Is this good for business?

[Pi-network314159]

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?

For me there is nothing wrong doing multiple businesses apart from the first one that you started, provided that there is quality in what you do and people are in need of it, you should just keep doing it. What is the essence of business if not for profit. Provided you are meeting up demand of buyers then you have no problem. Aliko Dangote a business tycoon in Nigeria does many business and still progressing in all at once because the quality of his service is good and people patronize him alot for his nice job. So it is possible that one can adventure into many things and do well and not everything.

[STT]

I dont think anyone can really learn from and beat Samsung, it would take a lifetime to equal their achievement.  Even a strong brand will outsource products not aligned with current production, it makes sense to delegate to others and retain a royalty for the brand or take part in the retail but not the production and so on.
  Conglomerates are yesterdays business model, Samsung or Korea in general is the exception to the rule but most should just obey the rule.  Modern production is not about making everything, its the efficiency of free global trade across borders hence Trump is completely lost with his policy from another age and he has no idea why apparently.

Comparative advantage and global supply chains nullify 'we build everything'

[Josefjix]

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?

There is no need to be concerned about that, you are actually using your emotions into business which is not right. Business doesn't care about emotions but logical and strategic. A case scenario, a business selling tissues might not have customers, the production machineries, the delivery systems and more than the way electronics company has, so electronics company will capitalize on these weaknesses of tissue company to outsmart the whole tissue industry and add to their electronic sales.

The business game is brutal and never fair, the electronic Chinese brand might have figured out that flaws on industry and leverage on that opportunity to stay at the top of industry.

Dangote in Nigeria is known for only cement production, but now he runs table salt and noodles manufacturing, why don't you complain about that for adding something that doesn't correlate with cement., he had silent the noodles and salt industry because he noticed their flaws and act on it. Might be the case in that Chinese electronic company too.

[Stalker22]

Personally, I have nothing against it.  If it is a large and well-known brand, it might well work well for them.

They are not actually making all those non-tech products  themselves.  They run an ecosystem model, acting like a massive platform and incubator.  They collaborate with smaller producers, impose strict design and quality requirements, put their nametag on the item, and use their huge retailing and distribution channels.  It costs them very little capital compared to building a factory

[GeorgeJohn]

Business is all about been innovative, someone who innovative can expand it product to a length that he wants. And all will be successful provided that your first and second brand are successful...what really matters in business is to capture the needs and wants of the people, if you notice their demands you can extend your business to those of their demands..and before expanding to the demands of people, you have already evaluate properly the ratio or percentage of the demands before it can be added...lack of not knowing what people needs are the major factors that brings competitors in business..so from my theory, expansion to a new product in business is good, and it helps to attract more customers in business...

[Renampun]

snip
not something along the electronic line still, will you trust such a product even though it carries a big name?

In my country there are several companies like that, their core business is an electronics company but they offer food, clothing, and insurance.. It sounds like their business is less relevant to their core business, but that doesn't matter to customers, as long as the quality of the products they offer remains good and affordable, then there is no reason not to believe in what they offer.

They also must have done market research before expanding their business, as a company they have analyzed the potential and risks and the business they will explore.. So if there is a company that expands into a completely different industry, it's likely that they have already considered the possible benefits and challenges.. there is no need to be surprised about this.

[Queentoshi]

In short, you are referring to Oraimo.

Yes, I am, I did not want to directly mention their name, but they are the reason I started this topic after seeing them market face wipes, that is Oriamo face wipes.

[bhadz]

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're right that too much expansion or selling of different products from what you've been known for could kill the business. But think about it, if they're paying too much rent and sales from the electronic products they sell aren't enough, they might just maximize the days and display all of the other products somewhere on the side of their store. That's not wrong because I also see that from the concept stores with brands they are know of, on the side walls of the store there goes the other products that they display which are also for sale.

[Sobz]

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?

Expansion is as a result of good results and i dont think if a campanu is not making a good achievements they will think of expanding to other products.  If a business is making the kind of achievements they want then it is not a bad idea for the business to make an expansion to go into other areas but if the business is still struggling i dont think there is any need to think of expanding because this can totally collapse the business.  People can make decisions to diversify based on their achievements. You can see, business that are expanding,  you can see the products are doing well in the market.

[Asuspawer09]

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 know people doing this kind of outsource in the business, outsource sound kind of brand in china, and then rebrand it here in my country, sell it on an overprice i mean pretty overprice like around 400%. It's not that easy for sure but the the guy already have a import company so it's easy for him to import product outside the country, then he import the rebranded product here, it's easy to order bulk product and already rebranded on China there are a lot of expo fair happening encouraging investors to start a brand there. You could try attending Canton Fair on Guangzhou.

His it for a around 7 years i think now and already build a huge company here locally, already a millionaire and I think its trusted system already that is working for a lot of entrepreneur.

[SatoPrincess]

In short, you are referring to Oraimo.

Yes, I am, I did not want to directly mention their name, but they are the reason I started this topic after seeing them market face wipes, that is Oriamo face wipes.

