Is this good for business?

[Cheema02]

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 think growing a business is the main goal of any investor, because everyone wants more and more success in the form of wealth and financial stability. It comes when you have empires of businesses and for this, your business should be healthy. It's not possible for a simple company to move in any market because there are steps in business. In Pakistan, first a company is established and if it grows, then it becomes private and if it is registered on the PSX, then it becomes a publicly listed company at the national level.

So, when customers trust a specific brand, then this brand moves from border to border and, in this way, multinational companies come into shape. But becoming a multinational is not easy because you grow just in your domains like electric companies don't make paper and tissues, so their main identity should be electronic gadgets. So, according to my knowledge, companies should focus on maintaining their products' quality instead of expanding them.

[Webutxo]

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?

Is the electronic production stop? If no, you have nothing to worry about. Some brands moves with trend even though they have another products before. I believed you are from Nigeria, you should look at the richest man in Nigeria, Aliko Dangote is a wealthy man, he has different business brands, he is very known for his Cement brand but he is now focus on energy. He has one of the biggest Refinery in Africa today. Will you stop patronize his cement business because he now goes into energy? I guess no because he produce one of the best cement in Nigeria.

Your concern as a wholesale or retailers is to be able to maintain customers and not worry about the manufacturer. If a brand exist today and tomorrow he is out of the market, you can patronize another brand and if you have good marketing skills, you can convince your customers to buy the new brand available. Many brands live but customers satisfaction is your concern.

[alastantiger]

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). 

I do not think as a business you should be producing everything as that will make you not to have a market for yourself and a market that you dominate convincingly. The most successful business do not even produced anything but they just connect things together. Uber do not own any cars but connect drivers to passengers, iPhone do not produce most of the components that makes up the iPhone but they buy the best parts from those already producing them and then package it very well to sell to their customers. When they are not bothered about entering other market, it gives them more opportunities to focus their attention on dominating one market and marketing as that is more important than the product itself.

[serjent05]

Is it a good business model for a business to want to produce and sell everything?

If it can accommodate all the expenses, then I do not see anything wrong about aiming to produce and sell everything. Producing all products that a person needs is a good thing.  This means this product already has an available market.  Selling them would be easier. 

A careful businessman can do things with proper planning and strategy.  As long as it does not rush things and each product category is carefully designed, arranged and planned, things will work smoothly.  To be able to execute this, the company must have enough man power and these man power are properly distributed according to the need of each product category.

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 believe a company that sells electronics can expand to agriculture.  There is no conflict with this, the company just needs to establish another infrastructure that caters to agriculture and hire people knowledgeable on the products.  Meaning, the company just needs the funds and right manpower for the designated industry. As long as there are enough funds and talent, I think the expansion is feasible.

[Crypto_Timothy]

Is it a good business model for a business to want to produce and sell everything?

I think for many of these brands, it just takes an interest to develop at the higher level and before you know it they started producing what they like. Fo example see samsung and Yamaha, I grew up with Yamaha as a bike brand and as i entered my entertainment era, i started noticing them with the piano, turns out they started with the piano in the first place, now they make electronics, like i said all it takes is for a new type of interest to develop and next thing you know the company is moving in a different direction. I still find it funny that Samsung is now into ship building, thats crazy works

[Shinpako09]

Whether it will become good or not still depends on the quality of their product. If they can maintain the quality of their previous product, then I don't see anything wrong. After all, companies venturing into another business line is common for big companies. They won't even have to start from scratch in marketing a new one because they already have the name. So, all they need to do is not compromise the quality of one just to improve the other. Both should maintain their quality, or else they could lose both.

[slapper]

Colgate once tried selling frozen lasagna (yes, that was during the 80s - Googling it will reveal plenty of evidence). Not surprisingly, nobody wanted a meal that reminded them of toothpaste, so it went belly-up pretty quickly. Harley Davidson tried perfume. The result was similarly brief.

