Strategic mismatch in niche cultural markets

Abstract

Goal: With the rapid increase of cultural consumption in emerging markets, niche cultural product manufacturers are facing unprecedented challenges when they shift from export-oriented models to a highly competitive domestic market. From the perspective of strategic alignment, this study examines the marketing adaptation strategies of one of the most influential brands in China that integrates the design, production, and sales of dance products (Firm A). Methodology: A qualitative single case study design was adopted, and the Gioia method was used to analyze the data of semi-structured interviews and internal documents. The structural misalignment between upstream market selection logic (STP) and downstream marketing mix execution (4Ps) is studied. Findings: The study identifies four key strategic mismatches: rigid product standardization vs. diversified demand; High-end positioning vs aggressive digital pricing; Channel expansion vs. partner conflict; Professional authority vs. mass market promotion. It is particularly noteworthy that the study found the phenomenon of "tactical-led positioning", referring to short-term tactical execution (such as discounting) inadvertently reshaped the long-term positioning of the brand. Originality / Value: By extending the STP-Mix framework to niche cultural products in emerging economies, this study provides new insights into the "emerging market niche paradox". Managerial Implications: The research results show that firms should prioritize internal strategic consistency rather than short-term sales volume (GMV), and adopt "digital strategic orientation" to maintain professional legitimacy in the professional market.