Hunan Yinhe Ceramics: The Road Of Brand Transformation From Ceramic Wine Bottles To Diversified Development

Company Background

Hunan Yinhe Ceramics Co., Ltd. was established in 1998 and is located in Liling, Hunan, the hometown of Chinese ceramics. The company initially focused on the production of ceramic wine bottles. With its excellent product quality and stable customer resources, it has occupied a certain market share in the field of wine bottle manufacturing. However, with the intensification of market competition and the diversification of customer needs, the company realized the limitations of a single product line and launched a strategic transformation in 2013, gradually moving towards a diversified path of ceramic wine bottles and ceramic daily-use porcelain side by side.

Challenges

1. Single product: Over-reliance on the ceramic wine bottle business, weak risk resistance.

2. Limited profits: lack of independent brands and terminal channels, profit margins are compressed.

3. Market competition: The ceramic industry is highly homogenized and price competition is fierce.

Changes in customer demand: The daily-use porcelain market has great potential, but the company lacks relevant experience and technical accumulation.

Transformation strategy

In order to meet the challenges, Hunan Yinhe Ceramics has formulated a "two-legged" strategy, that is, the simultaneous development of domestic and foreign trade, the development of ceramic wine bottles and daily-use porcelain side by side, and the transformation and upgrading through branding, innovation and internationalization. The specific strategies are as follows:

1. Diversified product layout

Consolidate the ceramic wine bottle business: continue to deepen the ceramic wine bottle market, improve production technology, develop high-end customized wine bottles, and meet the personalized needs of customers.

Expand the daily-use porcelain business: establish a processing center, undertake the environmentally friendly daily-use porcelain spraying business, and gradually launch daily-use porcelain products such as ceramic sanitary ware and ceramic flower vases to enrich the product line.

2. Create independent brands

Register the independent brand "Mud Soul", position the mid-to-high-end market, and focus on the concept of "environmental protection, health, and art".

The design team cooperates with domestic and foreign designers to launch a daily-use porcelain series that is both practical and artistic, such as "Oriental Aesthetics Series" and "Modern Simple Series".

Product Innovation

1. Develop environmentally friendly ceramic materials, reduce production energy consumption and pollution, and obtain multiple environmental certifications.

2. Launch functional ceramic products, such as minced meat bowls, heat-resistant pots, etc., to meet consumers' needs for healthy living.

3. Develop personalized customization services, allowing customers to print exclusive patterns or texts on products.

Channel expansion

1. Online channels: enter e-commerce platforms such as JD.com, establish own official websites and social media accounts, and attract young consumers through content marketing and other means.

2. Offline channels: cooperate with high-end home furnishing stores and chain supermarkets to open brand stores and enhance brand image.

3. Brand marketing

Hold ceramic cultural exhibitions, invite consumers to visit factories, understand ceramic production processes, and enhance brand trust.

Cooperate with well-known catering brands to launch co-branded tableware to increase brand exposure.

Create a high-end and fashionable brand image through social media and KOL (key opinion leaders) promotion.

International layout

Participate in international home furnishing exhibitions, such as the Frankfurt Consumer Goods Exhibition, to open up the European and American markets.

1. Cooperate with foreign designers to launch a series of ceramic products that meet Western aesthetics.

Transformation results

1. Diversified development: The company has successfully transformed from a single wine bottle manufacturing company to a comprehensive enterprise that develops ceramic wine bottles and daily porcelain side by side, and its risk resistance has been significantly enhanced.

2. Brand influence enhancement: The independent brand "Mud Soul" has gradually become a representative brand of domestic mid-to-high-end ceramic products, and its market share has steadily increased.

3. Profit growth: The profit margin of independent brands has increased by more than 20% compared with the OEM model.

4. Market expansion: The products have successfully entered international markets such as Europe, America, and Southeast Asia, and overseas sales account for 20% of total revenue.

5. Environmental certification: The company has obtained multiple environmental certifications and has become a benchmark for green production in the industry.

Experience summary

1. Diversified layout reduces risks: By expanding product lines, companies can better respond to market changes and customer needs.

2. Branding is the core competitiveness: The construction of independent brands not only increases profit margins, but also enhances market influence.

3. Innovation-driven development: Innovation in product design and function is the key to attracting consumers.

4. Multi-channel layout: Combining online and offline, and giving equal importance to domestic and international markets, can effectively reduce market risks.

5. Cultural empowerment products: Combining traditional culture with modern design can enhance the added value and brand connotation of products.