At this point the brand name is almost meaningless. I’d bet that the slippers and wipes you buy from any given brand are made in some anonymous factory in Guangdong, also making the same base products for half a dozen other more or less obscure names. The only input the named company has had in their construction is slinging its logo around the outside of the box and hoping for the best. That is entirely legitimate and by all accounts standard operating procedure. Everyone does it. So what does the name on the box actually mean? Certainly nothing to do with engineering, as they never made those slippers in the first place. So you’re paying for the company's ability to QA this product, but in a line where they have absolutely zero experience!

Sure, the company sells electronics, so it can easily test whether their chargers overheat or fry phones. But do they have employees who know which chemicals should not be brought near a face? That requires skillsets that are totally different, and it's not something they can acquire overnight. Also, if a company starts branching out in all manners of directions and selling an array of unrelated products, chances are that their core business stopped growing and someone at the top needs fresh numbers. Thus, expansion could be a symptom rather than a carefully-thought-out plan. Maybe earbuds just stopped selling.

I think a lot of their success could be explained by a lack of regulation in a lot of these markets and an abundance of counterfeits. People will buy a product because they recognise the logo (it's the only quality check they have) and this is what lets these brands get away with it. It's a bit sad really because they're basically capitalising on the trust people have in their name, trust that was earned on a completely different product.

Obviously, if it's just tissues from them then that's fine. Diapers though? Babies aren't beta testers.

[lombok]

Whether it will become good or not still depends on the quality of their product. If they can maintain the quality of their previous product, then I don't see anything wrong. After all, companies venturing into another business line is common for big companies. They won't even have to start from scratch in marketing a new one because they already have the name. So, all they need to do is not compromise the quality of one just to improve the other. Both should maintain their quality, or else they could lose both.

Reputation of course which is a well grounded thing, helps an enterprise to have an easy start at its new kind of activity. But even with a strong name, it is impossible to compensate for the decline in the quality of the goods, which were once good enough for satisfied customers. The attention devoted to the old goods should be in such proportion with that given to the new goods, as to preserve the former better than before and amaze the market with the latter. Consumers of today expect high consistency in any kind of products offered on the market. And if work is not done with care in the chase for sales, the trust may break immediately and mercilessly. Every kind of product should be in perfect balance.

[Dareo]

Well, it may appear that the company is losing direction from the external point of view but the ecosystem or lifestyle approach to business model is extremely clever, It means that your brand might not produce slippers and tissues in factories. What they do is put their brand tags in their products through investments or partnerships with small companies of high quality. In such a way, they don’t lose any of the initial electronics technology research and get everywhere in customers’ lives. People buy products only on condition that they see names of the well known brands if the quality of the product is high enough, So yeah this approach might be very beneficial for the business if there is proper quality control.

[Queentoshi]

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.

Is there not a danger in this, because I have read some responses on this my topic that reputation from one good business can be transferred to the other, but maybe everyone is thinking that that is only a good thing because that could also be a bad thing as if the new business that they are starting that is totally different from what they are known for goes bad, the bad reputation could rub off on the good business that they have, customers my start thinking twice about their other products before choosing to buy it.

What do you think?

[Victorybit1]

I've always been a fan staying in the business you know and growing that to a family known name, like LG electronics or Samsung but it has shown that the profit made from the diversification of business out weighs the risk, personally in the town I grew up, 60% of any shops in that my was owned by one individual and he keeps growing, it feels like monopoly but the catch is all the stores are under different names, that's his own business strategy

[SUPERSAIAN]

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.

When someone mentions a company that produces everything itself, Apple is the first one that comes to mind. They manufacture and sell all kinds of hardware under the Apple brand and even more besides. I’m not sure if this approach is right for every business, but being able to produce and sell everything yourself implies a massive amount of capital though, of course, that depends on the scale of the operation.

In any case, I don’t think it’s necessary to go to such great lengths just to ensure your logo appears on every single component.

[Queen Julie]

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’s anything wrong with a business expanding in different things, as long as they have what it takes to manage them. But personally, I think there’s something special about sticking to a niche and growing in it. When people think about a particular product, your brand should be one of the first that comes to their mind because it’s what you’ve built your name around.

My only concern about selling everything is that you might confuse people or make them question what your brand stands for. There’s nothing wrong with expansion but I think it should be strategic.

