In today's fast-paced real estate market, mass marketing has become a powerful strategy. This "old and new" marketing model, which relies heavily on word-of-mouth, is now widely used to gain competitive advantage. In the ceramics industry, where attention is low, this method is commonly adopted by merchants to promote their products. However, while this approach has shown great success in real estate, can it be effectively applied to the ceramic sector?
A ceramic brand company recently tried to adopt this model, aiming to boost its visibility and market share quickly. The plan involved all employees not only performing their regular duties but also engaging in product sales. Existing customers were encouraged to refer new ones, and even non-employees could bring in new buyers. Those who successfully made sales would receive high commissions, while existing customers who brought in new ones could get a 10% rebate on the total purchase of the new customer.
This concept isn’t entirely new. In Chongqing’s ceramic market, similar strategies have been attempted before, but they never fully took off. The term “old and new†here refers to individuals with deep knowledge of the industry—like the well-known “Yangke passengers†or “bangbangs†in Yiyi Market. Designers, too, are considered part of this group. With the rising influence of designers in the Chongqing market, many have established relationships with material suppliers and control consumer resources. They often direct clients to specific brick stores in exchange for rebates.
In the lower-end market, “slushers†play a crucial role. These intermediaries help homeowners choose tiles and earn a commission from the store. Similarly, some industry insiders actively refer customers to other brands, hoping to secure higher commissions. In some cases, first-line brands offer up to 30% of the turnover as a reward. These individuals form the backbone of the “old and new†marketing system, though actual end consumers rarely benefit directly. When consumers do refer others, rewards are usually given in the form of gift cards or small gifts rather than cash rebates.
Industry experts suggest that while the “old and new†model may seem beneficial, it can also backfire. Consumers might feel misled, thinking they’re being taken advantage of. Additionally, since tile purchases are typically not large-volume, the incentive to refer others is limited. The cost of managing such a system can also increase significantly. Hu Shiwei, General Manager of Chongqing Bonya Building Materials Co., Ltd., believes that implementing this model in the ceramic industry is challenging. The sector lacks the enthusiasm needed for sustained engagement, and low rebates fail to attract participation. Furthermore, with so many competing brands, it’s hard for any single company to stand out. While first-tier brands may have the power to implement such strategies, they must ensure profitability and genuine value for consumers.
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