The truth about business in the future is consumption stratification, not consumption upgrades

　　With the rise of the new middle class, Internet companies are in a traffic dilemma, and "consumption upgrade" has almost become a word that everyone talks about. It seems that only consumption upgrade can survive. It seems that consumption upgrade is the only way for Internet companies to succeed. Correspondingly, various concepts emerged in a variety of ways.

　　But I want to say that it is wrong, it is not consumption upgrading, but consumption stratification.

　　Upgrading is of course a big trend, but just like the earth will destroy, it is too far away and has nothing to do with most people. China is too big, and the gap in consumption levels is too big, and consumption stratification is the objective reality. Just like the pyramid, the higher the consumption demand, the greater the market demand. Of course we can pursue the cake on the spire of the tower, but there is no need to give up the rest. Finding what suits you, rather than blindly upgrading is what smart people do.

　　Why not upgrade consumption?

　　On the consumption pyramid, consumption upgrade is undoubtedly the most conspicuous piece of cake, but this does not mean that it is well-known, nor is it the easiest thing to eat.

　　The threshold for consumption upgrade is very high because it is the most picky group of users. Why did the tricks of community, internet celebrities, and live broadcasts emerge in just two years? Because it is too difficult for customers to upgrade to meet consumption.

　　Consumption upgrades certainly look beautiful because it means a brand, a high average customer price, and a high market share, but this does not mean that everyone is suitable for trying to upgrade consumption.

　　He has the most picky users and has the strictest requirements for products and services. This is destined to be a game for a few elite merchants. If you rashly invest resources to try, it is just a delivery of vegetables.

　　To give an extreme example, everyone knows that artificial intelligence is the next trend, and everyone knows that doing a good job of artificial intelligence can provide the best services to customers and occupy the best market cake, but who are the ones who really make efforts in artificial intelligence? They are giants like BAT, and world-class companies like Apple, Amazon, and Microsoft.

　　Don’t take care of porcelain work without Diamonds, and consumption upgrades are not something that anyone can play.

　　On the other hand, not everyone has the need to "consumption upgrade". It is of course a glorious to eat the spire of the tower, but the cake below is not uneasy. China is too big, and the consumer market is very different. You cannot forcefully upgrade your consumption to all consumers. This not only wastes resources, but also easily nourishes consumers' appetites and causes trouble for themselves.

　　More importantly, consumers may not appreciate it. "I just want to spend a few dollars to buy a big treasure. You have to force me to spend hundreds or thousands of dollars to buy foreign goods. Isn't this sick?"

　　Consumption upgrade is a major trend, but it does not mean that you must upgrade immediately. Only by upgrading at the right time can the interests be well-known.

　　Great opportunity for consumption stratification

　　The differences in consumption capacity, consumption concepts, and aesthetic tastes have led to consumption stratification, which contains huge opportunities.

　　First, the stratification of consumption capacity is the question of whether you can afford it.

　　China's economic development level is unbalanced, the gap between regional development levels is extremely large, and the gap between the rich and the poor is widening day by day. In first-tier cities, the average consumer goods, which are very common, may be rare luxury goods in remote areas, and are something that can only be tasted in a year.

　　Consumption upgrades will inevitably mean high customer unit price, but the current consumption situation in China determines that not all consumers can accept high customer unit price. When green organic foods are flooding some friends circles and entering some people's food purchase lists, others may have eggs and it's good to eat them. You talk about how healthy green organic food is to these people, but in fact you are very good at talking about the qin. Everyone knows that green organic food is good, but not everyone can afford to spend several times more.

　　Of course, you can do consumption upgrades and high-end customers, but accumulating a lot of money and not so high-end customers can also support a large market.

　　Second, the stratification of consumption concepts is the question of whether you are willing to buy it.

　　In fact, there is no unique definition of a good product, only the question of whether it is suitable or not.

　　Even if it is not limited by consumption capacity, everyone's consumption concepts are very different. They may focus on practicality, aesthetics, and connotation.

　　Some merchants are always confused about "My products are good, but why can't I sell them?" But the fact is that your goodness may not necessarily be meaningful to consumers.

　　For example, the demand for products of post-90s users is completely different from that of users of other age groups. Users aged 30 and 40 have higher requirements for product functionality. Commonly used functions and high-quality products can satisfy most users. However, for users born in the 1990s, some very practical points such as tone, brand, emotion, fashion, etc. may be the decisive factors of whether to consume.

　　Take chopsticks for example. A pair of antique silver chopsticks used by Kangxi, for a star-chasing girl born in the 2000s, is far inferior to the bamboo chopsticks signed by TFGboys.

　　?Product managers in Beijing, Shanghai and Guangzhou were shocked by Kuaishou’s amazing user activity. How could such a low product be successful? But Kuaishou’s success is not surprising at all. Kuaishou’s target users have never been cold white-collar workers in first- and second-tier cities, but also young people in small towns in China. It is obvious that small town youth and urban white-collar workers are two completely different consumer groups.

　　Third, the layering of aesthetic taste is the question of what to buy.

　　The Internet does not make our world a global village and make our communication smoother, but has formed thousands of small circles, with different circles and greater differences between people.

　　The aesthetic tastes of different circles are very different, and their requirements for consumer goods are also completely different. Products that may be very popular in this circle are very deserted in another circle.

　　Take the 2D peripheral for example. For those who are interested, they have a strong desire to buy, but for those who are not interested in the 2D, no matter how exquisite your product is or how strong the emotions it contains, it is ineffective.

　　To give the simplest example, the so-called fashion industry believes that those who do not wear long pants are fashionable, and wearing long pants seems to be unable to keep up with the trend. But in fact, there has never been a unified standard for what fashion is. The fashion industry is just a group that prefers to point fingers at fashion, and they cannot represent fashion. In the eyes of some people, not wearing long pants is fashionable, but in the eyes of others, those who don’t wear long pants in cold weather are idiots.

　　Overall,

　　First, not everyone can upgrade their consumption. To overestimate their own level and make high customer unit prices, they can only smile generously.

　　Second, there is no need for everyone to upgrade their consumption. Of course it’s good to upgrade, but there are still many customers who don’t want to upgrade. You don’t care about it?

　　Third, the gap between the rich and the poor in China will inevitably cause the consumer market to demand products and services at all prices. Upgrading does not mean taking all, consumers can’t afford it, and no matter how good it is, it’s useless.

　　Fourth, different consumers have huge differences in consumption concepts. Affordable does not mean you are willing to sell. Some people are pragmatic, what can you do?

　　Fifth, the differentiation of consumer aesthetic tastes determines that the evaluation differences of the same product among different groups of people are increasing, and it is impossible to please everyone.

　　Conclusion: Just be yourself. China’s market is vast enough, and it’s amazing to be yourself.

　　Regardless of one's own ability, he blindly thinks about upgrading consumption, and he doesn't know who he blames if he falls to death.

　　Using new products with consumption upgrades is always a little higher than consumers' expectations.

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