[Davidvictorson]

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 is not a bad business model.
I want to believe that if you check the company's history, they would have been more than a decade into the business and they decided to diversify at some point.
Once a good structure is in place, they can do whatever they want.
What is the public sentiment on their products or services? That is what you want to pay attention to and not their model.

[serjent05]

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.

Is there not a danger in this, because I have read some responses on this my topic that reputation from one good business can be transferred to the other, but maybe everyone is thinking that that is only a good thing because that could also be a bad thing as if the new business that they are starting that is totally different from what they are known for goes bad, the bad reputation could rub off on the good business that they have, customers my start thinking twice about their other products before choosing to buy it.

What do you think?

I think it is still dependent on how the company approach it.  There are lots of companies that venture outside their original industry and are performing well.  Here are some lists that proves us that expansion is not a bad thing: https://www.thebalancemoney.com/the-most-diversified-companies-in-the-stock-market-4169730

It is all a matter of preparation and careful planning, finding talent, experience, and execution.  After all businesses success is dependent on how well the company leaders manage the company affair.

[püsür]

I’ve seen this in a few countries around the world. But you need to think of them not as brands, but as mega companies that produces several stuff. Large holding companies or conglomerates—which we might even call ‘mega’ in scale—can operate across a wide variety of business sectors. I haven’t come across any of them that were bad. Such conglomerates maintain a certain level of quality, and I believe they manage to achieve a consistent standard across all their products. Having such a wide range of business sectors might seem a bit odd at first, but these conglomerates tend to recruit the best staff, and whatever the product or service, there’s a very high chance of a good outcome. In my experience, they’re not bad at all; in fact, I actually prefer them.

[Salahmu]

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 nothing wrong if a business decided to expand into producing different things if they have the resources to do that and besides no matter what a business is producing the only thing people usually want to see is the quality so if there quality is good enough to satisfied the consumers then there is no problem, I wouldn't feel discourage if my favourite electronic brand is also diversifying into some other unrelated things because I believe it wouldn't affect how they have been producing, but although is very uncommon to see an electronic manufacturing company also into baby diapers production.

[Btcdeybodi]

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.

At first Oraimo was producing quality gadgets and accessories but all of a sudden it turned out that they started producing fake. There was a time that Oraimo power banks were said to be the best but now many people have reported cases where their power banks got heated up during charging and got burnt. The Oraimo clipper is another case of its own and to think that their products are still expensive regardless. I don't even know what is happening in the production companies. Alot of fake products are circulating in the market and these are companies that started with selling quality stuffs and people were ready to buy despite the high price, why can't they maintain the quality even if it will cost more.

OP there is nothing wrong in adding another products to the ones that a business was known for inasmuch as they can also maintain same quality of service as their initial business niche. You just have to study and understand how you can be able to manage them effectively, you can still succeed in both.

[Emitdama]

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 totally depends on how the business manages these things. If a company is capable enough to produce quality products and can also sell the products successfully to the target audience, then there is nothing wrong with it, because generally, when a company sells specific products, they will have customers of that kind of products only. As you said, if a company initially only used to sell electronic items, then their customer base will be based on those products, but if they know they can manage to sell the newly created products as well, then they can surely give it a try. I don't think customers will care if the same company produces different products as well as long as the products have good quality and customers like them.

Personally, I wouldn't mind buying tissues from a company that I used to buy electronic items from in the past, but as I said, only if I know that the company is creating good quality products. If I already trust the company because of its previous track record of selling good quality products, I will surely go with them instead of trying a new brand. So, I don't think this thing in general can create problems for a business unless they don't manage things properly. If there is demand and they know they can fulfill it, there is nothing wrong with that.

[Josefjix]

Whether it will become good or not still depends on the quality of their product. If they can maintain the quality of their previous product, then I don't see anything wrong. After all, companies venturing into another business line is common for big companies. They won't even have to start from scratch in marketing a new one because they already have the name. So, all they need to do is not compromise the quality of one just to improve the other. Both should maintain their quality, or else they could lose both.

There is no need to compromise the quality of others to improve another, that's if the company is running on a scale that needs to be changed and rearranged for proper product opportunity to the same community or fan base. But I do see a struggling business trying to add another product in the ecosystem already, it's always a standard built business who undergoes this kind of restructuring.