Is this good for business?

[Queentoshi]

Is it a good business model for a business to want to produce and sell everything? The reason this question is being asked is because I noticed a Chinese brand that started with consumer electronics like earbuds, headphones, power banks, smartwatches, Bluetooth speakers, phone chargers, are now moving to everyday lifestyle product like face wipes and slippers, which are the few I have seen but I am sure there are more (some people can already guess the brand).  Do you think it is good for a business to expand this much because business expansion in every direction can be the best way to kill the business, like imagine your favorite electronic brand selling tissues and baby diapers, not something along the electronic line still, will you trust such a product even though it carries a big name?

[leonair]

Is it a good business model for a business to want to produce and sell everything? The reason this question is being asked is because I noticed a Chinese brand that started with consumer electronics like earbuds, headphones, power banks, smartwatches, Bluetooth speakers, phone chargers, are now moving to everyday lifestyle product like face wipes and slippers, which are the few I have seen but I am sure there are more (some people can already guess the brand).  Do you think it is good for a business to expand this much because business expansion in every direction can be the best way to kill the business, like imagine your favorite electronic brand selling tissues and baby diapers, not something along the electronic line still, will you trust such a product even though it carries a big name?

You can produce anything and sell it only when you can create a successful brand. First of all, if you start a business with multiple niches, you will not be able to create a brand, you will fail in business. Suppose you are making an electronic gadget, initially you will only have to focus on electronic products and make electronic products and sell them. But at some point you will see that you have a big brand created for electronic products. In this case, you can open a company where you will work with cosmetic items or you will work with food items. You cannot be successful with multiple niches within the same brand, but you can create a successful brand and sub-brand from there for multiple niches.

[Smartvirus]

I have observed this trend with a couple of companies as well. They no longer tend to focus on specialization to be the best about a particular commodity but, tends to move to everyday products just to be more accommodating and offer varieties.

I personally don’t consider it a good move. As a company, it’s of my opinion that you ought to be known and acknowledged for something. Having to stand out in a particular product is a flex than wanting to produce everything and be a master of none.

Brands aren’t built that way and brands is one of the ways to run a very successful business because, it isn’t just the product or commodity you’re offering, you’re valued by name is well.

The example you gave is just weird. Where a brand that specialized in electronics suddenly shifts to footwares and everyday sanitary supplies. That’s just a lot of deviation.

[Coyster]

(some people can already guess the brand).

I cannot guess the brand you are talking about, so maybe you can name them here.

If it is a manufacturing brand, that produces these product and they decide to move into other non-related products, then they could create a subsidiary of their business, under a different name, but still within the main brand. It would work just fine this way and their existing customes wouldn't think they are moving away from their original idea, just expanding!

As for businesses that are reselling the products of others, then i don't think anybody would care too much what they add to their inventory. The more, the better, in this case.

[Obulis]

I believe that there are better ways to multiple diversity in business and this can't just be because the business wants to diversify but as long as it's basically on need assessment to start with, such diversification can be able to stand the test of time. To think of it, there's never a rule or law that a business person or a business must be focused on a particular sector. Diversity can't just be for diversity sake, there has to be more to it. Some if not all rich men are actually investors in diverse sectors. But they diversified not just because they want to diversify.

[Charles-Tim]

In short, you are referring to Oraimo.

Just be careful of Oraimo products as they are getting expensive. I bought an Oraimo clipper that did not last long. I bought a 65 watt charger which was a little expensive and it did not last long. Their products has not been like before for me and I have reduce what I am buying from Oraimo.

Back to your question:
Maybe Oraimo is learning from Samsung. Samsung produces a lot of things like in Medicine and biotechnology, construction,  engineering, batteries and many other things which are not electronics and some are electronic related.

Although, I have started to think Oraimo are just buying those things and labelling it their name, unlike Samsung that are producing it.

[Justbillywitt]

Have you heard about Franchise business before? If you have you won’t be questioning the business model. Well a franchise business is where the business name owner, grants other manufacturers the right to use his business name in producing other products.

Let’s say a company that has a business name that is trusted by millions of people worldwide, can allow someone who want to produce another product under their brand name, since the name is trusted by millions of people. But you must produce the product in a standard that meet the specifications of the brand owner.

The other producers pay the owner of the business name certain fees, in order to use the name in running their business. The company producing the electronics is not the same company producing the baby diapers or the foot-wears. They are different companies under one business name. That is why you are seeing one business name, with different products under their name.

[Joeboy]

Is it a good business model for a business to want to produce and sell everything? The reason this question is being asked is because I noticed a Chinese brand that started with consumer electronics like earbuds, headphones, power banks, smartwatches, Bluetooth speakers, phone chargers, are now moving to everyday lifestyle product like face wipes and slippers, which are the few I have seen but I am sure there are more (some people can already guess the brand).  Do you think it is good for a business to expand this much because business expansion in every direction can be the best way to kill the business, like imagine your favorite electronic brand selling tissues and baby diapers, not something along the electronic line still, will you trust such a product even though it carries a big name?

