Is this good for business?

[Stormisover]

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?

Yes of course, it's very much good for business, to me that's a productive mindset, sometimes for one to succeed beyond your expectations, you will have to think outside the box, the Chinese company actually think outside the box, and see that the environment he's into doesn't just need the phone accessories or gadgets, he saw they need other things and he venture into it, and since one has worked with them and see that their goods are okay, you still don't have to fear for other products because it's definitely gonna be good for anyone use, so it's really good for business.

[Powerjumboo]

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?

When your business gains popularity with reputation and your business products are exported all over the country and abroad, then you will definitely be successful. When you are successful and your business is popular with everyone, you will not be stuck with producing one product, you will try to produce products of different items and all companies do this. There are many companies that produce everything that is needed in daily life and everything is used by people, but if you do not take risks for fear that increasing production will not destroy the business, then you will not be successful.

[Synchronice]

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?

It's not the best business idea because you can't be good at everything. You can pick certain niches, invest heavily into them and produce decent products in your niche category but if you try to produce many things, there will come other competitors who only focus on certain niches and will outperform you.

There are examples of brands that tried to produce many products and failed. For example, Colgate once was selling frozen dinners but customers found it absurd because the brand gave no reason to believe into it. Also, we have to keep in mind that one bad product from the brand can damage the whole reputation of the brand. It's like, the more product brand produces, the higher their overall responsibility is.

[Botnake]

For profitability purposes, this kind of market strategy will definitely work since people nowadays prefer more convenience than anything. If they can purchase all their needs in one store, then that would save their time and money as there's no need to check other stores.

But we all know building one's brand do not happen overnight. Its years and years of building one's reputation and credibility. Much better if they aim to sell other items not related to their brand, they should set another venue, if possible next to their brand, so that people won't be confused if they are still prioritizing marketing their own brand or just doing cross selling to maximize their income.

[Japinat]

For me, this is what I call diversion diversification. Let's put it this way, a company can be doing very well in a particular product. Everyone knows the brand through that product and over the years they have built that trust with people. And people on the other hand know them for their good product.

Now they have seen another potential product that needs their attention. With that strong reputation they have built for that product, they then use that reputation on their other product. Fits the name at the top.

I see your point. While its not a wise idea for others because it will only confuse those customers and dilute brand trust, the idea of diversification can also be a positive way of making more income by attracting their loyal customers to patronize their other products as they have trusted already the reputation of the store itself. So instead of focusing alone on improving their own brand, if they can also use their original brand to attract others attention, why not? People will be more happy with it. Slowly, people will get used to that kind of set-up.