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How do Chinese brands carry out "package attacks"
War is brutal, and commercial warfare is even more ruthless. Although there are no actual battles, bloodshed, or sacrifices in the business world, the competition is just as intense. When a brand faces attacks from competitors, it risks stagnation or even decline.
The "package attack" strategy is primarily aimed at brands that are not in the top two positions within a category—those outside the "Boss Brand and the Second Brand." In many categories, long-term competition often narrows down to only two dominant players, with one acting as the leader and the other as the follower. The package attack focuses on creating new categories, attacking these top brands with innovative strategies, and then shaping a new market landscape through fresh product offerings.
The core of this approach lies in exploring and subdividing emerging markets. By differentiating categories, new brands can find fertile ground for growth. Many companies struggle to gain traction in mature markets where competition is too strong, making it difficult to stand out. However, the more mature a market becomes, the more opportunities there are to create new niches through segmentation. The key is whether a company can identify and exploit these new opportunities.
Take the Guangdong rice wine market, for example. With over a thousand brands competing, it’s a fiercely contested space. Despite this, a brand known as Red Rice Wine managed to rise by tapping into a new niche. It focused on using red rice—a unique ingredient that resonated with consumers in Guangdong, who value red rice for its nutritional and cultural significance. This innovation helped Red Rice Wine carve out a new segment within the traditional rice wine category, challenging the dominance of established brands like Jiujiang Double Steamed Wine and Yu Bing.
Red Rice Wine didn’t just create a new product; it redefined the category itself. By emphasizing the unique properties of red rice, it attracted attention and built a loyal customer base. Today, it holds a significant market share in Guangdong, proving that even in a saturated market, innovation can lead to success.
Another key principle of the package attack is to focus on category appeal. A new category must resonate with consumer perceptions. If a brand introduces something new without aligning with what people already know or believe, the effort may fail. For instance, when a new disinfectant was introduced without chlorine, it took advantage of the negative perception of traditional disinfectants, which were often associated with harsh chemicals and unpleasant smells. This created a clear opportunity for a new, consumer-friendly alternative.
A second principle is to build a strategic front after launching an attack. Many brands succeed initially but fail to sustain their position because they don’t prepare for future challenges. The Grain Dojo case illustrates this: despite early success, it lacked a strong defense line, leaving it vulnerable when larger competitors retaliated. In contrast, Wang Laoji used a smart strategy by focusing on a specific market segment, controlling its messaging, and gradually expanding its reach. This allowed it to withstand competition from giants like Coca-Cola and Pepsi.
In business, strategy doesn’t have to be overly complex. It’s about focusing resources on the most effective attack points. The four steps to launch a package attack include: 1) identifying a new category, 2) leveraging category characteristics for communication, 3) building a competitive defense, and 4) adjusting the strategy as the market evolves.
Ultimately, the package attack is not just about winning a battle—it’s about shaping the future of a market. It requires vision, adaptability, and a deep understanding of both the industry and the consumer. Just like Sun Tzu’s Art of War, it’s a strategic game where preparation and execution matter most.