There is a mistake when it comes to marketing low-price brands. Low-price brands should not be called “cheap”. There is a difference between affordable and cheap. People buy affordable brands, not cheap brands. This is a brand image problem that every low-price brands should be aware of.
Linking to local Vietnamese brands, why our local products are much cheaper than the imported, but still lost the competition despite having the same quality? One of the reasons is because local brands look at themselves as “cheap” brands, not “affordable” ones. When they look at themselves as “cheap”, they accidentally lower the brand image (low-price brands do not necessarily own low brand image) and become less customer-oriented. Looking at the world trend, one thing that makes any global corporates successful, whether it is Amazon or Starbucks, is the customer-oriented approach. Even Wal-Mart, the every low-priced supermarket chain has always upgraded its customer service, besides trying to maintain a competitive price (Read here). In the cost-conscious culture, “affordable” is one strong positioning, but remember “affordable” does not only mean low-price, but also an expected quality linked to that low price. How much quality do customers expect about your products’ price range? Answer that.