Now, this gives more context to your question. I am familiar with Oraimo electronic products. In the beginning they were popular for earbuds and headphones, then powerbanks (which was subpar imo). It’s not surprising that they have since diversified into other products. My opinion of this particular company is that their electronic products are not the best quality, they are subpar compared to other products on the market. The only reason I believe people buy them is because of the relatively cheap price (they are not so cheap anymore).

Generally speaking, I don’t think it’s bad for brands to diversify into other products as long as they are maintaining the same quality the brand is known for. If you sell the best quality phones, I expect you sell high quality face wipes as well. Anything short of that could be detrimental to the brand name as a whole.

[Natalim]

Try the product and if you are satisfied then there's no problem. Maybe that's just how businesses operate now with the tough economic situation, they will find a way to survive, so they don't just focus on their own brand but also sell other stuff to increase their sales.

Just wanna share this, in the Philippines we can feel that there are already a lot of businesses closing down here particularly those operating in places with high rent like malls, so you can understand the struggle they are facing, we should be thankful that they are fighting to survive so they can continue to serve us.

[Merit.s]

As a business owner, you have to exploit from the market through various ways and you don't need to just depend on only a product when you can produce other products. If you are focused on only one product and a time comes that the product isn't that much needed by the people, you will run out of business.

This is why you see that some companies are into producing more than one products so that, they can also be in the market even if one isn't moving well, the other can balance it up. If I own a company that's exactly what I will do.

[New Judgement]

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.

A brand could also excel in the other business they venture into. If they are well prepared before venturing into other products that they added to their band name. All the owner of the business need do is hire professionals in each line of  business they decided to venture into. Each business have their respective chains of commands and staffs working under that managers. the business owner will employ a general manager that the other managers reports to. With proper planning, and execution, a brand can have different products and still excel. The African richest man Aliko Dangote is not only into one business. The brand “Dangote” is into several business and he is doing well today.

[Zackz5000]

Sometimes it's good to just focus on one niches so that people can know the area you specialize on and know what you are best at, but that's not the case now there are some companies now that want to produce everything that's why today people buy somany fake products because the companies has decided to diversify into other brand that they are not good at just to make more money and continue to stay rich. Like in Nigeria we have dangote group before we know them as people that only specialized on cement but now the company has almost everything they produce so we can't say this is where dangote specializes on.

[Bityar]

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?

In my opinion it is good to expand business but a person or business owner should maintain his specialty which he is known by the people and donot compromise on its quality and the other thing is that producing and selling every kind of product is not right decision. First of all a company or it’s business owner should focus on quality and customer trust. If it is an electonic company it has these types of brands that you mentioned like ear buds headphones or bluetooths etc and he introduce another product related to to these so i think than it is a good strategy but if they introduce different kind of products like you mentioned so then it looks very unusual. So every person or company should understand its limits and its specialities. So, a company should expands its business but with proper planning and market research.

[liasbaa]

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 have noticed that if a manufacturing company is successful in selling any one product, they produce and market many more products. If they are known to the customers, they can be successful in selling many products using their own brand. They may not be successful from all the products but they can earn high profits through average sales.

If a company wants to market food products after being very successful in selling electronic products, it may be less likely to be successful, but if they can maintain the quality of the product and meet the needs of the consumers, they have a chance of success using a different brand name because they have business experience.

You have to make a business plan in accordance with the area-based demand, then only then the business risk will be reduced. The demand of the consumers for that product depends on the purchasing power of the people there. Manufacturing companies need to maintain a balance between demand, production and product price in running their business, only then will they be successful in business.

[Marvelockg]

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?

Dangote group of companies is a typical example of a company that’s selling different kind of product that are somehow unrelated and in some way, all the product seems to be doing just fine. Initially, the company was known for specializing in cement sales but upon growing, they’ve gone into petroleum, petrochemicals, salt, manure, renewable energy and a host of others. Of all this sectors they’ve gone into, at least 80% of them are still doing fine with the cement still actively strong till date.

It’s not just about doing multiple businesses that sometimes are unrelated, if you’re doing well in one business, it’s easy for you to replicate it in another. Itel phine use to be very bad but currently, itel power banks and itel power tanks are the most sort after gradets with the greatest durability. People will always go for what serves their need and if you’re able developer the right goodwill, you’re at a sure advantage.

[Aliciaworld]

This is something that If don't correctly and not in a hurry can save the business. Think of it like diversifying your portfolio. Take Yamaha for example, over Manny years they've gone on to produce several products, from musical instruments, to motorcycles, to kitchen appliances and Manny more.

As long as the business expand at an organic rate, the business will be fine.

[Cossyblack]

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?

Personally, I do not have any problems with what a company produces as long as is high quality. They were into the production of gadgets then they later started producing other products to expand their business, I don't see anything bad with what their doing moreover, they aren't the first company that started diversifying to generate more incomes.

There is a company called the Dangote group , I believe you are familiar with what they do. Dangote group first started with producing Cement before diversifying into producing   sugar, spaghetti, noodles, pvc ceilings,and many more. Currently they are into refining crude oil. And these products are high quality and people buy from them. So if what that Chinese company produces is high quality then, people should buy from them.