulate, that is right. Electric hot water bottle application is almost same. But you could consider electric hot water bottle is one more advanced hot water bottle as it is pre-sealed water and easily use and safe and warm and comfortable. Nothing about filling boiling water.
As electric hot water bottle could be charged by many time for a long time, almost recharge it again and again, sometimes we called rechargeable electric hot water bottle, or rechargeable hot water bottle. Different names, all point same product. If you want to know more product details regarding definition, internal structure, work principle, application, various design, anti-explosion holder and some caution, advise you to look at here.
Why do we say there is a big profit behind your brand with electric hot water bottle? This market insight is from our France client. This client brand is Nature & Decouvertes and sales price is at 36EUR (approx. 40.6 USD). Our factory Niubilite price is about 6USD based on this brand client’s quantity of 15000pcs every year. Now, you, please figure out if this profit is big enough. After that, what are you going to do next?
It is a true marketing case. Look at below two pictures of its color box. You should research this marketing case in France. By Google, it is easy to find its official e-commerce website. At first, we do not find this matter from product to cartoon including user manual and color box as it is French not English. When this France client came to order second time, we checked color box artwork then suddenly felt this is the sales price. It makes our factory much amazing as its profit is more than China domestic e-commerce platform profit. From that time, we think a good brand combining a quality item is the perfect thing for a business man, and, it is for a long time. We hope to own a good band in target market. Till now, we do not own. What a regret!
What is a good brand? Here are some our takes after talked with this France client.
- Know Target Audience,
- A Clear Mission,
- Know Competition & USP,
- Identify Key Values,
- Tell Stories,
- A Defined Brand Identity,
- A Defined Focus,
If you have such a good brand, and expect to have a try, advise to contact us! We accept customization to make it become your next profit growing point. Here is a good stuff to learn more to reduce your related confusion.
In addition, if you do not have a good brand, do not worry. We have a good idea to help you solve this problem. There is a popular being method which is to talk to a brand owner to rent his/her brand and give him/her one certain brokerage which is counted based on each product have been sold yet. We believe that you could find similar brand owner and you should let him/her know the more quantity you sell, the more profit he/she gain, that is obvious.
To price product is important because it determines your overall profit and it is the groundwork for a successful business model.
- Determine your costs and overhead expenses:
- Understand your customers:
- Perform exhaustive competitor pricing analysis:
- Fine tune your prices based on market fluctuations:
- Take advantage of seasonal/sale discounts:
And, we found another similar case about electric hot water bottle in Germany e-commerce market which sales price is at 38EUR(approx. 42.8USD). But it is not our client.
As a whole, why is above two sales price so high? We think the important factor is the brand after did a market research. It is best if you could build an online retail brand with electric hot water bottle. In the past several years, Fiverr, Upwork, 99design, as one kind of work outsourcing platform, they have been connecting businesses with freelancers offering digital services. You can go there to find one reasonable brand designer to help you start this niche business.
Anyway, if you still have some confused points, as your friend, contact us any time.