At the beginning of 2017, the concept of consumption upgrading became a buzzword in the mouths of almost all e-commerce people, and it seemed that if they would fall behind if they didn’t do some jobs of consumption upgrading . Today I will talk about how many points to upgrade consumption , and I hope to give you some cold thinking.
Consumption upgrade should have three meanings. First, to meet the sudden emergence of new middle-class people who have higher pursuits for consumption; second, to always meet the consumption needs of higher-level consumers and grow with the growth of consumption demand; third, China's consumption demand is upgrading, and merchants' products and services must also be upgraded.
First, meet the sudden emergence of new middle-class people who have higher pursuits for consumption;
1. Since the reform and opening up, China's economy has shown explosive growth, with 70 million new middle classes with higher demand for consumer products emerging, mainly concentrated in Beijing, Shanghai, Guangzhou and Shenzhen, as well as first- and second-tier cities;
2. The new middle class emphasizes personalization, customization and emotionality, and puts higher requirements on products and services, but at the same time, the consumption capacity is unprecedentedly high.
3. On the one hand, China's product market is overproduction, and a large number of low-quality products are unsalable. On the other hand, the product supply is seriously insufficient. The new middle class with higher requirements goes overseas to buy, which is also the main reason for the booming cross-border e-commerce;
4. Consumption upgrade mainly refers to producing higher quality and higher-profile products, getting rid of the quagmire of low-price competition, and taking a differentiated high-investment and high-output route.
5. The market for consumption upgrading is limited. China has nearly 1.4 billion consumer markets, but the new middle class accounts for up to 100 million in the short term.
6. The characteristics of consumption upgrading are high input, high output and high threshold. If you do not have the corresponding technical capabilities, operational capabilities, production capabilities, and capital level, and rashly think about consumption upgrading, it will only waste time, energy, and financial resources, and will instead drag down your basic business;
7. Consumption upgrade is not suitable for every merchant, and there is no need for all merchants to follow the path of consumption upgrade;
8. Although the consumption upgrade cake is delicious, if everyone grabs it, fierce competition will increase the cost of merchants, and the larger market that is vacant will be seized by competitors;
9. If the regional development of China's consumer market is very unbalanced, developed and underdeveloped regions may take several years to pay attention to the consumption upgrading market, but other markets cannot be ignored;
10. Instead of overestimating your ability and grabbing the cake of consumption upgrade, it is better to deepen the supply chain, improve output rates, and eat the bread of ordinary markets with thin profits but wider profits.
Second, always meet the consumption needs of higher-level consumers and grow with the growth of consumption demand;
1. As the reform results gradually precipitate, China's consumer group stratification will gradually show a pyramid structure. The higher the threshold, the smaller the market, and the greater the returns;
2. Due to historical reasons, China's competitiveness in the high-end consumer market is relatively weak. With the recovery of China's supply market, Chinese brands will gradually be able to compete with international brands and seize the big cake of the high-end market.
3. Consumption upgrades do not blindly make high-quality products, but always attract consumers by quality products that are slightly higher than the target consumers' needs;
4. You cannot fall into the high-quality trap, as only a very small number of people can follow that path.
Third, China's consumer demand is upgrading, and merchants' products and services must also be upgraded;
1. In the long run, with the continued growth of China's economy, the consumption demand in the entire Chinese market will shift towards higher quality, and consumption upgrading must be done as a daily task. High-quality products 10 years ago will inevitably be eliminated;
2. Whether you are in the high-end or low-end market, you must continue to improve yourself as the consumer demand changes.
In short, although consumption upgrades are beautiful, bigwigs such as Jack Ma are also advocating this concept, but don’t upgrade for the sake of upgrading, and you can’t use fake upgrades to deceive consumers.
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