x You are a seller, a business, a unit specializing in supplying goods to agents/distributors but are still confused about the concept of type?
x You wonder why it is necessary to separate categories of goods and product categories in any business?
x And as you know, product categories and goods will have their own rules and strategies. So what is it actually?
PROSHIP.VN will use this article to clarify all the knowledge you need to know about the types of goods in production, business and trade of many businesses and private individuals. At the same time, typical examples are also given to help you easily imagine what a product category is, what it means, and what is the purpose of dividing product/goods categories.
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What is a category? What is the type of goods? What is product classification?
What is a category?
In a system to divide things according to appearance, quality, etc., a type or group of things that have some similar features is called a category. So, what is a category?
Genre is a Sino-Vietnamese word that has been used very commonly in the spoken and written language of Vietnamese people for a long time. The word "species" has two elements, including "race" as origin, "type" as classification. Today, the term "type" is used in many different industries, including manufacturing and business. A typical example is the concept of what type of goods is.
What is the type of goods?
What is the product category or product category? That is the concept used to refer to a collection of products that have similarities or are closely related to each other. Evaluation factors to classify products into a product category:
- Have the same customer base;
- Have the same features;
- Have the same price segment;
- Brought to market through the same distribution channel.
Simply put, a product category is a collection of many products that are similar in terms of physical characteristics, purpose of use, etc. Product categories are classified according to breadth or depth. Specifically:
- The breadth of product assortment is calculated by the number of product types in the product category;
- The depth of product categories is determined by characteristics such as size, color, design, etc. of each product line.
The purpose is to classify types of goods
What is the purpose of classifying goods? That is:
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- Is the basis for calculating taxes on goods and products;
- Helps organize information and find information more easily;
- Identify commodity codes for easier management;
- Easy to come up with a marketing strategy suitable for each customer group.
What are imported goods of the same quality or type?
As above, you have understood what category is, what product category is, what product category is. So, are imported goods of the same quality or type?
According to the provisions of Clause 13, Article 2 of Circular 39/2015/TT-BTC, imported goods of the same class or type are goods of the same origin, in the same group or set of groups of goods. produced by the same industry or a specific field. Identical imported goods and similar imported goods are goods of the same type.
* For example: Types of construction steel such as round plain steel, twisted steel, shaped steel (U, I, V) produced by the steel industry are goods of the same type:
- In the method of determining customs value according to deductible value, "imported goods of the same class or type" are goods imported from all countries into Vietnam, regardless of origin;
- In the method of determining customs value according to calculated value, "imported goods of the same class or type" must be imported goods of the same origin as the goods being determined by customs value.
Rules for product categories and typical examples
Any manufacturing company has strategies for types of goods and products to compete and dominate the market. Enterprises manufacturing the same industry such as automobiles, cosmetics, etc. often offer similar product categories to compete with each other. In fact, instead of creating a new, superior product, competitors will create new, more differentiated product categories to gain market share.
Research shows that, if your business is not a pioneer in offering a certain product category, it is best to create a new, more different category. Continuously creating many product types is for businesses to segment the market and focus on occupying a small niche of that market. This helps businesses minimize risks when confronting large markets head-on.
* Example 1: Kia Morning is a typical example of successful market segmentation targeting customers who want to be compact and move flexibly. Kia Morning has dominated this market for both individual consumers and taxi businesses. Next, the Hyundai i10 appeared and had a market share in this market segment.
* Example 2: In Vietnam, Xmen is a very successful product line using this marketing rule. With the extremely fierce competition in the shampoo market with the world's leading brands such as Sunsilk, Header & Shoulder, Clear, would it be possible to use common sense to create a shampoo product with the same properties? Similarly, with a cheaper price or a superior product to compete, will Xmen be as successful as it is today? The answer is probably NO because Xmen has succeeded in creating a new product category and gradually becoming a pioneer brand in the shampoo market for "men".
However, launching a new product category is both risky and potential. Businesses need to understand that market where competitors are already there. In addition, businesses need to be confident that their new category is different so that this customer base will divert from the current category.
Another very important factor is that this market segment must be large enough. No matter how different the type is, if the market is too small, it is also risky for the business.
Proship Logistics has helped you clearly understand the concept of what type is, what type of goods is , what type of product is. Along with that are some typical examples of the rules of product categories that any business or seller must clearly understand and understand in order to have directions for production, business, and supply of goods. respectable.
For any questions related to goods, cheap multi-modal transport services, cheap warehouse rental, etc., contact us immediately. 0909 344 247.
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