Business expansion is no big deal and if the brand is able to offer a good value of my money then I actually don't mind even if the brand in question decides to venture into producing other completely different products... Personally I tend to have more trust in a brand that I have used or am still using especially when that brand has consistently delivered high quality products which has given me no true reason to doubt their reputation..Use a company like Samsung for instance, they deliver high quality gadget like phones, Airpods, smart TV, smart watches, Refrigerators and whatnot, and since I have once in my lifetime used one of those their gadget and confirmed how quality it is, then I don't think I would even be bothered if by tomorrow I hear that Samsung has started production of footwears...Infact, my history with them would propel me to give those footwear a try..

[Die_empty]

Is it a good business model for a business to want to produce and sell everything? The reason this question is being asked is because I noticed a Chinese brand that started with consumer electronics like earbuds, headphones, power banks, smartwatches, Bluetooth speakers, phone chargers, are now moving to everyday lifestyle product like face wipes and slippers, which are the few I have seen but I am sure there are more (some people can already guess the brand).  Do you think it is good for a business to expand this much because business expansion in every direction can be the best way to kill the business, like imagine your favorite electronic brand selling tissues and baby diapers, not something along the electronic line still, will you trust such a product even though it carries a big name?

I don't think there is a single business that sells everything. I know Chinese businesspeople are very good. They decide to expand their businesses after they have done proper market analysis and business planning.

It is not bad for businesses to expand if they identify a business opportunity and have access to finance. Maybe this Chinese company is gradually turning the electronic business into a supermarket. Many supermarkets sell electronics with most of the things you mentioned. As long as they sell quality products or offer satisfactory services, I would trust the business.

[Odohu]

I don't think it is good for a business to be in everything without being known for some specific things. It eliminates one important component that makes business sustainable and that is branding.  A business without a brand is not a business that is sustainable. Instead of a business to be in everything, it is even better to be known for some specific things which is how specialisation and expertise are built. Most successful businesses are know for specific products and brands, that is how it should be.

[decodx]

Just o be clear - are we discussing a brand here or manufacturer? This isn't a smart move for a company at all as it would be diluting its brand, imo.

I understand the idea behind this decision - put your logo on everything, as people already know the brand. But slippers and wet wipes? It looks ridiculous. When a company makes all possible products from smart watches to toilet paper, it loses its focus and stops being good at anything. It's just putting its name on something produced by other companies.

On the other hand, perhaps they use it for marketing purposes? When the entire ecosystem of devices pops out of every hole, a few wet wipes or slippers with the same logo really only serve to keep the brand name in front of your eyes, to get under your skin while you buy small things without thinking too much. It's not building a serious image, but classic volume pumping and quick monetization of loyalty,

[Fortify]

Is it a good business model for a business to want to produce and sell everything? The reason this question is being asked is because I noticed a Chinese brand that started with consumer electronics like earbuds, headphones, power banks, smartwatches, Bluetooth speakers, phone chargers, are now moving to everyday lifestyle product like face wipes and slippers, which are the few I have seen but I am sure there are more (some people can already guess the brand).  Do you think it is good for a business to expand this much because business expansion in every direction can be the best way to kill the business, like imagine your favorite electronic brand selling tissues and baby diapers, not something along the electronic line still, will you trust such a product even though it carries a big name?

Few companies are dynamic and well organized enough to manage even a few product lines. There are mega conglomerate consumer goods companies that are able to wield multiple billion dollar brands, but they stay very focused and trim out low performing ones in different ways over time. It's hardly "selling everything" for be an electronics retailer and there have been many existing businesses existing in this sector for decades. A Chinese company might be able to undercut them on pricing, being closer to the source, and that is their primary advantage here. There have been many disastrous examples of companies overstretching and failing because they try to expand into too many markets at once. China also has an issue with trust, because while they can put out high quality goods their reputation has also been tarnished by low quality or even dangerous goods, so that may take a while to overcome.

[promise444c5]

They are just moving with the trend.. if you stay in a position with more competitors following a trend, you’re planning to lose or already lost the game.

Trust should be based on the quality, unique features, price and so on, not just the brand name. A brand could be well known for one thingand excel at it.. yet suck at other stuff they add to their collection.

[Silverstonez]

Do you think it is good for a business to expand this much because business expansion in every direction can be the best way to kill the business, like imagine your favorite electronic brand selling tissues and baby diapers, not something along the electronic line still, will you trust such a product even though it carries a big name?

