Marketing innovation comes from "breaking the hidden rules of the industry"
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July 21, 2025
The driving school industry has become increasingly competitive, driven by the sheer number of people entering the market. More individuals are enrolling in driving schools, which has intensified competition among institutions. According to the principles of market competition, increased rivalry should lead to improved service quality. Ideally, driving schools should provide a solid foundation for new drivers, ensuring they can safely operate a vehicle. However, the reality is far from ideal.
In many cases, students leave driving schools with limited practical skills, and upon getting behind the wheel, they face real-world challenges that were not adequately addressed during training. This has led to a growing perception that "road killers" are common among new drivers. The issue lies not just with the students but with the system itself—many driving schools fail to deliver on their promises, prioritizing profit over quality education.
Behind this phenomenon lies an unspoken set of rules within the industry. Originally, the purpose of driving schools was to help learners obtain a license through proper instruction. But in practice, these standards have been compromised. This pattern isn’t unique to driving schools; it’s a widespread issue across various industries in China.
For example, in the software industry, poor quality is often accepted as normal. Companies know users will tolerate bugs, and problems are expected rather than avoided. In the dairy sector, products made from powdered milk are often sold as fresh milk, misleading consumers. Similarly, in the crystal industry, artificial or lead-based glass is frequently labeled as real crystal, deceiving buyers. In the fruit industry, unripe fruits are transported and then ripened artificially before being sold, creating a false impression of freshness. In construction, many homeowners end up hiring unqualified laborers, believing they’re working with professionals. Even in the food industry, hygiene practices are often subpar, with vegetables washed only once and meat sourced from questionable suppliers.
These hidden rules have created a culture of deception, where consumers are forced to accept substandard products and services. Over time, people become desensitized, no longer shocked by the lack of transparency. This cycle of compromise leads to a "prisoner effect," where both businesses and consumers are trapped in a system that rewards mediocrity.
The consequences are severe. When quality is ignored, trust erodes, and the reputation of entire industries suffers. Chinese manufacturing, for instance, has long struggled with the label of "cheap and low-quality." This perception stems from years of cost-cutting and compromised standards. However, not all companies followed this path. Some chose to focus on quality despite higher costs, and these firms eventually gained a loyal customer base and achieved long-term success.
One such example is Zhengtai Electric. While many in the electrical industry cut corners to maximize profits, Zhengtai remained committed to high-quality production. Despite initial disadvantages in pricing and output, the company gradually gained market share and became a global leader. This shows that breaking away from industry norms can create real opportunities.
Even in highly competitive sectors, there are still untapped markets. For example, the hotel industry in China saw a surge in budget hotels catering to private enterprise employees who couldn't afford luxury accommodations. These hotels offered better cleanliness and comfort at lower prices, filling a gap that traditional hotels had overlooked.
Ultimately, adapting to the status quo ensures survival, but true innovation comes from challenging the unspoken rules. Companies that break free from these constraints and genuinely serve their customers can thrive. The key is to recognize that consumer dissatisfaction is not just a problem—it's an opportunity. By addressing these gaps, businesses can redefine their industries and build lasting value.