A company is better off sticking to what it does best and maintain what it is known for rather than wanting to produce everything. Come to think of it, how will a company that is known for producing a particular type of product suddenly start producing products that were never in line with their core identity, expertise and established reputation? As for me, if a company known for a particular product or product category starts producing products that are completely outside it established identity I would no longer feel comfortable buying from the company anymore.

[Versatile_choice]

In short, you are referring to Oraimo.

Just be careful of Oraimo products as they are getting expensive. I bought an Oraimo clipper that did not last long. I bought a 65 watt charger which was a little expensive and it did not last long. Their products has not been like before for me and I have reduce what I am buying from Oraimo.

That's the problem most of this companies are having, especially this oraimo you mentioned here. Although I haven't use their product before but the people that have been using their products are ongoingly testifying on how bad it was, infact they didn't even say good things about the company.

I'm not against diversification but before a company should think of diversifying into producing new things they need to ensure that they have all the available materials and they must be of good quality not inferior materials.

[Iroh]

They're simply trying to diversify. When a brand gets successful and familiar with the populace, it's not entirely surprising to see them slowly delve and expand into other items and products looking to get and build a customer base there as well. It's just business. Looking at their original product/service that they're widely known for, It could be really surprising to see what they're diversifying into. And yeah, it's a bit surprising to have a brand known for electronics delve into products like face wipes and footwear.

When Dangote, primarily known for petroleum products, started producing and selling food items, it also came as a surprise(to me). But today, it's no longer strange to see his branded food produce in stores as it slowly continues growing its customer base as more people are buying and using the food produce.

[BABY SHOES]

They are just moving with the trend.. if you stay in a position with more competitors following a trend, you’re planning to lose or already lost the game.

Your company will be left behind, while other companies that follow the trend will get instant profits in sales of their products, but still it will not last long just that they seize the opportunity while the trend is developing.

Trust should be based on the quality, unique features, price and so on, not just the brand name. A brand could be well known for one thingand excel at it.. yet suck at other stuff they add to their collection.

Most now the quality of goods has decreased, from well-known brands or does not remain the same that's what I noticed... I see it from other elements, such as product material rises, wage costs rise, purchasing in society decreases, when you want to keep the goods sold, the quality of the goods must be lowered a little.

This is our view of the goods or products now.

[tabas]

Is it a good business model for a business to want to produce and sell everything? The reason this question is being asked is because I noticed a Chinese brand that started with consumer electronics like earbuds, headphones, power banks, smartwatches, Bluetooth speakers, phone chargers, are now moving to everyday lifestyle product like face wipes and slippers, which are the few I have seen but I am sure there are more (some people can already guess the brand).  Do you think it is good for a business to expand this much because business expansion in every direction can be the best way to kill the business, like imagine your favorite electronic brand selling tissues and baby diapers, not something along the electronic line still, will you trust such a product even though it carries a big name?

If you think that you can cover the daily cost of operation of that expansion and it will be enough with the profit that it will generate it, do it. You will never know unless you try it, as long as the location of that expansion has a good foot traffic and the products are in demand, you'll see it. And if there's a move of one product to another, that's because they are seeing the importance of that change and they cannot ignore the demand for those wipes and slippers. It's because that as long as there's a demand for those products, a business is a business and you shouldn't be worried why there's a sudden change of products or just an additional to the line up you sell.

[Maslate]

I don't think diversification is a bad move in business, in fact its the only way where they can maximize their profits than just focusing on a single type of business. And it literally offers more convenience to the buyers as they don't have to go to other store just to buy some daily essentials because the store has it already.

But here's the thing, brand identity confusion will surely arise. Since the store is now selling variety of products, the reputation you have built for long for your electronic business will slowly vanish since its now already a one stop shop, and eventually dilute your brand focus. I think that's no longer a smart move in the long run.

[Ummeettaa]

A company is better off sticking to what it does best and maintain what it is known for rather than wanting to produce everything. Come to think of it, how will a company that is known for producing a particular type of product suddenly start producing products that were never in line with their core identity, expertise and established reputation? As for me, if a company known for a particular product or product category starts producing products that are completely outside it established identity I would no longer feel comfortable buying from the company anymore.

But I don't think it's a bad idea for someone known for producing or selling a particular product to try out another, all what is needed is for a good and experienced manager to manage same.

For someone to invest and try out production of other products in a business is allowed, once same is a product that is being mostly needed by almost everyone in a community, and is set up in a suitable location it is likely to grow in no time if being managed well.

I know of a successful business venture that do normally deals on phone accessories and repair, but with the location being located in a crowded environment, the business expanded to selling of snacks and drinks and have been striving with the business evver since.

So for one to be known of producing and selling a particular product wanting to expand and sell other products, it's not a bad ideas on my end to tryout another business only if it's won't affect the presently striving business.